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 the execution of open and fair transactions, we have implemented our AISIN Group Basic Procurement Policy globally to promote sustainable procurement activities throughout the entire supply chain.
Promotion Structure
AISIN-Group Purchasing Division 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. Moreover, it is progressively functional integration 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. In FY2026, we held procurement policy briefings* across the major global regions of Japan, North America, Europe, China, Asia, and India, sharing news of recent changes in the business environment and rolling out the Group's procurement policy.
Invitations were extended primarily to suppliers with high transaction dependence in each region (750 companies in Japan, 1,011 overseas).
Supply chain promotion organization
Global supplier count
(Companies)
| Parts | Materials & other | Total | |
|---|---|---|---|
| Japan | 1,187 | 1,241 | 2,428 |
| Overseas | 1,965 | 321 | 2,286 |
| Total | 3,152 | 1,562 | 4,714 |
Strategy
Amid significant changes in the business environment, product mix, and other factors, we are building a resilient supply chain to ensure stable supply grounded in quality. At the same time, we are raising our competitiveness by reconciling global procurement optimization with responses tailored to the circumstances of each region. In addition, we are pursuing improvements in quality, cost, and speed through continuous benchmarking, self-analysis, and the adoption 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. In recent years, we have responded to the impact of tariffs as well as rising labor costs, raw material prices, logistics costs, and energy costs, by communicating carefully with each supplier to implement appropriate price pass-through arrangements.
Recognizing that suppliers may have difficulty raising concerns or requests, we regularly conduct surveys with key suppliers. These surveys surface the actual compliance behavior of Aisin employees and reveal specific challenges suppliers face. Following receipt of the surveys’ results, procurement staff directly visit suppliers to obtain candid feedback. This approach provides a framework for open communication and active support.
Furthermore, in May 2025, we established a new organization responsible for promoting sustainability within the AISIN-Group Purchasing Division.
In addition to promoting green procurement with a focus on carbon neutrality and other aspects and while ensuring alignment with company-wide initiatives, we and our suppliers are working to tackle social issues pertaining to human rights (including foreign worker employment), cybersecurity, and other matters.
Strengthening the Quality Foundation Together with Suppliers
To preserve the trust that customers have in our products, it is essential that we maintain and improve quality assurance across the entire supply chain. Based on the Supplier Quality Assurance Manual for Parts Procurement (SQAM; our basic transaction agreement with suppliers), Aisin pursues quality enhancements in close partnership with suppliers.
We ascertain and manage records of IATF 16949 certification status for all Tier 1 suppliers. On that basis—and taking into account the achievement of quality targets and the inclusion of safety-critical parts—we perform regular self-inspections and on-site audits of 509 relevant priority suppliers and provide continuous support until needed improvements are achieved.
In addition, for Tier 2 and lower-tier suppliers, we verify the status of third-party certifications and audits, conduct our own audits, and provide guidance aimed at improving processes and quality control as warranted by assessed risk level.
Moreover, for priority suppliers, we provide support for building a foundation for quality by such means as bolstering upper management’s capabilities and strengthening on-site management. For key suppliers, we also promote preventive maintenance through the sharing of information on cases of defects and measures to prevent their recurrence in an effort to raise suppliers' quality awareness and thoroughly guard against repeat incidents.
When onboarding raw material suppliers, we confirm their ISO 9001 or IATF 16949 certifications and, through collaboration between the procurement and quality assurance departments, conduct process audits to decide whether to adopt them.
For Tier 2 and lower-tier suppliers with processes that impact the quality of raw material inputs, we run quality self-inspections and process audits to confirm the state of quality maintenance and relevant controls.
We have also established the Supplier Quality Assurance Manual for Materials Procurement, under which the substances (components) contained in purchased materials are managed in accordance with in-house standards and checked periodically.
Through these efforts, we conduct ongoing awareness-raising activities aimed at maintaining and improving quality among all suppliers.
