Introduction

The Orion Group’s mission is to “Proudly from Okinawa, Orion makes people, makes occasions, helps the world smile.” To accomplish this mission, together with our suppliers, who are both important stakeholders and business partners, we promote purchasing activities responding to the requests and expectations of various stakeholders while adapting to changes in society.

Building long-term relationships of trust with suppliers, we work toward realization of a sustainable society in harmony with local communities and all other relevant parties. We established a basic purchasing policy in order to implement sustainable purchasing activities, always endeavoring to gain the understanding of our suppliers and to cooperate with them. The policy consists of the Orion Group Basic Policy on Sustainable Purchasing and the Supplier Action Guidelines.

We appreciate our suppliers’ understanding of the purpose of our purchasing activities as well as for extending their cooperation by acting in accordance with the Supplier Action Guidelines.

Orion Group Basic Policy on Sustainable Purchasing

The Orion Group will continuously contribute to society in various ways as a company operating in Okinawa Prefecture, which as an archipelago with a subtropical climate is a unique region of Japan.

As part of initiatives to fulfil our social responsibility, we have established the Orion Group Basic Policy on Sustainable Purchasing for our purchasing activities. In accordance with this policy, in order to fulfill our corporate social responsibility together with suppliers while building long-term relationships of trust with them, we strive for fair, equitable, and transparent purchasing activities in compliance with all relevant laws, regulations, and rules.

To disseminate this policy and related policies, we will hold briefing sessions and conduct a questionnaire survey of major suppliers of Orion Group companies (amounting to more than 80% of Orion Group’s total purchase amount) by 2026, aiming for a 100% collection rate.

1. Respect for human rights

1. We respect the human rights and diversity of everyone in our company and our business partners. 
2. We do not engage in any form of discrimination or conduct that undermines individuals’ dignity.
3. We provide workplaces and opportunities that reflect diversity and do no engage in harassment of any kind.

2. Improvement of working environment

1. We ensure a safe and healthy workplace environment for our company and our business partners, and maintain the physical and mental health of our employees.
2. We respect the right of employees to organize and prohibit forced labor and child labor.

3. Quality-oriented

1. In purchasing activities, we accord the highest priority to safety and quality, and also prioritize cost.
2. We welcome new technologies and proposals that enhance value for society and our customers.

4. Ensuring compliance

1. We comply with social norms, relevant laws and regulations, in letter and in spirit, and conduct reasonable activities that are trusted by society.
2. No person involved in purchasing has or will have any personal interest in any supplier. We do not accept unwarranted gratuities or gifts that deviate from social norms. We do not force others to make donations to us or use our products, services, etc. In addition, we do not conduct purchasing activities on the basis of reciprocal transactions.
3. We do not have any relationship with antisocial forces or those engaged in illegal activities such as money laundering.

5. Promotion of CSR purchasing in cooperation with suppliers

1. We vigorously promote purchasing mindful of corporate social responsibility (CSR purchasing), require suppliers to comply with the Supplier Action Guidelines, and work together with suppliers on CSR purchasing.
2. We work with our suppliers to pursue sustainability with respect to the goods and services we purchase. In the unlikely event that any issues are discovered through sustainability assessments of these goods and services, we will work with our suppliers to resolve such issues.

6. Fair and equitable transactions

1. We give suppliers the opportunity to do business with us regardless of the country/region where they are located or the size of the company, and in principle, our purchases are based on competitive quotations from multiple suppliers to ensure fair and equitable transactions.
2. In selecting suppliers, we make decisions based on a comprehensive evaluation of quality (Q), price (C), delivery time (D), and stable supply, as well as CSR initiatives, technological capabilities, compliance and environmental stance, respect for human rights, and other factors.

7. Environmental considerations

1. We will comply with laws, regulations, ordinances, and voluntary industry standards, and aim to achieve a society in harmony with the rich natural environment of Okinawa Prefecture and coexisting with it.
2. In accordance with the Orion Group Basic Environmental Policy, we are mindful of environmental considerations and prevention of pollution, and in cooperation with our suppliers, we practice purchasing activities that consider the global environment and the environment of Okinawa Prefecture.

