Society
Basic stance and policy
Aisin receives various parts and raw materials from numerous suppliers worldwide for its production activities. In our transactions, we strive to build trusting relationships with suppliers based on the fundamental principle of coexistence and mutual prosperity as good business partners. Guided by the principles of “mutual prosperity with suppliers based on long-term stable transactions” and “execution of open and fair transactions,” we have implemented our “Basic Procurement Policy” globally to promote sustainable procurement activities throughout the entire supply chain.
Promotion Structure
The Group Procurement Headquarters participates in various internal committees and promotion meetings, including the Sustainability Conference. It collaborates with the responsible departments and related departments to serve as the point of contact for suppliers and promote various initiatives. Furthermore, it is progressively integrating functions with domestic group companies. In overseas regions, it closely coordinates with the procurement functions of regional headquarters to implement unified procurement policies for suppliers and conduct activities to identify and resolve issues.
Supply chain promotion organization
Promotion of Basic Procurement Policies at Group companies domestically and internationally
Aisin is committed to mutual development with suppliers based on cooperation and shared prosperity. Guided by this fundamental objective, we have put in place formal Group Purchasing Policies and are enhancing our procurement process. In FY2025, we conducted procurement policy briefings* in our key global regions of Japan, North America, Europe, China, Asia, and India to share information on recent environmental trends and communicate the Group Procurement Policy.
The Company invited critical suppliers from each region (Japan: 750 companies, overseas: 1,011 companies)
Group supply chain
The number of primary suppliers worldwide with whom our Group companies directly transact is 2,914 for parts suppliers and 4,431 with the inclusion of other suppliers.
Global supplier count
(Companies)
| Parts | Materials & other | Total | |
|---|---|---|---|
| Japan | 1,099 | 1,213 | 2,312 |
| Overseas | 1,815 | 304 | 2,119 |
| Total | 2,914 | 1,517 | 4,431 |
Strategy
As the business environment and product mix undergo significant change, we are enhancing the competitiveness of our entire supply chain and addressing social concerns.
We are building on our core competitive strengths with regard to quality, cost, and speed through continuous benchmarking, assessment of our own circumstances, and implementation of best practices.
Key initiatives
Open and fair procurement
Before commencing business, Aisin assesses new suppliers in accordance with their ISO-9001, IATF 16949, and ISO-14001 certification status, as well as through quality audits. Subsequently, in collaboration with relevant departments we continue to inspect for quality, safety, environmental impact, earthquake resistance, cybersecurity, and other metrics.
We promote fair procurement by concluding basic transaction agreements with suppliers which, based on a spirit of openness and fairness, clearly stipulate compliance with laws and regulations, including antitrust laws, anti-bribery measures, and protections against organized crime, and also mandate attention to safety, health, and the prevention of pollution.
Furthermore, in June 2020, we published the “Partnership Building Declaration,” which outlines the shared prosperity of the entire supply chain and adherence to desirable business practices. As a concrete initiative under this declaration, we established a specialized organization in January 2024 to promote fair business practices. Specifically, in response to rising labor costs, raw material prices, logistics expenses, and energy costs, we carefully communicate with each and every supplier to implement appropriate price adjustments.
Recognizing that suppliers may have difficulty raising concerns or requests, we regularly conduct surveys with key suppliers. These surveys clarify the actual compliance practices of Aisin employees and reveal specific challenges suppliers face. In response to survey results, procurement staff directly visit suppliers to obtain candid feedback. This approach provides a framework for sincere communication and active support.
With social issues in mind, the Group Purchasing Division established a new organization in May 2025 dedicated to advancing sustainability. In addition to promoting green procurement with a focus on carbon neutrality and other aspects, we and our suppliers are working to tackle social issues pertaining to human rights (including foreign worker employment), cybersecurity, and other matters.
Risk assessment and enhanced coordinated response with suppliers
To consistently fulfill customer trust and expectations, we established a quality manual, Supplier Quality Assurance Manual for Parts Procurement (SQAM hereinafter) for all Tier 1 parts suppliers and have held regular reviews since its implementation. We request top-tier suppliers to help ensure quality maintenance and improvement at Tier 2 and subsequent suppliers.
