Yokowo Co., Ltd.

Sustainability

Society
Supply Chain

Basic Approach

In addition to pursuing fair and equitable transactions with our business partners, we engage in procurement practices that reflect our commitment to social responsibilities across the supply chain. These efforts include strict compliance with laws and regulations, the creation of multi-site production structure, and the development of a resilient and uninterrupted supply network.

Purchasing Policy

Based on our corporate philosophy framework—Purpose, Vision, and Values—we have established the following Purchasing Policy to ensure responsible sourcing.
Together with our business partners, we strive to contribute to the development of a sustainable society and achieve mutual growth.
Purchasing Policy Ver. 1.0, established in May 2024

Coexistence and co-prosperity with business partners

Build long-term trust relationships with business partners, and partnerships that mutually enhance value.
Procure from diverse business partners, and contribute to society by creating added value.

Fair and equitable transactions

Comprehensive evaluation based on quality, price, delivery times, service, technical capabilities, and CSR, to transparent selection of business partners.
Fair and equal entry opportunities for domestic or overseas suppliers regardless of their business scales.

CSR initiatives

Respect Yokowoʼs CSR Policy and Code of Conduct, and promote purchasing activities that take into consideration human rights and environmental conservation.
Work with business partners to promote CSR activities that include corporate ethics and compliance with laws and regulations.

Governance Structure

Under the oversight of the Sustainability Committee, Purchasing H.Q. is responsible for formulating policies, developing plans and initiatives, and driving efforts toward responsible procurement. Progress on supply chain-related challenges and KPI targets is reviewed by the Sustainability Committee and reported to the Board of Directors.

Board of Directors

Sustainability Committee

  • Supply Chain
  • Purchasing H.Q.

Major Initiatives

Business Partner Code of Conduct

With reference to the Yokowo Group’s Sustainability Fundamental Policy and Code of Conduct, The Yokowo Group has summarized in the form of the YOKOWO Business Partner Code of Conduct the standards of behavior that the Yokowo group expects its business partners to understand and support and to actually implement and comply with.
The purpose of the Code is to further enhance corporate value, achieve mutual growth with our business partners, and strive to respond to the trust placed in us by our stakeholders.
As such, the Code consists of the ten sections: Compliance with Laws and Regulations, Respect for International Norms, Labor, Health and Safety, Environment, Ethics, Quality and Safety, Information Security, Business Continuity Planning, Social Contribution, and Management System.
*Ver2.0 Established on May 2024

YOKOWO Business Partner Code of Conduct
1.Compliance with Laws and Regulations and Respect for International Norms 2.Labor 3.Health and Safety 4.Environment 5.Ethics
Companies must not only comply with the applicable laws and regulations
of their own country and the countries/regions in which they operate,
but they must also respect international codes of conduct.
  1. (2-1)Prohibition of Forced Labor
  2. (2-2)Young Workers
  3. (2-3)Working Hours
  4. (2-4)Wages and Benefits
  5. (2-5)Non-Discrimination/Non-Harassment/Humane Treatment
  6. (2-6)Freedom of Association and Collective Bargaining
  1. (3-1)Health and Safety Permits and Reporting
  2. (3-2)Occupational Health and Safety
  3. (3-3)Emergency Preparedness
  4. (3-4)Occupational Injury and Illness
  5. (3-5)Industrial Hygiene
  6. (3-6)Physically Demanding Work
  7. (3-7)Machine Safeguarding
  8. (3-8)Sanitation, Food, and Housing
  9. (3-9)Health and Safety Communication
  1. (4-1)Environmental Permits and Reporting
  2. (4-2)Pollution Prevention and Resource Conservation
  3. (4-3)Hazardous Substances
  4. (4-4)Solid Waste
  5. (4-5)Air Emissions
  6. (4-6)Materials Restrictions
  7. (4-7)Water Management
  8. (4-8)Energy Consumption and Greenhouse Gas Emissions
  9. (4-9)Biodiversity Conservation
  1. (5-1)Business Integrity
  2. (5-2)No Improper Advantage
  3. (5-3)Disclosure of Information
  4. (5-4)Intellectual Property
  5. (5-5)Fair Business, Advertising and Competition
  6. (5-6)Protection of Identity and Non-Retaliation
  7. (5-7)Responsible Sourcing of Minerals
  8. (5-8)Appropriate Import/Export Controls
  9. (5-9)Cutting off Relations with Antisocial Forces
6.Quality and Safety 7.Information Security 8.Business Continuity Planning 9.Social Contribution 10.Management System
  1. (6-1)Ensure Product Safety
  2. (6-2)Quality Control
  3. (6-3)Provision of Accurate Product and Service Information
  1. (7-1)Defense Against Cyberattacks
  2. (7-2)Protection of Personal Information
  3. (7-3)Prevention of Leakage of Confidential Information
  1. (8-1)Business Continuity Planning and Preparation
  1. (9-1)Contribution to Society and Local Communities
  1. (10-1)Company Commitment
  2. (10-2)Management Accountability and Responsibility
  3. (10-3)Legal and Customer Requirements
  4. (10-4)Risk Assessment and Risk Management
  5. (10-5)Improvement Objectives
  6. (10-6)Training
  7. (10-7)Communication
  8. (10-8)Worker/Stakeholder Engagement and Access to Remedy
  9. (10-9)Audits and Assessments
  10. (10-10)Corrective Action Process
  11. (10-11)Documentation and Records
  12. (10-12)Supplier Responsibility
CSR purchasing

