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Supply Chain Management

Establishment of CSR Procurement Guidelines

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, in April 2016, it established the Mitsubishi Estate Group CSR Procurement Guidelines.

The Mitsubishi Estate Group CSR Procurement Guidelines

The Mitsubishi Estate Group is committed to its mission of contributing to society through urban development and works to achieve it by putting into practice the Mitsubishi Estate Group Code of Conduct and Mitsubishi Estate Group Guidelines for Conduct. In order for the Group to contribute to the creation of a truly meaningful society through its business activities, we consider it essential that the Group work with its business partners to promote socially responsible procurement at all stages of the supply chain. With this recognition, the Group has established the CSR Procurement Guidelines, a set of guidelines to promote CSR procurement activities.

The Mitsubishi Estate Group requests all business partners to read these guidelines to gain an understanding of both their spirit and content so that the Group and its business partners are able to act according to the guidelines at all stages of the supply chain.

CSR Procurement Standards

  • 1.Comply with Legal and Social Norms
    • We comply with both local laws and regulations in the countries and regions in which we do business, as well as with international agreements and social norms.
  • 2.Respect Human Rights
    • We respect the human rights of our employees; maintain appropriate working hours; allow sufficient holidays and vacation time; and make every effort to create healthy and safe working environments for employees.
    • We respect human dignity and diversity; strictly prohibit any behavior or discriminatory language that violates human rights and/or causes emotional or physical suffering, including discrimination with regard to gender, ethnicity, nationality, age, religion, disability, marital status, physical appearance, or sexual orientation; and have zero tolerance for harassment of any kind.
    • We strictly prohibit unfair labor practices of any kind, including child and forced labor.
  • 3.Practice Corporate Ethics
    • We engage only in fair and equitable business activities. We do not engage in practices that interfere with free competition or in inappropriate competition practices.
    • We establish a framework for internal reporting to prevent problems from arising and to ensure that potential problems are detected early on. At the same time, we protect the anonymity of those filing internal reports and assure employees that they will not suffer retaliation or any other type of punishment for reporting problems.
    • We uphold Japan's Anti-Organized Crime Law and eschew all contact with organized criminal elements.
    • We make every effort to disclose corporate information in a timely and appropriate fashion.
    • We make every effort to prevent any form of corruption, including bribery and other such practices.
  • 4.Ensure and Improve Product Quality
    • In delivering products and services, we establish appropriate quality control and assurance systems and ensure that we deliver the level of quality that customers demand, while continuously working to improve the quality of our products.
    • We make every effort to deliver products that perform to higher safety standards than socially required or expected. We also make public the results of our product safety surveys as needed.
    • We make every effort to deliver products and services at an appropriate, competitive market price and meet construction deadlines with appropriate management of our work process.
  • 5.Protect the Environment and Reduce Environmental Impact
    • We make every effort with all of our products, services, designs, and construction work to uphold the Mitsubishi Estate Group Green Procurement Guidelines.
    • At every stage of our production and construction work, we exclude the use of raw materials produced by illegal means; actively seek materials for use that are certified or otherwise traceable; and make every effort to engage in sustainable production and procurement.
  • 6.Guarantee Information Security
    • We establish and enforce management systems to ensure that information assets (confidential information, personal information, intellectual property, etc.) either entrusted to us by business partners or other third parties or belonging to the Group are appropriately managed and protected. We take every precaution to prevent inappropriate disclosure of information, including taking measures to protect against threats to our computer networks, to ensure that these information assets are not leaked or used in an unfair or inappropriate manner.
  • 7.Establish Disaster Risk Management Systems
    • We actively prepare for disaster by incorporating disaster risks into our business continuity plans (BCP).

In effect as of April 1, 2016

CSR Procurement Guidelines (PDF 195KB)PDF

Defining Key Suppliers

Mitsubishi Estate defines the following as key suppliers (major business partners) and notifies them of the CSR procurement guidelines:
1. Suppliers with which it has signed contracts to receive services, goods, etc. in exchange for money and,
2. Suppliers who provide services or products that may be regarded by third parties as services or products carried out or provided by Mitsubishi Estate Group itself.

Number of global key suppliers notified of the CSR procurement guidelines:
Fiscal 2016: 3,326
Fiscal 2017: 721 (added anew)
Fiscal 2018: 792 (added anew)
Fiscal 2019: 459 (added anew)

Notification in and outside of the Group

In order to ensure the dissemination of its CSR Procurement Guidelines and Green Procurement Guidelines both in and outside of the Group, Mitsubishi Estate publishes these guidelines on its corporate website. The Company also works with its Group companies to ensure these guidelines are communicated globally to the Group's key suppliers. Going forward, Mitsubishi Estate will continue with its efforts to ensure the dissemination throughout the supply chain.

Green Procurement Guidelines

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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.

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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 Jisho 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.

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In Pursuit of High-Quality Building Maintenance

Mitsubishi Estate thinks of the companies to which it outsources specialized work as important partners that have direct contact with clients just as Mitsubishi Estate Group employees do.

In its Office Building business, Mitsubishi Estate Group outsources such work as facility operation and management, security and cleaning to its business partners. As such, the Group's guidelines for quality of management and services are shared with all their managers and on-site staff to ensure that the Group provides consistent services at all of its buildings. The Group strives to work with its business partners to share the same mindset and maintain and improve high-quality management. In addition, Mitsubishi Estate partially revised its Subcontractor Evaluation System in fiscal 2010 to clarify the evaluation items and criteria and held meetings to explain the details to partner companies. As part of its quality management efforts through this system, since 2011 the company has given awards to buildings with excellent practices to increase motivation on the ground.

Communicating with Partner Companies

Interaction with Partner Companies Goals and Targets
1.Control quality through the Subcontractor Evaluation System* Improve quality through interviews and management evaluations with partner companies.
2.On-site monitoring* Standardize a high level of work by sharing information on the status of each workplace and applying the experience gained from positive initiatives to other projects.
3.Partner company hearings Share information on the kind of management quality the Mitsubishi Estate Group expects and facilitate communication between managers.
4.Adjust vectors among personnel in charge Based on the steps above, analyze circumstances at individual work sites and work with partner companies to adjust targets after holding discussions aimed at raising quality.

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  • Transferred to Mitsubishi Jisho Property Management Co., Ltd.

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Improving Quality, Safety and Customer Service 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.

In fiscal 2019 these meetings were held in five places around Japan with participants from 103 companies.

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Customer Service Improvement Initiatives in Custom-Built Housing and Organizing Registered Contractor Workshops

In an effort to improve customer service with custom-built housing, Mitsubishi Estate Home has rolled out a Product Management System through which it provides regular updates to clients at every stage of construction until handing over.

Furthermore, since 1998 it 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 manners at construction sites. In fiscal 2019, workshops were held at five venues with 2,764 people taking part.

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