Mori Building Co., Ltd.

  2. Sustainability
  3. Society
  4. Supply Chain Management

Supply Chain Management

Basic Concept

The Mori Building group has been working toward the realization of a sustainable society where people who live, work, and visit are able to live in good health and vitality, both physically and mentally, through urban development promoted together with various stakeholders, including business partners, under the philosophy of "Create Cities, Nurture Cities."

In order for the Mori Building group to continue and expand its business activities while making further contributions to the realization of a sustainable society in the midst of the recent emergence of social issues such as human rights and environmental problems around the world, we have formulated the Mori Building Group Sustainable Procurement Guidelines. They are based on the belief that it is even more important to address these issues throughout the supply chain, including the many suppliers with whom we collaborate from development to operation in the creation of cities. In formulating these guidelines, the group has incorporated the knowledge and advice of outside experts in order to accurately grasp the demands of society.

the group also promotes awareness and application of the Guidelines among its suppliers and encourages them to share it with their business partners in an effort to implement sustainable procurement throughout the supply chain.

The Mori Building Group Sustainable Procurement Guidelines (established June 2022)

  1. Compliance with laws, regulations and social norms
    • We shall comply with the laws and regulations of the countries and regions in which we do business, as well as international treaties and social norms.
  2. Respect for human rights
    • We shall uphold international standards* related to human rights and labor, and respect the laws, traditions, and customs of the countries and regions in which we do business.
      * The International Bill of Human Rights (Universal Declaration of Human Rights, and International Bill of Human Rights), the ILO Declaration on Fundamental Principles and Rights at Work by the International Labour Organization (ILO), the UN Guiding Principles on Business and Human Rights, and the Children's Rights and Business Principles.
    • We shall respect fundamental human rights and shall not discriminate or engage in any behavior that offends individual dignity in recruiting, hiring, human resource development, or promotion on the basis of race, nationality, gender, sexual orientation, age, religion, ethnicity, disability, or disease.
    • We shall not engage in inhumane treatment of employees, including mental or physical aggression, verbal or physical slander, or harassment.
  3. Ensuring working conditions and working environments are healthy
    • We shall not tolerate human trafficking or slavery, respect the freedom of choice of occupation, and prohibit forced labor.
    • We shall prohibit the hiring or employment of children under the minimum working age in accordance with the laws and regulations of the countries and regions in which we do business.
    • We shall not allow young workers to engage in hazardous work that may expose them to health or safety risks.
    • We shall comply with laws and regulations concerning working hours, leave, etc., and shall prevent long working hours and overwork.
    • We shall pay our employees at least the minimum wage stipulated in the countries and regions in which we do business on the agreed-upon date. We shall also strive to pay wages that take into account the standard of living of our employees to ensure their stable livelihoods.
    • We respect the freedom of association and the right to collective bargaining in accordance with the laws and regulations of the countries and regions in which we do business.
    • We shall identify and assess health and safety risks and take appropriate measures to prevent industrial accidents. In the event of industrial accidents, we shall investigate the causes and take measures to prevent recurrence.
    • We shall ensure a physically and mentally safe and healthy working environment for our employees. In the event that we provide accommodations for our employees, we shall ensure a safe and hygienic living environment that takes into consideration their physical and mental health.
  4. Fair corporate activities
    • We shall conduct fair and equitable transactions in accordance with the Antimonopoly Act, the Subcontract Act, and other laws and regulations related to corporate activities.
    • We shall prevent the giving and receiving of improper benefits, including bribery and suspected bribery, and shall not engage in corrupt practices.
    • We shall not accept any demands from or be involved with criminal organizations etc.
    • We shall take appropriate measures to deal with any conflicts of interest that may arise in our overall business dealings.
    • We shall prohibit the improper use of insider information obtained in the course of conducting our business, and shall prevent the leakage of inside information.
    • We shall protect our intellectual property rights, including patents, trademarks, and copyrights, from infringement by third parties, and we shall operate and manage them appropriately and shall not infringe intellectual property rights held by third parties.
    • We shall establish an internal whistle-blowing system for the prevention and early detection of problems such as violations of laws, regulations, and misconduct, and shall strive to promptly resolve any problems that may arise. We shall establish a system where confidentiality is strictly maintained, and whistleblowers and consultants are not subjected to any disadvantages.
    • We shall provide and disclose reliable corporate information in a timely and appropriate manner in response to requests from society and stakeholders.
    • We shall endeavor to use products, raw materials, etc. used in our business activities that are produced taking into consideration social and environmental concerns, and we shall not use any products produced through illicit means, such as forced labor, illegal logging, or conflict minerals.
  5. Commitment to environmental preservation
    • We shall comply with environmental laws and regulations governing the prevention of air, water, soil, and other pollution and the control of chemical substance emissions in the countries and regions in which we do business.
    • We shall establish a management system for environmental preservation and implement continuous improvement activities through the PDCA cycle.
    • We shall continuously strive to reduce greenhouse gas emissions by promoting the effective use of energy and renewable energy.
    • We shall use resources such as water and raw materials in a sustainable and efficient manner to reduce consumption.
    • We shall consider the direct and indirect impacts of our business activities on ecosystems and work to conserve biodiversity.
    • We shall strive to prevent air, water, and soil pollution by appropriately managing and reducing pollutants and waste generated in the course of our business activities.
    • We shall strive to adopt environmentally friendly materials and construction methods, and promote the recycling of resources through daily 3Rs (reduce, reuse, recycle) activities.
  6. Ensuring and improving quality and safety
    • In order to ensure the quality of the products and services we provide, we shall establish an appropriate quality control and quality assurance system, and shall strive to maintain and improve it.
    • In order to ensure the safety of our products and services in all aspects from planning to after-sales service, we shall comply with laws, regulations, and norms. In the unlikely event of a quality accident or other incident, we shall take prompt and appropriate action, including the disclosure of necessary information and reporting.
  7. Ensuring information security
    • We shall establish an information management system to appropriately manage and protect personal and/or confidential information obtained through our business activities to prevent unauthorized use or leakage of information.
  8. Establishment of business continuity plan (BCP)
    • We shall establish a business continuity plan (BCP) to ensure that we can continue to provide our products and services in the event of a major disaster or serious accident.
  9. Contribution to local communities
    • We shall respect the culture and customs of local communities and to build good relationships with them, and shall actively engage in social contribution activities.
  10. Promote compliance throughout the supply chain
    • We shall share these guidelines not only with our own company but also with our business partners to ensure that the entire supply chain complies with these principles.