To continuously verify that parts meeting customer quality requirements are being supplied, we conduct self-inspections and on-site audits based on a checklist covering compliance with the SQAM and the international quality assurance standard ATF 16949. This occurs once every three years and involves 432 companies.
Based on analysis of such risk metrics as the achievement status of quality targets and high-demand safety components, we conducted audits on 75 companies, including secondary suppliers, in FY2025, providing support until improvements are completed.
Furthermore, in FY2025, we ran quality assurance events with 53 companies (including continuations from the previous year). As a result, 20 companies moved up a rank in our proprietary quality evaluation.
For primary material suppliers, we have established the Supplier Quality Assurance Manual for Materials Procurement to ensure customer satisfaction with our product. We manage input ingredients in materials we purchase according to internal standards and conduct regular verification.
To address risks threatening stable procurement of purchased items (such as natural disasters, fires, and geopolitical risks), we have established dedicated organizations and built a system to consistently capture timely information. Our emergency risk response focuses on production sites and component SKUs deemed to be of critical importance. This fiscal year, we established a new business continuity program (BCP) management system. We catalog and employ data provided by suppliers on the manufacturing processes for components and raw materials we buy. This system brings the supply chain into clear view, enabling swift initial response and recovery actions.
For components identified as particularly high-risk, such as semiconductors and those containing rare earths, we apply risk control measures including inventory reviews and collaboration with design departments to build in more versatility during the early development stage.
Furthermore, we have established functions within each department within the Group Purchasing Division to promote proactive procurement. Working with relevant departments from the new product development stage, we strategically source materials and components in advance to minimize geopolitical risks and potential supply disruptions while ensuring stable procurement of competitive materials and parts.
Supplier Sustainability Guidelines
To further advance our response to ESG issues and achieve a sustainable society, we have issued the AISIN Group Supplier Sustainability Guidelines, which lay out requirements for our suppliers and specify fundamental matters to be addressed with our suppliers in the course of our business relationships. We hold explanatory sessions for key suppliers to promote understanding and obtain suppliers’ commitment, in writing, that they will comply with these guidelines. In FY2025, we are extending these guidelines to overseas Group companies to promote understanding and adoption by international suppliers.
Furthermore, by issuing the Aisin Group Green Procurement Guidelines, we require suppliers to contribute to the reduction of greenhouse gas emissions, circular resource use (including waste treatment), water conservation, and biodiversity preservation.
Mutual upskilling with suppliers
Aisin provides HR development support to key suppliers to enhance the skills of their workforces and strengthen their business foundations. This includes a management succession study program, which accepts next-generation management from key suppliers for a two-year base period in desired departments, and a needs-driven secondment program in which Aisin accepts transfers. Additionally, the Company supports activities organized by supplier associations to which our suppliers belong that promote mutual learning and the broad-based adoption of best practices. We advise on productivity and quality initiatives and also safety and environmental activities. In FY2025, we hosted study sessions on industrial accident and fire prevention, cybersecurity fortification, and human rights and also held mutual learning sessions focused on achieving carbon neutrality across the entire supply chain.
Representatives of specialized organizations within our head office advise suppliers on such matter as value analysis, disposal of obsolete molds, quality upgrades, and manufacturing advances. While respecting supplier opinions, we focus on GENCHI GENBUTSU GENBA that can aid supplier competitiveness.
Employees & training
Aisin has established the AISIN Group Principles of Purchasing Behavior and Guidelines for Purchasing Practices to define specific methods for compliance with various laws and regulations, including the prohibition of bribery. The Principle and Guidelines enable each employee involved in procurement to promote fair and honest dealing. The essential principles for implementing these methods are compiled in a booklet titled The Spirit of Procurement, which is included among mandatory training modules to be completed upon assignment in an effort to deepen understanding. Furthermore, training on environmental, carbon neutrality, human rights, anti-corruption, antitrust law and other relevant regulations, along with privacy management, is provided to all participants in the procurement function.
For details on our initiatives with suppliers regarding the environment and human rights, please see the following.