CSR

Report on Environmental Aspects

Green Procurement Guidelines

Green Procurement Guidelines

Introduction

As a producer of materials and positioned upstream in the industrial supply chain, Hitachi Metals sees its efforts to protect the natural environment as a key responsibility. Accordingly, we pursue our management efforts based on the action policy of contributing to society as a good corporate citizen. We also strive to protect the environment and to coexist in harmony with local communities.

With respect to the environmental repercussions of our products, we strive to expand our lineup of eco-friendly products through eco-design assessments. A key part of these efforts involves minimizing environmental impact at the stage of parts and materials purchases.

In particular, there is a strong and growing movement toward the increasingly stringent regulation of chemical substances. Countries and regions around the world are enacting standards governing harmful substances found in products. Examples include the Restriction of Hazardous Substances (RoHS) and End-of-Life Vehicles (ELV) directives in the European Union (EU).

In response, Hitachi Metals has revised its Green Procurement Guidelines to make its green procurement policies even more effective and to further promote the purchase of materials characterized by low environmental impact.

Based on these guidelines, our procurement sections will actively promote green procurement programs. This will require more than unilateral action on just our side. It will require comprehensive efforts undertaken in partnership with all our suppliers.

We ask for the cooperation and support of all our suppliers in complying with these guidelines.

Procurement Dept.
Hitachi Metals, Ltd.

1.Environmental activities undertaken by Hitachi Metals

  • (1)Code of Conduct for Hitachi Metals Group Companies

    1. [1]Enhancing Awareness of Social Responsibility and Corporate Ethics
    2. [2]Pursuing Mutual Growth with our Business Partners
    3. [3]Promoting Truthful Communication with Society
    4. [4]Thinking about Our Next Generation - An Environmentally Friendly Solution
    5. [5]Fostering the Welfare of Employees and Society
  • (2)Basic Policy on Environmental Protection for Hitachi Metals Group Companies

    Philosophy

    Hitachi Metals' fundamental corporate philosophy is to be "the best possible company" and to contribute to a greater society. In line with this philosophy, we regard it as crucial to ensure that humanity's shared environmental resources can be passed down to future generations in the best possible condition. Accordingly, throughout our operations we treat environmental considerations as an issue of the highest importance and strive actively to promote environmental protection efforts on both the global and local community levels.

    Slogan
    • ・ With a deep awareness that environmental protection is major issue for all humanity, fulfill social responsibilities by striving to establish a sustainable society in harmony with the environment regarding it as one of the essential aspects of corporate activity.
    • ・ Contribute to society by developing highly reliable technologies and products in response to needs for environmental protection and the limited nature of resources.
    Business Conduct Guidelines
    1. Compliance with environmental laws and regulations, and prevention of pollution

    Comply with all applicable laws and regulations concerning environmental issues on all levels, from international laws to national, regional, and local pacts. Establish voluntary environmental standards as needed in order to assure compliance.
    Identify potential environmental problems and take action to prevent pollution. In the event that environmental problems have happened, take appropriate countermeasures to minimize environmental impact.

    2. Maintenance of environmental organizational structure and enhancement of environmental supervision

    Maintain an organizational structure that includes leadership by an executive responsible for managing environmental issues, as well as an underlying administrative structure. Promote environmental protection activities by applying voluntary environmental standards and establishing clear environmental-related goals.
    Additionally, strive to continually improve our environmental management through confirming that our environmental protection activities are being carried out in an adequate, effective, and proper manner.

    3. Promotion of global manufacturing with consideration of LCA (Life Cycle Assessment)

    Endeavor to reduce the environmental burden at entire life cycle, including R&D, product design, manufacture, distribution, sale, use, and disposal.
    Promote the following as global manufacturing priorities: environmentally conscious products in society, prevention of global warming, conservation and recycling of resources, chemical management, as well as conservation of biodiversity.

    4. Environmental consideration at the sites all over the world

    Consider environmental impact in the areas around our manufacturing sites, and strive to carry out policies responsive to the requirements and needs of the local communities.

    5. Education and training to increase environmental awareness

    Educate and train employees about environmental protection and importance of compliance with environmental laws and regulations to raise employees' awareness of environment with a broad perspective.

    6. Information disclosure

    Promote positive communication through the disclosure of information regarding environmental protection activities to stakeholders, and strengthen the mutual understanding and collaborative relationship.

    April 2010

2.Hitachi Metals Green Procurement Concepts

  • (1)Purpose

    The purpose of green procurement and a key Hitachi Metals action policy is to contribute to society as a good corporate citizen, to protect the environment, and to coexist in harmony with local communities through the environmentally sound development, design, and manufacture of products and the active promotion of green procurement, as described in these Guidelines.

  • (2)Green procurement

    Green procurement refers to the procurement of products, materials, and other supplies characterized by low environmental impact from suppliers that assume a proactive role in their environmental protection activities.

  • (3)Guidelines on promoting green procurement

    When choosing the materials it purchases, Hitachi Metals seeks to advance green procurement by considering environmental and safety issues as well as quality, price, delivery times, and other traditional criteria.
    Accordingly, Hitachi Metals bases its decisions on comprehensive evaluations of the supplier's environmental track record and the environmental implications of the materials purchased.
    Suppliers are asked to make active efforts to satisfy these guidelines.