Request to All Suppliers

We ask for your cooperation in making the Mori Building Group Sustainable Procurement Guidelines widely recognized within your company.

Mori Building is in the process of conducting supplier surveys and supplier visits to confirmthe status of supplier's efforts to comply with the Mori Building Group Sustainable Procurement Guidelines. We would appreciate your cooperation in conducting those surveys. In the event that measures are not being taken in compliance with the Guidelines and the various policies expressed by the group (i. e., the Mori Building group Human Rights Policy), it is requested that corrective measures be taken. In cases where no improvement has been made after continuous consultation and advice, we may not be able to continue doing business with the supplier.

the group supports various initiatives. We appreciate your willingness to work with us to fulfill our commitments to these initiatives.

Promotion of Sustainable Procurement

Mori Building recognizes that the promotion of sustainability initiatives is a material matter related to the execution of its business operations, and has therefore established the Sustainability Committee, which is chaired by the President and CEO, and its subcommittees, the Environmental Promotion Committee and the Committee on Human Rights and Societal Issues. The Sustainability Committee deliberates on important sustainability-related issues such as climate change, human rights, and supply chain management, and supervises and monitors the subcommittees. The Board of Directors receives reports from the Sustainability Committee on a regular basis and discusses material matters at the Board of Directors meetings for management and supervision.

The Purchasing Department, which serves as the point of contact with suppliers, participates and collaborates with the Environmental Promotion Committee and the Committee on Human Rights and Social Issues as the promotion department for supply chain management, while promoting and managing initiatives for supply chain management related to sustainable procurement, and reports regularly to the Sustainability Committee through both committees.

