Responsible Procurement
The ANA Group promotes socially and environmentally responsible procurement activities throughout our supply chain and operations.
Basic Approach
In recent years, while the global economy has grown, environmental problems such as the depletion of limited natural resources, water shortages, and global warming have become more apparent, and there is a growing sense of crisis surrounding global sustainability. In addition, societal problems such as labor and human rights issues are becoming more serious in the supply chain of global companies. Increasingly, companies are required to comply with the laws and regulations of each country in addition to internationally-recognized standards and principles as we collectively work towards the realization of a sustainable society.
The ANA Group will contribute to the creation of its social value not only by providing safe and secure services, but also by taking the initiative in local and global procurement activities with consideration for both the environment and society.
As part of these efforts, we established the following "ANA Group Procurement Policy" to promote sustainable procurement activities throughout the supply chain.
The ANA Group Procurement Policy consists of the "Basic Procurement Policy" and the "Supplier Code of Conduct".
ANA Group Procurement Policy
Basic Procurement Policy
- The ANA Group has an open-door policy in our procurement activities, giving access to both domestic and foreign suppliers. Our procurement activities will comply with related laws, regulations, and rules, and will be based on fair, equitable, transparent processes under the principle of free competition. The ANA Group will endeavor to develop mutual trust and complementarity with our business partners.
- The ANA Group will engage in responsible procurement activities that address human rights and environmental concerns.
- The ANA Group will promote innovation and meet customers' expectations by working with suppliers who give priority to assuring quality, setting appropriate prices, and meeting delivery dates and who have a stable foundation for business management and adaptability to change.
- The ANA Group will generate social and economic value from across our supply chains and contribute to creating a more sustainable world.
Basic Procurement Policy
Supplier Code of Conduct
The "ANA Group Supplier Code of Conduct" serves as the foundational guideline for all partners providing products and services to our Group. We require our suppliers to adhere to this publicly available code, which explicitly encompasses the following critical areas:
- Human Rights and Labor: Forced labor, Child labor, Working conditions (e.g., working hours, physical/mental demands of the workplace, wages, benefits), Occupational health and safety, Discrimination and harassment, Freedom of associations and collective bargaining.
- Environment: Greenhouse gas emissions and energy consumption, Pollution prevention and waste management, Resource efficiency, Biodiversity.
- Business Ethics: Anti-corruption and conflict of interest, Anti-competitiveness.
Supplier Code of Conduct
| 1.Quality Assurance and Business Continuity Plan |
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|---|---|
| 2.Compliance and Anti-Corruption Measures |
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| 3.Labor Standards |
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| 4.Safety and Sanitation |
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| 5.Environment |
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| 6.Contribution to Local Communities |
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| 7.Information Disclosure | |
| 8.Conflict Minerals |
The ANA Group Supplier Code of Conduct makes reference to international human rights standards, such as the United Nations Guiding Principles on Business and Human Rights, the International Bill of Human Rights (specifically the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights), the basic rights at work and the core labor standards set out in the International Labour Organization Declaration on Fundamental Principles and Rights at Work, other international treaties on the human rights of workers that also cover such matters as wages and working hours, and the United Nations Declaration on the Rights of Indigenous Peoples.
Implementation Structure
Under the oversight of the Board of Directors, the Group ESG Management Promotion Committee and the Group CPO (Chief Procurement Officer) lead the ANA Group’s responsible procurement efforts. Their key responsibilities include formulating procurement policies, as well as planning and driving initiatives to ensure a sustainable and resilient supply chain.
Additionally, Procurement Managers have been appointed across all ANA Group companies to integrate these policies into daily operations and foster internal awareness. Through these collective efforts, we collaborate with our suppliers to realize a sustainable society.
The ANA Group Supply Chain
The ANA Group operates a global procurement network, with our annual spend totaling approximately 2.1 trillion yen.
Our purchasing is heavily focused on core categories essential to supporting our air transportation business, such as aviation fuel, airframes, and maintenance parts. Geographically, while our operations are centered in Japan, we partner with suppliers across major global regions, including North America, Europe, and Asia. Across all markets, we ensure our procurement activities strictly adhere to local laws, regulations, and international standards.
Major Initiatives
Risk Management in the Supply Chain
We request all new suppliers to understand and agree to the "ANA Group Procurement Policy" when establishing new business relationships.
