Updated on May 29, 2026 Supply Chain Management
- Sustainable Procurement Policy
- Evaluating Suppliers Partners
- Initiatives and Results
- Circular Economy initiatives
Sustainable Procurement Policy
The Kuraray Group has established the principles to be followed in our interactions with diverse societies as "Our Commitment" and the guidelines for concretely putting these items into practice in our corporate activities as the "Code of Conduct," and we are committed to fulfilling our responsibilities as a good corporate citizen.
As part of these efforts, the Kuraray Group formulated its “CSR Procurement Policy” in 2005 based on the “10 principles of the United Nations Global Compact”, which serve as universal principles key to the sustainability of businesses, people, and the planet.
In 2025, in order to further promote sustainable procurement, including respect for human rights, environmental conservation, emphasis on compliance, and promotion of diversity throughout the entire supply chain, the “CSR Procurement Policy” has been revised in a global collaboration as the "Sustainable Procurement Policy" and positioned as our global procurement policy at the same time.
In order to fulfill our responsibility to the entire supply chain from a global perspective, collaboration with our suppliers is critical. We will make it the basis of our purchasing transactions to promote sustainable procurement throughout the entire supply chain by encouraging not only us but also our business partners to make such efforts.
Sustainable Procurement Policy
1. Corporate government
We will stay cognizant of Corporate Social Responsibility, and seek to achieve harmony among people, society, and the global environment to build and maintain better relationships through our businesses. We will adhere to laws and regulations as well as other rules at all times and in all situations, and will always carry out corporate activities in a fair and honest manner.
- Build a Sustainability promotion system
- Build a business continuity plan (BCP) system Efforts to secure a stable supply
- Build a whistleblower system
- Dissemination of information and accountability to stakeholders
- Thorough compliance
2. Respect for human rights
We will champion the human rights of all people who are involved in our business activities and respect the dignity and value of each one of them.
- Respect for human rights and personality and prohibition of discrimination Human rights due diligence initiatives
- Avoidance of complicity in human rights violations
- Prohibition of forced labor and child labor
- Freedom of association
- Diversity initiatives
3. Safe, easy-to-work environment
We will adhere to laws and regulations relating to occupational health and safety, and strive to maintain and enhance a work environment that is safe and easy to work in for all people who are involved in our business activities. In addition, we will value the diversity of employees and treat them fairly without discriminating based on sex, nationality, ethnicity or others.
- Appropriate management of occupation safety and health
- Employee health management
- Appropriate wage payment
- Appropriate management of working hours
- Providing equal opportunities for employment, evaluation, placement, etc.
- Prevention of harassment
4. Promotion of environmental preservation
We will strive for reduced environmental burdens and risks, as well as environmental preservation, including preservation of ecosystems, through business activities that are in harmony with the environment. We will contribute to the sustainable development of society and fulfill our responsibilities to the next generation.
- Compliance with environmental laws and regulations. Environmental conservation efforts (SO14001, etc.)
- Proper management of chemical substances
- Reduction of environmental load
- Effective use of resources (energy, water, raw materials, etc.)
- Proper management and reduction of waste
- Biodiversity initiatives
5. Fair business practices
We will carry out corporate activities in a fair and honest manner, not be involved in any form of misconduct, including bribery, and conduct free, fair, and transparent business dealings through sound competition in the market.
- Compliance with antitrust law/competition law, compliance with subcontract law (prohibition of abuse of a superior position)
- Prevention of unfair competition
- Prevention of bribery
- No relationship with anti-social group
- Protection of intellectual property, prevention of unauthorized use of intellectual proper by third parties
- Prohibition against insider trading
- Prohibition on conflicts of interest
- Appropriate import/export management
6. Safety and quality of products and services
We will strive to contribute to society by supplying safe, reliable, and high-quality products and services.
- Safety and quality initiatives (ISO9001, etc.)
- Appropriate response when a defect occurs (information disclosure, notification to customers)
7. Proper control of Confidential Information
We will recognize that confidential information, including trade secrets, know-how, and customer information, is an important asset of the Company, and will use and manage the same appropriately. We will also respect confidential information disclosed by third parties and manage the same in a similar manner.
