Sustainability Management
Policy and Basic Approach
Gunze was founded in 1896 in the district of Ikaruga (now Ayabe City), Kyoto.
The founder was determined to contribute to enriching his hometown community through the development of local industry.
This was more important to him than focusing exclusively on profits for a private company.
He believed that this should be a policy of Ikaruga, so he named this company Gunze Silk Manufacturing Co.,Ltd., later renamed Gunze Limited.
(“Gunze” means the “policy of the district” in Japanese.)
Based on its concept of the “policy of the district, Gunze has consistently lived up to its founding philosophy of “Striving for harmonious coexistence with all
stakeholders surrounding the company through a people-oriented approach and a commitment to quality.” In recent years with the increasing globalization of business, the
environment in which our corporate activities are found has undergone dynamic changes.
These changes have resulted in our stakeholders showing increasing interest than ever before in sustainability, demanding that we conduct management practices that will
help in achieving sustainable growth as we uphold our corporate principles.
The global community is increasingly involved with initiatives aimed to create a sustainable society, including efforts to meet the Sustainable Development Goals (SDGs)
adopted by the United Nations.
As we also put our principles into practice to respond to global sustainability initiatives, we see that these actions must extend beyond our own company to encompass
the entire supply chain as well.
In addition, reflecting the recent rapid changes in our business environment, we recognized the need for presenting our policy for sustainability, covering the entire
supply chain, to our suppliers and business partners in a more concrete manner.
As such, we established the Gunze Group Sustainable Procurement Guidelines, which should help our suppliers and business partners to better understand the Gunze Groupʼs
sustainable procurement activities and to continue to cooperate with this policy.
It is our hope that Gunze suppliers and business partners will fully understand and support the objectives of these guidelines.
We also believe they will observe all requirements of the Gunze Group Supplier Code of Conduct, and take the necessary actions and measures to meet them.
Moreover, we ask our suppliers and business partners to instill the concept and practices of our Sustainable Procurement Guidelines throughout their supply chains as
well.
We at the Gunze Group are determined to continue working together with our suppliers and business partners toward building a sustainable society. We look forward to
your continued support as we pursue this endeavor.
Director, Senior Managing
Corporate Officer and
General Manager of Management & Strategy Department
Sustainability Officer
Takahiro Oka
Basic Sustainability Policy The GUNZE Group will create economic and social value and contribute to the realization of a sustainable earth and society through highly transparent management and compliance with globally accepted fairness rules, while keeping the founding spirit of "coexistence and co-prosperity with all stakeholders based on respect for people and production of quality products" as the warp, and responding to the expectations of society in good faith and flexibility as the weft. We will contribute to the realization of a sustainable earth and society by creating economic and social value through highly transparent management and compliance with globally accepted fair rules.
For Our Customers
We will always think from the standpoint of our customers, understand the culture and customs of each country in the world where we do business, and strive to provide
excellent products and services, practicing the motto "Happy to Sell, Happy to Buy". We will strive to realize a sustainable society by developing and providing
environmentally and people-friendly products and services, while pursuing safety, security, comfort, and satisfaction, with quality as our first priority.
For our business partners
We aim to realize co-existence and co-prosperity. We will conduct fair and free transactions in compliance with the relevant laws and regulations of the respective
countries in which we do business.
We will not offer or accept gifts or entertainment that may raise questions of fairness. We will follow the Supplier Code of Conduct and seek to prohibit discrimination
in employment, forced labor, and child labor.
For local communities
We will actively participate in social and community activities, build friendly relationships with society, and contribute to social sustainability.
In our relationships with our employees
We respect human rights, personality, and individuality, do not discriminate in employment or treatment based on race, nationality, gender, or other factors, and strive
to provide equal opportunities. We will respect the human rights of all persons involved in our business activities and will not engage in inhumane labor practices such
as forced labor, child labor, or harsh disciplinary punishments. We will comply with laws regarding working hours, wages, and benefits, and ensure a pleasant,
harassment-free work environment in which employees can work safely and healthily.
We value diversity, promote skill development that enables employees to play an active role in the right place with the right resources, and nurture human resources who
can contribute to society. GUNZE respects the freedom of association of employees to form labor unions of their own volition and the right to collective bargaining, to
the extent not prohibited by law.
For the Global Environment
We will contribute to the realization of a sustainable earth and society by actively working to protect the global environment, including biodiversity, and reduce
greenhouse gas emissions in all of our business activities, as well as by providing environmentally friendly products and services.
For Shareholders and Investors Based on our corporate philosophy of co-existence and co-prosperity, we will practice sustainable management and enhance corporate credibility. We will place importance on dialogue with shareholders and investors, and will respond to their trust by actively and fairly disclosing corporate information.
Established: April 2007
Revised: March 2010
Revised again: April 2021
Sustainability Promotion System
The GUNZE Group considers the building of a sustainable society as our social responsibility, and we are working on medium-to long-term themes and major promotion items
with the aim of achieving sustainable management. We have also established a Sustainability Committee, which aims to realize a sustainable society and enhance our
corporate value through our business activities. The medium- to long-term themes and major issues to be addressed may be changed or added after deliberation by the
Sustainability Committee.
Medium- and Long-term Themes and Major Promotional Items
1. Response to Climate Change
2. Realization of a resource-recycling society
3. Sustainable procurement
4. Wellness and health
5. Consideration for people and society
GUNZE Group company presidents, division heads, heads of functional divisions, general managers of functional departments, and presidents of affiliated
companies have the following responsibilities in the efforts to promote sustainability.
1. We raise awareness of sustainability among members of our own divisions and departments, and implement sustainability management.
