Initiatives to Strengthen BCP (Business Continuity)
Policy
Basic Policy of Business Continuity Plan (BCP) Activities
The Nabtesco Group is working to strengthen the BCPs of its major business bases and suppliers in order to minimize damage and quickly resume operations in the event of a serious incident such as the suspension of operations or long-term suspension of supply services due to a large-scale disaster.
The basic policy of the Nabtesco Group's BCP activities is as follows.
- 1.Ensure the safety of human life as a basic requirement for business continuity
- 2.Fulfill our company's supply responsibility by resuming operations quickly
- 3.Work to reconstruct and recover from disasters in cooperation with local governments and communities in disaster-stricken areas
Based on the experience of COVID-19, in addition to the frequent occurrence of natural disasters in recent years, we believe it is an urgent task to boost our corporate crisis management and business continuity capabilities, and therefore we are strengthening relevant activities.
System
BCP Promotion System
The Nabtesco Group has established the BCP Management Office in the Procurement Planning Department of the Production Innovation Division, which belongs to the headquarters, and the BCP Secretariat at each business site, in order to implement highly effective BCPs in accordance with each business environment under the CEO’s leadership.
The BCP Management Office supports the activities of the BCP Secretariat at each business site to improve the BCP system on a company-wide basis.
In addition, the BCP Management Office and the Procurement BCP Group at each business site (procurement department of each business division) provide BCP support to suppliers.
Measures
Activities to Enhance Business Continuity Power (BCPs)
The Nabtesco Group has been working to improve its Business Continuity Power (BCP)* in order to ensure, maintain and develop its capability of restarting businesses promptly even if its main operation facilities suffer serious damage due to a large disaster or other crises.
In general, when promoting BCPs, there is a tendency for activities to become a mere formality, as in the case of documentalism, which focuses on preparing BCP-related documents. At the Nabtesco Group, there was a period when BCP activities stagnated due to the inclination towards documentalism. Accordingly, we changed our policy to emphasize the effectiveness of our BCPs in order to reform them. First, we redefined the Business Continuity Plan as Business Continuity Power.
Next, in order to strengthen our ability to respond to all kinds of crises, it is necessary to enhance the organizational capabilities of each business site, and we have implemented thorough education and training with the aim of revitalizing the organization.
In 2016, the "National Resilience Certification," a system for evaluating the effectiveness of business continuity efforts, was established under the supervision of the Cabinet Secretariat. All of our major business sites set targets for acquiring the certification, and achieved them in two years. As of 2020, 10 business sites have been certified. The Nabtesco Group is the top company in Japan for acquiring resilience certification.
*BCP usually stands for “Business Continuity Plan.” For Nabtesco, however, BCP stands for “Business Continuity Power,” and we are striving to enhance the BCP of our organizations and increase our capability to mount effective responses to a crisis.
BCP Support for Suppliers
In order to build and expand a robust supply chain, we are engaged in the following activities with the aim of establishing practical BCPs.
1. BCP development for suppliers
In order to fulfill its social responsibilities, the Nabtesco Group believes that it is necessary to work together with suppliers to achieve greater resilience. For this reason, the procurement departments of each business division provide support for the establishment of BCPs at suppliers. We encourage our suppliers to acquire certification under the business continuity enhancement projects for SMEs, which was launched based on the SME resilience enhancement law enforced in 2019 as a tool for establishing BCPs.
In addition, we provide support to our suppliers for the obtainment of the Resilience Certification as a certain goal of establishing BCPs. We have set a goal of supporting 30 suppliers to obtain the Resilience Certification by 2023, and to date, the Certification has been obtained by 24 suppliers.
Targets and Results of Support for the Nabtesco Group’s Suppliers to Obtain the Resilience Certification
| Results | Targets | ||
|---|---|---|---|
| 2021 | 2022 | 2023 | |
| [Accumulated total] number of companies for which Nabtesco has provided support for obtaining the Certification | 20 | 30 | 40 |
| [Accumulated total] number of companies that have obtained the Certification | 17 | 24 | 30 |
2. Cooperation with external organizations
The Nabtesco Group participates in the Business Continuity Advancement Organization (BCAO), an NPO. We are strengthening cooperation with experts and other companies to revitalize BCPs.
We will continue to promote BCP activities together with our domestic and overseas business bases and suppliers with the aim of becoming a resilient company that can quickly respond to disasters and other crises.