- Thorough information security
- Defense against attacks on computer networks
- Protection of personal information
- Prevention of unauthorized use of confidential information
8. Supply chain
We will strive to have the significance of sustainable procurement be well understood and embraced by our business partners in order to fulfill social responsibility throughout the supply chain.
- Promotion of Sustainability in the supply chain
- Use of raw materials that are not involved in war or crime (conflict minerals)
9. Promotion of contributions to society
We will be cognizant of our role as a corporate citizen, and engage in activities to interact actively with and contribute to society.
- Efforts with local communities and society for sustainable development
Evaluating Suppliers Partners
1. Sustainable Procurement Questionnaire
The Kuraray Group has identified “Improving supply chain management” as one of its material issues (materiality) Materiality of the Kuraray Group. Observing and practicing the “Sustainable Procurement Policy” along the supply chain is one of the main targets. In order to ensure these efforts, we conduct a Sustainable Procurement Questionnaire to confirm the status of our suppliers’ efforts. Specifically, we built and operate a system where we follow a cycle involving our suppliers of (1) spreading the Policy among them, (2) conducting a Sustainable Procurement Questionnaire, (3) analyzing and evaluating the questionnaire results, and (4) giving feedback and supporting improvement as necessary. Through the process, Kuraray regularly monitors suppliers to mitigate risks and aim to ensure sustainable procurement. We will provide education and guidance on improvement through close communication with suppliers found to be especially in need of active support in improvement in the course of these activities. Furthermore, Kuraray will verify if and how often audits on suppliers will be necessary based on suppliers’ activities and status of improvement.
The questionnaire reflects the Kuraray Group Code of Conduct and the 10 principles of the United Nations Global Compact. It covers 51 items in nine areas including respect for human rights, abolition of discrimination based on gender, nationality, etc., abolition of child labor, water resource issues, global warming countermeasures, environment pollution countermeasures, fair corporate activities such as preventing bribery and corruption, ensuring quality, information security, consideration for the supply chain, and harmony with local communities, among others.
Sustainable Procurement Questionnaire
Item in the Policy
Questionnaire item
1. Corporate governance
- Sustainability promotion system
- Sustainability assessment
- Business continuity plans (BCP)
- Whistleblowing system
- Disclosure and accountability
2. Respect for human rights
- Basic stance on human rights
- Respect for human rights and abolition of discrimination
- Elimination of forced labor
- Abolition of child labor
- Freedom of association
- Ratio of female executives
- Employee training
- Dialogue with employees
3. Safe, easy-to-work environment
- Human resource development opportunities
- Adequate wages
- Fair work hours and holidays
- Abolition of harassment
- Management of employee safety and health
- Safety and health management of subcontractors
- Physical checkup
4．Promotion of environmental preservation
- Environmental initiatives
- ISO14001 certification, etc.
- Control of chemical substances
- Transportation of hazardous objects
- Management of waste water, sludge and emissions
- Sustainable and efficient use of resources (energy, water, raw materials, etc.)
- Reduction of greenhouse gas (GHG) emissions
- Disclosure of NOx, Sox, and VOC emissions
- Responsible waste disposal
5. Fair business practices
- Compliance with antimonopoly laws/competition laws
- Elimination of unfair competition
- Appropriate relations with local administration and public officials
- Prevention of inappropriate delivery of benefits to and from customers and suppliers, etc.
- Elimination of ties with anti-social groups
- Abolition of unauthorized use of intellectual property and illegal reproduction of copyrighted material
- Abolition of insider-trading
- Abolition of conflict-of-interest transactions
- Penalties and lawsuits
- Export and important trade control
6. Safety and quality of products and services
- Policy on quality and safety
- Securing quality and safety
- Appropriate response to accidents, defective products in the market, etc.
7. Proper control of confidential information
- Thorough information security
- Protection against cyberattacks
- Protection of personal data and privacy
- Prevention of unauthorized use of trade secrets
8. Supply chain
- Promoting Sustainability in the supply chain
- Conflict minerals
9. Promotion of contributions to society
- Efforts to mitigate negative impact
- Initiatives with local communities for sustainable development
- Promotion of social contribution
Global suppliers were asked to answer multiple-choice questions on whether they have a system in place and the status of improvement and confirmation for each item. We score each questionnaire question on a scale of 3 to 0 (from “has a system in place and continuously monitor it” to “no system in place and no intention to implement”). Suppliers are then evaluated based on their overall score ratio.
