Supply Chain Management

img_sustainability_logo

Procurement Policy

The Advantest Group pledges respect for our suppliers, places value on open communication with our suppliers, and emphasizes the maintenance of fair business relationships through sustainability by promoting ESG in accordance with relevant laws and regulations. We are also committed to sharing values and building collaborative relationships with our suppliers, toward our goal of achieving mutual growth.

Approach to the Sustainability Target for Conflict Minerals

Conflict minerals are not only regulated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is also a major problem faced by society as a whole. Advantest remains aware of the importance of responding to the issue of conflict minerals, which also has deep ties to efforts conducted by the entire industry.

Supervising division Cost Management & Production Support Department
KPI Continuing efforts to use materials with a lower risk by asking business partners to ensure transparency with regard to the sources of materials and components, etc., and by working together with industry organizations and business partners to investigate information relating to conflict minerals (i.e. mineral processing firm information).
FY2020 target Continuing efforts to use materials with a lower risk by asking business partners to ensure transparency with regard to the sources of materials and components, etc., and by working together with industry organizations and business partners to investigate information relating to conflict minerals (i.e. mineral processing firm information).
Results achieved in Fiscal 2019
  • Conducted surveys and gathered answers related to relevant business suppliers
  • Implemented activities according to the policy on feedback to suppliers requiring improvement in responsible mineral trade as a member of JEITA
Boundary Advantest Group
Relevant policies Procurement Policy (3. Supplier Expectations)
Relevant commitments Sec. 1502 of the Dodd-Frank Act (Conflict minerals) and other relevant regulations
Responsible department/division CSR & Environmental Affairs Promotion Office/Procurement Administrative Department
Relevant complaint processing policy Establishment of a contact window
Assessment

Approach to the Sustainability Target for Supplier Evaluations Related to Environment, Human Rights, Labor Practices, and Impacts on Society

Advantest believes that it is important to consider the scope of its influence on components, materials, or production processes and take into account the impacts of its collaboration with its business partners on the environment, human rights, labor practices, and society in carrying out business activities.

Supervising division Cost Management & Production Support Department
KPI Percentage of new suppliers that were screened using criteria for impacts on the environment, human rights, labor practices, and society
FY2020 target 100%
Results achieved in fiscal 2019
  • FY2019: 1 of 1 new supplier
  • Revised the evaluation sheets when hiring new suppliers and assessed the existence of a code of conduct.
  • Examined labor practices assessment method for new suppliers and formulated future policies.
  • Checked whether our procurement policy was understood and coordination can be maintained when hiring new suppliers.
  • Checked results of environmental activities such as obtaining ISO 14001 certification when hiring new suppliers.
Boundary Advantest Group
Relevant policies The ADVANTEST Way
Procurement Policy, Advantest CSR Procurement Guidebook
Advantest Group Environmental Policy
Advantest Green Procurement Guidelines
Relevant commitments Labor Standards Law, Industrial Safety and Health Act, RoHS Directive, regulation and reference values in environmental laws from each municipality, RBA Code of Conduct
Responsible department/division Procurement Administrative Department/CSR & Environmental Affairs Promotion Office
Relevant complaint processing policy Establishment of a contact window
Assessment -

Education for Implementing Fair Trade

Advantest held a supply chain human rights seminar in FY2019 for personnel engaging in operation-related purchasing. Moreover, we have also been providing employee e-learning on the Act against Delay in Payment of Subcontract Proceeds, Etc. to subcontractors since fiscal 2016 to raise greater awareness about this law. In the future, we will continue to educate our employees in order to realize the principles of fair trade.

  • A scene from the subcontractors law seminar

  • A scene from the supply chain human rights seminar

Social Responsibility in the Supply Chain

Set up of inquiry and reporting window

When trading with our business partners, in the event that one of our employees infringes, or is suspected to infringe, on our Code of Conduct, a trade contract or a relevant law, we request that this be reported to the Contact Window on our website. In fiscal 2019 we did not receive any complaints. The reporter and their company would not be penalized in any way for reporting. Following an investigation, in the case that a problem is recognized, the action in question would be stopped and measures would be taken to prevent recurrence.

Measures against procurement risks

Advantest promotes purchasing from multiple procurement sources as a general rule as a contingency for the procurement of components from the perspective of BCP.
In addition, we created a BCP map of our suppliers and manufacturing bases to speed up information collection and countermeasure examination in case of a disaster.

Response to Conflict Minerals

Implementation of survey

At Advantest, in order to respond to Section 1502 (conflict minerals provisions) of Title XV of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations in the U.S., we are playing an active role together with the industry organization to address the conflict minerals problem.
Since 2013, we have been implementing an annual survey of our business partners regarding the use of conflict minerals through a RMI* report (conflict mineral reporting template (CMRT)) and releasing the results.

* RMI: Responsible Minerals Initiative