Sustainability Activities (ESG)
Supply Chain Management
Basic Policy and Approach
Supply Chain Management
Basic Policy and Approach
In order to help realize a sustainable and truly meaningful society through its business activities, the Mitsubishi Estate Group believes it is important to promote efforts across the supply chain. As such, the Group established the Mitsubishi Estate Group Supplier Code of Conduct based on the Code of Conduct and Guidelines for Conduct. It sets out obligations that suppliers are required or expected to fulfil, which include compliance with laws and regulations, respecting human rights, local communities, indigenous peoples’ rights, and cultural heritage, occupational health and safety, establishment of corporate ethics, environmental conservation and reduction of environmental impact, ensuring information security and establishing a risk management system.
The Group asks its suppliers to also strive to notifythis Code of Conduct to their business partners so that they understand and cooperate with its spirit and content, and thereby continue to promote efforts to fulfill its social responsibility across the supply chain with the aim of realizing a sustainable society.
Establishment of CSR Procurement Guidelines
Establishment of Mitsubishi Estate Group Supplier Code of Conduct
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, the Group revised its CSR Procurement Guidelines, which were created in April 2016, and established the Mitsubishi Estate Group Supplier Code of Conduct in April 2022.
Mitsubishi Estate Group Supplier Code of Conduct (PDF 136KB)
Mitsubishi Estate Group Order Action Guidelines
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.
Promotion System
Promotion System
Mitsubishi Estate’s Sustainability Management and Promotion Department, which is in charge of sustainability overall, and the Company’s Human Resources Department, which is in charge of human rights and diversity, take the lead in supply chain management. Important matters are deliberated at the Sustainability Committee and the Sustainability Subcommittee, and they are reported to the Board of Directors. Board of Directors has oversight of implementation of the supplier ESG program. Outstanding Group initiatives are reported and shared at the committee and subcommittee. Mitsubishi Estate’s Sustainability Management and Promotion Department also takes charge of notifying and coordinating efforts relating to the Mitsubishi Estate Group Supplier Code of Conduct.
Mitsubishi Estate engages in appropriate ordering and contracting. This includes the separation of the business organization and the ordering organization when placing orders with construction companies and the use of a self-check sheet for a self-inspection of compliance status, the results of which are reviewed objectively by the Company’s Legal & Compliance Department. When placing particularly large construction orders, the Orders Surveillance Committee chaired by the Mitsubishi Estate President & Chief Executive Officer meets to deliberate from the perspective of compliance.
See the following for the system related to human rights.
Primary Initiatives>Notification in and outside of the Group on the Guidelines and Definition of Key Suppliers
Primary Initiatives
Notification in and outside of the Group on the Supplier Code of Conduct
In order to ensure the dissemination of its Supplier Code of Conduct and Green Procurement Guidelines both inside and outside of the Group, Mitsubishi Estate publishes these guidelines on its corporate website. The Company also requests its suppliers to guide and encourage their partner companies to cooperate by distributing the Supplier Code of Conduct together with quotation guidelines.
Conducting Self-assessment Questionnaire(SAQ) on suppliers with high sustainability risk
In order to promote the improvement of sustainability and ESG-related initiatives throughout the entire supply chain, we are checking the status of suppliers’ compliance with the Supplier Code of Conduct through SAQ. SAQ is conducted targeting "construction companies" and "cleaning companies." They are our significant suppliers considering the following aspects and risks.
- Environmental, Social, and Governance aspects*1
- Country-specific risk*2 and Sector specific risk
- Business relevance (high-volume suppliers, and/or critical component suppliers to our businesses
- *1 Criteria for defining high ESG risks
- 1. Suppliers where migrant workers work as they may be vulnerable to human rights violations
- 2. Suppliers with high environmental impact
- 3. Suppliers having multiple consignment structure which may lead to governance risk
- *2 We conduct SAQ on our business operations in Japan as most of our business is operated, and also in south-east Asia as considering country specific risk and human rights risks tend to be higher than other regions.
In addition to our tier-1 suppliers, we will also conduct SAQ on our tier-2 and subsequent suppliers. Through in-depth risk assessment of the supply chain, we will identify potential risks and request and require suppliers to make improvements based on the result of SAQ.
Our Supplier Code of Conduct refers to major international standards such as the International Finance Corporation (IFC) Environmental and Social Performance Standards, the Responsible Business Alliance Code of Conduct, and the Building Responsibly Principles. Our SAQ (supplier assessment) is carried out in order to check suppliers’ compliance with the Supplier Code of Conduct.
In this context, we see working conditions and treatment of migrant workers, working hours of all workers, and establishment of grievance mechanisms as anticipated high-risk items.
We will also strengthen our supply chain management by promoting sustainability and ESG-related initiatives through on-site audit and other means in conjunction with SAQ.
Initiatives in FY2022
We conducted SAQ with a total of 60 suppliers (5 projects; 43 construction companies, and 17 cleaning companies), including secondary and subsequent suppliers. In order to gain an accurate understanding of the status of sustainability promotion at suppliers, interviews with workers at supplier companies were conducted after the SAQ was completed at construction companies.
There were no violations, but we found that "establishment of helplines that can also be used by suppliers" and "establishment of helplines with multilingual support" were issues to be improved.
Based on an understanding of the actual status of suppliers, we will consider measures to address issues and strengthen supply chain management.
Initiatives in FY2023
We conducted SAQ with a total of 26 suppliers (5 projects; 22 construction companies and 4 cleaning companies), including secondary and subsequent suppliers. In order to gain an accurate understanding of the status of sustainability promotion at suppliers, interviews with workers at supplier companies were conducted after the SAQ was completed at construction companies, and cleaning companies.
There were no violations, but we found that some suppliers have issues with "the status of taking holidays" and "lack of understanding about commission payment for foreign technical interns.” We will consider solutions and improve understanding of those issues as industry-wide challenges.
In August 2023, we introduced "JP-MIRAI Assist," a helpline service for foreign nationals, to address the issues of "establishment of helplines that can be used by clients" and "establishment of helplines with multilingual support," which were issues found in fiscal 2022.
As of March 2024, JP-MIRAI Assist has been introduced in about 20 projects at construction sites including Mitsubishi Estate, Mitsubishi Estate Residence, and Mitsubishi Estate Home. We will continue to expand the number of projects and the scope of introduction at Group companies.
Evaluations of Business Partners in Each Business
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 Estate 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. |
Scroll horizontally
Improving Quality and Safety during Condominium Remodeling
Improving Quality and Safety 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.
Organizing Registered Contractor Workshops in the Custom-Built Housing Business
Organizing Registered Contractor Workshops in the Custom-Built Housing Business
Since 1998, Mitsubishi Estate Home 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 appropriate behavior at construction sites.