Evaluation levels
| Evaluation | Score |
|---|---|
| A | 80% or above |
| B | 66%～80% |
| C | 50%～66% |
| D | Less than 50% |
2. Other questionnaires
The Kuraray Group conducts some evaluation per industry other than the above. For example, we have compiled a Warehousing Company Qualification Evaluation List covering criteria for newly selecting and continuing to evaluate third-party commercial warehousing companies in Japan. Based on the list, we audit warehousing companies in terms of location and facility, warehousing work environment, status of internal education, and other matters when newly appointing them and periodically after that. Initiatives are ongoing to give guidance on improvement when audit results do not satisfy criteria.
Results of Sustainable Procurement Questionnaire
Questionnaire response rate
| Period | Scope | Number of target suppliers | Respond rate |
|---|---|---|---|
| 2023-2024 | Japan | 335 companies | 98.8% |
| Outside Japan | 308 companies | 88.0%*1 | |
| 2025 | Globally, including Japan and outside Japan | 656 companies | 94.7%*2 |
*1
As of the end of 2024. Including suppliers that used corporate reports prepared by suppliers as a substitute for responses to this questionnaire.
*2
As of the end of 2025. Including suppliers that used EcoVadis Scores or corporate reports prepared by suppliers as a substitute for responses to this questionnaire.
In Japan, we started a questionnaire in 2020 targeting major suppliers controlled by the Purchasing and Logistics Division, defined as suppliers covering 80% of total spent (90% of the spent for raw material and others). In 2022, we conducted a Sustainable Procurement Questionnaire with 335 suppliers from each division and affiliated company in Japan. In 2023, we started a similar CSR Procurement Policy (Revised Version: Sustainable Procurement Policy) dissemination and Sustainable Procurement Questionnaire with 308 suppliers at our overseas bases, achieving the above response rate. In 2024 , based on the questionnaire conducted with overseas group company suppliers in 2023, we promoted compliance improvement through feedback and dialogue with suppliers. Additionally, we integrated the previously individual domestics and overseas initiatives and prepared a system to conduct questionnaires to the suppliers covering 80% of the group’s total purchasing amount (90% of the spent for raw materials and secondary materials) as set in the "PASSION 2026" goals.
In 2025, we established the global sustainable procurement program and conducted the supplier evaluation as a consolidated global program with Japanese and overseas suppliers, including promotion of compliance improvement through feedback and dialogue with suppliers.
We evaluate the responses from suppliers based on the criteria in the table above and provide feedback to all suppliers. In particular, we conducted online meetings and additional written questions to confirm the status of their initiatives and share the purpose and importance of the Sustainable Procurement Program. For D-rated suppliers and those for which we determined that further confirmation of their initiatives was necessary, we conducted online meetings and additional written inquiries to verify their status, while also communicating the purpose and importance of the Sustainable Procurement Program. We received positive responses from all of them.
Future plans
In 2026, we will continue the implementation of the Global Sustainable Procurement Program, while extending our communication to new suppliers through questionnaires.
Circular Economy Initiatives
【Raw Materials】
The Kuraray Group, as a company that develops and provides products based on fossil-derived raw materials, recognizes the transition to a circular economy as an important challenge and is actively working toward its realization. In a circular economy, efficient circulation of resources requires traceability across the supply chain. In this context, the acquisition of the internationally recognized ISCC PLUS certification*1 is being promoted. By obtaining ISCC PLUS certification, third-party verified traceability can be ensured across the entire supply chain for sustainable raw materials, including recycled materials derived from waste and residues as well as biomass-based feedstocks. These efforts make a significant contribution to the advancement of the circular economy. In particular, the Vinyl Acetate Company is advancing the acquisition of ISCC PLUS certification across its global value chain and is building a traceable supply chain.
*1
ISCC PLUS:
International Sustainability and Carbon Certification (ISCC) is an internationally recognized certification program for sustainability and carbon emissions. ISCC PLUS is especially designed to ensure that certified items, which are bio-based or recycled raw materials and products marketed in the EU and elsewhere in the world, are properly managed throughout their supply chains in terms of sustainability and CO2 emissions.
