Supply Chain

Supply Chain


Basic Policy

Our basic policy is to comply with the laws and regulations of each country in which we operate and to conduct procurement activities in the global markets for all necessary materials and services at an appropriate quality, price, and with delivery schedule based on fair business relationships. In order to tackle social issues such as the environment, human rights and labor, we strive to strengthen our supply chain to be sustainable and ethical to increase our customers’, business partners’, and our own corporate value.

Please refer here for our procurement policy.

Promotion System

We established the Procurement Division as a global organization that promotes sustainable procurement activities. In collaboration with the Business and Production Units, we are working towards optimal procurement activities and the promotion of sustainable, global procurement.

Mid-Term Target for the Supply Chain

In order to realize a sustainable supply chain, we establish a mid-term target as well as a yearly KPI for undertaking initiatives. 

Mid-Term Target (2021 - 2024) 

  1. Obtain a risk evaluation score* below Medium in all key suppliers 
  2. Procure minerals only from RMI-certified smelters following the RMI certification process

    *risk evaluation by RBA-SAQ

2021 KPI

  Activity Target Achievement Rate
Agreement to Renesas' Supplier Code of Conduct from key suppliers 100%
2 Obtain RBA SAQ responses from key suppliers 100%
3 Conduct conflict minerals investigation following RMI procedures 100%

Educating Procurement Personnel

As part of promoting corporate ethics within the Procurement Division, we conduct various compliance education on topics such as the Renesas Code of Conduct as well for new employees and employees transferring into the team. We also conduct regular education and training for the most recent CSR issues, such as the environment, in order to penetrate and share information inside the team. 

Promoting Sustainable Procurement through Fair and Equitable Transactions

In order to provide high-quality products and services to our customers, we believe it is important to promote sustainability throughout the supply chain, including taking into considerations the environmental, society, safety and security issues. Therefore, we have created the “Supply-Chain CSR Deployment Guidebook” (in Japanese and English) in 2013, which states specific activities and behaviors we would like the partners that make up our supply chain to comply with. We distributed this "Supply-Chain CSR Deployment Guidebook " to approximately 1,200 suppliers worldwide, promoting sustainable practices throughout the supply chain.

This Supply-Chain CSR Deployment Guidebook is in compliance with the “Supply-Chain CSR Deployment Guidebook” established by the Japan Electronics and Information Technology Industries Association (JEITA). We ask all partners within the Renesas supply chain including secondary suppliers and beyond to follow Renesas’ approach to sustainable procurement and ethical values, and to promote activities from this common perspective.

In 2021, we have re-evaluated the contents of the Supply-Chain CSR Deployment Guidebook after joining the RBA and revised them as the "Renesas Supply Chain Code of Conduct", which is available in Japanese, English and Chinese, to promote sustainability throughout the entire supply chain. 

<Initiative criteria which we ask partners to undertake initiatives based on the Renesas Supply Chain Code of Conduct> 

  • Freely chosen employment
  • Young workers
  • Working hours
  • Wages and benefits
  • Humane treatment
  • Non-discrimination/non-harassment
  • Freedom of association
  • Occupational safety
  • Emergency preparedness
  • Occupational injury and illness
  • Industrial hygiene
  • Physically demanding work
  • Machine safeguarding
  • Sanitation, food and housing
  • Health and safety communication
  • Environmental permits and reporting
  • Pollution prevention and resource reduction
  • Hazardous substances
  • Solid waste
  • Air emissions
  • Materials restrictions
  • Water management
  • Energy consumption and greenhouse gas emissions
  • Business integrity
  • No improper advantage
  • Disclosure of information
  • Intellectual property
  • Fair business, advertising and competition
  • Protection of identity and non-retaliation
  • Responsible sourcing of minerals
  • Privacy
  • Company commitment
  • Management accountability and responsibility
  • Legal and customer requirements
  • Risk assessment and risk management
  • Improvement objectives
  • Training
  • Communication
  • Worker feedback, participation and grievance
  • Audits and assessments
  • Corrective action process
  • Documentation and records
  • Supplier responsibility

Click here to view the Renesas Supply Chain Code of Conduct.

Understanding Risks within the Supply Chain

At Renesas, we ask key suppliers selected based on 1) the transaction amount, 2) the replaceability and 3) the characteristics of the produced products to conduct self-tests and self-improvements using a self-diagnosis survey (note). 

In addition, when starting procurement from new suppliers, we ask new suppliers to report on the actions they are taking towards the criteria listed in the Renesas Supply Chain Code of Conduct and to agree to undertake the necessary initiatives. 

Furthermore, we use the risk assessment platform provided by RBA to investigate potential risks in all  suppliers on a regular basis. If a supplier is classified as potentially high risk, we ask them to conduct self-tests and self-improvements using a self-diagnosis survey, similarly to key suppliers.
Note: From 2021, we use the RBA SAQ as the self-diagnosis survey.

