Supply Chain Management

Supplier Selection Criteria

1. The supplier must be in a sound financial condition.
2. The supplier must have technical capabilities that can contribute to our products.
3. Have appropriate levels of quality, price and delivery time for products and materials supplied to us.
4. Have the ability to provide a stable supply and to respond flexibly to fluctuations in demand.
5. Comply with laws and regulations, respect the environment and make active efforts to reduce environmental impact.

EIZO Supplier Day (Japan)

In Japan, where over 80 percent of our　production takes place, EIZO Supplier Day is held once a year with suppliers to explain EIZO procurement policies as well as our business strategies and future initiatives and seek their cooperation.

Perform Supplier Risk Assessments

EIZO Corporation has obtained agreement from its major suppliers to promote compliance with the EIZO Supplier Code of Conduct through the Supplier Declaration.In addition, when selecting new suppliers and once a year for existing suppliers, we conduct a self-assessment to confirm and evaluate each company's compliance status and identify any risks. On-site audits are conducted periodically or as needed.

Strong Bonds of Trust to Ensure a Stable Supply

EIZO views the stable supply of products to meet customer demand as a key quality feature of our products and one of our responsibilities, in addition to the high-quality products, systems, and service themselves. Accordingly, we take advantage of the mobility of in-house development and production for flexibility in that development and manufacturing, and we secure strategic inventory of components and materials to ensure a stable supply. Also, the standardization of components between our products and procurement from more than one supplier or different production locations is implemented for our business continuity plans.
This requires strong bonds of trust as well as the understanding and cooperation of suppliers. Despite the challenging procurement conditions brought on by the COVID-19 pandemic and international tensions, supply has remained stable due to the mobility of in-house development and production as well as the quick securing of component inventory through cooperation with suppliers.

Strong Partnerships Ranging from Development to Post-Sales

Novel devices and image processing technologies are vital for creating innovative products. We therefore pay close attention, along with each device manufacturer, to the performance of key display devices.
In case of a failure after mass production, we conduct analysis of the failure status in cooperation with our suppliers to identify the cause, plan countermeasures, and promptly correct problems, in a dedicated effort to maintain and improve overall product quality.

The Due Diligence Process

We disclose our Responsible Minerals Policy on our website and demand that our entire supply chain makes effort to use only conflict-free materials in components for our products.
Furthermore, targeting our entire supply chain, we annually conduct a country of origin survey regarding the specific minerals using the RMI’s Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) to check if any minerals procurement may have a relation with illegal activities.
When the responses from the supply chain members include smelters that are not conformant with the Responsible Minerals Assurance Process (RMAP) standards, we demand that the relevant member conducts a further detailed survey and/or an RMAP audit or consider procurement from other RMAP conformant smelters.

2022 Survey Results

In the conflict minerals survey, we collected more than 97% of the answers. This survey identified 332 smelters, of which 219 were confirmed that they were RMAP smelters. In the cobalt survey, we collected more than 95% of the answers. This survey identified 74 smelters, of which 37 were confirmed that they were RMAP smelters.

Future Activities

In 2023, we will continue to work on due diligence activities to further identify smelters and improve the rate of mineral procurement from RMAP smelters. Collaborating with our suppliers and industry organizations, we will continue to strive to realize our goal to use only conflict-free materials.

Human rights and labor

• Suppliers are required to strictly prohibit forced labor and child labor.
• Suppliers are required to refrain from performing work that is likely to jeopardize the health or safety of young workers, pregnant women, and nursing mothers.
• Suppliers are required to properly secure working hours, holidays, and vacation for employees, to protect the health of employees. Work hours are not to exceed the maximum set by local law.
• Suppliers are required to compensate employees fairly and follow local wage laws and not to permit deduction from wages as a disciplinary measure.
• Suppliers are required to refrain from harsh and inhumane treatment to workers, including violence, intimidating words and deeds or any harassment ignoring personality.
• Suppliers are required to treat workers with dignity and not to engage in discrimination based on race, age, gender, sexual orientation, ethnicity, nationality, disability, religion, creed, social status etc. in hiring and employment practices.
• Suppliers are required to respect the rights of workers to associate freely and secure open and appropriate communication between workers and management.

Health and safety

• Suppliers are required to provide a healthy and safe working environment for employees under the leadership of management and the participation of employees, in accordance with applicable laws and regulations.
• Suppliers are required to verify potential emergencies and accidents, including disasters, and take the necessary safety countermeasures.
• Suppliers are required to inform the employees quickly, to take the necessary steps to provide treatment, to assist in returning to work and to take necessary measures to prevent recurrence, in the case a work-related accident or illness occurs.
• Suppliers are required to take necessary measures for risks that lead to health problems such as harmful chemical substances, noise, and harmful odors.
• Suppliers are required to evaluate physically demanding workloads and to control it.
• Suppliers are required to take safety measures and maintenance management with regards to the machinery and equipment used in the workplace.
• Suppliers are required to ensure safety and health (cleanliness) of the facilities, such as dormitories, dining facilities, and restrooms for employees.
• Suppliers are required to provide health and safety information and training in the employee's native or understandable language.
• Suppliers are requested to conduct the necessary health management programs to maintain employees' good health.

