The TOTO Group aims at being an existence that contribute widely and continuously to society and the environment under its Corporate Philosophy. For this purpose, we endeavor to create value for stakeholders, while trying to integrate company management and CSR and leveraging its strength. Risks we face are becoming more and more complex in keeping pace with the globalization of supply chains. The TOTO Group considers that execution of CSR not only by the Company but also by the whole supply chain at a high level is necessary in order to take ethical actions, which are effective for society and the environment. Therefore, we are committed to engaging in CSR activities with our suppliers.
The TOTO Group fulfills its corporate responsibility in all aspects of business management, the environment and society, and carries out balanced activities with the aim of achieving sustainable development of businesses, society and the Earth.
Through fair and equitable purchasing and in cooperation with suppliers, the TOTO Group continues to offer valuable products and services for customers.
The TOTO Group believes that not only the TOTO Group but also the entire supply chain must practice CSR management at a high level in order to act ethically and effectively for society and the environment.
Together with our suppliers, we have put together a "Supplier Code of Conduct" that outlines the basic ideas for working to realize a sustainable society.
This code is based on the "10 Principles of the United Nations Global Compact" and has been prepared by adding "Correspondence to Business Continuity Plan (BCP)" as a unique requirement of TOTO.
In addition, regarding compliance with this "Supplier Code of Conduct," we ask all suppliers, as well as direct transaction suppliers, to do the same.
Guidelines for Green Procurement
Based on the TOTO Group Global Environment Policy, the TOTO Group promotes the reduction of environmental loads in all processes of its corporate activities in order to reduce the environmental loads at all our companies.
In our procurement activities we will continue to contribute to the achievement of a sustainable society in cooperation with our suppliers by protecting the global environment and biodiversity and reducing the environmental loads in the entire supply chain.
In putting it into practice, we have established the Green Procurement Guidelines with the concept of the initiative and the content we would like to ask our suppliers.
CSR Procurement Initiatives(Supplier Assessment)
We continuously endeavor to improve the level of activities by focusing on explanation of our policy to suppliers, questionnaire surveys, and on-site audits and taking international guidelines on human rights, labor, and the environment into consideration. Especially for critical suppliers and suppliers with high sustainability risk, we increase the chance of visiting and monitoring suppliers, provide education and support to help them understand the necessity of CSR initiatives, and endeavor to improve the level of initiatives in CSR procurement across the whole supply chain.
The TOTO Group select suppliers through fair and impartial purchasing activities,in addition to quality, cost, and delivery time.
We check in the evaluation table the status of CSR initiatives such as human rights, labor, anti-corruption,
health and safety, and environmental considerations.
In addition, the achievement of standards for compliance items set by the TOTO Group is a condition for starting transactions.
Suppliers during during ongoing transactions
Procurement amount by country / region
In line with its Purchasing Policy, the TOTO Group cooperates with suppliers in procuring raw materials and parts in a sustainable manner.
In recent years, overseas, the number of supplier companies has accounted for 47%, and the amount of procurement has accounted for 25%.
Categorization of Critical Suppliers
Each department of the TOTO Group selects suppliers every year based on the following definitions.
Suppliers of important parts and raw materialsNon-substitutable suppliersSuppliers required to achieve the business planLarge Purchased Suppliers
Categorization of Suppliers with High Sustainability Risk
Each department of the TOTO Group selects suppliers every year based on the following definitions.
・A supplier that handles raw materials that have a large impact on the environment, society, and biodiversity.
・World Bank governance index value（Worldwide Governance Indicators (WGI)）Is a low country supplier
・Supplier who did not meet the TOTO requirement level in the CSR evaluation
Result of questionnaire survey
|Number of suppliers who have participated in the assessment survey||355||722||498|
|Achievement rate of compliance with the TOTO standards*||100%||100%||100%|
* Achievement rate of compliance with the TOTO standards：Rate of suppliers who have cleared standards for compliance items determined by the TOTO Group among all suppliers (includes completion of corrective actions).