The Yokowo Group’s Purchasing H.Q has long promoted CSR activities through audits and other measures for our business partners, focusing on areas such as General Requirements, Information Security, Environment, and CSR, both at the start of new transactions and on an ongoing basis.
In response to the growing importance of CSR in recent years, we have reviewed our operational framework to further strengthen stakeholder trust. In 2024, we launched a renewed initiative based on the PDCA cycle to ensure continuous improvement.
For new business partners, submission of the Agreement to the Supplier Code of Conduct, completion of a Self-Assessment, and improvement of any critical nonconformities identified are mandatory requirements for initiating transactions. We appreciate your cooperation in these efforts.

PDCA cycle considerations in CSR purchasing
  1. Plan

    Develop annual activity plan

  2. Do

    Conduct business partner briefing and supplier assessment

  3. Check

    Evaluate and monitor supplier assessment

  4. Action

    Create improvement plan, improvement activities

CSR Purchasing Guidelines

Yokowo established the CSR Purchasing Guidelines to help business partners better understand the Business Partner Code of Conduct through explanations that incorporate actual initiatives.
Through these Guidelines, Yokowo and its business partners share a common understanding of Yokowo’s CSR activities and work together to contribute to the realization of a sustainable society.

Letter of consent to Business Partner Code of Conduct

As a business partner of the Yokowo Group, we expect you to implement initiatives to address the requirements set out in the Business Partner Code of Conduct. We would also be grateful if you would submit the Letter of Consent to the Business Partner Code of Conduct.  

The CSR Purchasing Guidelines and the Letter of Consent to the Business Partner Code of Conduct can be accessed and downloaded here. （Documents in English version are being prepared now）

Green Procurement Activities

As part of our Green Procurement Activities, the YOKOWO Group ensures compliance with international and industry regulations such as the Stockholm Convention on POPs, EU REACH Regulation, EU RoHS Directive, Japan’s Chemical Substances Control Law, and GADSL for the automotive industry.
During product development and whenever regulatory requirements are updated, we collect and verify substance data using systems such as IMDS and chemSHERPA. If any restricted substances are identified, we promptly report the findings to customers and switch to alternative materials.

Key Regulations
Stockholm Convention on Persistent Organic Pollutants (POPs)
EU REACH Regulation, EU RoHS Directive
Chemical Substances Control Law (Japan)
GADSL and other industry-specific regulations
Information Sharing with the Supply Chain
Dissemination and enforcement of the Yokowo Group’s Hazardous Chemical Substance Management Standards
Data Collection and Review
Substance data collection during new product development and introduction of new components
Data review when regulatory requirements are updated for existing products/components
Data collection upon customer requests for specific substances
Data Collection Methods
IMDS for VCCS-related components　chemSHERPA for other business units

Reporting investigation results to customers

Switching to alternative materials

Responsible Mineral Sourcing

As part of our Responsible Mineral Sourcing activities, the YOKOWO Group conducts investigations to identify the use of resources that may pose risks of human rights violations—such as child labor or forced labor—or environmental destruction in conflict-affected and high-risk areas. These resources include 3TG (tin, tungsten, tantalum, gold), cobalt, mica, copper, nickel, natural graphite, lithium, natural leather, and natural rubber.
If the use of such resources is confirmed, we promptly report the findings to customers and switch to materials sourced from other countries.