    1) Matters assessed with regard to environmental protection activities by the supplier
    • (1)Achieving third-party certification of the supplier's environmental management system (EMS) compliant with the international standard ISO 14001; with the Eco-Management and Audit Scheme (EMAS), KES Environmental Management System Standard, Ecostage, or Eco-Action 21; or passing a Hitachi Metals survey*
    • (2)Implementation of green procurement measures or plans to do so
    • (3)Visible efforts to develop a system to manage the chemicals occurring in products delivered to Hitachi Metals

    * Passing a Hitachi Metals survey requires meeting all of the following 19 items:

    ■Corporate philosophy and policies
    1. [1]The supplier has established a corporate philosophy on environmental protection.
    2. [2]The supplier has established environmental policies and pledged to make continual improvements in this area and in its pollution prevention efforts.
    3. [3]As part of its environmental policies, the supplier has pledged to comply with all applicable laws and regulations.
    4. [4]The supplier has taken steps to ensure all employees are thoroughly aware of its environmental policies, and statements of these environmental policies are available to third parties.
    ■Plans and organization
    1. [5]The supplier has established environmental protection goals and objectives.
    2. [6]Organizations and individuals responsible for achieving such goals and objectives have been clearly assigned.
    3. [7]The supplier has a plan in place to achieve these goals and objectives.
    ■Through its environmental evaluation system, the supplier manages and assesses the following items and strives to make improvements in these areas:
    1. [8] Water pollution
    2. [9] Air pollution
    3. [10]Noise and vibration
    4. [11]Waste processing
    5. [12]Energy (e.g., electricity, gas, fuel)
    6. [13]Avoiding substances prohibited by the Hitachi Group (those listed under Level 1 on Annex 1)* from being included in products delivered to Hitachi Metals.

       * Annexes: Chemical substances regulated by the Hitachi Group (Level 1, Level 2)

      Category Regulated substances
      Level 1: Prohibited substance group In principle, the inclusion of any of these substances in products delivered to the Hitachi Group is prohibited.
      Level 2: Controlled substance group While no specific restrictions apply to the inclusion of such substances, their content must be identified and measures taken to control their use and presence through recycling, appropriate processing, and other means.
    7. [14]The supplier has established a product assessment system.
    8. [15]The supplier has established systems to respond to emergencies.
    9. [16]The supplier has established systems for internal environmental audits.
    ■Education, training, and information provision and disclosure
    1. [17]The supplier provides environmental education.
    2. [18]The supplier implements education and training for all individuals involved in tasks with the potential to significantly affect the environment and maintains lists of such workers.
    3. [19]The supplier provides information on environmental protection.
    2) Matters assessed in relation to environmental protection for procured items
    ■Control of chemical substances
    1. [1]The supplier seeks to ensure the appropriate use of chemical substances, including measures to avoid using substances prohibited under applicable laws and regulations.
    ■Resource conservation
    1. [2]The supplier duly considers measures to reduce product weights and sizes.
    2. [3]The supplier uses recycled parts and/or recycled resources.
    3. [4]The supplier duly considers measures to ensure longer useful service life for its products.
    ■Energy conservation
    1. [5]The supplier duly considers measures to ensure energy conservation in use and standby.
    ■Recycling
    1. [6]The supplier collects and recycles products.
    2. [7]The supplier seeks to coordinate and standardize materials.
    3. [8]The supplier duly considers measures to facilitate product disassembly and waste segregation.
    ■Packing materials
    1. [9]The supplier seeks to minimize the use of packing materials and duly considers measures to promote their collection, reuse, and recycling.
    ■Provision of information
    1. [10]The supplier provides environmental information on its products.

3. Request for supplier cooperation in surveys

  • The cooperation of our suppliers is essential to effective green procurement. In addition to asking suppliers to continually implement, organize, and improve their environmental protection activities, we also ask them to cooperate in the following surveys undertaken in accordance with these Guidelines:

  • (1) Surveys on supplier environmental protection activities

    • 1) Scope: Suppliers with whom Hitachi Metals engages in transactions
    • 2) Content: The items listed under 2. (3) 1).
    • 3) Method: Please complete and return the Green Procurement Supplier Questionnaire.
    • 4) Frequency: This survey is undertaken once a year. Suppliers are also asked to check with their own suppliers concerning the matters covered in the survey.
  • (2)Surveys of the environmental implications of materials purchased

    These surveys (on minimizing the environmental impact of products procured and on chemical substances contained therein) are undertaken as needed.
    In addition, in certain cases, suppliers may be asked, as part of the basic transaction agreement, to conclude a memorandum on chemicals occurring in materials delivered or to submit a written guarantee that the materials delivered are free of certain chemicals.

  • (3)Notification of changes in aspects such as materials, manufacturing methods, and chemical substances included

    In the event of changes in aspects such as materials used, manufacturing methods, manufacturing locations, or key production equipment, suppliers are asked to submit prior notice of the nature of such changes and the extent of their potential impact.
    Suppliers are also asked to submit notice of any substances newly found to occur in products or of changes in or corrections of information previously reported.
    In particular, suppliers are asked to submit notice as quickly as possible (within 48 hours) upon detecting the presence of any prohibited substances.

4. Other information

These Guidelines are subject to amendment as needed in response to changes in social conditions and other factors.

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