Assessment items for suppliers
Sustainable Raw Material Procurement Standards were established in 2010. The procurement of earth and stone raw materials and wood materials, from which our staple products are made, is regarded as an critical issue to consider.
These standards are specified and published in the Guidelines for Green Procurement.
In addition to human rights, labor and compliance, we take into consideration the effects on the environment and ecosystem in the places where our raw materials are produced, as we pursue the appropriate balance between the sustainable use of resources and stable procurement and push forward with CSR procurement in cooperation with suppliers.
Standards for Sustainable Raw Material Procurement:
(i) Raw materials produced in compliance with the laws and regulations of the place of origin.
(ii) Raw materials produced in a working environment where safety and hygiene are properly provided.
(iii) Raw materials whose impacts on the local environment and biodiversity are taken into consideration.
(iv) Respect for the human rights of workers and local residents at the source.
For earth and stone raw materials used to produce ceramic sanitary ware, we confirm the legality and sustainability at all mines by conducting a questionnaire survey or an interview through trading companies that includes questions asking about compliance with the standards specified by TOTO at least once every three years. The questions include whether forests are restored after completion of mining and whether efforts are made to prevent mining and tailings from polluting rivers and lakes. In 2021, it was confirmed that all surveyed mines met TOTO’s standards.
We will aim at maintaining 100% achievement of compliance with the TOTO standards in fiscal 2022.
Target : Achievement rate of compliance with the TOTO standards 100%
Mines targeted:Achievement rate of compliance with the TOTO standards 100%
|Evaluation index||FY2019||FY2020||FY2021 Target||FY2021 Actual|
|Survey coverage rate*||100%||100%||100%||100%|
|Achievement rate of compliance with the TOTO standards||100%||100%||100%||100%|
*Survey coverage rate: Percentage of mines surveyed against all mines that the ceramic sanitary ware plants purchase stone materials from.
Assessment items for Mines
Initiatives for keeping rivers clean
As an initiative for keeping rivers clean, TOTO also monitors sedimentation reservoirs to ensure that the clear water above the sediment is discharged into the river.
Build a reservoir and release the clear water sitting above the sediment into the river
We conduct tree-planting activities in completed mine areas to regenerate forests.
Illegal logging and excessive logging of forests is a major cause of loss of forests, leading to loss of biodiversity.
The TOTO Group basically handles timber and timber products that have been certified as legal. Based on the Japanese Forestry Agency's "Guidelines for certifying legality and sustainability of timber and timber products,"we survey information necessary for traceability regarding the wood materials to be procured (country of origin, commercial distribution, legality certification, etc.) every year. In addition, we have set a target value for the ratio of legal materials and recycled materials to the amount of wood materials used for the products we produce, and confirm the actual values.
Since 2017, we have maintained the ratio of legal and recycled lumber at 100% and aim at maintaining it in fiscal 2022 as well.
FY2022 Target : Composition of Legal materials + recycled materials 100%
Recycle materials：Wood based materials that are made from wood that has been used once, wood that has not been used, or that has been discarded.
Use ratio of legal wood-based materials and recycled materials in products
Wood material type
Legal wood-based materials
TOTOTo help suppliers understand the TOTO Group’s management policy, yearly business policy, and purchasing policy and to deepen the relationship of trust and encourage two-way communication, we hold policy briefing sessions for key suppliers every year. In fiscal 2021, it was held both online and offline, and materials were also made accessible via the internet. In addition to communicating TOTO's purchasing policy to suppliers, we explained the importance of sharing production information and CSR, and requested your cooperation in BCP.
We also commended suppliers who contributed to cost reduction, on-time delivery, and quality improvement that year.
Results of Policy Briefings for fiscal 2021
|Nunber of companies participated||490|
|Nunber of companies commended||26|
In 2021, TOTO (Guangzhou) Co., Ltd., audited 13 key suppliers: 11 on site and two remotely. It was confirmed that all suppliers satisfied the standards set by TOTO, typically in the fields of human rights, safety and health, the environment, fair trade and ethics, and quality. In addition, issues where further improvement would be expected were concretely pointed out as opportunities for improvement.