Cultivating relationships with customers

Relationship with Customers

In order to keep growing, we must continue to be our customers’ most reliable partner. To this end, we will continue to pursue high quality through rigorous R&D efforts, ensure the proper disclosure of information, and strengthen partnerships with suppliers on a global scale.


Quality management

The Takasago Group has established "Corporate QC policy", in order to deliver products of trusted quality that satisfy our customers under our corporate philosophy, which includes all affiliated companies, domestic and overseas, with daily effort and commitment.

The Quality Assurance Department, located in our main offices in Japan, directly connects to top management in order to ensure independence from manufacturing, sales, and other departments. In addition, the chain of command system in the Quality Assurance Office in each factory in Japan directly connects to the Quality Assurance Department, so that fair quality assurance is ensured.

Corporate Quality Assurance Headquarters works very closely with affiliates and promotes the enhancement of the global Quality Assurance framework.
It provides for the unified management of information on safety requirements and regulations, such as national regulations and customer restrictions, and promotes the standardization of testing and inspection methods.
In terms of quality management systems, Takasago establishes requirements and provides support to all manufacturing sites with regards to two distinct systems. ISO 9001 has been implemented in headquarters-related divisions, as well as fine chemical and aroma ingredient manufacturing sites on a global basis. In addition, food safety management systems (FSSC 22000 / ISO 22000 / BRC) are in place at Takasago flavor manufacturing facilities.

Takasago promotes enhanced quality and service by effectively operating in the areas described above in order to support our customer’s business as a global partner.


Research & Development

R&D is the main driving forces of the technology-oriented Takasago Group. Through our strong R&D team, we give substance to our customer-first policy and to seek to enhance quality of life by creating flavors, fragrance, and intermediates of pharmaceuticals needed by each market.


Contributing to the growth of customers through four business divisions

The Takasago Group comprises four business divisions: flavors, fragrance, aroma ingredients and fine chemicals. Research and Development Centers in Hiratsuka, Japan conducts R&D for synthesis and analytical technologies as well as for basic technologies with the potential to lead to new businesses. Thereby R&D supports the development of high-quality products that benefit society in consideration of the global environment.


Hiratsuka R&D located adjacent to the Hiratsuka Factory

Hiratsuka R&D located adjacent to the Hiratsuka Factory

Green Chemistry

Takasago R&D and manufacturing activities are oriented to Green Chemistry. Green Chemistry is defined as the design of chemical products and processes that reduce or eliminate the generation of hazardous substances. 12 principles of Green Chemistry were developed, and recently the scope of green chemistry includes not just pollution by toxic chemicals but energy conservation, waste reduction, and life cycle considerations such as the use of more sustainable or renewable feedstocks.

 1. Prevent waste
 2. Maximize atom economy
 3. Design less hazardous chemical syntheses
 4. Design safer chemicals and products
 5. Use safer solvents and reaction conditions
 6. Increase energy efficiency
 7. Use renewable feedstocks
 8. Avoid chemical derivatives
 9. Use catalysts instead of stoichiometric reagents
10. Degradation of Design chemicals and products after use
11. Analyze in real time to prevent pollution
12. Minimize the potential for accidents

Continuous Flow Process Development

With the experience of continuous flow operations implemented in the l-menthol process, we understand the benefits of continuous flow process development. Thanks to recent progresses in this field, we are intensively expanding our capability toward continuous flow, which is now recognized as an indispensable tool to attain sustainable development goals. There are many advantages in adopting continuous flow rather than batch,
namely.

 • Easier temperature control
 • Reduced risk when handling hazardous chemicals
 • Achievement of a more consistent throughput

Typically, smaller equipment than that for batch is employed for continuous flow, which enables easier temperature control. With precise temperature control, side reactions can be better suppressed, resulting in a higher atom economy. In some cases, suppressibility of side reactions allows the cryogenic reactions to be operated at energy-saving moderate temperatures. Pipe reactor is one typical platform, which suits our catalyst portfolio well because the reaction can be run homogeneously. Notably, the pipe reactor is run with a feed pump, with no agitation required, and thus less electric power is required. For work-up operations, counter current extraction can help reducing water usage.

