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Procurement Policy

The following explains Kubota’s basic approach to materials procurement in its business activities.

Basic approach to materials procurement
1. Providing fair opportunities
We provide opportunities for competition among all of our business partners in a fair and equitable manner.
2. Economical rationality
When selecting a business partner, we make a full evaluation on the material quality, reliability, delivery timing, price, technology and development capability, proposal ability, and business stability, etc. of that partner, and then select the best business partner based on a suitable set of criteria.
3. Mutual trust
We establish relationships of trust with our business partners and also aim for mutual development.
4. Social trust
We are committed to ensuring adherence to all relevant laws and regulations when making procurement deals. We will also ensure the confidentiality of our business partners’ confidential information that we have gained through our procurement deals.
5.CSR procurement
We promote CSR procurement, while paying close attention to compliance with laws and regulations, occupational health and safety, human rights (including addressing the issue of conflict minerals), environmental conservation, symbiosis with society, and information disclosure in a timely and appropriate manner.
6. Green procurement
We are committed to the procurement of products with a reduced environmental impact from business partners that engage in environmental activities, as part of our commitment to providing society with products that are friendly to global and local environments.

Self-Assessments of CSR Procurement

Since FY2018 we have requested our major suppliers in Japan to conduct a self-assessment of CSR procurement. We provide feedback to each company after clarifying where improvements can be made. For items returning a low score, we ask our suppliers to voluntarily make improvements. We also provide support on improving CSR procurement by meeting with or visiting companies, if deemed necessary based on the self-assessment results. In FY2019 we asked around 170 major suppliers in Japan to conduct a self-assessment.

The Kubota Group CSR Procurement Guidelines
  1. Winning Customer Satisfaction
  2. Conducting Corporate Activities Based on Compliance with Legal Regulations and Ethical Principles
  3. Respecting Human Rights
  4. Building up a Safe and Vibrant Work Environment
  5. Conserving the Global and Local Environment
  6. Achieving Symbiosis with International and Local Societies
  7. Fulfilling Responsibilities for Improving Management Transparency and Accountability

Click here for the Kubota Group CSR Procurement Guidelines.

CSR Procurement Self-Assessment

In fiscal 2018, we asked 143 core suppliers in Japan to complete a self-assessment on CSR.
We provided feedback on the results after clarifying the points for improvement of each company. We asked to make voluntary improvements for low scoring theme.

Handling of Conflict Minerals

Policy on conflict minerals

Tantalum, tin, tungsten and gold, and their derivatives (“conflict minerals”) produced in the Democratic Republic of the Congo and its adjoining countries are the source of funds for armed insurgents, who have repeatedly committed inhumane acts in these countries. This is a major social issue of concern related to human rights, the environment, etc. in the supply chain.

As a part of its corporate social responsibility (CSR), Kubota promotes banning of the use of conflict minerals, which serve as a source of funds for the armed insurgents, and promptly takes steps to discontinue their use in the unlikely event that it becomes clear they are being so used.

Kubota seeks mutual understanding regarding this issue with its business partners, which are a part of the supply chain, and requests their cooperation in surveys and audits conducted by Kubota.

Activities
Written Inquiry

We use a conflict minerals reporting template (CMRT) to mainly confirm whether our suppliers are using conflict minerals, to identify smelters, and to gauge what kind of initiatives they are employing to address the issue of conflict minerals. We endeavor to improve the accuracy of the information we receive by asking our suppliers to resubmit the report if their answers are insufficient. In FY2019, 100% of the templates we sent out were returned.

Addressing Risks

For suppliers that do not have a conflict minerals procurement policy in place, we request that they establish one. Furthermore, we carry out additional investigations and conduct due diligence on suppliers we deem to be high risk.

Response Unit

Guided by our policy on conflict minerals, our activities are implemented company-wide through the Committee for Conflict Minerals, which comprises members from the CSR Division and Procurement Division.

Democratic Republic of the Congo and Adjoining Countries

  • Democratic Republic of the Congo and neighboring countries

Promoting Optimal Regional Procurement and Supplier Quality/Productivity

Procurement at overseas production bases has risen sharply in parallel with the rapid globalization of business.
The Kubota Group promotes optimal procurement in every region through the establishment of a global supply system. Moreover, the Group unites with major global suppliers to promote systematic improvement activities for the purpose of strengthening competitiveness by improving quality and productivity.
In FY2019, Kubota held the 6th Kubota Supplier Technical Skills Competition to improve the skill level of its suppliers. Moreover, the annual Kubota Kaizen World Cup has also been held since 2015 in order to vitalize improvement activities. In this World Cup, suppliers selected from various regions around the world present their company’s successful improvement cases as they compete for the status of World Champion.
Throughout the entire supply chain, Kubota will continue its efforts to make the Kubota brand trusted and appreciated by its customers around the world.

  • Kubota Supplier Technical Skills Competition (April 2019)

  • Kubota Kaizen World Cup (January 2020)

Information Security Measures Kubota Requests Its Business Partners to Implement

In promoting CSR management, Kubota requests its business partners that share confidential information with Kubota Corporation and its subsidiaries and affiliates (hereunder, “the Group”) to implement certain information security measures. Thus the Company hereby presents the matters related to its information security measures.
Through proper management of confidential information, we will realize stable business continuity, thereby aiming for the ongoing synergistic development of the Company, business partners, and society. We would like to ask for your further understanding and cooperation.

Information Security Measures Standards for Business Partners
Information Security Measures Standards for Business Partners Check Sheet