Green Procurement

USHIO seeks to realize a sustainable society and to protect theenvironment. We ensure that our products comply with international standardsand laws and regulations in each country to minimize their environmentalimpact.

We also refrain from using or procuring components and materials thatharm the environment.

Under USHIO green procurement, we will comply with laws and regulationsas well as establishing our own procurement standards, and work together withour customers and suppliers to achieve them.

Selection of High-Risk Materials

USHIO is taking steps to ensure compliance with REACH regulations, which will increase regularly going forward. Specifically, we have carried out full scale environmental surveys for 80% of the materials that we have purchased regularly in the past. In fiscal 2011, we formulated new USHIO Group Integrated Procedures for the Management of High-risk Suppliers, Determination of High-risk Materials, and the Operation of X-ray Fluorescence Spectrometers. These procedures were then introduced also to our operating bases overseas, mainly in Asia.

CMS-Using a Chemical Substances Management Database

Since fiscal 2003, USHIO INC. has worked with suppliers to receive environmental documentation for all parts and materials in line with green procurement standards. The number of substances targeted by the REACH directive originally implemented in June 2007 has grown, and market demands and changes, including additional regulations, have rapidly accelerated, leading to a greater burden on our suppliers. Amid these conditions, USHIO is working to enable data coordination, storage, verification and calculation, as well as to improve turnaround times and data precision. USHIO also uses a database to review the chemical substances contained in products that contain many components targeted for review, and manages the data entered. Going forward. USHIO will continue to upgrade its databases, with plans to incorporate a wide range of chemical substances, including those specified under the REACH directive. Furthermore, USHIO Group companies, such as our operating bases in Asia, have begun to develop and build up this database as well.

CMS Chemical Substance Management System Database Operation

USHIO has constructed a shared database forthe Group to store information on environmental data on components submitted bycustomers, chemical substances specified under the REACH directive (currently151 substances as of June 2014), and data on banned substances. The databasecan be browsed by anyone in the Group. At the same time, USHIO is compilingdata on multiple products created by the same manufacturer using the same rawmaterials to construct systems to reduce the amount of labor spent on surveysand producing information materials at suppliers.

The environmental response forms that USHIOsubmits to customers cover a wide range of questions. Therefore, we haveadopted a database to enable data coordination, storage, verification andcalculation, as well as to improve turnaround times and data precision withregard to chemical substances contained in products. Through this initiative weseek to respond to various changes in environmental laws and regulations suchas revisions and additions, and achieve implementation that will reduce theburden on our suppliers.

CMS

As our production sites move offshore amid increasingly global corporate activity, our suppliers are also becoming global. For this reason, in fiscal 2010 we began developing a structure for surveying chemical substances contained in products, centered around our production sites in China. In fiscal 2011 we succeeded in establishing a common database with our Chinese production sites, and are working to enhance its management through regular meetings. We also visit local suppliers together with representatives from our Chinese production sites to hold study sessions on how to fill out surveys on chemical substances contained in products.

From fiscal 2014, wehave actively promoted support for self-assessment at our suppliers.

Green Procurement Standards

At USHIO, we have established Green Procurement Standards to guide material purchasing, and these standards are posted on our website. While complying with the RoHS directive and other laws and regulations specific to each country, we stipulate our own list of chemical substances with an environmental impact, and comply with both internal and external requirements relating to chemical substances contained in products. Under the Green Procurement Standards, we issue forms for self-assessment of standard compliance systems, and request that our business partners put in place an Environmental Management System (EMS). From March 2008 we also joined the JAMP consortium and become involved in creating industry-wide systems.

Green Procurement Details Click to download

Compliance with International Environmental Laws and Regulations

To ensure the smooth, stable supply of its products in the face of a diversifying body of overseas laws and regulations, USHIO is focusing on timely collection of information, and building a value chain designed in response to these requirements. We hold explanatory meetings with our suppliers to deepen mutual understanding and gain their cooperation in responding to purchasing policy, green procurement standards, RoHS, and REACH regulations. We also conduct continuous activities based on dialogue with suppliers to avoid problems arising with delivery schedules and product quality. Through these activities we aim to raise overall customer satisfaction.

CSR Procurement Initiatives