We also monitor the compliance status after commencing business relationships. If a significant deviation from the policy is found, we will ask for improvement plans and provide support for corrective actions, seeking their understanding and cooperation for sustainable procurement.
Additionally, if deemed necessary, we conduct investigations on tier2 / tier3 suppliers for risk management of the entire supply chain.
Measures for Effective Implementation of Supplier ESG Programs
The ANA Group has established robust measures to ensure the effective implementation of our supplier ESG programs. These measures are publicly disclosed and strictly enforced:
- Board Oversight:
Governance and oversight for implementing supplier ESG programs are clearly defined. The Board of Directors holds ultimate accountability for our ESG Supply Chain Management System - Review of Purchasing Practices:
We regularly review our purchasing practices to ensure full alignment with our "Basic Procurement Policy," thereby preventing potential conflicts with ESG requirements. - Contractual Actions for Unmet ESG Requirements:
Suppliers are excluded from contracting if they cannot achieve minimum ESG requirements within a set time frame. (For example, we seek improvement within 2-3 years, and failure to comply will result in contract termination.) - Integration into Selection Criteria:
Suppliers demonstrating superior ESG performance are given preference during the supplier selection and contract award processes. - Continuous Education:
We provide ongoing training for procurement personnel and internal stakeholders to reinforce their respective roles within our supplier ESG programs.
PDCA Process for Continuous Improvement
To deepen collaboration with our suppliers and ensure rigorous ESG management in our daily procurement activities, the ANA Group operates a PDCA (Plan-Do-Check-Act) cycle consisting of the following four steps. Through this systematic approach, we aim to proactively mitigate environmental, human rights, and other sustainability risks, while driving continuous improvement across our entire supply chain.
Step 1. Information Gathering
We comprehensively collect and analyze sustainability performance and objective data by utilizing both our proprietary assessments and third-party evaluation platforms, such as EcoVadis, to gain a thorough understanding of our suppliers' initiatives.
Step 2. Risk Prioritization through Data Analysis
We evaluate the gathered data to identify gaps and issues that do not align with our standards. Based on the results of this risk assessment, we clearly identify and prioritize target suppliers for focused engagement and tailored support.
Step 3. Communication with Suppliers
For suppliers identified as high priority, we engage in direct dialogue—including interviews and consultations—to deepen mutual understanding and foster collaborative partnerships aimed at driving meaningful sustainability improvements.
Step 4. Support for Continuous Improvement
Based on identified and shared challenges, we provide comprehensive guidance, including the joint development of Corrective Action Plans (CAP). We work alongside our suppliers to advance their sustainability initiatives and foster long-term progress.
Establishment of Reliable Supply Chain
The ANA Group manages its supply chain from two perspectives: "Significance based on business continuity" and "Significance based on ESG."
Supplier Screening Process
The ANA Group conducts supplier screening to systematically identify Significant Suppliers based on potential sustainability risks. Our comprehensive screening process explicitly evaluates the following dimensions:
- Key Aspects: Environmental, Social, Governance, and Business relevance (e.g., share of spend and substitutability).
- Risk Factors: Country-specific risk, Sector-specific risk, and Commodity-specific risk.
- For this initial risk screening, we utilize specialized risk mapping tools (such as EcoVadis IQ Plus) for suppliers meeting specific procurement scale criteria, prior to conducting deeper supplier desk assessments.
Communications with Our Suppliers
The ANA Group requests our suppliers' understanding of and compliance with our procurement policy when establishing new business relationships. We regularly share information and exchange opinions with our suppliers to foster sustainable, long-term relationships.
Furthermore, we periodically seek evaluations and feedback from our suppliers regarding the ANA Group's procurement activities. We actively utilize these insights to review and enhance our internal procurement processes, ensuring a continuous loop of constructive, two-way communication.
Key Initiatives:
- Conducting in-person visits, as well as online and email communications, to exchange opinions and address issues.
- Sharing procurement policies and holding briefing sessions (including online formats).
- Implementing annual surveys to gather supplier evaluations and feedback on the ANA Group's procurement activities.
Monitoring Process
To build a sound supply chain, we periodically monitor the measures and improvement status of labor and human rights issues through surveys, inspections, employee interviews and so on. Where a risk or a issue is identified, we will ask for improvement plans and provide feedbacks to grasp the situation and ensure improvement on a continuing basis.