From our efforts to expand our continuous flow capability, we are confident that continuous flow technology will contribute to reduce the burden on our Mother Nature, and we are putting “continuous” efforts into this field.

Natural Aroma Ingredients

Biotechnology is an effective means to realize a sustainable society, and this technology contributes to the realization of SDGs. With a history of Japanese cultural heritage of fermentation, Takasago is working on development of natural fragrance & flavor ingredients using our proprietary biotechnology from renewable resources. We are performing screening of novel microorganisms from nature to unveil the hidden potential of living world, introduction of new cultivation technology, and expansion of breeding technology through collaboration research with academia. We have further strengthened our commitment to this area by acquisition of US-based Centre Ingredient Technology, Inc. (CIT). CIT produces natural fragrance & flavor ingredients using their unique biotechnology manufacturing processes. In addition, we also have been establishing collaboration with alliance partners to tap into cutting-edge technology of white biotechnology for contributing to future sustainable society.

Relationship with business partners

In order to supply high-quality raw materials to our factories in various parts of the world at an appropriate time and at an appropriate price, we are striving for procurement activities utilizing the global network. To this end we have established “Corporate Procurement Policies”, “Corporate Procurement Guidelines” and “Supplier Code of Conduct”, to establish a fair and trusting relationship with business partners around the world and to continue sustainable procurement.


1. Corporate Procurement Policy

As a guide for our procurement activities, we have established “Corporate Procurement Policy” in accordance with “Corporate Management Guidelines” with particular attention to global environment and protection of local communities.

We practice the following in our procurement activities:

  • ● Pursuing the three elements of quality, cost, and stable supply
  • ● Persisting in the observance of all relevant laws, respect for human rights, being fair, dealing impartially and considering preserving the environment
  • ● Valuing a regional culture and building a partnership between the Takasago Group and the supplier

2. Corporate Procurement Guidelines

"Corporate Procurement Guidelines" have been instituted so that all persons in charge of purchasing businesses in the Takasago Group, including local procurement staff, can ensure responsible procurement activities and thoroughly implement company policies.

3. Takasago Supplier Code of Conduct

As Takasago values the global environment and continuously strives to achieve and maintain a high level of trust from society, we prioritize and value suppliers that place importance on environmental and social responsibilities.
In order to share our policies and concepts with suppliers, we have established “Takasago Supplier Code of Conduct” and encourage suppliers to acknowledge it.

“As a company that values the global environment & aspires to gain a high level of trust from society, Takasago holds sustainability as one of the key cornerstones of our business.
Takasago therefore prioritizes & values suppliers that place importance on global & social responsibilities (e.g. sustainability, compliance with laws, regulations & social norms, protection of human rights, assuring health & safety & fair trade).”

4. Responsible Sourcing

In June 2017, Takasago signed UN Global Compact (UNGC) and in accordance with "UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption" stipulated there, we continue our efforts to realize these 10 principles. We are also striving for sustainable procurement activities as much as possible, while focusing on compliance with national laws, respect for human rights, the environmental conservation, fair business practices, involvement and development in local communities, and so on.

In addition, we will confirm the potential impact of our procurement activities in various fields of "human rights, labor, environment, anti-corruption" while considering the ten principles of "UN Global Compact". If the possibility of negative influence is confirmed, we will promptly plan for improvement and will respond in cooperation with suppliers and other stakeholders to implement it.

4.1. Supplier Relationship Management

In the Takasago Group, we conduct international procurement activities utilizing the global procurement organization with the headquarters procurement department at the center. Through global procurement activities, we will continue to contribute not only to our customers but also to the entire stakeholders by reliable supply of high-quality, safe and secure products. For this purpose, we utilize dialogue with suppliers, a supplier questionnaire and RFQ (Request For Quotation) to conduct supplier relationship management as stated below.

  •  • Build strong, mutually beneficial and transparent partnerships with suppliers
  •  • Maintain and strengthen a system that can stably and reliably procure high quality raw materials
  •  • Mutual understanding for sharing goals through dialogue and RFQ with suppliers
  •  • Thorough implementation of the "Takasago Supplier Code of Conduct", which emphasizes corporate social responsibility such as sustainability and respect for basic human rights by periodic supplier surveys utilizing questionnaires
  •  • Check for no forced labor or child labor by periodic supplier questionnaire.