【Recycling】
EVOH resin EVAL™ has obtained certification under the "APR Design® for Recyclability*²", a recyclability recognition program established by The Association of Plastic Recyclers (APR) in the United States. With this certification, EVAL™ has been demonstrated to be an effective material that contributes to the circular economy by supporting packaging design and material selection in line with recyclability standards in the U.S. market.
*2
APR Design® for Recyclability:
A technical evaluation program that assesses whether resins, additives, and other components used in packaging materials are compatible with existing plastic recycling processes. Among its evaluation pathways, Critical Guidance represents the most stringent criteria, covering a wide range of factors that may affect recyclability.
【Reuse】
We produce CLARINO™, which is used in Japanese school backpacks (randoseru). Through the international social contribution program “Sending School Backpacks Across the Sea,” we promote the effective use of our products by reusing school backpacks. Under this initiative, used backpacks are collected and inspected before being donated to children in Afghanistan. Through these efforts, we contribute to international society while making effective use of our products.
In addition, in our activated carbon business, we collect and regenerate both virgin and reactivated carbon used by customers. By producing regenerated activated carbon with performance equivalent to that of virgin carbon, we contribute not only to effective resource utilization but also to the reduction of by-product CO₂ emissions generated during manufacturing.
The Kuraray Group is promoting the development of products that can support the transition to a circular economy. Through the acquisition of relevant certifications and accreditations, we enhance supply chain management and improve the visibility of product circularity. These efforts also contribute to smoother communication with customers and business partners as well as the creation of new market opportunities.
ISCC PLUS Certified Products and Sites (as of May 31, 2026)
Vinyl Acetate
| SITE | Output material(s) | SCOPE | Valid from |
|---|---|---|---|
| Kuraray America, Inc. (Texas, U.S.) |
| Specialty chemical plant | Dec. 2025 |
| Okayama Plant (Okayama City, Okayama, Japan) |
| Polymerization Plant; Specialty Chemical Plant; Final Product Refinement; Processing Unit, Converter; | Aug. 2025 |
| Kurashiki Plant (Kurashiki City, Okayama, Japan) |
| Processing unit, Converter | Aug. 2025 |
| Saijo Plant (Saijo City, Ehime, Japan) |
| Processing unit, Converter | Aug. 2025 |
| Bayport Plant, Kuraray America, Inc. (Texas, U.S.) |
| Specialty chemical plant | Jan. 2025 |
| Frankfurt Plant, Kuraray Europe GmbH (Frankfurt, Germany) |
| Polymerization Plant | Oct. 2024 |
| La Porte Plant, MonoSol, LLC (Indiana, U.S.) |
| Processing unit, Converter | Jul. 2024 |
Kuraray Europe GmbH |
| Trader with storage | Jan, 2024 |
| La Porte Plant, Kuraray America, Inc.(Texas, U.S.) |
| Specialty chemical plant | Nov. 2023 |
| EVAL Europe N.V. (Antwerp, Belgium) |
| Polymerization Plant | May 2022 |
Isoprene
| SITE | Output material(s) | SCOPE | Valid from |
|---|---|---|---|
| Kashima Plant (Kamisu City, Ibaraki, Japan) |
| Specialty chemical plant | Mar. 2026 |
| Kashima Plant (Kamisu City, Ibaraki, Japan) |
| Specialty chemical plant | Feb. 2025 |
Functional Materials
| SITE | Output material(s) | SCOPE | Valid from |
|---|---|---|---|
| Niigata Plant (Tainai City, Niigata, Japan) |
| Specialty chemical plant | Sep. 2024 |
Others
Kuraray Plastics Co., Ltd.
| SITE | Output material(s) | SCOPE | Valid from |
|---|---|---|---|
| Ibuki Plant (Fuwa-gun, Gifu, Japan) |
| Processing unit, Converter | Apr. 2024 |
Kuraray Trading Co., Ltd.
| SITE | Output material(s) | SCOPE | Valid from |
|---|---|---|---|
| Head Office (Chiyoda-ku, Tokyo, Japan) | Trader | Oct. 2025 |