Basic Policy
KYB conducts ESG management so as to continuously develop our business through manufacturing craftsmanship and contribute to the realization of an affluent society as a corporation that has earned the trust of the global community.
Going forward, we will further increase the responsibilities of the companies in our supply chain to conduct efforts to uphold human rights, the prevention of child labor and forced labor, responsible mineral procurement, and carbon neutrality. We naturally build partnerships with important suppliers, and also carry out our social responsibility while thoroughly enforcing our 11 basic purchasing policy and striving to contribute to the realization of a sustainable society.
Procurement Basic Policy
KYB fulfills its corporate social responsibility and actively works towards maintaining the trust of society.
KYB achieves continue business development by means of manufacturing, and our suppliers are important partners in making products that contribute to constructing an affluent society.
KYB's basic approach to supply is introduced below.
1. Supply activities with the aim of mutual existence and prosperity with suppliers
In our globally expanding supply activities, we aim towards equal business opportunities and fair and impartial transactions.
By sharing issues and objectives with our Suppliers, and by working together to strengthen our competitive power, we aim to create relationships where both parties benefit.
We ensure that communication always goes both ways so as to resolve issues and achieve objectives.
2. Legal compliance
Supply activities are implemented with full legal compliance (Japanese Antitrust Act, subcontracting laws and related laws in each country and region) as a matter of course, and complete respect for traditional cultures and customs, as well as social rules.
3. Quality first
In order to deliver products that our clients can trust, we ask our suppliers to have preventative quality assurance systems in place, and to supply our company with 100% top quality articles.
4. Safety and health, human rights and labor
We promote supply activities where "Safety first" is the fundamental principle of management in the manufacturing workplace.
KYB has an interest in the human rights of its Suppliers, and promotes supply that maintains a positive working environment.
5. Continuous cost reduction activities
We are aiming towards reasonably priced supply.
We collect information about a wide range of new technologies, new materials, new products and new methods, etc., from our suppliers, which we pass on to the point of contact in related internal departments.
We also pursue activities with our suppliers as a business partner to reduce overall costs continuously.
6. Scheduled delivery
We cooperate with suppliers and relevant internal departments to reduce the lead-time in order to meet the client's preferred deadline.
7. Care for the natural environment
As an environmentally friendly company, we promote ecological supply that prioritizes materials and products that respect the global environment.
8. Construction of global supply systems
In order to optimize supply at production bases around the world, KYB is increasing local procurement ratios and building up relationships of mutual trust with local suppliers. At the same time, KYB is building a global supply information network and systems that can respond to change.
9. Crisis management
An important part of risk management is crisis management, whereby provisions are in place for unexpected situations, such as earthquakes, fires, disaster and widespread outbreaks of disease, and we ask our suppliers to consider and implement preventative security in this regard.
When required, KYB provides information and support in various ways.
10. Management of confidential information
KYB maintains thorough confidentiality in line with internal regulations with regard to management information, business information and other trade secrets acquired through supply activities.
11. Prevention of corruption
KYB does not engage in giving, receiving or providing business entertainment or gifts with the purpose of maintaining or acquiring unjust profits or preferential treatment.
Building Relationships with Suppliers
We hold a "Procurement Policy Briefing" for the management of our business partners to deepen their understanding of our company policies, procurement policies, quality policies, individual business strategies, and our ESG initiatives, including our approach to carbon neutrality and respect for human rights. During the briefing, we also present awards to outstanding suppliers who have made significant contributions to QCD* through shared challenges and goals between KYB and our business partners. Through these activities, we strive to build partnerships based on mutual trust and aim for mutual prosperity. Our company will continue to ensure two-way communication based on mutual trust.
- QCD: Quality, Cost, Delivery
Examples of Our Efforts: Carbon Neutral Initiatives
Following the Japanese government's declaration of "Carbon Neutrality by 2050" and the Glasgow Climate Pact agreed at COP26, our company is committed to achieving carbon neutrality with a long-term view toward the global environment in 2050. We are working to reduce CO₂ emissions by lowering the environmental impact of our products and manufacturing processes.
By holding supplier briefings, we not only deepen mutual understanding but also gather information through CO₂ emissions surveys, enabling us to monitor the current situation. We also strive to provide necessary information for promoting reduction activities, including updates on reduction measures and regulations related to carbon neutrality.
Examples of Our Efforts: Responding to Responsible Mineral Provision
To avoid inadvertently providing funds to armed groups responsible for human rights violations, the KYB Group annually conducts an investigation with the cooperation of our suppliers, summarizes the results and reports to clients that request such information, in accordance with the Dodd-Frank Act.*1 Also, we quickly respond to client's inquiries after the report.
In addition to the above, expectations for ESG initiatives have triggered a trend toward the expansion of target minerals and areas, so we are conducting investigations in response to the addition of cobalt and mica to the list of target minerals. These two minerals are being investigated based on OECD Annex II*2 risks issued by the OECD.
Both investigations are based on the investigation tables published by the Responsible Minerals Initiative (RMI).
- The Dodd-Frank Act is a U.S. financial regulatory act that aims to indirectly cut off trade in mineral resources mined in the Democratic Republic of the Congo and nine neighboring countries because of concerns that these mineral resources are the source of funding for armed groups that are responsible for environmental destruction and human rights violations. Target minerals: tin, tantalum, tungsten, gold.
- OECD Annex II: Risks described in Annex II of the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. However, there are no regulatory compliance requirements. Risks include human rights violations, direct/indirect support for non-state armed groups, money laundering, etc.
Examples of Our Efforts: Initiatives to Prevent Human Rights Violations in the Supply Chain
In accordance with the UK Modern Slavery Act 2015, we publish annual reports on our efforts to prevent forced labor and human trafficking within both our group business activities and supply chain--including the initiatives mentioned above. In addition, based on the KYB Group Human Rights Policy established in March 2025, we will continue to collaborate with relevant departments to promote education and awareness regarding the prohibition of human rights violations and forced labor, while monitoring our suppliers' initiatives.
Modern Slavery Act Transparency Statement for Fiscal Year 2024(10.59MB)