Materials Procurement

Basic Procurement Policy

Our basic concept in terms of parts and materials procurement is to evaluate every company that applies in a fair and balanced way.

Nidec always aims to grow and advance by offering superior quality, cost, delivery, speed, and service. Based on this concept, we evaluate every company that applies in a fair and balanced way.

We look forward to receiving positive proposals and registrations of interest from companies that desire to grow and advance with us, companies that have locational advantages in terms of proximity to our production bases, and companies that have new technologies or new methods to replace existing technologies and methods.

Production at optimal locations

Basic Procurement Policy

Nidec Group’s Procurement Divisions are ever mindful of integral partnership with our suppliers to pursue the company’s creeds, based on the recognition that all suppliers are our important partners.
We carry out our daily duties of procuring from our supply chain partners strictly following Basic Procurement Policy, in which also our partners are requested to understand and act in adherence with the principles provided.

We comply with the purchasing related laws and regulations and all the company’s regulations.

2.Securing Fairness and Equity
We select our business partners with fairness and equity in requesting for quotations or makingcontracts.

3.Open Door Policy
We provide opportunities to do business with all suppliers regardless whether they operate in or out of the country.

4.CSR Procurement
We conduct fair and green procurement, and fulfill our corporate social responsibility as members of Nidec Group.

We strive to build a collaborative relationship with our supply chain partners through deepening mutual understanding.
We comprehensively evaluate the partner companies from the following viewpoints.

(1) Has good financial health, and is responsible for continuous business with Nidec Group.
(2) Has a clear management philosophy and policies.
(3) Considers the environment with clear environment related policies.
(4) Keeps excellent quality, and developing products with conscious of technical improvement and concerns for the environment.
(5) Discloses the company’s information proactively.
(6) Has risk management system.
(7) Has employee education system.
(8) Has internal rules for non-disclosure agreements.
(9) Complies with all the laws and regulations regardless of internally and externally.
(10) Respects intellectual property rights of others.
(11) Respects human rights.
(12) Be responsible for good work environment
(13) Be active in contribution to society.
(14) Strives to offer competitive prices.
(15) Has an organized system for occupational safety.
(16) Keeps strict observance for a delivery date.



Nidec Group Supply Chain CSR Promotion Guidebook

We made a “Nidec Group Supply Chain CSR Promotion Guidebook,” which describes the above basic policies in more details for all of our supply chain partners.

Subject to future social landscapes, our customers’ or concerned people’s requests, our corporate policies, etc., the Nidec Group may incorporate the record/lack or contents of our supply chain partners’ CSR activities in general into the conditions for our business transactions with them.



Nidec Group Conflict Minerals Policy Statement

“Conflict minerals” are mineral resources mined in conditions of armed conflict and human rights abuses, notably in the eastern provinces of the Democratic Republic of the Congo (“DRC”) and its surrounding countries. The profits from the extraction and trade of these conflict minerals, defined by the US State Department as gold, tin, tantalum, and tungsten, are believed to finance multiple armed groups and contribute to inhumane treatment, including human trafficking, slavery, forced labor, child labor, torture and war crimes in the conflict regions. Conflict minerals usually pass through a variety of intermediaries before reaching the final consumer.

In order to avoid the use of conflict minerals in our supply chain that contribute to human rights abuses in the DRC or its adjoining countries, we encourage our supply chain partners to source only from smelters that have been validated by industry audit program (e.g. *RMI) and are exercising due diligence on the origin and chain of custody of minerals in accordance with the **OECD Due Diligence Guidance. If we discover the use of gold, tin, tantalum, and tungsten produced in facilities that are considered to be non-conflict free, in any material, parts or components we procure, we will take appropriate actions to make our products conflict free.

*RMI (Responsible Minerals Initiative)
A cross-industry organization that promotes the responsible procurement of minerals (formerly Conflict Free Sourcing Initiative, or CFSI)

**OECD Due Diligence Guidance
A set of international guidelines intended to help companies avoid contributing to conflict through their mineral sourcing practices and cultivate transparent and sustainable mineral supply chains.

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