Supply Chain Management
Basic Policy and Approach
In order to help realize a sustainable and truly meaningful society through its business activities, the Mitsubishi Estate Group believes it is important to promote efforts across the supply chain. As such, the Group established the Mitsubishi Estate Group Supplier Code of Conduct based on the Code of Conduct and Guidelines for Conduct. It sets out obligations that suppliers are required or expected to fulfil, which include compliance with laws and regulations, respecting human rights, local communities,indigenous peoples’ rights, and cultural heritage, occupational health and safety, establishment of corporate ethics, environmental conservation and reduction of environmental impact, ensuringinformation security and establishing a risk management system.
The Group asks its suppliers to also strive to notify this Code of Conduct to their business partners so that they understand and cooperate with its spirit and content, and thereby continue to promote efforts to fulfill its social responsibility across the supply chain with the aim of realizing a sustainable society.
Establishment of Mitsubishi Estate Group Supplier Code of Conduct
The Mitsubishi Estate Group believes that, in order for it to contribute to the creation of a truly meaningful society through its business activities, it is crucial that it ensure responsible procurement not only for itself but also in cooperation with business partners across the entire supply chain. Based on this idea, the Group revised its CSR Procurement Guidelines, which were created in April 2016, and established the Mitsubishi Estate Group Supplier Code of Conduct in April 2022.
Mitsubishi Estate Group Order Action Guidelines
In accordance with the Mitsubishi Estate Group's Mission and Code of Conduct, Mitsubishi Estate has established the Order Action Guidelines, which all executive officers and employees placing orders with business partners must follow, to ensure that orders and contracts are administered with transparency and impartiality. The Guidelines are intended to ensure objectivity and economic rationality, but they also include rules on environmental conservation, information management and avoidance of any involvement with organized criminal elements. These Order Action Guidelines are shared by the entire Group, and order and contract processes are established and administered to suit the businesses of individual companies based on them.
The Mitsubishi Estate Group applies the same approach as in the Mitsubishi Estate Group Code of Conduct to its suppliers in regards to environmental problems, labor problems, corruption and other issues.
At Mitsubishi Estate, when orders are placed with construction companies, the business organization and ordering organization are clearly separated. Appropriate orders and contracts are ensured by requiring that employees use a check sheet to self-verify compliance, after which Mitsubishi Estate's Legal & Compliance Department provides objective confirmation. The Orders Surveillance Committee, chaired by the president, meets when orders for large projects are placed and holds discussions concerning compliance. It met three times in fiscal 2019.
Mitsubishi Estate’s Sustainability Management and Promotion Department, which is in charge of sustainability overall, and the Company’s Human Resources Department, which is in charge of human rights and diversity, take the lead in supply chain management. Important matters are deliberated at the Sustainability Committee and the Sustainability Subcommittee, and outstanding Group initiatives are reported and shared at the committee and subcommittee. Mitsubishi Estate’s Sustainability Management and Promotion Department also takes charge of notifying and coordinating efforts relating to the Mitsubishi Estate Group Supplier Code of Conduct.
Mitsubishi Estate engages in appropriate ordering and contracting. This includes the separation of the business organization and the ordering organization when placing orders with construction companies and the use of a self-check sheet for a self-inspection of compliance status, the results of which are reviewed objectively by the Company’s Legal & Compliance Department. When placing particularly large construction orders, the Orders Surveillance Committee chaired by the Mitsubishi Estate President & Chief Executive Officer meets to deliberate from the perspective of compliance.
See the following for the system related to human rights.
Notification in and outside of the Group on the Supplier Code of Conduct
In order to ensure the dissemination of its Supplier Code of Conduct and Green Procurement Guidelines both inside and outside of the Group, Mitsubishi Estate publishes these guidelines on its corporate website. The Company also requests its suppliers to guide and encourage their partner companies to cooperate by distributing the Supplier Code of Conduct together with quotation guidelines.
Evaluations of Business Partners in Each Business
|Business||Social and environmental assessment|
|Building Business||Mitsubishi Estate has adopted an evaluation system for subcontractors that assesses from multiple perspectives the quality, safety and hygiene, and environmental initiatives of construction companies engaged in subcontracted work in its Building Business. The subcontractors are given feedback on the results of the assessment, and asked to make improvements if necessary.|
|Condominium Business||Mitsubishi Estate Residence utilizes a Contractor Interview Sheet when selecting new subcontractors with which to partner, and confirms the subcontractors' conditions, including the headquarter organization's on-site support system. In addition, in order to enhance the quality of construction and ensure safety and hygiene on-site, the company asks the subcontractors to submit work schedules and construction plans to ensure in advance and places orders with an appropriate construction schedule. The company also strives to make improvements by ensuring good communication with subcontractors, such as holding meetings before the start of work and regular meetings during construction at each site and evaluating the contractor when the work is completed.|
|Custom-Built Housing Business||Mitsubishi Estate Home has established guidelines for its initiatives with business partners that take into account the unique characteristics of its business. The basic order unit price that will serve as the benchmark is set in agreement with the supplier as we strive to ensure equitability for the supplier.
Business partners in the architecture, facility and electronics industries are evaluated comprehensively and fairly on the basis of a questionnaire given to the employees who are their point of contact, and also taking into account the number of customer referrals, workmanship and credit conditions. The number of buildings with which they will be entrusted is decided based on this evaluation along with the fixed unit price.
In addition, clearly separating the manufacturer's product costs and the distribution costs until the product reaches the final delivery destination raises the transparency of product costs and distribution costs, enabling a fair evaluation of the material supplier and the manufacturer. When deciding on construction amounts, the costs of construction and operating expenses are accounted for separately, and efforts are made to prevent simple price competition.
Improving Quality and Safety during Condominium Remodeling
The employees of Mitsubishi Jisho Community work together with partner companies which deal directly with clients to improve quality, safety and customer service etiquette when it comes to repair work which must be performed while clients are in residence.
The company constantly aims to raise the level of construction quality by, for example, using the company's exclusive skills testing and registration system for technicians (private license system) and sharing aftercare case studies with partner companies once repair work is complete. They also put the safety of clients first during construction and work with partner companies to create work sites that are safe, secure and pleasant for all involved. In addition to all this, since 2011 the company has conducted a customer service questionnaire every year after the completion of a large-scale repair project, the results of which are used to provide feedback to partner companies and help improve customer service.
Every year from July to August, the company works with business partners to organize the Work Quality & Safety Promotion Rally, where it shares its goals of increasing customer satisfaction levels and carrying out safe and high-quality construction projects. The company also takes the opportunity to publicly acknowledge outstanding field representatives and people who performed excellently in the technical skills examination.
Organizing Registered Contractor Workshops in the Custom-Built Housing Business
Since 1998, Mitsubishi Estate Home has organized registered contractor workshops for all subcontractors including artisans (workers with specialized skills related to building) and managers from partner companies. The workshops allow the company to guide and support participants as the master contractor, helping them learn about health and safety and how to improve safety, quality and appropriate behavior at construction sites.