Implementation Status
At the ANA Group, we identify the items to be prioritized and organize explanatory sessions about the ANA Group Procurement Policy to foster suppliers' understanding towards responsible procurement.
Since FY2020, we have been conducting our own surveys on sustainability for Significant Suppliers in terms of ESG. We provide feedback on the results, exchange opinions on improvement issues, and support corrective actions. During factory audits, we also conduct ESG surveys based on Supplier Code of Conduct, covering matters including labor standards and health and safety, in addition to quality. In FY2024, we conducted sustainability surveys targeting 10 Significant overseas Suppliers.
Furthermore, in fiscal 2025, we introduced services from EcoVadis, a global sustainability ratings organization. This enables reliable desk assessments based on objective data, allowing us to visualize risks across our entire supply chain and foster a more transparent procurement process.
For suppliers whose assessments reveal specific challenges, we offer tailored support to address their individual situations.
Moving forward, we remain committed to strengthening supply chain management in tandem with our suppliers through ongoing objective analysis and constructive dialogue.
Sustainability Surveys
Sustainability surveys are based on the ANA Group Supplier Code of Conduct, which refers to international norms on human rights standards, such as the United Nations Guiding Principles on Business and Human Rights, and the labor standards of the International Labour Organization (ILO). The investigations are vital opportunities to create a sound supply chain by fostering an understanding of the ANA Group’s policy for Responsible Procurement and confirming the targeted suppliers' sustainability management systems and initiatives.
Also, following the sustainability survey, we provide feedback to the suppliers by analyzing and evaluating the status of their initiatives. We conduct follow-up activities to address the issues for items to which we gave low evaluation scores. This includes conducting detailed interviews and providing support through improvement suggestions.
| Theme | No. of questions | Example of questions |
|---|---|---|
| General sustainability | 6 | Creation of management systems, training, etc. |
| Quality Assurance and business continuity plan | 4 | Creation of quality control systems, creation of BCP systems, etc. |
| Compliance and Anti-corruption Measures | 13 | Compliance with laws and regulations, respect for international norms, anti-corruption, etc. |
| Labor standards | 20 | Respect for human rights, Appropriate management of working hours, Wages and benefits, Respect for foreign nationals, etc. |
| Safety and Sanitation | 8 | Safety and Sanitation, Response to emergencies |
| Environment | 7 | Green procurement, Control of contamination and pollution, Efficient use of resources, energy, and water |
| Contribution to local communities | 2 | Whether or not activities to contribute to local communities are implemented, etc. |
| Information disclosure | 1 | Protection of personal information, leakage of confidential information, etc. |
| Conflict minerals initiatives | 1 | Use of conflict minerals, etc. |
| Supply chain | 3 | Status of initiatives in the supply chain, etc. |
| Total | 65 |
Support for suppliers
As part of our efforts to improve ESG performance, we provide feedback, including benchmarking with other companies, after conducting sustainability surveys with our suppliers. For suppliers who did not meet our standards, we request them to submit improvement plans and monitor the progress through discussions.
We will continue to support our suppliers in order to enhance the improvement cycle.
Examples of benchmarks
In-house education
The ANA Group provides in-house education periodically to ensure that our procurement policies are well understood and properly conducted among our employees. In FY2025, we held three training sessions for ANA Group procurement managers (approx. 100 people) regarding compliance to social norms and laws, as well as the importance of continued initiatives to reduce environmental impact in our procurement activities.
We will continue to carry out educational activities on importance of responsible and sustainable procurement.
Supplier Assessment and Development KPIs (FY2025)
| KPI Item | FY2025 |
|---|---|
| Total number of unique Tier-1 suppliers | 12,264 |
| Number of unique suppliers subjected to initial risk screening (e.g., EcoVadis IQ Plus) | 660 |
| Number of unique significant suppliers | 42 |
| Number of unique significant suppliers supported with development measures | 11 |
| Number of unique significant suppliers assessed via desk assessments/on-site assessments | 42 |
| Number of unique significant suppliers assessed with substantial actual/potential negative impacts | 1 |
| Number of unique significant suppliers with substantial actual/potential negative impacts with agreed corrective action/improvement plan | 1 |
| Number of unique significant suppliers with substantial actual/potential negative impacts that were terminated | 0 |