* According to the supplier questionnaire results 2017, we confirmed all our business partners acknowledged as Takasago global suppliers meet the social and environmental standards.

4.2 Collaboration with 3rd Party Organization

In order to pursue responsible sourcing, the Takasago Group has joined social organizations promoting sustainable and ethical sourcing. We improve procurement taking into consideration environmental conservation. We have become a member of RSPO (Roundtable on Sustainable Palm Oil) *1, RCPA (Renewable Citrus Products Association) *2 and are working on procurement of sustainable natural materials.

In early 2016, we joined Sedex (AB membership), which enables us to assess our suppliers in the areas of Work Environment, Health & Safety, Environmental Management and Ethical Business Practice. By using the world’s largest collaborative platform for sharing supply chain data globally, along with a separate Supplier Questionnaire, we will ensure an ethical supply chain. By 2017, we established relationships on Sedex with around 120 major suppliers overseas and in Japan. We confirm if new business partners are Sedex *3 members when starting transactions, and encourage them to become a Sedex B member if they are not. We plan to promote activities for existing suppliers to be able to understand Sedex.

*1 RSPO: A social organization trying to transform the palm oil industry into a sustainable industry with fewer burdens on the environment.
*2 RCPA: A group of companies interested in developing sustainable citrus products.
*3 Sedex: An online platform for sharing information on ethical and responsible practices.

4.3 Takasago Global Procurement Sustainability Key Initiatives “ TaSuKI”

「Takasago Responsible Sourcing program」

In full alignment with Takasago One T concept and to address growing fundamental aspirations from clients and civil society, Takasago has embarked into an overarching ambitious Responsible Sourcing program named TaSuKI.

Why TaSuKI ?

TaSuKI is the abbreviation of Takasago Sustainable Key Initiatives. In Japan, “TaSuKI” (たすき) is a piece of cloth (same as a stick) that long distance relay runners from “Ekiden”, a relay race which originated from Japan, would pass to each other to cover the full relay race.
For us, it is highly symbolic and important as it represents tradition and modernity, team work, global effort, continuity, sustainability but also speed, sense of urgency, most of Takasago’s values.

TaSuKI aims at ensuring that the way we operate is consistent with our corporate CSR aspirations, harmonized across our sites and affiliates, and is clearly known and respected by our suppliers and partners.
It is also a dynamic, continuous improvement “Kaizen” process, from an existing to a desired future situation. TaSuKI covers 3 main topics which are further described thereafter.

1. We implement and manage responsible sourcing strategies along the value chain to secure sustainable supply.

We ensure responsible, long term, stable, supply of most strategic ingredients for Takasago business.

Over soon 100 years of activity, we have acquired an in depth understanding of our raw materials supply chains and therefore identified the most strategic ingredients for Takasago business to focus on.
For those ingredients, we design and implement responsible sourcing strategies such as backward integration in countries of origin, long term supply commitments with suppliers and producers to provide visibility and regular revenues, research programs to improve yields and revenues to producers.

2. We support local suppliers, producers, their communities and reduce impact on the environment.

For each most strategic material for which Takasago is backward integrated, we ensure that a comprehensive program is in place to support local communities with the aim of protecting their environment and improving their standard of living.

3. We are committed towards responsible sourcing compliance.

We want to ensure that all business dealings with Takasago are ultimately handled in an ethical and environmentally respectful way, aligned with Takasago 3 T core values: Trust, Team and Technology to contribute to society.
Our strategies to ensure compliance apply to raw materials, suppliers and Takasago employees. They cover ethics, sustainability and environmental requirements and are aligned on our below described five steps continuous improvement process:

   1. Define> 2. inform> 3. assess> 4. improve> 5.verify.

With the above process we want to ascertain that raw materials supply chains are traceable and responsibly managed in compliance with Takasago requirements. Depending on circumstances and client’s requests, we may also decide for specific supply chain Third Party certification such as organic, fair trade, etc...

