Materials Procurement

CSR procurement

In order to produce eco-friendly products, Nidec is promoting green procurement that places precedence on environmentally-friendly parts and materials.

Society- and environmentally-friendly sustainable procurement

Basic concept

The Nidec Group works with its business partners to promote CSR activities on its entire supply chain. To ensure that its business partners fulfill their social responsibility, we have in place a basic business contract that requires them to comply with the Nidec Group’s CSR Charter. Additionally, we stipulate a specific standard based on the CSR Charter’s pillars in the document, “the Nidec Group Supply Chain CSR Promotion Guidebook, and share the information therein with our partner companies. We have newly defined “society- and environmentally-friendly sustainable procurement” as a materiality-based theme. Thus, we are poised to request more cooperation from our business partners than ever via procurements that take into account CSR procurement’s social aspects (ban on child and forced labor, reducing long-work hours, etc.) and environmental aspects (suppliers’ use of energy, biodiversity, use of waste and resources, etc.).

Nidec supplier CSR self-assessment

To understand details of CSR procurement, Nidec has been conducting a “Nidec Supplier CSR Self-assessment” since 2018, we have our business partners report on their compliance with “the Nidec Group Supply Chain CSR Promotion Guidebook.” The survey is intended for us to assess the CSR activities of individual partner companies based on a total of 111 sections in Chapters 1 – 6 of the Nidec Group Supply Chain CSR Promotion Guidebook. Through this assessment, we provide all of our business partners with feedback, etc. regardless of their assessment results, for further improvement.

FY2018 FY2019 FY2020 FY2021
The number of suppliers that conducted a Nidec supplier CSR self-assessment 705 672 698 677

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.

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