8. Risk prevention and information management

1. We build long-term relationships of trust with suppliers and strive for coexistence and co-prosperity. We also cooperate with suppliers to ensure appropriate management and prevention of risks, and strive to avoid any negative impact on society and management. 
2. We properly manage personal information, trade secrets, and technical information provided to us in the course of purchasing activities, disclose such information only to limited parties, and do not disclose such information internally or externally without the consent of the information provider.

Supplier Action Guidelines

Many businesses are involved in the process of providing Orion Group products and services to customers. Therefore, in fulfilling our social responsibility, we believe it is important to manage not only matters within the scope of our own direct involvement but also the entire supply chain.

In order to realize a sustainable supply chain, the Orion Group has established the Supplier Action Guidelines, which we expect our suppliers to follow.

Suppliers are requested to ensure they understand each item in the Supplier Action Guidelines and to act in accordance with these items. We also encourage suppliers themselves to reflect on their own corporate activities from a CSR perspective and strive for further improvement.

(1) Suppliers shall comply with the relevant laws and regulations in all countries and regions where they conduct business activities. (2) In cases where laws and regulations differ or conflict with the Supplier Action Guidelines, suppliers shall pursue methods that more fully respect the following eight internationally accepted principles.

The Supplier Action Guidelines consists of the following eight aspects:

1. Respect for human rights

1. Suppliers are expected neither to discriminate on the basis of nationality, race, ethnicity, religion, ideology, gender, age, disability, gender identity, sexual orientation, employment status, or any other characteristic protected by the laws and regulations of each country or region, nor to engage in any other conduct that undermines individuals’ dignity.
2. Suppliers are expected to provide workplaces where people with diverse backgrounds can demonstrate their abilities as well as other opportunities for the same. Suppliers do not engage in any harassment of any kind, whether mental or physical, or any behavior that may be harmful to others.
3. In respecting human rights, suppliers are expected to comply with the laws and regulations of the countries and regions in which they operate.

2. Improvement of working environment

1. Suppliers are expected to assess risks to workplace safety and ensure employee safety by means of appropriate design, technology and management. Suppliers are expected not to tolerate danger, violence, or disruptive behavior in the workplace.
2. Suppliers are expected to monitor situations in the workplace for any exposure to substances harmful to humans and implement appropriate measures to prevent such exposure. Suppliers are expected to reduce excessive working hours, comply with the laws and regulations of each country and region regarding the working environment, including with respect to wages and working hours, ensure employee rights, and maintain employee mental and physical health.
3. Suppliers are expected to support and respect the right of employees to freedom of association and respect the right of employees to organize as a means of achieving labor-management consultations on working conditions, wage levels, etc. Suppliers are expected to recognize the formation and membership of unions and other organizations by their employees and respect their right to collective bargaining. Suppliers are also expected to comply with all laws and regulations related to these rights.
4. Suppliers are expected not to tolerate any form of modern slavery, including human trafficking. All employees shall be hired at their own free will and not be forced to work. Employment of children who are under the minimum working age or having them work shall be prohibited.
5. Suppliers are expected to comply with the laws and regulations of the countries and regions in which they operate with regard to the working environment, working conditions, minimum wages, etc.

3. Environmental conservation

1. Suppliers are expected to procure raw materials, equipment, etc. that have less impact on the environment. Suppliers are expected to strive to reduce the use of raw materials, energy consumption, and emissions of CO2 and other greenhouse gases, and to use water resources efficiently, thereby contributing to resource conservation and mitigation of global warming.
2. Suppliers are expected to work to reduce the amount of waste generated and recycle it. Suppliers are expected to properly dispose of waste in accordance with relevant laws and regulations.
3. Suppliers are expected to promote resource use that takes biodiversity into consideration.
4. Suppliers are expected to comply with laws and regulations concerning environmental pollution (water pollution, air pollution, vibration, offensive odor, etc.) and strive for continuous improvement. Suppliers are expected to properly manage and handle chemical substances designated by laws and regulations.
5. In accordance with laws and regulations, suppliers are expected to prevent pollution, obtain government permits and approvals when required, and always submit required management reports to the government.

