1. We build sound and productive relationships with business partners in the spirit of mutual trust and cooperation.
2. We seek to promote procurement activity that is not only legally compliant, but also highly fair, equitable, and transparent.
3. We carry out procurement activity that is aimed at symbiosis between nature and humanity.
4. We endeavor to build and maintain systems instrumental in stably supplying products to customers.
5. We stringently safeguard business partners’ confidential information to honor confidentiality.

We have developed TATSUTA’s Green Procurement Guidelines. We disclose our green procurement standards to our suppliers, and ensure that they comply with the matters requested. We also investigate suppliers to ensure they do not use raw materials or components containing conflict minerals or similar substances. By procuring environmentally-friendly raw materials and subsidiary materials, we aim to reduce environmental impact throughout our supply chains and contribute to achieving a sustainable society.

Furthermore, in view of rising interest in ensuing respect for human rights in our corporate customers’ supply chains, we engage in initiatives (human rights due diligence) to appropriately investigate, analyze, and redress human rights risk. As part of our human rights due diligence, we utilize external resources to carry out investigations of new and existing business partners, including whether they have relationships with antisocial forces or are in violation of laws and regulations concerning matters such as human rights, money laundering, and bribery in various countries. We engage appropriately with key suppliers through measures such as individual surveys.

TATSUTA endeavors to purchase key materials and raw materials from more than one business partner, in anticipation of the possibility that it may become impossible for us to purchase that partner’s materials and raw materials. Should any incident occur, we swiftly gather information and take action.

We hold supplier meetings as necessary for the purpose of fostering mutual trust with suppliers. At these meetings, we communicate trading precautions and rules, and request the compliance of our suppliers.

The TATSUTA Electric Wire & Cable Group implements procurement training and workshops according to operation and level, with the aim of raising compliance awareness.
At the Subcontract Act workshops, lectures are given according to the operations of each department, with the aim of acquiring basic knowledge and strengthening awareness of legal compliance.
At seminars for responding to the “Package of Measures to Facilitate Transfers,” we invited an attorney as the instructor to thoroughly raise awareness of fair trade.
We also conduct awareness programs, such as playing videos of examples of violations and communicating information about precautions on our internal portal site. Future plans include posting Subcontract Act Q&A.

We have taken every precaution to prevent infection among employees and ensure business continuity by establishing the Basic Policy on Epidemic Countermeasures and the Action Plan for Epidemic Prevention Measures as procedures that can be used against new epidemic risks that may arise in the future, based on countermeasures implemented during the COVID-19 pandemic, in accordance with the Crisis and Emergency Response Rules. We also have implemented the Large-scale Disaster Business Continuity Plan and the Large-scale Earthquake Action Plan at domestic business units, and provide education and seminars to increase effectiveness, to prepare for events such as large-scale earthquakes and other large-scale disasters.

TATSUTA’s functional films business boasts an overwhelming share of the global market. To fulfill our duty to consistently supply customers, we obtained ISO 22301 (BCMS) certification in July 2016. We have established a BCP covering large-scale disasters (natural disasters, accidents, fires, etc.), supply chain disruptions, epidemics, and information system failures, including cyber attacks, and constructed a system for business continuity, with the General Manager of Electronic Materials & System Equipment Group as the top management. Specific initiatives to reduce supply chain disruptions include diversification of vendors, business continuity audits of suppliers in relation to materials procurement, contract manufacturing, and logistics, and post-evaluation feedback. We also strive to share information for building better relationships and to request BCP initiatives at supplier meetings.

In the fiscal year ended March 31, 2023, to increase the effectiveness of BCP, we held a BCM seminar in anticipation of a natural disaster and supplier shutdown, refamiliarized ourselves with suppliers’ crisis management systems and procurement risks that businesses could face, and engaged in initiatives to improve throughout the organization.

Business Continuity Policy

TATSUTA’s functional materials business fully recognizes the social responsibility as a company that provides functional materials to the market, and will implement a business continuity management system (BCMS) to minimize the impact of large-scale disasters, epidemics, and information security incidents on business.

• Our top priorities are human life and safety.
• We will continue key operations.
• We will fulfill our responsibility to provide a stable supply to customers.

In recent years, cyber attacks (ransomware, malware, etc.) have become a significant risk around the world. In the functional films business, in January 2023 we obtained ISO 27001 (ISMS) certification as a means of ensuring business continuity with the aim of building customer trust through the appropriate management and protection of customer information. We also reviewed our information system BCP.

Information Security Policy

TATSUTA’s functional materials business will implement an information security management system (ISMS) in an effort to maintain and build social trust and increase corporate value, based on the recognition that maintaining and improving corporate information security is an important management issue.

• We will protect and appropriately manage all information assets in our possession.

We will continue to strengthen our BCMS system through business continuity seminars and training in anticipation of possible incidents such as natural disasters due to abnormal weather conditions, supply chain disruptions, system failures, and cyber terrorism. By ensuring the continuity and swift resumption of business operations, and minimizing the impact on the supply of products and services to customers, we aim to win the trust of customers and ensure stable supply.

Supply chain management activities in the Function Films Business

Trusting relationships with suppliers	We explain and share information about customer needs and market trends with business partners at annual business policy briefings.
Construction of a supply chain BCP	We ask business partners at business policy briefings to cooperate with BCP initiatives. In emergencies, we conduct audits of the level of impact on business partners, ascertain the status of each company, and maintain stable procurement.
Risk management	We audit individual items, including quality, environment, business continuity plans (BCP), and information security, provide feedback of the audit results, and ask business partners judged as high risk to make improvements.
Stable supply	We store products and materials at Sendai Works, Kyoto Works (distribution center), and external warehouses so that shipment and production are not delayed in the event of an emergency.
More efficient logistics	We are shortening cargo handling work based on the White Logistics movement. We will build a new distribution center at the Kyoto Works (to be completed in March 2024), which will shorten product transport times and reduce the burden on drivers, in response to the issue of drivers’ working hours being addressed in the 2024 problem. We also will endeavor to reduce transport costs and further reduce CO2 emissions by increasing the efficiency of transport between factories and reducing the number of transport vehicles.