Working Together with Suppliers │ Supply Chain Management │ Sustainability │ ROHM Semiconductor

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Working Together with Suppliers

Working Together with SuppliersSupply Chain Management

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Supplier Selection

ROHM Group has adopted the RBA Code of Conduct to pursue sound and sustainable procurement activities. Cooperation with suppliers is essential for promoting CSR procurement activities based on the RBA Code of Conduct.
When selecting suppliers, we make decisions based on rational criteria such as quality, price, delivery time, stable supply, environment, finance, human rights, and ethics, as described below. Of these, 40% are weighted in relation to ESG at the time of selection, placing importance on the ESG initiatives of our suppliers. In addition, ROHM Group distributes the ROHM Group Supply Chain Management Guidelines, which specify ROHM Group's approach to CSR procurement, to all suppliers and requests them to promote activities based on the guidelines.

Supplier Selection Criteria

1. Promotion of ROHM Group Supply Chain Management Guidelines
2. Conclude "basic transaction contract" that encompasses the RBA Code of Conduct
3. Properly ensure the quality, price, and delivery date of materials and services
4. Stable supply capacity and ability to flexibly respond to fluctuations in demand
5. Supply continuity plan to prepare for unforeseen circumstances, such as the occurrence of natural disasters
6. Technological capabilities that can contribute to the product
7. Sound business conditions
8. Responsible mineral and green procurement to meet our demands
9. Appropriate management and protection of confidential information obtained through transactions with us

ROHM Group Supply Chain Management Guidelines

ROHM Group Supply Chain Management Guidelines are based on the RBA Code of Conduct, which covers occupational health and safety (including human rights), environment, labor and safety, environment, ethics, and management systems, and combines requirements for crisis management, information security, logistics, and quality compliance. We ask our suppliers to comply with these guidelines. We distribute the guidelines directly to our suppliers, but they can also be downloaded from the link below.

CSR Procurement Self-Assessment

Every year, ROHM Group asks suppliers to self-evaluate their CSR activities regarding Labor (including human rights), Health and safety, Environment, Ethics, and Management system as specified in the RBA Code of Conduct, as well as ROHM's original items of Information security, Procurement BCP, Logistics, and Quality Compliance, to check the progress of their CSR activities.
The ranks are assigned based on the overall score of the self-assessment, and suppliers’ ESG risks are identified.
We recognize critical suppliers with a rank lower than B and other suppliers with a rank lower than C as sustainability high-risk suppliers, and we request each supplier identified as a sustainability high-risk supplier to take corrective action and provide support for improvements.
However, if there is no sign of improvement despite repeated requests for improvement, we may consider the risk of continuing transactions in the "Overall Activity Evaluation" of the supplier and make a decision to suspend transactions.