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Selecting Suppliers for the Supply Chain

Partner companies are essential to Kajima’s supply chain.
In the construction industry, supply chains involve not only equipment and materials but also human resources, primarily at partner companies, who work with the contractor on-site to bring construction projects to completion. To ensure that it works only with partner companies that possess appropriate construction capabilities, Kajima utilizes outside organizations and a proprietary system to evaluate,select and manage those companies.
We require suppliers to comply with laws including those prohibiting discrimination, unfair treatment, child labor, and forced labor, and we monitor compliance as part of supplier evaluations. Furthermore, in accordance with the Kajima Group’s Corporate Code of Conduct, our evaluations take into account compliance with laws and regulations, maintenance of equitable relationships with partner companies, the eradication of antisocial activities, respect for the cultures and customs of all nations and people, prohibition of discrimination and unfair treatment, prohibition of child labor and forced labor, and action on environmental issues (energy usage, climate change impact including CO2 and greenhouse gas emissions, water usage, biodiversity impact, pollution, and waste). In keeping with the Statement for Respecting Fair Labor Cost Estimation put forward by the Japan Federation of Construction Contractors, we strive to create mutually beneficial relationships by improving employment conditions for skilled workers and by securing skilled workers and supporting their development.

Status of monitoring partner companies (suppliers), etc.

  1. Major partner companies (priority companies) in the supply chain

    • Some 25,000 companies have signed basic construction subcontracting agreements with Kajima. From these companies, each branch selects partner companies of a considerable scale with strong construction capabilities that engage in a major part of construction work, particularly main frame construction work, to be major partner companies (priority companies) in consideration of their size and local characteristics.
  2. Matters to be confirmed when collecting an estimate

    • In our form listing the conditions for orders, we request companies to comply with and strictly enforce the Supply Chain Action Guidelines.
  3. Provisions on safety, human rights and labor problems, environment and compliance in basic construction subcontracting agreements (when contracting with a new partner company)

    • When contracting with a new partner company, we execute a basic construction subcontracting agreement (including a basic pledge on labor, safety and health) that mandates the observance of provisions on safety, human rights and labor issues, the environment, and compliance (the Construction Business Act, labor laws, and safety and health laws, etc.).
    • These basic construction subcontracting agreements mandate not only the primary partner company directly contracting with Kajima but also the second and subsequent partner companies (subcontractors) observe relevant provisions.
  4. Regularly checking and monitoring safety, human rights and labor problems, environment, compliance, etc.

    • We have established the Kajima Regulations for Managing and Evaluating Partner Companies, and our construction project offices, branches and the Head Office evaluate and audit new suppliers, existing suppliers, and major partner companies accordingly.
    • Construction project offices evaluate the construction work performed by partner companies, including checks on human rights issues and the treatment of engineers.
    • Each branch regularly visits the stores and offices of major partner companies (once in two years) and thereby diagnoses and evaluates their financial status, construction capabilities and checks for issues with their safety management systems and other structures.
    • The Head Office and branches regularly patrol construction project offices to check if partner companies are engaging in inappropriate management such as breaching laws, causing labor issues, or infringing on human rights. Construction sites and branches are also subject to audits by the Safety and Environmental Affairs Department in the Head Office, and these audits are conducted on four branches per year. Audits include an evaluation of human rights issues at partner companies, as well as checks on the status of these companies implementing and managing measures to improve the treatment of engineers.
  5. Measures to be taken in the case of breaches, etc. by partner companies concerning safety, human rights and labor issues, the environment, and compliance

    • We have established criteria for suspending further issuance of orders to partner companies or for taking other measures (mainly in relation to disasters or other incidents). If a partner company engages in inappropriate management such as breaching laws, causing labor issues, or infringing on human rights, or if a partner company receives an administrative disposition, or similar treatment, we will take measures such as suspending further issuance of orders.
    • If a gravely serious issue occurs with regard to breaching laws, infringing on human rights, or causing labor issues during the term of agreement (while construction work is ongoing), we may terminate the agreement with the relevant partner company in accordance with the basic construction subcontracting agreement (including a basic pledge on labor, safety and health).
  6. Education, training, etc. on safety, human rights and labor problems, the environment, compliance, etc. with respect to procurement

    • In Kajima, any employee may be entrusted to take charge in issuing an order. For this reason, we provide all employees with education and training on safety, human rights and labor problems, the environment, and compliance with respect to procurement, including information on the Supply Chain Action Guidelines, and we regularly hold briefings with partner companies.
  7. Education, training, etc. for partner companies

    • In efforts regarding education and training for partner companies, we regularly hold a wide range of training sessions, statutory education sessions, opinion exchange meetings, and other activities at our branches and construction sites. In opinion exchange meetings, we discuss Kajima’s measures to secure human resources (measures to improve the treatment of workers) and incorporate the results of these discussions back into our measures.
    • We are developing a management technique guidance project by inviting the managers of partner companies in Japan. For example, we hold presentation meetings on improvements made at construction site operations, in the work environment, or in corporate management measures. Through these presentation meetings, we deploy these measures at other locations. We hold meetings for people to frankly exchange their opinions with senior officers at Kajima regarding issues shared between Kajima and partner companies. We also organize study sessions for managers, and we implement a project for nurturing young managers and successors.

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