Building a Resilient Supply Chain for Stable Supply
Based anticipated conventional risks (natural disasters, accidents, semiconductor shortages, and the like) and with further consideration for an increasingly uncertain global environment (geopolitical risks, protectionism, and resource constraints), we have established a dedicated organization and built a system for routinely capturing timely information to ensure uninterrupted supply to our customers. In responding to emergencies, we regard the identification of production sites and affected part numbers as most important. In 2025, we launched a BCP management system that registers and consumes information on the manufacturing processes for purchased parts and input materials provided by suppliers, thereby clearly modeling the supply chain, sharing risks at an early stage, and enabling swift initial and recovery responses. Thanks to these initiatives, when the 2026 Kumamoto Earthquake struck in July 2026, we could quickly assess the damage across the entire supply chain, including suppliers, and promptly implemented measures from the BCP, such as alternative production arrangements, thus maintaining supplies to customers.
For parts and materials identified as particularly high-risk, chief among them rare earths and semiconductors, we take such measures as inventory reviews and, in collaboration with design departments, the adoption of more general-purpose items at early stages of development.
In addition, we have established organizations to promote advance procurement within each department of the AISIN-Group Purchasing Division. Working with related departments from the development stage of new products, we prepare for geopolitical risks and supply concerns while advancing strategic selection so that competitive materials and parts can be reliably procured.
Supplier Sustainability Guidelines
Based on our prioritization of societal sustainability, ESG progress, maintenance and enhancement of global competitiveness, and risk management, we emphasize the resolution of issues across the entire supply chain. In October 2025 we revised and reissued our AISIN Group Supplier Sustainability Guidelines. To the 732 strategically important companies, including key Tier 1 suppliers as well as providers of raw materials and semiconductors, we present guidelines outlining matters we wish to address together and promote understanding through briefing sessions for suppliers. In addition, in FY2026 we administered a self-assessment questionnaire (SAQ) covering sustainability initiatives; responses were received from 88% of companies, all of which endorsed the guidelines. Based on the self-inspection results submitted by each company, we will provide support and follow-up in areas needing improvement.
In addition, by issuing the AISIN Group Green Procurement Guidelines, we call on suppliers to reduce greenhouse gas emissions, promote circulation of resources (including waste), conserve water, and preserve biodiversity.
Initiatives to Strengthen Competitiveness Across Our Entire Supply Chain
To improve suppliers' skills and strengthen their corporate fundamentals, we provide human resource development support to key suppliers.
We have established specialized organizations within the headquarters to accompany suppliers in their value analysis (VA) activities, disposal of old dies, quality enhancement activities, and monozukuri (manufacturing) improvement activities. While maintaining respect for our suppliers' opinions, we work to resolve difficulties with their manufacturing processes and to uncover sources of competitiveness with a strong focus on GENCHI GENBUTSU GENBA.
To support business succession and the development of successors at key suppliers, we offer a family study program that accepts trainees into a department of their choice for a core period of two years, and, according to specific needs, we also accept employees on secondment and offer various forms of training.
In addition, we support the activities of the supplier associations organized by Aisin's suppliers to promote mutual development and the horizontal sharing of good practices. We offer advice regarding various activities directed at productivity and quality advancement and also safety and environmental initiatives. In FY2026, we held study sessions on the prevention of occupational accidents and fires, the strengthening of cybersecurity, and the promotion of human rights. We also conducted mutual learning sessions aimed at achieving carbon neutrality across the entire supply chain.
Employee Education and Training
Aisin has established the AISIN Group Principles of Purchasing Behavior and Guidelines for Purchasing Practices, which define specific compliance actions compatible with various laws and regulations, including the prohibition of bribery, so that each employee involved with procurement can execute fair and honest procurement practices. We have compiled the knowledge needed to practically apply these principles in a booklet titled The Spirit of Procurement, which is provided as mandatory training for all procurement personnel. Furthermore, training is provided to all participants in the procurement function, covering environmental protection, carbon neutrality, human rights, anti-corruption practices, antitrust law and other relevant regulations, along with privacy management.
Other Initiatives
Responsible Materials Procurement
Guidelines
To promote, on a global basis, mineral procurement that accounts for the impact on social issues in such domains as human rights and the environment, we are working to avoid the use of minerals deemed problematic under the laws and regulations of various countries, such as the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act and the EU Conflict Minerals Regulation. We also ask our suppliers to understand our thinking and to procure mineral resources responsibly.
Initiatives
In FY2026 as well, with the cooperation of our suppliers, we surveyed mineral usage (using the Conflict Minerals Reporting Template, CMRT) and reported the results to our customers. We also participate in industry associations and make strenuous efforts to, among other things, establish effective survey methods. We continue to promote responsible mineral resource procurement in accordance with our guidelines.