Social Background

JTEKT, aiming to "Joint Technology to bring joy to the planet earth and all working people," regards its suppliers as vital partners in addressing social challenges together and strives to achieve both a sustainable society and sustainable business operations.
The efforts of our company alone are not sufficient to solve the social issues through our business activities, such as reducing greenhouse gas emissions and maintaining the well-being of workers. We believe that these solution of issues can only be achieved through the efforts of the entire value chain.

The Way of Thinking by JTEKT

JTEKT has established a "Basic Purchasing Policy" to address social issues through its business activities and contribute to the development of a sustainable society. This policy emphasizes collaboration with suppliers in advancing these efforts.

Basic Purchasing Policy

Business Policy Briefing and Awards Ceremony

Every year, we hold a business policy briefing to communicate our business and procurement policies to our suppliers and share our stance on business challenges and social issues. 
Additionally, we encourage and recognize our suppliers' efforts in quality, technology, VE/VA proposals, and environmental initiatives, and honor those who achieve outstanding results.

JTEKT Supplier Association

The JTEKT Supplier Association consists of 243 suppliers (as of March 2024) and is proactively engaged in activities based on the principle of improving each corporate foundation and contributing to the development of a prosperous society through mutual learning and trust.
In FY2024, safety subcommittees, quality management conferences, and training sessions were held. JTEKT has been continuously supporting these activities to strengthen partnerships with our suppliers.

[ JTEKT Supplier Sustainability Guidelines ]

In May 2022, JTEKT issued the JTEKT Supplier Sustainability Guidelines to share the social responsibilities and codes of conduct expected of companies with our suppliers. These guidelines outline our policies on environmental conservation, human rights protection, and respect for diversity. We require our suppliers, as well as their upstream suppliers, to comply with these guidelines.

JTEKT Supplier Sustainability Guidelines

Human Rights Due Diligence

Companies are required to respect human rights not only within their own operations but throughout their entire supply chain. Specific activities include identifying and assessing human rights risks, preventing human rights violations, and implementing measures and remedies to address human rights issues. We conduct human rights surveys with about 250 of our key suppliers. Based on the survey results, we support each supplier in mitigating human rights risks.

New Suppliers Assessment

We have established the Supplier Certification Criteria and conduct evaluations for new suppliers before initiating transactions. In addition to assessing financial status, we review certifications related to quality management, such as ISO 9001 and IATF 16949, and investigate environmental sustainability efforts. Based on these evaluations, we determine whether to commence business with the supplier.

Dialogue with Suppliers

Through visits to our suppliers, we understand their efforts and challenges towards achieving carbon neutrality and provide specific advice on actionable measures. We have also supported the Carbon Neutral Subcommittee of the JTEKT Supplier Association, established in FY2024, in promoting mutual visits and collaborative learning activities among our suppliers.

Comments from Suppliers

• The advice and information provided by JTEKT on advancing carbon neutrality and improving workplace safety has been instrumental in raising awareness within our company.
• Global trends and specific examples of energy-saving initiatives provided by JTEKT were helpful.

Sustainability Training for Suppliers

In today's rapidly changing environment, building a sustainable society requires proactive and adaptive actions. At JTEKT, we are committed to supporting our suppliers in these societal shifts. Each year, we hold informative briefings for our suppliers, promoting sustainability awareness and initiatives across the entire supply chain.

Various Awareness Initiatives

• Sharing case studies of JTEKT and our suppliers' carbon neutrality initiatives, and releasing educational videos for suppliers annually since FY2021.
• Conducting environmental surveys for our suppliers and presenting awards to those with high evaluations for their initiatives annually since FY2018.
• Having seminars on the importance of managing environmentally hazardous substances since last year, with another session scheduled for September 2025.
• Conducting human rights surveys for the 248suppliers.

Conflict Minerals Initiatives

JTEKT recognizes the procurement of minerals originating from conflict-affected and high-risk areas as a serious social issue. Within our supply chain, we are particularly concerned about human rights abuses such as child labor, environmental destruction, and the funding of organizations involved in inhumane armed conflicts. Minerals like tantalum, tungsten, tin, and gold are especially problematic in this context.
With the cooperation of our suppliers, we have conducted annual conflict minerals surveys since FY2013 to verify the use of conflict minerals throughout the entire supply chain, from upstream to downstream. 
To avoid contributing to human rights abuses and violent conflicts associated with mineral resources, we will continue to work with our suppliers and various stakeholders to eliminate the use of conflict minerals. Together, we aim to promote more responsible mineral sourcing.

Green Purchasing Guidelines

JTEKT is committed to maintaining and restoring a sustainable global environment through green procurement. Our Green Purchasing Guidelines, developed in collaboration with suppliers, promote both carbon neutrality and circular economy initiatives. New items include reducing CO₂ emissions from logistics, minimizing packaging materials, and providing environmental data.

Initiatives for Carbon Neutrality

To achieve carbon neutrality, JTEKT aims to reduce CO₂ emissions by 25% by FY2030 compared to FY2021 and requests suppliers to reduce their emissions by 2.5% annually. We have established a subcommittee with participating suppliers to strengthen collaboration and share energy-saving practices. We also conduct site visits to assess progress and challenges, providing tailored advice on energy-saving measures.

Environmental Risk Assessments

１．Substances of Concern
We are dedicated to eliminating the use of environmentally hazardous substances that negatively impact the environment and human health. In alignment with industry standards such as the RoHS2 Directive and GADSL, we have established our own stringent regulations, known as the Restrictions on the Use of Chemical Substances in Product. Based on these regulations, we rigorously manage environmentally hazardous substances from　product development stages. We update these internal regulations twice a year and consistently provide our suppliers with the latest information to ensure thorough management of these substances.

２．Water Usage
Amid the worsening global water scarcity, addressing water risks has become increasingly important. Our company regularly conducts surveys on the amount of water used in the business activities of our suppliers.

３．New Suppliers
When entering into business contracts with new suppliers, we verify their acquisition of ISO 14001 or third-party certification related to environmental management.

Anti-Bribery Measures

We have established a fundamental policy for the prevention of bribery and have set up a committee specializing in anti-bribery measures. Additionally, we have defined a code of conduct for procurement staff to ensure thorough prevention of bribery within the procurement department. We strongly request all suppliers involved in our business to refrain from bribing public officials or third parties for the purpose of obtaining or maintaining undue benefits for the JTEKT Group, including through entertainment, gifts, or monetary exchanges.

Sustainability-Related Initiatives

JTEKT is a member of several industry associations, including the Japan Auto Parts Industries Association (JAPIA), the Japan Bearing Industry Association (JBIA), and the Japan Machine Tool Builders' Association (JMTBA). Additionally, our president serves as a director of JAPIA, an industry association representing our automotive business, which accounts for 70% of our global sales.
Specifically, we participate in JAPIA's Conflict Minerals Working Group and are working to implement conflict minerals survey forms (CMRT and EMRT) with our suppliers, while also striving to improve the quality of the survey results.

Consultation Desk for Suppliers

Since April 2017, we have operated a dedicated consultation desk for suppliers to further enhance the sharing of issues, including our response to the Act against Delay in Payment of Subcontract Proceeds. In addition, we conduct interviews with suppliers to better understand their concerns, improve mutual communication, and promote fair and appropriate transactions.