Promotion of Green Procurement

Based on Environmental Policies, Renesas is contributing to realize a sustainable society by providing environmentally friendly products and solutions. To realize such a society, it is crucial to reduce the environmental impacts of the parts and materials used within the products. At Renesas, we promote “Green Procurement” where we preferentially procure environmentally conscious parts and materials from companies that are proactive in environmental conservation.

We ask all suppliers that provide parts and materials used as components of our products, suppliers that provide parts and materials used in our products, suppliers that provide parts and products used in the packaging of our products as well as suppliers that deliver our out-sourced products to comply with the Green Procurement Guideline by clarifying the green procurement standards and stating the aims of the guideline which is to reduce the environmental impact of Renesas products.

Through compliance with Environmental RoHS Directives and conducting surveys of the substances contained in purchased products at Renesas, we are able to confirm that each supplier is making progress in environmental initiatives. In addition, for procuring raw materials used in products, we preferentially purchase from suppliers who actively promote environmental protection, whose products have less environmental impact and contain no hazardous substances. We also actively and preferentially select environmentally conscious products in the procurement of goods such as business goods and IT equipment, based on the information on the environmental impact of those goods. We have confirmed that suppliers that cover over 95% of the total transaction amount of outsourced manufacturing recorded in the second half of 2019 and the first half of 2020 are ISO14001 certified.

Guidelines and Standards

Reference: Green Procurement Answer Format

  • There is no format for "Environmental Hazardous Substance Analysis Data" report. Answers are provided as free-form. (Please refer to "Green Procurement Standard Ver.2")
  • Answers are sent via email with the Excel file attached.

Responsible Mineral Procurement Initiatives

Renesas has taken the following actions in support of its customers’ conflict minerals obligations and initiatives:

  1. Renesas has integrated a prohibition on purchasing conflict minerals, and any materials or products incorporating conflict minerals into its global sourcing policy.
  2. Although we have no knowledge or reason to be believe that any conflict minerals are included in any products marketed or sold by Renesas, to the extent that we become aware of any procurement of conflict minerals, we are committed to taking corrective action to cease the ongoing use of such conflict minerals and to eliminate any applicable suppliers from our supply chain.
  3. Although conflict minerals legislation originated in the United States, this legislation (and the conflict mineral issue generally) is both commonly understood and taken very seriously in Japan. In addition to the efforts Renesas has undertaken on its own, Renesas has also taken part in country-wide efforts to study and mitigate conflict minerals issues. In particular, Renesas is a participant in the Responsible Minerals Trade Working Group under the Japan Electronics and Information Technologies Industries Association (“JEITA”). This group has been working to establish industry-wide standards and best practices for the procurement of 3TGs in Japan. Furthermore, JEITA has entered an MOU with EICC/GeSI in order to coordinate efforts in working towards further control and visibility of the global 3TG supply chain.
  4. Nearly all of Renesas’ products contain at least one 3TG; however, Renesas does not purchase these 3TGs directly from smelters but instead from suppliers that are downstream in the supply chain. We have and continue to work closely with the suppliers in our supply chain to investigate the source of the 3TGs incorporated into products and materials supplied to Renesas. Specifically, we undertook an exhaustive research study and analysis project with our suppliers from October 2012 through December 2012. During this study, we were able to confirm the smelters used by approximately 80% of our suppliers. For various reasons, we have been unable to definitively identify the smelters used by approximately 20% of our suppliers. In an effort to be able to definitively assert that all of our products are “conflict free,” we continue to pursue additional and complete information from those suppliers that have not yet provided us with complete information. Furthermore, regardless of whether we have received a complete response, we have also provided all of our suppliers with both our expectations regarding the use of conflict minerals and our official 3TG procurement policies.

In order to realize responsible mineral procurement, when we confirm any potential risks as a result of an investigation, we ask our direct suppliers to make improvements, such as to shifting to a smelter from a list of certified smelters for procurement.

In 2019, for tin, tungsten, tantalum, and gold (3TGs), we have confirmed a total of 253 smelters are included in our supply chain, and those 253 smelters are listed under RMI’s Conformant Smelter List. In addition to the 3TGs, we began monitoring cobalt in 2019 and identifying smelters for cobalt within the supply chain. However, because of the lack of regulations, we are facing difficulties in confirming whether the smelters are following the "Cobalt Report Templates (CRTs)" certification from Responsible Materials Initiative (RMI)”.

Renesas Joins the Responsible Business Alliance

Renesas has joined the Responsible Business Alliance (RBA) (announced on April 19, 2021), a nonprofit organization founded in 2004 committed to supporting the rights and well-being of workers and communities worldwide affected by global supply chains. By joining the RBA, Renesas will fully support the vision and goals of the RBA to ensure that its manufacturing processes are environmentally responsible and that its workers are treated with respect and dignity.

Supply Chain Summary Data

Ratio of Purchase Amount by Region(2019)