Supply Chain Policy

The California Transparency in Supply Chains Act of 2010 (SB657) requires certain companies doing business in the State of California to disclose their efforts to eliminate slavery and human trafficking in their direct supply chain.

Yaskawa America Inc. fully supports California’s effort to eliminate human rights abuses and promote ethical labor practices. Yaskawa America Inc. has developed policies and procedures to address the risk of human trafficking and slavery in its supply chain.

1. Verification: All suppliers must agree to Yaskawa America Inc.’s Master Vendor Guide and Purchase Order Terms and Conditions which expressly require suppliers to refrain from using forced labor and the trafficking of persons. Yaskawa America is currently evaluating its supply chain to identify areas of risk which include suppliers operating in countries of concern in regards to human trafficking and slavery. Third party verification services will not be used, however if any supplier is deemed high risk, that supplier will be required to provide certification to verify that they comply with the labor laws of the countries in which they do business.

2. Audits: Yaskawa America Inc. currently does not conduct audits of it suppliers in regards to human trafficking or slavery in the supply chain. As Yaskawa’s evaluation of its supply chain progresses and areas of risk are determined and addressed, Yaskawa will then develop an audit strategy to ensure compliance to company standards with those high risk suppliers.

3. Certifications: All suppliers to Yaskawa America Inc. must agree to Yasakwa America Inc.’s Master Vendor Guide and Purchase Order Terms and Conditions which prohibit direct suppliers and their subcontractors, vendors, agents or other associated third parties from utilizing child, slave, prisoner or any other form of forced or involuntary labor, trafficking of persons, or engage in abusive employment. Yaskawa also reserves the right to request certification from all suppliers to demonstrate compliance with the above.

Certification will be required from suppliers that are determined to be high risk based on verification efforts.

4. Internal Accountability: Yaskawa has adopted the Code of Conduct of the Electronic Industry Citizenship Coalition (EICC) and requires its employees and suppliers to agree to operate in accordance with the EICC Code of Conduct, which expressly forbids slavery and human trafficking. Compliance to these standards is monitored by Yaskawa America Inc.’s Strategic Sourcing team. If any employee or supplier to Yaskawa fails to meet the standards of its policy, Yaskawa reserves the right to enforce corrective action or termination of the business relationship.

5. Training: Yaskawa America Inc.’s Strategic Sourcing team, who is responsible for overseeing and selecting suppliers, were trained on mitigating risks of human trafficking and slavery within the company’s supply chain. In addition, Yaskawa America Inc.’s Strategic Sourcing team has resources dedicated to supply chain and product compliance that provide periodic updates and risk mitigation information to members of the supply chain team including senior management.