Supply Chain Management

Collaboration with Partner Companies

Policy

Policy for Collaboration with Partner Companies

We will strive to establish fair and good relations with partner companies that manage and operate buildings, and work together with them to promote sustainability.



Sustainable Procurement Policy

To promote ESG-friendly initiatives across the Group's value chain, Keihanshin Building has established selection standards for the productions and services procured by the Company, selection and evaluation standards for partner companies (suppliers), and guidelines for the operation of these standards.
In selecting partner companies, we position sustainability-related initiatives as a selection and evaluation standard, in addition to other standards such as quality, price, credibility, and service. Based on a comprehensive assessment of such standards, we then review if an order can be placed with the partner company. The following are the sustainability-related items that are taken into consideration in the selection and evaluation process, and information is gathered by monitoring publicly available information, questionnaire surveys and other sources. If the partner company fails to comply with the selection and evaluation standards, we continue to engage with them and work in collaboration to improve the situation. Through this basic policy, we promote sustainable procurement across the whole of the value chain.



Selection standards for goods and services Selection standards for partner companies (suppliers)

1.Resource and energy saving

1.Response to climate change

2.Reduction of environmental
  pollutants, etc.

2.Adoption of environmental management
  systems or similar initiatives

3.Conservation of biodiversity and
  ecosystems

3.Formulation and implementation of
  sustainability policies by business
  partners

4.Long-term usability

4.Promotion of sustainable procurement by
  business partners

5.Reusability and recyclability

5.Appropriate working environment, and
  health and safety

6.Use of recycled materials, etc., and
  acquisition of environmental labels

6.Respect for human rights and diversity

7.Ease of processing and disposal

7.Corporate ethics

8.Reduction of total procurement
  volume

8.Community engagement

9.Promotion of decarbonization

9.Building a disaster risk management
  system

Strategy

Establishment of good relations

To build good relationships with our partner companies, we need to understand the work undertaken by the staff of partner companies on the front lines at each site and what they feel about their work. Based on this belief, we conducted interviews with the staff of partner companies and introduced them in our internal newsletter.
We also established the Partner Company Award program in 2015 to commend the staff members of partner companies who manage our properties.

Regular meetings

For smooth business operations, we have established rules to hold Building Management Council meetings for sharing information with facility management companies, and Construction Safety Council meetings for sharing information with construction companies and facility work companies as regular meetings. By coordinating closely with partner companies engaged in the management and operation of buildings, we reduce the risk of instability in business operations due to lack of cooperation, as well as achieving our corporate philosophy, "to provide valuable commercial space."

Fair and appropriate business transactions

The Company takes an equal and fair stance for its business transactions with partner companies. The Audit Department regularly conducts audits to verify whether transactions are performed in compliance with laws, regulations, and designated in-house processes, and we pay proper and appropriate compensation for the work of partner companies.

Risk Management ( and Creation of Opportunity)

The Company will identify sustainability risks through publicly available information, questionnaire surveys and other sources, and strive to prevent and mitigate business risks through dialogue and support for improvement across the whole of the value chain, while promoting sustainable procurement. The questionnaire survey used is the SAQ developed by the GCNJ, which covers the areas of human rights, labor, environment, fair business practices, quality and safety, information security, supply chain, and coexistence with local communities. We ask selected key suppliers to respond annually. Responses are aggregated for each business partner, feedback is provided on the results, and engagement is conducted as necessary.