Materials Procurement

Green Procurement

Construction of Substance of Concern Management System Jointly with Suppliers

In accordance with "Harmony with Environment" upheld in our CSR Charter, Nidec is promoting green procurement that places precedence on environmentally-friendly parts and materials to make our products more eco-friendly. Legal regulations on the use of substances of concern, which can affect the human body and the environment, are in place in many countries around the world (such as the RoHS directive *1 and REACH regulation*2). In light of this, from February 2011 Nidec employed "NEWS (Nidec Environment Web System)", a new system that ensures smooth collection and notification of substances of concern that exist in the supply chain. With the understanding and cooperation of suppliers, we will respond to the tightened legal regulations and customer requirements by efficiently managing the substances of concern throughout the supply chain and sharing information more swiftly.

NEWS (Nidec Environment Web System)
*1 RoHS Directive
The directive on restricted use of specified hazardous substances on electrical and electronic equipment.
*2 REACH Regulation
EU regulation on the registration, evaluation, sanction, and restriction of chemical substances.

Start of Check of Implementation Status of CSR Procurement

In order to expand the CSR procurement to the entire supply chain, Nidec established "Nidec Supply Chain CSR Promotion Guidebook" in January 2009, and promoted impregnation of our CSR Charter to suppliers through briefing sessions. At the same time, we established the "Nidec Supplier CSR Self-Assessment" system that requests reports from suppliers on the status of their observance of our CSR procurement. This self-check sheet was created based on the internally used check items related to observance of our CSR Charter. As of the end of March 2012, we received self-assessment replies from a total of 448 companies. As a result, we found that 416 companies out of 448 met our CSR procurement observance standards.

Nidec started site audits at major suppliers in 2010. The purpose of these audits is to determine the status of observance more accurately based on the self-assessments, and to promote improvements at an earlier stage. As of the end of March 2012, audits were completed at 73 supplier sites. As Nidec increases in size, the types of suppliers required becomes more varied. We will continue to promote relevant CSR activities throughout the supply chain in collaboration with our suppliers.

Supply chain (for instance, in relation to PCs)
CSR調達評価フローExample of CSR procurement assessment

Reduction of Substances of Concern

We will continue to strive to procure parts and materials with less environmental load in order to ensure legal compliance as well as to minimize impacts on the global environmental and ecological systems. Nidec has established an "Environment-related Substances Management Standard" to define a group of substances whose use is to be prohibited, and another group of substances whose use is to be totally abolished in the near future. We will do our best to reduce usage of substances of concern, such as lead*1, in our products.

Although we are in full compliance with current legal regulations such as the RoHS directive*2, we will continue to work in this area by specifying target substances subject to voluntary management in order to prepare ourselves for more stringent industry and customer requirements that are expected to be enforced in the future.

*1 Lead
This substance is tagged due to its bioaccumulation potential, acute/chronic toxicity, and carcinogenic property.
*2 RoHS Directive
The directive on restricted use of specified hazardous substances on electrical and electronic equipment.