Key Regulations
Section 1502 of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
EU Conflict Minerals Regulation
Target Resources
3TG (tin, tantalum, tungsten, gold)
Cobalt, mica, copper, nickel, natural graphite, lithium
Natural leather, natural rubber
Investigation Process
Verification of resource usage in existing products
If usage is confirmed, request suppliers to provide details on sourcing countries and smelters
Report investigation results to customers

Report investigation results to customers

Switch to materials sourced
from non-conflict regions when necessary

Performance

CSR Purchasing Activities
Target : Manage risks for business partners representing 80% of global procurement transaction value by March 2027.
  • Medium-Term Plan (FY2024–FY2026):
    • Conduct self-assessments and risk evaluations for business partners.
    • For partners with critical nonconformities, request submission of improvement plans and implementation of corrective actions to ensure risk visibility and management.
Status as of September 2025:
Activity Scope Purpose Results
Establishment of Purchasing Policy / Supplier Code of Conduct (Ver. 2.0) All business partners Communicate YOKOWO Group’s purchasing principles and standards for supplier practices Established in May 2024; published on website
Supplier Briefings Japan (covering over 90% of transaction value) / China & Hong Kong (covering over 90% of transaction value) Share YOKOWO’s CSR purchasing initiatives Attendance rate: 100%
Submission of Agreement to Supplier Code of Conduct Suppliers attending briefings Confirm agreement and cooperation with CSR purchasing initiatives Submission rate: 100%
Self-Assessment & Evaluation Suppliers who submitted agreement Visualize CSR efforts and identify risks Japan: 100% response rate; China/Hong Kong: ongoing
Improvement Activities Suppliers with critical nonconformities Collaborate to achieve advanced CSR standards Japan: all nonconformities corrected
CSR Risk Management

CSR Risk Management Plan and Results (New Framework, 2024 Edition)

  • FY2024: Conducted supplier briefings, self-assessments, risk evaluations, and improvement activities for critical nonconformities among business partners in Japan.
  • FY2025: Held supplier briefings for business partners in China and Hong Kong; self-assessments and risk evaluations are currently in progress.

Supplier briefing sessions held in China
Supplier briefing sessions held in China

From FY2027 onward, we will continue efforts to further improve the risk management coverage rate.

Self-Assessment Results for Japanese Business Partners (Conducted in 2024)

For suppliers with non-conformance in priority items (high-risk or medium-risk) based on our standards, we implemented Improvement Plans, including development, execution, and effectiveness verification. As a result, all suppliers achieved full compliance and were rated as Low Risk.

Responsible Mineral Sourcing

Conflict Mineral Investigation Number of Reports to Customers
All reports confirmed no issues.

2023 2024 2025
(as of August)
152 157 105
Employee Training

The Yokowo Group provides training programs for employees to ensure they have the necessary knowledge for procurement operations.
Japan (as of August 2025)

Period Training Title Content Target Participants Format Number of Participants
2023 Subcontract Act Basic knowledge on (1) reduction of subcontracting payments and (2) delayed payments Domestic Group employees e-Learning 1,334
2024 CSR Purchasing Understanding CSR purchasing under the new framework
(existing suppliers)		 Members of YOKOWO Purchasing H.Q In-person / Online 31
2024 Subcontract Act Basic knowledge on (1) reduction of subcontracting payments and (2) delayed payments New hires and mid-career employees after 2024 e-Learning 67
2024 Antimonopoly Act Basic knowledge of antitrust law from a procurement perspective Domestic Group employees engaged in procurement e-Learning 424
2025 CSR Purchasing Understanding CSR purchasing under the new framework
(new supplier adoption)		 Members of YOKOWO Purchasing H.Q In-person / Online 31
2025 Procurement Knowledge Essential knowledge required for procurement operations Domestic Group employees engaged in procurement e-Learning 272