Policy for Procurement

No enterprise could grow sustainably without relationships with its business partners based on mutual prosperity. S. T. Corporation and its group companies (hereinafter collectively referred to as “our corporate group”) recognize this fact to a sufficient degree and shall promote fair, impartial and responsible procurement considerate to human rights and the environment in the whole supply chain including our corporate group and business partners.

S. T. Group’s Guidelines for Responsible Procurement

In order to realize our Procurement Policy and the S.T. Group’s Guidelines for Responsible Procurement, our corporate group has established a Responsible Procurement Committee. The Responsible Procurement Committee is positioned as a committee under the Sustainability Committee, Executive Officer in charge of the Manufacturing Headquarters serves as the person responsible, and the Procurement Team and ESG Promotion Team serve as the secretariat, to form a group-wide support structure. The items discussed by the Responsible Procurement Committee are reported to the Sustainability Committee and the Board of Directors. Regarding important agenda items, the Board of Directors makes resolutions. The Responsible Procurement Committee meets 4 times a year, and holds an extraordinary meeting if necessary.

In the fiscal year ended March 2025, we requested direct suppliers of S.T. (such as raw material suppliers and contract manufacturers) to comply with and respond to the “Procurement Policy” and the “Guidelines for Responsible Procurement.” We also held the “S.T. Partners Meeting 2024” for key suppliers, where we directly explained our group’s approach, policies, and guidelines related to Responsible Procurement, and obtained written consent for compliance and implementation. In addition, for key suppliers, we conducted a Self-Assessment Questionnaire (SAQ) based on the “Guidelines for Responsible Procurement” to confirm their CSR initiatives and challenges. The SAQ implementation rate for FY 2024 (based on transaction value) was 51.3%. We plan to expand the coverage of the SAQ according to procurement importance in future years.
We will continue to promote compliance with the policy and guidelines and the implementation of SAQs in the fiscal year ending March 2026. For the results of the SAQ conducted in the fiscal year ended March 2025, we have prepared and returned feedback reports and are conducting direct dialogue (engagement) through meetings. For some suppliers, we plan to conduct on-site visits for direct discussions. Through engagement with suppliers, we aim to achieve mutual improvement of CSR management. The SAQ will continue to be implemented annually, with its scope gradually expanded, to monitor the progress of CSR initiatives and improvements.