Basic Policy on Procurement
1. Introduction
For more than half a century since its foundation in 1951, Tokyo Electric Power Company (TEPCO) has devoted itself to supporting daily life and industrial activities through the stable supply of high quality electricity to customers in the Metropolitan area, the political and economic center of Japan.
The electric utility industry has reached an important turning point. This stage may be seen as a second phase in the development of the industry. Major changes have taken place in our business environment in recent years, as evidenced by the liberalization of electricity retailing. The scope for retailing electricity was expanded, in April 2005, to 50kW for contract electricity. Changes have also been seen in moves towards global environmental protection. In the midst of increasingly severe competition in energy services, the building of efficient facilities and operating at reduced procurement costs savings is concurrently achieving the safety of facilities and assuring quality. In order to create a society based on resource - recycling, we must continue to commit our Corporate Social Responsibilities (CSR) by considering ways of reducing environmental loads.
Now, in the twenty - first century, TEPCO plans to build ever better relationship with its valued suppliers, and to procure materials, equipment, and services which are more economical, and of higher quality.
2. The Basic Policy on Procurement
We will contribute to creating more affluent lifestyles and comfortable environments through optimizing our energy services. To this end, we will continue procuring materials & equipment in accordance with the basic policies outlined under the six headings below.
1. Compliance with laws and regulations, and social ethics
We will comply, in letter and spirit, with all relevant laws and regulations (*).
* The relevant laws and regulations include not only the Civil Code, Commercial Code, Anti - Monopoly Low, the relevant laws on Intellectual Property Rights, the law relating to the Protection of Computer - Processed Personal Data, the Waste Disposal Law, and Construction Recycling Law, but also laws and regulations, and ethical standards, relating to labor and human rights. We will comply with all of these in discharging our social responsibilities.
2. Safety must be given top priority
We see safety as our top priority. We will comply with laws and regulations with regard to safety, and intend to establish the best possible for ensuring safety.
3. Consideration for the Environment
Materials and equipment with less environmental load will be given priority when purchasing (Green Procurement), and we will endeavor to build a society based on resource - recycling in collaboration with our valued suppliers.
4. Open attitude to transactions
We keep our door wide open, not only to domestic suppliers, but also to overseas firms. In so far as products are economical and of good quality, we will be purchasing them actively in the domestic market as well as overseas.
5. Pursuing fairness
Suppliers selection will be made fairly, will be based on sound economic principals, and will take into consideration a full range of factors such as compliance with laws and regulations, ethical standards, safety, environmental factors, business standing, the price and quality of products, reliability; technological capability, after-sales services, and punctuality in delivery.
6. Strengthening relationships based on mutual trust
We will strive to have meaningful communication with suppliers, strengthen relationships based on mutual trust, and collaborate in order to make a full contribution to society. An economical and stable energy supply has always been supported by a partnership with suppliers based on mutual trust.
3. Seeking Suppliers cooperation
TEPCO firmly believes that it is important to lower procurement costs whilst ensuring the safety of facilities and assuring quality. Efforts will be maintained, in line with environmental considerations, to commit the social responsibilities required of a corporation. Accordingly, we would request all of our suppliers to observe the following seven points
1. Compliance with laws and regulations, and social ethics
• Compliance, in letter and sprit, with all relevant laws and regulations(*)
* Relevant laws and regulations include not only the Civil Code, Commercial Code, Anti - Monopoly Law, the relevant laws on Intellectual Property Rights, the law relating to the Protection of Computer - Processed Personal Data, the Waste Disposal Law, and the Construction Recycling Law, but also laws, regulations, and ethical standards relating to labor and human rights, should be complied with in full in order to meet social responsibilities.
2. Safety must be given top priority
• Compliance with laws and regulations relevant to safety
• Securing safe and healthy working environment by thorough dissemination of an awareness of "Top priority on safety"
3. Environmental considerations
• Establishing environmental conservation system in accordance with ISO14001
• Promoting and implementing Green Procurement
• Improvement in the environmental performance of products(in terms of energy saving,
recycling and durability, and waste prevention)
4. Lowering price and improving quality
• Seeking appropriate and low prices
• Improving quality and reliability
• Maintaining/improving technologies
5. Having robust after - sales service
• Cooperation in maintenance
• Untiring efforts towards improving services
• Ability to respond appropriately to any malfunctioning, and providing assurances
• Ensuring appropriate responses to emergencies
6. Establishing delivery systems
• Punctuality in delivery timing
• Punctuality in delivery timing
7. Open communication
• Open communication, including opinions, requests, recommendations etc.