Mori Building believes that deepening mutual understanding with suppliers, and working to build and maintain a healthy supply chain that considers human rights and the environment based on relationships of trust built through the mutual understanding, will lead to the realization of a sustainable society. Going forward, Mori Building will promote the penetration of the Mori Building Group Sustainable Procurement Guidelines among our suppliers.

Risk Assessments

Through the Mori Building Group Sustainable Procurement Guidelines, Mori Building requests suppliers to establish a system to address various risks such as Respect for human rights, Commitment to environmental preservation, and Establishment of business continuity plan (BCP). In particular, we are preparing to conduct surveys in line with these guidelines for suppliers that are considered to have a particularly large impact on our supply chain. We will work to prevent and reduce risks through periodic risk assessments in conjunction with our efforts to assess new suppliers, construction-related suppliers, and our business partners involved in building operations.

Initiatives for Evaluating Suppliers

Evaluation at the Start of New Business

At the start of new business with suppliers, Mori Building evaluates various items, including their compliance status in corporate management, health management initiatives, and relationship with criminal organizations. Moreover, it confirms the background leading up to the business with them, and only after approval in accordance with its procedures does it initiate the new business with them. Through these processes, Mori Building strives to mitigate the risks associated with suppliers.

Evaluation of Construction-related Suppliers

Once a year, an evaluation regarding safety, construction period, quality, cost, on-site communication, etc. of construction suppliers with solid trading track records is conducted by the Architectural Design Department (Construction Supervising Division), the Building Improvement Department (Interior Construction Division), and the Purchasing Department (Procurement Division). As a result of these evaluations, Mori Building discuss corrective measures with suppliers that need to be done and encourage them to make improvements. We also strive to deepen mutual understanding with suppliers by listening to their requests of us.

Evaluation of Business Partners Involved in Building Operations

It is essential to cooperate with business partners, who are the main actors in management and operation services, in order to provide a safe, secure, and comfortable environment for all customers, including tenants, visitors, and residents. Once a year, Mori Building evaluates the quality of operations of its business partners, and works to maintain and improve the level of services by addressing any problems that are identified.
The results of the evaluation are fed back to each business partner through periodic visits and other means, and future measures to be taken are discussed.

Major Initiatives

Internal Education and Training for Procurement Departments, etc.

The training of procurement staff is also important for promoting sustainable procurement activities. Mori Building conducts fair and equitable business transactions in accordance with the Compliance Code of Conduct and the Procurement Operation Regulations. The members of the Purchasing Department (Procurement Division) regularly participate in briefings on the background, purpose, and content of the Mori Building Sustainable Procurement Guidelines, as well as study sessions on laws and regulations, such as the Subcontract Law, with which we, as an ordering entity, ensure compliance to guarantee employee skills improve.

Awareness and Training for Suppliers

Mori Building ensures that suppliers are familiar with and understand the Mori Building Sustainable Procurement Guidelines by attaching the Guidelines to the estimation requirements issued when requesting quotations to suppliers, and also makes compliance with the Guidelines a requisite for the quotations. New suppliers are also required to comply with the Guidelines as a requisite for starting business.
Once a year, Mori Building also holds a special seminar on building operations for staff of business partners involved in building operations, as well as an awards ceremony for outstanding staff nominated by Mori Building employees at each operation site. We will use these opportunities to promote awareness of the Mori Building Sustainable Procurement Guidelines.

Participation in Declaration of Partnership Building

Declaration of Partnership Building

Mori Building is participating in the Declaration of Partnership Building formulated by the Council on Promoting Partnership Building for Cultivating the Future, which is being managed by the Cabinet Office of Japan and other organizations. The declaration is a statement of commitment to co-existence and co-prosperity throughout supply chains, partnerships that transcend company sizes and affiliations, and compliance with appropriate business practices between companies and their business partners.

Please refer to Portal Site (Japanese only) for details.