Third Party Lifecycle Management

Third Party Lifecycle Management

Astellas partners with third parties to help support and drive our goal to improve the health of people around the world. It is our commitment to interact with all our third parties fairly, openly, and with integrity. In return, we expect the highest ethical standards.

Business partners are selected based on appropriate criteria that are directly related to our business objectives, including, but not limited to price and quality of goods or services, capability, past performance, reputation and commitment to advancing Environment, Social, and Governance (ESG) initiatives.

As part of our Third-Party Lifecycle Management (TPLM) program, Astellas conducts a global risk assessment for relevant third parties which incorporates sustainability components, such as alignment with new ESG regulations (e.g. CSRD). Furthermore, TPLM is considered an integral part of Astellas’ global Sustainable Procurement Pledge.

The TPLM assessment process leverages expertise from internal personnel, responses from third parties to standardized questionnaires, and information gathered from external databases to evaluate the risks associated with engaging third parties.

The TPLM program has been active in Japan, North America and Europe since 2019, and has been deployed in other regions within the last few years. The TPLM assessment process and results are managed centrally utilizing a global platform. While typically initiated upon contracting for goods and services, Astellas may conduct proactive assessments of key third parties to ensure governance while streamlining efficiency.

If Astellas identifies a risk during the TPLM assessment process, the third party is encouraged to take action to remediate and improve the situation while Astellas tracks the progress. Astellas does not engage in business with a third party if a critical risk is identified, and the risk is deemed too difficult to overcome.

Moreover, Astellas continuously monitors the risk status even after business activities have commenced. Please note that the third party’s risk level is assessed every three years. If necessary though a reassessment may take place within the three-year period.

Third Party Lifecycle Management

How does it work in Selection/Due Diligence Phase?

  • Online questionnaires are leveraged and scored accordingly in line with our established risk criteria/thresholds to assess potential risks to the organization
  • When questionnaires do not bypass system’s automatic review, the questionnaires are reviewed by Risk Experts with deep knowledge of their respective Risk Areas (Domains)
  • Once all in scope risk domains are cleared, the corresponding contract may be executed
  • Risk Domains which have been cleared are exempt from further review for the following 3-year period, however, if incremental risks arise through the course of new business, review of those additional Risk Domains may be required

Covered Risk Domains

Anti-Bribery Anti-Corruption (ABAC)

Ensures adherence to global legislation and forbids employees of Astellas or Third Parties acting on behalf of Astellas to offer or pay bribes.

Data Privacy

Allows one to use or access personally identifiable information while ensuring the appropriate controls are in place to protect that information.

Data Security

Protects digital data from destructive forces and from unwanted actions of unauthorized users.

Environment, Health & Safety (EHS)

Process of verifying that the practical aspects of environmental protection and safety have been implemented in the work environment. Astellas’ original questions are added to the Self-Assessment Questionnaire (SAQ) as published by PSCI (Pharmaceutical Supply Chain Initiative).

Labor Rights

Ensures the rights inherent to all human beings, regardless of race, sex, nationality, ethnicity, language, religion, or other status are being respected and maintained. CSRD and CSDDD considerations raised by external counsel have been incorporated. Astellas’ Risk Experts may suggest risk remediation action(s) upon review of a submitted Third-Party Questionnaire (TPQ).

Solvency

Ensures any Third Party with which Astellas does business has the ability to meet its long-term financial obligations.

Note that Promotional (Promo) risk domain may also be triggered for engagements covering the EMEA region.

TPLM Statistics

*Only risk assessments that reached the Third-Party Questionnaire (TPQ) step were included in the volume analysis.

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