To fulfill Astellas’ social responsibilities across the entire supply chain, it is important for us to conduct our procurement activities with respect for compliance. To achieve this goal, Astellas has formulated the Basic Policy for Procurement Activities and the Astellas Business Partner Code of Conduct. We also undertake measures for sustainable procurement globally to build a sound network for business activities.

Risk Assessments for Significant Business Partners

Astellas conducts a global assessment that includes an evaluation of sustainability risk in the selection process for significant business partners*, the business partners that have a particularly significant impact on Astellas’ business continuity among others. The sustainability risk assessment involves judging a risk level based on a combination of the business partner’s response to a questionnaire, external database information, a basic assessment by in-house experts on risks related to sustainability such as human rights, the environment, occupational health and safety and personal information protection, and, if necessary, the results of a local on-site audit carried out by an Astellas employee

Sustainability risk assessment has started operating in Japan, North America and Europe since February 2019, and has also deployed in South America and Asian countries.

If Astellas identifies a risk that can be improved during the business partner selection process, it encourages the business partner to make the improvement and monitors its initiatives. Astellas does not engage in business if it identifies a critical risk and it judges the risk is difficult to be improved.

Moreover, business divisions continue monitoring risk status even after business transactions have begun and the supplier’s sustainability risk level is assessed once every two years through a questionnaire. If necessary, the assessment takes place even within the two-year period.

* Business partners that have a significant impact on Astellas’ business continuity, such as suppliers of raw materials (regardless of whether they are direct or indirect materials), outsourcing companies, pharmaceutical wholesalers, sales alliance partners and banks.

On-Site Audits of Suppliers

In 2020, there have been movement restrictions due to the impact of COVID-19. We conducted field survey on two companies in Japan regarding the operational status of wastewater treatment facilities, the working environment of employees, and the prevention of chemical substance exposure. In cases where items were pointed out, Astellas indicated an improvement proposal, requested a plan for corrective measures be drawn up and is currently following up on progress of the improvements based on the corrective measures plan.