Supply chain

 

Hamamatsu Photonics group supply chain policy

As a responsible member of the global supply chain, the Hamamatsu Photonics group promotes sustainable procurement that considers environmental protection, human rights and labor, safety and health, and corporate ethics. This commitment extends not only to our own companies or groups but throughout our entire supply chain, grounded in mutual trust with suppliers.

As part of our sustainability efforts, we have distributed the "Hamamatsu Photonics Supply Chain Code of Conduct" to our suppliers. This document helps them understand the "Hamamatsu Photonics Group Basic Policy of Sustainability" and supports the promotion of Corporate Social Responsibility activities. We believe that formulating and promoting activities for the Business Continuity Plan is essential to fulfilling our responsibility to provide consistent and reliable products to society.

To ensure alignment with these goals, we are conducting surveys to assess the current status of our suppliers in promoting ESG activities and the BCP.

 

Established: June 1, 2022
Revised: October 1, 2024

Promotion structure

We established a supply chain management system headed by the Chief of Administration General Headquarters (Managing Executive Officer) and overseen by the Procurement Headquarters. Measures related to sustainable procurement are reported and discussed at the Sustainable Procurement Promotion Committee under the Procurement Headquarters, along with other committees, and progress on their activities is reviewed.

The Sustainability Office reports on important issues, targets, progress, and other items to the Board of Directors on a quarterly basis, which then provides direction and instruction.

Promotion Structure

Supply chain overview

In terms of the amount spent on materials used in products by region, Japanese suppliers account for 82.3 % of the total, followed by North America (12.3 %) and Asia (excluding China) (3.9 %).

 In terms of the number of suppliers by region, Japanese suppliers account for 94.3 % of the total.

Identification of major suppliers

We identify major suppliers by considering factors such as “procurement amount” and “availability of critical materials that are difficult to replace.”  

In the current fiscal year (ended September 2025) , there are 229 major suppliers of materials used in our products. These major suppliers account for 90 % of the procurement amount for materials used in our products  (excluding the consolidated subsidiaries).

Note: Total number of Tier-1 suppliers:1948 companies

 

We also conduct regular Sustainable Procurement Surveys for our major suppliers, with the aim of covering all major suppliers within a three-year cycle in principle. In addition, suppliers with high ESG risks are addressed with priority, regardless of the above frequency.

 

For the identified major suppliers, we maintain and manage their validity through the Evaluation Process outlined below.

 

<Evaluation Process>

1.    Dissemination of Supply chain Policy and Code of Conduct, and agreement

2.    Identification of target suppliers (Selected based on risks and other factors to ensure that all suppliers are assessed within a three-year cycle.)

3.    Analysis/Result of Sustainable Procurement Survey

4.    ESG Audit (Conduct on suppliers deemed to require corrective action based on the result.)

5.    Request for development and validation of corrective plans

6.    Reverified in the Sustainable Procurement Survey conducted in the following year

 

Click here for details on the Sustainable Procurement Survey.

Basic sales & purchase agreement

(Applicable to domestic supplier only)

 

We conclude basic sales & purchase agreements with suppliers, stipulating sustainable procurement requirements, including compliance with laws and regulations, respect for human rights, and environmental protection, and require them to comply with these items. (94 % of major suppliers have signed the basic sales & purchase agreement.)

 

The key articles of Basic Sales & Purchase Agreement

Article 36 Compliance with Supply chain Code of Conduct

Article 37 Environmental regulations

Article 38 Legal compliance

Article 39 Respect for Human rights

Article 40 Fair trading

Supply chain code of conduct

In October 2024, based on the Hamamatsu Photonics Group Code of Conduct, we have prepared the “Hamamatsu Photonics Supply Chain Code of Conduct” to include more articles related to respect for human rights, referring to the “Guidelines for Responsible Corporate Behavior” published by the Japan Electronics and Information Technology Industries Association (JEITA), to which we are involved.

We are requesting our major suppliers to understand and sign the Code of Conduct that includes our corporate’s various policies on the environment, human rights, labor and other related matters and submit a letter of agreement. As of June 2025, 223 major suppliers have signed. (Contract rate: 97.4 %)

 

Part I. Code of conduct

1. Compliance with Laws and Regulations and Respect for International norms

2. Human Rights and Labor

3. Health and safety

4. Environment

5. Fair trading and ethics

6. Quality and safety

7. Information security

8. Business continuity plan

9. Other

 

Part 2: Establishment of management system

A. Establishing a management system

B. Supplier management

C. Proper import/export control

D. Establishing a grievance mechanism

E. Disclosing the activities

We review the guidelines on a regular basis to keep them up-to-date with current conditions.

When any change is made to the guidelines, we disclose our suppliers and make them aware of the change.

Sustainable procurement survey

We regularly conduct sustainable procurement surveys to assess the status of sustainable procurement initiatives among our major suppliers and to confirm their compliance with the “Hamamatsu Photonics Supply Chain Code of Conduct”.

The survey items are based on the code of conduct and management system, with a particular focus on important issues such as human rights and labor ,and health and safety.