2. We execute and promote the company-wide promotion items on sustainability determined by the Sustainability Committee at your own department or division.
3. When requested by the Sustainability Committee, we will investigate the status of sustainability promotion in our own divisions and departments, and respond to
the Committee on the current status and issues, etc.
4. We provide educational and training opportunities to improve understanding of sustainability among members of their own departments and divisions.
| Committees and organizations | Roles |
|---|---|
| Board of Directors | Monitors the progress of measures to address sustainability issues, including issues pertaining to the environment, particularly climate change, as well as human capital and other topics as discussed and decided during business execution |
| Executive Committee | Discusses and makes decisions on important business administration and execution matters related to Group-wide sustainability, such as environmental issues centered on climate change, as well as human capital and other topics |
|
Sustainability Committee (As a general rule convened once per quarter) |
Discusses and makes decisions on basic and response policies as they pertain to sustainability |
|
Risk Management Committee (As a general rule convened once per quarter) |
Discusses occurrence of risk events related to sustainability, measures taken or to be taken, and risk prevention |
| Main Departments in Charge | Promote initiatives to address sustainability issues and identify risks and opportunities (Environmental Impact Strategy Promotion Office: environmental issues with a focus on climate change; Personnel & General Affairs Department: human capital of the Gunze Group, etc.) |
Sustainability Committee
The GUNZE Group has established a Sustainability Committee for the purpose of setting and promoting the direction of sustainable management in order to realize a
sustainable society and enhance corporate value through its business activities based on its management philosophy and management policies.
The Sustainability Committee deliberates and decides on the basic policy and major matters to be promoted concerning sustainability, the development of
organizations and systems, confirmation of the status of plans, compilation and management of information, disclosure of GUNZE Group activities to the outside
world, and planning and implementation of company-wide education and training activities. The Sustainability Committee is chaired by the director or executive
officer in charge of sustainability, and its members consist mainly of head office divisions and department heads. As a general rule, the Committee will meet once
every quarter.
Gunze Group Sustainable Procurement Policy
The Gunze Group is committed to fulfilling its social responsibilities by complying with all applicable laws and regulations, while also globally promoting comprehensive
Sustainable procurement practices integral to its environmentally conscious activities. In collaboration with our suppliers and business partners, we seek to strengthen our
Sustainable commitment across our entire supply chain, by meeting the requirements in the areas of the environment, labor conditions, and human rights, along with quality,
pricing, and delivery schedule. To this end, we will conduct surveys, inspections, and monitoring of our suppliers and business partners to assess their current status of
Sustainable procurement across the supply chain as necessary. Should any nonconformance with our Sustainable procurement policy be discovered, and no corrective action
taken, we will take the appropriate measures.
Our Sustainable Procurement Policy is as follows:
1. We provide all suppliers with fair and equal trade opportunities based on the principle of free competition, disregarding nationality, scale, or past trading
performance.
2. When purchasing parts, materials, and/or services, we select suppliers based on criteria including quality, pricing, delivery schedule, environmental preservation,
technological capabilities, business management system, and other factors, in a fair and ethical manner, and pursuant to related laws, regulations, and social norms both in
and out of Japan.
3. We procure parts, materials, and services from suppliers in the most appropriate locations, selected from among those worldwide by maintaining a global perspective.
4. We conduct purchase and procurement activities that help preserve the global environment and lessen environmental impact. We also employ parts and materials that do not
use any hazardous chemical substances in order to 10 promote green procurement that contributes to the reduction of environmental harm.
5. While maintaining a high sense of ethics, we comply with all laws, regulations, and social norms related to procurement and purchase activities, as we seek to build a
strong partnership with our suppliers.
6. We appropriately control and strictly protect any information we have obtained or accessed during purchasing transactions.
Established: January 2019
Revised: April 2021
Gunze Group Supplier Code of Conduct
As stipulated in the Gunze Activity Guidelines, the Gunze Group’s basic policy is to comply with fair and internationally accepted rules as we conduct business
activities.
The Gunze Group Supplier Code of Conduct declares that Gunze expects its suppliers and business partners to accept and uphold the Group’s policies concerning legal and
regulatory compliance, development and supply of safe, beneficial products and services, environmental preservation, and respect for human rights, personality, and
individuality.
Legal and regulatory compliance
(1) We promote corporate activities through fair and free competition by strictly observing social rules.
(2) We adhere to applicable laws and regulations and maintain sound ethics, avoiding any antisocial behavior.
(3) We observe international rules, while respecting the culture and conventions of each country of operation, so as to promote corporate activities that earn a high
reputation.
Supply of quality products
We maintain a commitment to develop and supply socially beneficial and safe products and services.
Environmental preservation
We actively address environmental issues as we conduct corporate activities, and strive to promote harmonious coexistence with the global environment.
Human rights
(1) We respect human rights and individual character, and never engage in discrimination based on ethnic group, nationality, gender, or other non-performance-related
attributes in hiring and employment practices.
(2) We never use child, forced or compulsory labor, nor do we engage in unjust and inhumane labor practices, including harsh punishment.
(3) We recognize and respect the rights of employees to freedom of association and collective bargaining, unless where prohibited by law.
Labor practices
(1) We provide a safe and healthy working environment, by giving due consideration to employees’ health.
(2) We comply with all applicable laws in the country of operation concerning hours of work, wages, and employee benefits.
Confidential information and intellectual property
We take appropriate measures to prevent leakage of confidential or personal information, including technological or trade information obtained or accessed through business
transactions, and we respect intellectual property rights.
Gifts and entertainment
We do not offer money, gifts, or entertainment for the purpose of receiving unjustified benefits.
Established: March 2010
Revised: January 2019