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.
Basic Procurement Policy and Relationship with Business Partners
KYB is committed to fulfilling its corporate social responsibility (CSR) and strives to remain a company trusted by society.
In order for KYB to achieve sustainable business growth through manufacturing and contribute to the development of a prosperous society, our suppliers are essential partners in product creation.
Outlined below are KYB's fundamental principles of procurement.
1. Procurement Activities Aiming for Mutual Growth with Business Partners
In our globally expanding procurement activities, we pursue equal business opportunities and fair and impartial transactions.
We aim to build relationships in which both KYB and our suppliers can share achievements by strengthening competitiveness together through the sharing of challenges and goals.
To achieve these objectives, we ensure continuous, mutual communication based on trust.
2. Compliance with Laws and Regulations
We conduct procurement activities in full compliance with all applicable laws and regulations, including the Antimonopoly Act and the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises in Japan, as well as relevant laws and regulations in each country and region.
We also respect traditional cultures, customs, and social norms.
3. Quality First
To deliver products that our customers can trust, we request our suppliers to establish preventive quality assurance systems and ensure that 100% defect-free products are delivered to KYB.
4. Occupational Safety, Human Rights, and Labor
We promote procurement activities based on the principle of "Safety First," which is fundamental to manufacturing workplaces.
KYB respects the human rights of its suppliers and promotes procurement practices that support the maintenance of sound working environments.
5. Continuous Cost Reduction Activities
We aim to procure at appropriate prices.
We gather a wide range of information from our suppliers, including new technologies, materials, products, and processes, and appropriately share this information with relevant internal departments.
We also work together with our suppliers to continuously reduce total costs while aiming for long-term mutual growth.
6. Delivery Performance
To meet customer requirements, we work together with suppliers and internal departments to shorten lead times and ensure timely delivery.
7. Environmental Protection
As part of our commitment to being an environmentally responsible company, we promote green procurement by prioritizing environmentally friendly materials and components.
8. Establishment of a Global Procurement System
To optimize procurement at KYB's production bases around the world, we promote local sourcing and strive to build strong relationships with local suppliers.
At the same time, we develop a global procurement information network to ensure flexibility and responsiveness to change.
9. Risk Management
Crisis management is a critical issue in risk management. We request our suppliers to consider and implement preventive safety measures in preparation for unforeseen events such as earthquakes, fires, disasters, and pandemics.
When necessary, KYB will provide various forms of information and support.
10. Confidentiality of Information
KYB strictly manages and protects confidential business and operational information obtained through procurement activities in accordance with internal regulations.
11. Anti-Corruption
KYB prohibits the offering or receiving of entertainment, gifts, or any other benefits intended to obtain or maintain improper advantages 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)