Supply Chain Management (Labor)
Improving labor environments in the supply chain will encourage job retention and result in higher quality products and services, which will bring a smile to the faces of stakeholders, foremost of which are customers. The Bandai Namco Group is working to safeguard human rights and improve the labor environment across the entire supply chain.
Initiatives for Labor Environments in the Supply Chain
Implement human rights due diligence
The Bandai Namco Group recognizes that its business activities could potentially affect human rights. We recognize our responsibility to respect the human rights of all our stakeholders, including employees, their families, and business partners. Toward this end, we promote an understanding of human rights across the entire supply chain.
Previously, we implemented risk management for each business segment. However, in order to identify, prevent, and mitigate negative impacts on human rights related to the Group’s business activities, we will build a human rights due diligence mechanism and continuously manage risks using a risk-based approach. In October 2022, we engaged a third party to conduct human rights due diligence covering our main businesses. This third party identified high-potential human rights risks in the manufacturing sector in East Asia and Southeast Asia among the Group’s businesses. In fiscal 2023, we implemented a risk analysis of all our businesses both in Japan and overseas. As part of this effort, we also established the Bandai Namco Group Code of Conduct in April 2025 as a set of principles of conduct that all officers and employees must adhere to. We are currently working to share this Code of Conduct with our business partners, who we expect to understand and comply with it. Furthermore, we have established and are disseminating the Bandai Namco Group Guidelines for Business Partners to guide the implementation of the Code of Conduct.
Moving forward, we will strive to prevent the occurrence of potential human rights issues and address any issues we have already identified.
Conduct supplier surveys based on the Code of Conduct, etc.
The Group is committed to maintaining and improving supply chain management in each business segment, and implemented the following initiatives in fiscal 2024.
Bandai and Bandai Spirits
Bandai and Bandai Spirits conduct Bandai Factory Audits (BFAs), which integrate quality audits and Code of Conduct (CoC) audits, at nearly all overseas final packaging plants that manufacture products for the Japanese market (approximately 310 companies in fiscal 2024). Or, we verify CoC items through reports from third-party CoC standards such as the Sedex Members Ethical Trade Audit (SMETA) and the International Council of Toy Industries (ICTI). The basic policy for BFAs is the Bandai CoC Declaration, which calls for strict observance of standards concerning forced labor, child labor, working hours, wages and allowances, punitive action, and discrimination. Audits are conducted in accordance with our original BFA manual. Additionally, we hold supplier conferences to share information with our business partners, working together to improve legal compliance and working conditions, including the prevention of forced labor and modern slavery.
Furthermore, Bandai Spirits conducts audits of factories that have not been certified based on BFAs or third-party standards in accordance with its own Bandai Spirits Minimum Requirements Audit Report to confirm human rights requirements.
Bandai (Shenzhen)
Bandai (Shenzhen), which provides production and quality management for major products destined for Europe and North America, conducts transactions with factories certified by third-party organizations such as the ICTI Ethical Toy Program and SMETA. These certifications include prohibitions on forced labor, human trafficking, and child labor. All primary factories for products for Europe and North America that Bandai (Shenzhen) transacted with in fiscal 2024 were certified.
Bandai Namco Experience
Bandai Namco Experience carries out transactions only with suppliers for which it has confirmed do not engage in illegal acts in the areas of forced labor, child labor, working hours, wages and allowances, punitive action, discrimination, and environmental protection. Also, regarding plants that assemble arcade game products with which we initiate a new business relationship, we conduct interviews on confirmation items including the working environment. We also conduct audits of new and existing factories that we do business with, as necessary. (In fiscal 2024, audits were conducted on three factories that we newly do business with).
Recognize suppliers using the Bandai Supplier Awards
Bandai hosts the annual Supplier Conference to share information on several topics including the production environment as well as requirements in terms of human rights and labor standards. We use this venue to actively disseminate and share information with suppliers. We established the Bandai Supplier Awards that recognize suppliers who clear the performance indicators set by Bandai at a high level. We ask suppliers that receive an award to lead presentations for other suppliers in an effort to share know-how with frontline operations. Through such opportunities, we are implementing initiatives closely with suppliers to ensure legal compliance and improvements in their labor environments.
Various initiatives for raising awareness of human rights
To inform and disseminate the Group’s philosophy and approach to human rights among employees, including Group officers, we conduct awareness-raising activities as appropriate.
Recognizing that promoting understanding within the Group is important to strengthen our response to human rights, we hold seminars and e-learning on topics such as human rights, sustainability, work-life balance, LGBTQ, and people with disabilities. We also conduct compliance awareness surveys for Group officers and employees. Each business company also provides its own training on respect for human rights and ethics.
Furthermore, to ensure that the Bandai Namco Group Code of Conduct is understood by all, we have distributed posters that clearly state the Code of Conduct to be displayed across the company, including at our overseas bases. We are now working to spread awareness of the principles laid out in the Code of Conduct through information sessions and training.
Compliance training for employees and artists
Bandai Namco Music Live conducts compliance training for artists and related personnel to protect the value of its talent and fulfill its social responsibilities. The company hosts special training and seminars to raise awareness of compliance, relearn social responsibilities and general common sense in music and entertainment, and raise the awareness and capabilities of employees, including A&R staff and producers who work directly with artists.
The training was held several times over the span of two years between 2023 and 2024 under the company’s legal department. More than 60 people in total participated, including directors, talent management agents, and exclusive artists. In fiscal 2025, the training is being held with updated content.
Establishment of the Bandai Namco Group Guidelines for Business Partner
The Group has bases around the world that do business while exchanging goods and services with a variety of stakeholders. We believe that it is our mission as a corporation to minimize the environmental impact and adverse effects on society that may arise in the value chain and contribute to a better society. In particular, as a manufacturer and seller of toys, games, and other products, we are focused on identifying and addressing environmental and social issues that may arise in our suppliers.
As part of these efforts, in April 2025, we formulated the Bandai Namco Group Code of Conduct, which compiles the principles of conduct that all officers and employees must abide by and that we ask our business partners to comply with. We have shared the contents of the Code of Conduct with our business partners. We have also established and are promoting awareness of the Bandai Namco Group Guidelines for Business Partners to guide the implementation of the Code of Conduct.