4. Fair business practices

1. Suppliers are expected to comply with laws and regulations and internal and external rules and strive to update their knowledge. Suppliers are expected to vigorously collect information on important changes in laws and other rules related to their business.
2. Suppliers are expected not to engage in any conduct that violates the laws and regulations governing business transactions in each country (such as the Subcontract Act and the Antimonopoly Act in Japan), and are expected to engage in fair, transparent, and free competition and transactions. Suppliers are expected not to engage in any conduct that would lead to an agreement (cartel) with other businesses, including competitors, that would impede fair competition.
3. Suppliers are expected to understand social conventions and common sense regarding business entertainment and gifts and to prevent bribery and other forms of corruption. Suppliers are expected not to have any relationship with antisocial forces or those engaged in illegal activities such as money laundering.

5. Ensuring quality

1. Suppliers are expected to strive to earn the trust of their stakeholders by according the highest priority to ensuring safety in all processes from procurement of raw materials through research, development, manufacturing, distribution, and after-sales activities for their products. In the event of an accident or defective product, suppliers are expected to promptly disclose information, contact the competent authorities, recall the product, and implement safety measures for the parties to which such product is supplied.

6. Information management

1. Suppliers are expected to appropriately manage and protect the personal information of their customers, third parties, and employees. Suppliers are expected to appropriately manage and protect confidential information received from their customers and third parties.
2. Suppliers are expected to vigorously provide and disclose information to stakeholders, regardless of whether such disclosure is required by law or not.
3. Suppliers are expected to use their own intellectual property appropriately, respect the intellectual property rights of other companies, and shall not infringe on them.

7. Respect for the community

1. Suppliers are expected to respect the commercial, social, and cultural customs, etc. of the international community and local communities, and strive for harmony with local communities. Suppliers are expected to faithfully comply with the laws and regulations of the countries and regions in which they operate, strive for mutual understanding through communication, and contribute to sustainable development.

8. Responsible drinking

1. Suppliers are expected to understand that irresponsible drinking, including drinking and driving, underage drinking, drinking while pregnant, and heavy drinking, cause various problems, and work to eliminate irresponsible drinking.

We request the cooperation of our suppliers to ensure that their actions are in accordance with the above Supplier Action Guidelines.

Orion Breweries, Ltd. Purchasing Management Regulations

Matters to be observed in purchasing and when conducting purchasing activities at Orion Breweries, Ltd. are stipulated (Established on April 1, 2022). The following is an excerpt from the main part of the Purchasing Management Regulations, which outlines the specific procedures for the activities.

1. Definition of Terms

“Purchasing” refers to formulating purchasing strategy, finding new suppliers, receiving comparative quotations, conducting price negotiations, etc., selecting suppliers, determining prices and other contract terms and conditions, and purchasing goods and services.

2. Principles of quotations

In principle, quotations should be obtained from two or more suppliers.

3. Approval of order placement details

The order placement procedure is initiated by an order request application from the requester, and the order request application is subject to approval by the order request approver.

4. Order placement, etc.

A series of purchasing procedures shall be carried out in accordance with the internal regulations of each Orion Group company.

5. Supplier survey

For suppliers listed in the Purchase Approval Form, the supply capacity of suppliers shall be investigated and ascertained as necessary.

Other provisions include compliance, order placement methods and contracts, acceptance inspection, purchase accounting, payment, and confidentiality.

6. Selection and registration of suppliers and ongoing audits

When commencing transactions with a new supplier, due diligence shall be conducted by the following methods to confirm that the supplier is in good standing and the supplier shall be audited on a regular basis.

1. Antisocial Force Check by the General Affairs Section, Human Resources and General Affairs Division
2. Investigation of suppliers by the Finance and Accounting Department, Business Management Division
3. QA inspection by the Quality Control Section, Production Division
4. Environmental audits by the Sustainability Committee
5. Risk assessment of social issues by the Sustainability Committee