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Basic Policy for Procuring Materials

For Kyushu Electric Power to safely and stably provide energy and other related products and services, that are valuable to our customers, it is essential for us to procure high-quality materials at a reasonable price with the cooperation of suppliers.
While we comply with laws and ordinances and their spirit on the basis of equal partnership with our suppliers, we strive to help “enhance customer satisfaction,” “continually create corporate values” and “contribute to the sustainable development of society” through fair and transparent procurement activities.
Toward that end, our Materials Division performs procurement activities based on the following basic policy under the Kyushu Electric Power Group Corporate Activity Charter and promotes compliance management.

1 Open procurement
We widely procure materials that meet the operational needs of our business and are favorable in terms of quality, price and delivery conditions from domestic and overseas suppliers.

2 Fair and equitable business activities
We conduct fair and equitable business activities for business partners in all our procurement activities. This includes an equitable selection of suppliers based on rational and fair valuation, comprehensively taking into consideration a variety of factors such as: quality, technical capabilities, price, operational and financial conditions, punctual and reliable delivery, after-sales service, compatibility with existing facilities, pro-environmental practices and actions for continual improvement.

3 Compliance with laws, ordinances and social norms
In all of our procurement activities, we not only respect human rights but also comply with domestic and international laws and ordinances and their spirit as well as social norms. We expect the same level of compliance from our suppliers.

4 Disconnection with anti-social power
We surely disconnect connections with anti-social power that gives serious threat to order and security of our civil life. We also expect same level of compliance from our suppliers.

5 Environmental considerations
We practice procurement activities while giving consideration to environmental conservation and the effective utilization of resources. One of the corporate practices we have established for these purposes is the promotion of “green procurement”, which prioritizes the procurement of eco-friendly products and, with the cooperation of our suppliers, contributes to the creation of a recycling society.

6 Safety assurance
We request that our suppliers implement appropriate safety and health management procedures in order to prioritize the safety of the general public and workers. In this way, with the cooperation of our suppliers, we can ensure safety and prevent accidents.

7 Ensuring information security and protecting personal information
We properly manage and protect, in cooperation with our suppliers, confidential and personal information obtained through business transactions pertaining to both parties.

8 Compliance with contracts and good faith performance of contracts
We observe contracts concerning business transactions and fulfill contractual obligations in good faith while requesting the same of our suppliers.

9 Promotion of communication to establish mutual trust
We aim to establish mutual trust through transparent procurement, the promotion of good communication and sound, reasonable relationships with our suppliers.

10 Creation of new values
We encourage our suppliers to be sincerely devoted to the creation of new values and we respect them as our business partners. We aim for mutual prosperity with our business partners by pursuing appropriate quality and prices.

11 Contribution to society and the regional community
We believe it is important to contribute, through our procurement activities, to the development of the region in which we are based and society in general as a “good corporate citizen” along with our business partners.

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