4-3-1.TAKASOURCE

Sustainable Sourcing is the integration of social, ethical and environmental performance factors into the process of selecting suppliers. If a supplier is non-compliant with sustainable sourcing, we could face many issues such as supply disruption, cost volatility, compliance with local laws and regulations, and even brand reputation. Companies must also meet the growing expectations of stakeholders (including customers, shareholders, employees, NGOs, trade unions, government observers, etc.).

The ultimate goal of TAKASAGO in term of Sustainable Sourcing is to build strong, long-term relationships with suppliers and producers to preserve quality, resources and the population.

To pursue this, in 2016 Takasago created a matrix named TAKASOURCE (TAKAsago SOUrcing with Responsible Care and Ethics) to analyze our level of raw material responsible sourcing, validated by Ecocert (a control and certification organization).

This tool has been built around the Three Pillars of Sustainable Agriculture:

  •  • Social dimension: Satisfy human needs and meet the objectives of social equity by favoring the participation of all social groups in health, housing, consumption, education and cultural topics.
  •  • Environmental dimension: Preserve, improve and value the environment and natural resources in the long term by maintaining the ecological balance, reducing risks and foreseeing environmental impacts.
  •  • Economic dimension: Ensure distribution of wealth and profits, take into account the social and environmental costs in the price of materials and seek to develop a local economic network.

This matrix allows us to evaluate each supply source (meaning a coupling of raw materials / suppliers) together with our suppliers to define the potential critical sources.

Each one is subject to an on-field study by our team or our partners in order to define the best appropriate action plan. This work includes the preservation of the exceptional raw materials made famous in the perfumery world, the identity, traditions, religion, healthcare, standard of living of the local producers and farmers, and planet Earth itself.

TAKAsago SOUrcing with Responsible Care and Ethics

4-3-2.Takasago helps the SAVA community back on its feet after the Cylcone

The cyclone in the SAVA area has affected vanilla cultivation, but most of all it has affected the Malagasy population. Faithful to its mission statement, Takasago has decided to contribute to society by funding the recovery of the SAVA community. Through our local partner, we have contacted mayors, district chiefs and local authorities to understand and address their most urgent needs. With complete transparency and maximum attention to reach as many people as possible with our contribution, our help has been aimed primarily at alleviating the immediate needs for food and then fixing infrastructures to help send kids back to school as soon as possible. In detail, the list of projects funded by Takasago includes:

 1. Reparation of the EPP Ambatofisaka elementary school and of the CEG Ampahana
    high school in SAVA, both severely damaged by the cyclone
 2. Funding the reconstruction of Maroantsetra School
 3. Contribution to the reconstruction of the roads affected by the floods in Maroantsetra
 4. Funding the work of a local women group in Maroantsetra involved in numerous
    reconstruction projects
 5. Food supplies, with the distribution of 2,5 quintals (250kg) of rice to the ones most in
    need.

Takasago Sourcing withe Responsible Care and Ethics

CEG School in Ampahana, Madagascar after Enawo cyclone (SAVA AREA)

Takasago Sourcing withe Responsible Care and Ethics

CEG School of the Rural District of Ankofabe in Maroantsetra, Madagascar during rehabilitation after cyclone

4-3-3. Continuous support for producers of Yuzu, Japanese citrus

Yuzu is a traditional citrus fruit cultivated in Japan for more than one thousand years. Yuzu, with unique flavor and taste, has been utilized as a versatile spice for various Japanese cuisines such as grilled fish, hot pots, top flavoring for soups, Yuzu-Kosho (Yuzu-Pepper) and so on. In Japan, people traditionally enjoy Yuzu-yu, floating Yuzu fruits in the bath, on the winter solstice.

Recently, there are also many fragrance related products such as bath salt, cosmetics and perfumes featuring Yuzu for its image of relaxation and popularity among Japanese people. For Takasago, the essential oil of Yuzu produced in Japan has been on the pallet for creation of flavors and fragrances for years.

In most cases, Yuzu trees grow in mountainous areas and due to their long and strong thorns picking of Yuzu fruit is hard work. To support especially the elder growers, we have been regularly joining the program of Yuzu fruit harvesting during the picking the season. Takasago will continue such activities at the upper stream of our raw materials for stable procurement in sustainable ways.

Takasago Sourcing withe Responsible Care and Ethics