Building a Responsible Supply Chain

Building a Responsible Supply Chain

Procurement Policy and Promotion Structure

Against the social backdrop of increasing attention and demand for corporate social responsibility, we at Tokyu Construction established in May 2022 the Tokyu Construction Group Procurement Policy that focuses on our responsibility. We also built the structure to embed it in our supply chain in order to realize our purpose of creating a reassuring and comfortable living environment.

Our Procurement Policy and Engagement with Supply Chain

We have always engaged in procurement while collaborating with subcontractors and other vendors, ensuring compliance with laws and regulations, reducing our environmental impact and respecting human rights. To respond to today’s rising societal awareness of corporate responsibility to help achieve the UN Sustainability Development Goals (SDGs) and of environmental, social and governance (ESG) issues, we have clearly stated our procurement policy while incorporating our activities we have always conducted, and have broadly shared our thoughts both inside and outside of the company. Going forward, we will further strengthen our initiatives for responsible supply chain management with the policy.

Tokyu Construction Group Procurement Policy

At Tokyu Construction we value our partnership with subcontractors and other vendors for mutual development to create a sustainable society and sustainable communities. With that aim, we offer equal and equitable business opportunities to our subcontractors and other vendors, thoroughly comply with laws and regulations, and make sure that our selection process is fair.

Outline

1. Securing compliance and fair business practices
We ensure our compliance with laws and regulations, and fair and equitable business practices.
2. Ensuring quality
We select vendors that are most suitable to ensure that we offer quality construction products and services that can gain our customers’ trust and satisfaction.
3. Securing safety and cleanliness
We select vendors that are most suitable to ensure that we offer safe and clean construction products and services to our customers and every person who uses our products and services.
4. Reducing environmental impact
We give priority to procuring construction products and services that reduce environmental impact. We conduct proper management of waste, pollutants and hazardous substances, control noise and vibrations, and reduce greenhouse gas emissions.
5. Respecting human rights and creating a comfortable work environment
We respect international norms of human rights such as the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights) and the ILO Declaration on Fundamental Principles and Rights at Work . We select vendors that make every effort to secure a comfortable work environment free from any discrimination or harassment due to gender, age, place of birth, nationality, and other factors.
6. Developing strong information security
We select vendors that make every effort to develop a strong information security by paying due consideration to the protection of confidential information, personal information and customer information.
7. Refusal of relationship with anti-social forces
We have never engaged in and do not accept any transactions or other relationship with anti-social forces.
8. Establishing a disaster risk management system (in supply chain)
We develop a management system and create a business continuity plan to prepare for disasters and unforeseen contingencies.
9.Creating a procurement system
We are creating a system for continuously implementing these procurement policies.

See the following for Tokyu Construction Group’s initiatives to respect human rights.

Collaboration with Subcontractors

The Tokyu Group aims to enhance its corporate value by developing solutions for social issues such as climate change and creating economic value through these solutions. Cooperation with our subcontractors is very important to us in promoting these activities. We will further enhance our partnerships for mutual development and continuously contribute to society through our businesses and supply chain as a whole.

Tokyu Construction Group Supplier Code of Conduct

Working together with our business partners, including partner companies and suppliers, and other stakeholders across the whole supply chain is essential for us to be able to fulfill our corporate social responsibilities, which include respect for human rights. In this regard, we established a new Supplier Code of Conduct in 2022.

Declaration on Partnership Building

In March 2021, Tokyu Construction announced the Declaration on Partnership Building. The Declaration is a mechanism established by the Council on Promoting Partnership Building for Cultivating the Future, whose members include the Chairman of Keidanren, the President of the Japan Chamber of Commerce and Industry, the President of The Japanese Trade Union Confederation, and relevant ministers (Cabinet Office; Ministry of Economy, Trade and Industry; Ministry of Health, Labour and Welfare; Ministry of Agriculture, Forestry and Fisheries; and Ministry of Land, Infrastructure, Transport and Tourism). It is declared in the name of the representative of a company to build new partnerships by promoting cooperation, coexistence and mutual prosperity with suppliers and value-creating businesses in the supply chain. Based on the Declaration, we aim for co-existence and mutual prosperity across our entire supply chain, and not only strive to optimize subcontracting transactions, but also work together to resolve issues facing the construction industry, such as securing the next generation of workers and improving productivity.

Declaration on Partnership Building
Construction Career Up System (CCUS)

We make every effort to create a working environment in which our skilled workers, who play key roles onsite, receive proper evaluation and benefits in accordance with their skills and experience. As part of this effort, we are actively promoting the Construction Career Up System as a managing company of the Construction Career Up System Headquarters established by the Japan Federation of Construction Contractors. In this industry-wide system, IC cards are distributed to individual skilled workers, and data on their work histories and qualifications are recorded for creating a sustainable career path for younger generations.

Construction Career Up System (CCUS)
Monitoring Subcontractors’ Workplaces

Since July 2020, the Procurement Department General Manager has been working with Tokyu Insurance Consulting Co., Ltd. to directly visit subcontractors’ workplaces as part of communicating our procurement and management policies. In addition to supporting them in dealing with labor shortages and business succession issues, we also support them in recognizing the importance of environmental, human rights and labor-related issues by encouraging them to take the Eco Test and engage in onsite activities related to the three values we deliver.
In FY2023, marking the fourth year of this initiative, we visited a cumulative total of over 200 subcontractors by the end of the fiscal year. Our efforts include providing support for challenges such as labor shortages and business succession, as well as encouraging awareness of key issues related to the environment, human rights, and labor practices in alignment with our management policy, procurement policy, and Supplier Code of Conduct. Starting in the second half of 2024, we plan to begin a third round of visits to our major subcontractors. These visits will serve as valuable opportunities to reflect on the collaborative efforts made over the past four years to adapt to various changing conditions and to exchange ideas for future co-creation.

Support for Candidates for Future Employees at Subcontractors

We collaborated with the YouTube channel “Kocchi no Kento” by popular YouTuber Kento Sugo to deliver a series of videos that convey the appeal of civil engineering calledLearn About Civil Engineering with Kento Sugostarting from November 2020. As of May 2023, 28 episodes have been broadcasted, including projects to improve the impression of the construction industry and interviews with subcontractors, in the hope that they provide an opportunity for finding employment at our subcontractor partners in construction.

Launching the Whistleblowing System for Subcontractors

To further enhance our compliance system, we set up the whistleblower hotline to enable people from our subcontracting companies to use it starting from 2022.

Tokyu Construction Meister System

From among the supervisors who work in key positions on environmental conservation activities as well as on maintaining safety, health and quality at construction sites, we recognize particularly outstanding engineers as Tokyu Construction Meisters, in order to help boost the motivation of our engineers working in the field. To live up to the title of Meister, we expect them to continue striving to maintain and improve their performance.

Tokyu Construction Meister System

Occupational Health and Safety, BCP

We have organized an Accident Prevention Cooperative Association with subcontractors engaged in construction to promote the smooth progress of construction work through cooperation. In addition, we are implementing diverse activities to eliminate accidents and disasters, including the operation of the Tokyu Construction Meister System for excellent engineers. In the event of infrastructure damage due to a disaster, we also work with our partner subcontractors to ensure the early restoration of infrastructure by laying out disaster relief roads and other measures. We have signed cooperation agreements in the event of disasters with the national government, local governments, and other organizations, as well as with infrastructure-related companies.