In particular, if the evaluation results of the supplier’s response are unsatisfactory, both parties will discuss improvement measures and request risk reduction in the future.

This Sustainable Procurement Survey is designed to ensure that all of our major suppliers, including newly designated major suppliers, are assessed within a three‑year cycle in principle.

<Current results of Sustainable Procurement Survey>

・ Survey Period: In FY2025 (ended September 30, 2025)

・ Survey Target: Major suppliers 229 companies (accounting for 90 % of the procurement amount for materials used in our products excluding the consolidated subsidiaries)

・ Responding suppliers: 222 companies (response rate: approx. 97 % ) 

Rank Result (FY2025) Definition/Note Risk Level
A 91 companies (40 %) Compliant with required items of the ESG standards in the Code of Conduct and consistently maintains a high level of performance. Low
B 59 companies (26 %) Almost compliant with the required items of the ESG standards in the Code of Conduct .
There is scope for improvement, with expectations for voluntary actions to address them.
C 40 companies (17 %) Some of the ESG standards in the Code of Conduct aren’t met, and further improvements are desirable.
Check the status of improvement at the next SAQ evaluation and provide support as needed.
Moderate
D 39 companies (17 %) Many of the ESG standards in the Code of Conduct aren’t met, and the response to key issues is inadequate.
Conduct ESG audits as necessary, request submission of improvement plans, and conduct ongoing monitoring.
High

Note: A and B are defined as “excellent suppliers” and are subject to active operation as a source of direct and critical materials for standard products.

 

<Analysis of Sustainable Procurement Survey>

The items with high scores are “Quality and Safety”, “Environment” and “Health and Safety,” while “Human Rights and Labor”, “Business Continuity Plan” and “Information Security” show room for improvement.No significant risks related to compliance violations were detected.

As a result of the evaluation, 39 companies (17 %) were rated as Rank D. For suppliers that received a Rank D rating in the current survey, we request a follow-up survey in the following year using SAQ (Self-Assessment Questionnaire) to monitor their improvement status.

Item Scoring Average score Average score rate
1.Compliance with Laws and Regulations and Respect for International norms 15 11.4 76.0 %
2.Human Rights and Labor 148 97.8 66.1 %
3.Health and Safety 38 29.7 78.2 %
4.Environment 33 26.2 79.4 %
5.Fair Trade and Ethics 70 53.7 76.7 %
6.Quality and Safety 26 22.6 86.9 %
7.Information Security 26 17.5 67.3 %
8.Business Continuity Planning 5 3.4 68.0 %
Establishing a Management System 24 16.5 68.8 %
Total 385 278.7 72.4 %

<Conducting ESG audits>

In FY2025 (ended September 30, 2025) , suppliers assessed as high risk with a D Rank in the Sustainable Procurement Survey were designated as audit targets. Among them, we conducted onsite audits for suppliers determined to require particular attention. For the risks identified through the ESG audits, we requested each supplier to formulate an improvement plan and carried out follow up assessments using the SAQ (Self-Assessment Questionnaire) . We continue to work collaboratively with suppliers to reduce these risks.

Audit results (As of March 1, 2026)

We conducted on-site audits for 4 companies selected for audit.

We issued improvement plan requests to all 4 companies and continue to provide ongoing support for their corrective action.

Audit scene at the supplier’s factory

Education and raising awareness

In-house education

In FY2025 (ended September 30, 2025) , we provided in-house education for 703 procurement officers and related personnel regarding “promotion of sustainable procurement (including various policies such as the Basic Policy of Sustainability) ” and “procurement-related laws and regulations (e.g., Subcontract laws) ”.

Educational Contents Number of Participants (FY2025)

Promotion of sustainable procurement

(including various policies such as the Basic Policy of Sustainability)

511
Procurement-related laws and regulations
(e.g., Subcontract laws)
192
Total number of participants 703

Training and Exchange with Suppliers

We hold Hamamatsu Photonics Cooperation Meetings (Suppliers Meetings) three times a year to share information and deepen mutual understanding with major suppliers.

 Month and Year   Theme  Number of Participating Companies / Participants 
July 2025

Health Management

38 Companies / 61Participants
November 2025 Sustainability 37 Companies / 56 Participants
March 2026 Information Security 38 Companies / 61 Participants

 Suppliers Meeting

Picture from Suppliers Meeting 1

Picture from Suppliers Meeting 2

The educational and awareness activities mentioned above will be held annually with different themes and educational participants.

External Collaboration

Our company participants in the activities of the Global Compact Network Japan  (GCNJ) , the local network of the United Nations Global Compact in Japan, as well as the Japan Electronics and information Technology Industries Association  (JEITA) , an industry association for electronics, electronic components, and information technology in Japan.

Through these engagements, we deepen our understanding of sustainable procurement, promote related initiatives, and incorporate the lessons learned into our engagement activities with suppliers.

Reporting system

We practice sustainable procurement in accordance with our "Hamamatsu Photonics Group Basic Policy of Sustainability". As part of these efforts, we have set up “Contact point for whistleblowing and reporting” for our suppliers.

Please contact us if you are aware of or have questions about misconduct or legal violations, ethical violations or similar conduct which may involve our business or employees.