Sustainable Procurement Activities
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Yokogawa has focused on developing a supply chain that considers environmental protection and human rights. We will actively identify risks that impede sustainable procurement, embark on a path to improvement with our business partners, and strengthen activities aimed at achieving our sustainability goals "Three goals".


Summary of Activities

1) Activity policy

We are identifying risks that impede sustainable procurement with our business partners, focusing on understanding the actual conditions of the following 4 areas(defined in Yokogawa Group Sustainable Procurement Guidelines for Suppliers) : "Labor and Human rights" "Health and safety" "Environment" and "Ethics". In case a risk is realized, we work with our suppliers to take measures against it. We also develop educational programs on sustainable procurement both inside and outside the company. We set KPIs to manage and measure the progress of sustainable procurement activities.


2) Activity system

Yokogawa Electric Corporation Global Business Service Headquarters has established a sustainable procurement policy that incorporates human rights due diligence (DD) in the supply chain. We are actively implementing sustainable procurement activities in collaboration with our group affiliates.

Activity system

The Global Business Service Headquarters has established common rules for the group, such as items to be checked when initiating transactions, and each affiliate is monitored through the procurement process. We gather various types of information, including transactional details and supplier information, from our affiliates who directly interact with suppliers. In addition, concerning transaction information, we use integrated systems and other product information among group affiliates for data analysis as a group.


Overview of suppliers

1) About our Suppliers

The Yokogawa Group deals with more than 10,000 suppliers in 70 countries annually. The procurement status of suppliers by country for the fiscal year 2022 is as follows:

Overview of suppliers


2) Communication and Education with suppliers

We are actively engaging with key suppliers in each region by interacting with their management and key personnel, aiming to enhance our partnerships.

At our Musashino headquarters, we regularly hold "Partners' Day" events to provide explanations on our management policies, business plans, and procurement strategies. These events also serve as educational platforms where we promote the understanding of environmental policies and legal regulations related to the supply chain, using the "Sustainable Procurement Guidelines" Booklet.

Communication and Education with suppliers 1

Communication and Education with suppliers 2

Communication and Education with suppliers 3

In addition, we organize "Component Exhibitions" and "Technical Seminars" by our providers where we offer a platform to showcase their products, market trends, and component updates to our product development teams.


SAQ Activity Report

Over the course of three years, from 2020 to 2022, we have been actively engaging in activities to reduce CSR risks in the supply chain by utilizing self-assessment questionnaires (SAQ) based on human rights DD principles. These efforts have been aimed at promoting sustainable procurement practices.

1)PDCA cycle of activities

We consider the SAQ as a vital communication tool with our key suppliers for sustainable procurement based on human rights DD. Through the analysis of the survey results, we assess risks and proceed with improvement activities.

The cycle for promoting sustainable procurement using SAQ is illustrated below.

PDCA cycle of activities

We select our key suppliers based on various factors, including transaction data such as transaction amounts and transaction details mentioned earlier, information obtained from affiliates’ procurement departments, and compliance with regulations.


2)SAQ implementation process

We select important suppliers for SAQ (Supplier Assessment Questionnaire) based on transaction information data and other relevant information, using specialist knowledge and logic. From approximately 1,000 suppliers, which account for about 80% of the total transaction amount, we have selected around 600 suppliers based on transaction details and other information. Over three years, our affiliates’ procurement departments, which handle direct communication had divided the task and requested the implementation of SAQ from approximately 200 companies annually. These suppliers are asked to respond to questions related to sustainable procurement at their own company or their providers, covering areas such as policies, organizational structure, labor rights, occupational health and safety, and environmental practices. They provide their responses to us, and we receive and analyze the answers by quantifying them to conduct a risk analysis. Please refer to the chart below.

SAQ implementation process

In addition to conducting interviews with external stakeholders, we also engaged in face-to-face communication with our providers throughout the fiscal year 2022 regarding the current status of sustainable procurement. Based on these interviews, as well as other discussions, we have determined that there are no significant risks at present. The interviews were conducted with factory managers from the providers.


3)KPI monitoring

For the period from 2020 to 2022, we have established key performance indicators (KPIs) to track the number of providers who have submitted the completed SAQ and the number of endorsements received for the Yokogawa group Sustainable Procurement Guidelines.

KPI Cumulative number of suppliers to send SAQ Cumulative sending(SAQ) companies Number of facilities of got filled out SAQ Target Fiscal year
Number of work-places of suppliers executing SAQ 200 companies 191 companies 166 facilities FY 2020
400 companies 389 companies 333 facilities FY 2021
600 companies 588 companies 491 facilities FY 2022


80% of the suppliers who requested SAQ cooperated with us.

KPI The target number of providers The results number of providers Target Fiscal year
The number of providers who agreed to sustainable procurement in the SAQ responses. 70 facilities 135 facilities FY 2020
140 facilities 267 facilities FY 2021
210 facilities 398 facilities FY 2022


80% of the SAQ responses have expressed agreement with the YOKOGAWA Group Sustainable Procurement Guidelines.


About risk analysis

We conduct risk analysis based on the answers to the SAQ and other information.

1)SAQ score analysis

Here is the analysis of the scoring results of the answers received from 2020 to 2022.

  • Average SAQ Scores by Category

    Average SAQ Scores by Category

    In Category A, we ask questions related to human rights, such as agreements on working hours and dormitory capacity. In Category B, we inquire about safety and health, including the presence of education programs. Category G focuses on policies regarding 'Environment,' 'Ethics,' 'Conflict Minerals,' and 'Sustainable Procurement.' We review the scoring trends by fiscal year, the level of variation in individual responses, and the content of written descriptions. Based on our assessment, we have determined that understanding the trends through the questions in this SAQ is valuable for risk analysis.
  • Country Risk Analysis

    Country Risk Analysis

    We will analyze the average score of the providers who responded and consider how to proceed in the future.

    We analyze the SAQ responses we receive to improve our sustainable procurement activities. 

2)Other Investigations apart from SAQ

We have verified the information provided on CMRT (Conflict Minerals Reporting Template) sheets for purchased goods containing 3TG materials and confirmed that there have been no purchases from high-risk smelters/refiners over the past three years.

In addition, when necessary, we check whether our suppliers are listed on the entity list. Currently, we do not find their names on the list.

3)About other information gathering

We continue to enhance our knowledge and expertise in sustainable procurement by participating in workshops organized by the United Nations Development Programme (UNDP) and actively engaging in working groups such as JEITA and GCNJ to the development of sustainable procurement tools.

About other information gathering