Sustainability

Based on the Mission Statement to the effect that “We shall live in harmony with society and our customers; together, we shall create new values through the provision of original service; and we shall contribute to the medical care and well-being of people around the world,” TOHO HOLDINGS Group (hereinafter referred to as the “Group”) is addressing the resolution of social issues through its business as a corporate group engaging in business activities in the fields of medical care, well-being and nursing care, and is promoting sustainability management with the aim of becoming a corporate group that is needed and continuously supported by all of its stakeholders, including people who wish for good health, its customers, its suppliers, local communities, its shareholders and its employees.
In order to achieve the above, it is essential that the entire supply chain, which forms the foundation of business continuity, makes efforts towards this mission.
This Policy constitutes the foundation based on which the Group achieves responsible procurement activities and contributes to the realization of a sustainable society on the basis of a strong relationship of trust between the Group and its suppliers that are involved in the supply chain for the business.

This Policy applies to all procurement activities of the Group.

The Group will always endeavor to communicate with its suppliers on an equal footing and in good faith so that the Group can develop together with, and coexist and co-prosper with, its suppliers as good partners on the basis of a strong relationship of trust between the Group and its suppliers in the course of its procurement activities.
The Group will work on strengthening its relationship with its suppliers continuously so that the entire supply chain can remain resilient and wholesome.
The Group is on a social mission to continue supplying pharmaceutical products and other related products stably even in emergency circumstances such as disasters and pandemics and will establish and implement a Business Continuity Plan (BCP) for the entire supply chain.

The Group will comply with laws and regulations relevant to procurement activities (such as the Antimonopoly Act, the Subcontract Act, etc.) that are applicable in the regions or countries concerned, and social norms in the course of any and all procurement activities. In addition, the Group will countenance and respect the International Bill of Human Rights, including the “Universal Declaration of Human Rights”, which sets out the international principle of respect for the fundamental human rights, the “ILO Declaration on Fundamental Principles and Rights at Work”, the Ten Principles of the United Nations Global Compact on “human rights, labour, environment and anti-corruption,” and other international norms demanded by society.
The Group will conduct its procurement activities through fair and transparent procedures and will not conduct any unfair or unjust transaction that may create benefit for a particular individual or organization.
The Group will always take care to ensure objectivity and transparency in the course of its procurement activities and will not demand that any advantage (money, goods, business entertainment, benefits, etc.) be provided for it by making use of its position of superiority or authority.

The Group will ensure that persons or entities that have the potential to be its suppliers will be provided with fair and broad opportunities that may lead to the initiation of transactions.
The Group will select its suppliers through a fair process in consideration of the following factors:
(1) Comprehensive consideration of various elements such as quality, delivery time, price, management stability, past achievements, management of and response to various risks, etc.;
(2) Whether the person or entity countenances the Group’s Procurement Policy and complies with it together with the Group as a partner involved in the supply chain; and
(3) Whether the person’s or entity’s upstream suppliers ensure the same level of compliance as described in the preceding item.

The Group will respect human rights also in the course of its procurement activities in conformity with the “TOHO HOLDINGS Group’s Human Rights Policy” established by the Group.
The Group will endeavor to ensure fair wages, appropriate working hours, the prohibition of forced labor and child labor, and occupational safety and health. In addition, the entire supply chain will address the protection of human rights.

The Group, together with its suppliers, will facilitate the entire supply chain’s activities aimed at reducing pressure on the environment.
Specifically, the Group will advance its efforts to reduce greenhouse gas emissions by facilitating planned delivery and joint delivery or otherwise, and will facilitate procurement activities based on consideration for climate change, circular economy and ecosystems.

The Group will responsibly manage information that comes to its knowledge in the course of its procurement activities, will maintain the confidentiality of such information, will not use such information for any purpose other than the purpose agreed upon by the Group and the relevant suppliers in relation to its procurement activities, and will not divulge or disclose such information to any third party without the consent of the relevant suppliers.

The Group has established a system to manage purchasing activities of the entire Group by establishing the “Purchasing Management Department”, which manages purchasing activities that are a part of the Group’s procurement activities.

The Group will provide necessary education and training so that not only the personnel in charge of its procurement activities but also officers and employees working for the Group can understand and become aware of this Policy, relevant laws and regulations, and various applicable rules.
The Group will periodically evaluate its procurement activities with the aim of promoting responsible procurement activities and will continuously improve its procurement activities through constant cooperation with its suppliers.

The Group will disclose information on its procurement activities on its website and in various reports as necessary.