Environment

• Suppliers are required to comply with applicable environmental laws, regulations, and international treaties.
• Suppliers are required to make efforts to prevent environmental pollution and reduce environmental impact by conserving resources, promoting recycling, and reducing toxic and exhaust emissions.
• Suppliers are required to refrain from the use of chemical substances which are prohibited by laws, regulations, or international treaties. Suppliers are required to establish a control system for chemical substances covered by laws regulations, or standards, and properly disclose information.
• Suppliers are required to properly manage volatile organic compounds, fine particles and ozone-depleting substances emitted into the atmosphere, and disclose information.
• Suppliers are required to make efforts to prevent environmental pollution and reduce environmental impact by properly managing water sources and wastewater, and disclose information properly.
• Suppliers are required to make efforts to reduce energy consumption and greenhouse gas emissions by improving energy efficiency and using renewable energy. Suppliers are required to disclose energy and greenhouse gas emissions (scope 1 and 2).
• Suppliers are requested to design products and parts while considering resource saving, energy saving, and recycling to promote environmental friendliness.

*For details, please refer to the EIZO Green Procurement Standards.

Ethics

• Suppliers are required to prohibit any and all forms of bribery, corruption, extortion, and embezzlement at all.
• Suppliers are required to inhibit from giving and receiving business entertainment, gifts, or any other benefits contrary to applicable laws and regulations or beyond general business customs.
• Suppliers are expected to promote sound and fair business management. Suppliers are required to disclose details regarding management policies and business conditions (including financial information) properly.
• Suppliers are required to respect and not to infringe the intellectual properties of third parties including customers and next tier suppliers.
• Suppliers are required to uphold standards of fair business, advertising, and competition.
• Suppliers are required to establish an appropriate and effective process that allows next tier suppliers or employees to anonymously report fraud, legal violations, etc. in their organization to the internal or the appropriate external agent without retaliation, intimidation, or other detrimental treatment.
• Suppliers are required to identify, assess and response risks to ensure that the procurement of mineral resources from conflict areas and high-risk areas does not contribute to human rights abuses or environmental destruction. Suppliers are required to disclose the information upon customer request.
• Suppliers are required to strictly manage and protect personal and confidential information regarding their companies, customers, and next tier suppliers.
• Suppliers are expected to take necessary measures related to information security in order not to damage their business or business partners.
• Suppliers are required to inhibit any relationship with anti-social groups or organizations.

Quality

• Suppliers are required to satisfy defined quality requirements, in order to provide safe products and services for our customers.
• Suppliers are required to disclose necessary information relating to products and services quickly and accurately.
• Suppliers are requested to promote a high standard with regards to product quality, technology, and delivery time. In addition, suppliers are requested to keep pricing reasonable.
• Suppliers are requested to keep their capacity to supply products in a stable manner, and are requested to be flexible towards fluctuations in demand.
• Suppliers are expected to establish business continuity plans (BCP) that assumes emergencies such as natural disasters.

Management System

Suppliers are required to have established and implemented management systems for labor, health and safety, environment, ethics, and quality to comply with applicable laws and regulations and customer requirements. The management systems should include the following items:

• Statements of corporate policy and code endorsed by executive management.
• Establishing an organizational structure, responsibilities, and authorities to implement the management systems, managing implementation plans including the next tier suppliers, and a periodic review of management systems status.
• A process to identify and to monitor applicable laws, regulations, and customer requirements and to review the compliance on a regular basis.
• A process to identify risks and to implement the action plans and the objective settings for management and coping.
• A process for establishing and implementing objectives and implementation plans to improve the Supplier's performance, including a periodic assessment of Supplier's performance in achieving objectives.
• Programs for training all workers to implement Supplier's policies, procedures, and improvement objectives. Processes of maintaining the required competence and awareness.
• A process for communicating clear and accurate information about Supplier’s policies, activities and performance to workers, next tier suppliers, customers, and local communities.
• Ongoing processes to obtain feedback on or grievance from workers against practices and conditions covered by the Code and to foster continuous improvement.
• Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code, and customer requirements.
• A process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations, and reviews.
• Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company and customer requirements along with appropriate confidentiality to protect privacy.
• A process to communicate Code principle and requirements to Suppliers and to monitor Supplier compliance to the Code.

References

The following standards were used in preparing this Code.

• Responsible Business Alliance Code of Conduct
• United Nations Global Compact
• ILO International Labor Standards
• Ministry of the Environment （Japan）
• GHG protocol

EIZO Supplier Code of Conduct Download

• English version (Rev.2_April 2021) (PDF：127KB)
• Chinese version (PDF：84KB)