CSR Procurement Initiatives
As stated in our corporate philosophy, Ushio has been implementing initiatives from an ESG management perspective. In addition to environmental measures, the Ushio Group's suppliers are promoting CSR procurement throughout the supply chain, such as consideration for human rights, which has become increasingly important in recent years. In the past Environmental Action Plan, we established a system that enables us to conduct CSR procurement surveys on a regular basis. We have improved our CSR response capabilities through dialogue, including explanations to suppliers, implementation of surveys, feedback on evaluation results, audits based on evaluations, and education and guidance. In collaboration with group companies and business sites, we are developing activities to promote understanding and dissemination of CSR procurement policies throughout the supply chain.
As for one of our material issues, starting in fiscal 2021, we will continue to address the periodic implementation of CSR procurement surveys and dialogue as priority issues. We will review the evaluation standards of the CSR Procurement Survey with the aim of further improvement and development, establish KPIs for recovery rates and risks, and expand them to the whole group companies. In addition, as an environmental initiative related to our procurement, we will focus on calculating SCOPE3 Category 1 (CO2 emissions from purchased products/services) and other topics to make CSR-oriented procurement efforts.
CSR Procurement Plan, Achievements and Future Initiatives
| As part of the 4th Management Focus FY2021 Plan |
D,E rank ratio target of 5% or less in the CSR procurement survey of Ushio's domestic production sites * |
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| As part of the 4th Management Focus Mid term plan |
Med-long term targets |
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).
Chemical Substances Management System (CMS)
Ushio 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 has grown, and market demands and changes, including additional regulations, have rapidly accelerated, leading to a greater burden on our suppliers. Ushio also uses a database to review the chemical substances contained in lamp products and products that contain many components targeted for review, as well as manages the data entered. Ushio is responding to regulations concerning a wide range of harmful chemical substances in products.
CMS System Database Operation
Ushio has constructed a shared database for the Group to store information on environmental data on components submitted by customers, chemical substances specified under the REACH directive, and data on banned substances. The database can be browsed by anyone in the Group. At the same time, Ushio is compiling data on multiple products created by the same manufacturer using the same raw materials to construct systems to reduce the amount of labor spent on surveys and producing information materials at suppliers.
Currently, we are conducting surveys and responding to chemicals contained in the chemSHERPA at our worldwide manufacturing factories.
CSR Procurement Survey
We continue to conduct CSR procurement surveys for our business partners at the Harima Division and Gotemba Division.
In fiscal 2020, we confirmed the status of our business partners' CSR efforts, adding the Kyoto Division newly and using the "CSR Procurement / SAQ" of the Global Compact Network Japan (GCNJ).
From the survey results, all items have been upgraded from the previous 2017 results.
We believe that these are the results of the permeation and understanding of CSR among our business partners.
Based on this result, we will continue to talk with high-risk business partners to improve each other's level.
In addition, we started a CSR procurement survey at each Group company in FY2021.
Results of Self-Evaluation Conducted by Each Supplier about CSR Procurement（Comparison between 2017 and 2020）
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Checking for Conflict Materials
The Ushio Group uses tungsten, tantalum and other minerals to make the electrodes and filaments in its lamps. To do this and based on our Basic Policy Statement for Conflict Minerals, Group companies and our suppliers are prohibited from using conflict minerals. Ushio checks for the use of any conflict minerals and reports the results of its findings to customers using the EICC/GeSI Conflict Minerals Reporting ledger sheet.
Ushio checks for the use of any conflict minerals by its suppliers at each company, and regularly updates information. Previously, we confirmed whether or not conflict minerals were used by the relevant suppliers. From fiscal 2016, we have expanded the scope of confirmation to cover identifying mines and refineries.
(Conflict Minerals)
Conflict minerals is the generic term for minerals that are produced in areas of conflict and are a source of funding for local armed groups when purchased. As a result, there are concerns about companies' complicity in the conflicts affecting the production areas of these minerals. In accordance with the clause on conflict minerals in the US Securities and Exchange Commission's Dodd-Frank Wall Street Reform and Consumer Protection Act, companies listed on US stock exchanges are legally obligated to disclose and report on the use of conflict minerals in their products. Conflict minerals include tantalum, tin, gold, and tungsten produced in the Democratic Republic of the Congo or adjacent countries.
Basic Policy Statement for Conflict Minerals
- Do not knowingly procure specified materials (tin, tantalum, tungsten, gold) from “Armed group in Conflict region” of Democratic Republic of Congo (DRC) and in surrounding countries.
- We also expect our partners to support this policy throughout the supply chain to ensure that only conflict free materials and components are used in the parts and components we procure. We also conduct the required investigation.
- If we discover the use of these materials that are considered to be non-conflict free, we will stop our procurement, and take appropriate actions to make our products conflict free.
July, 2019
Koji Naito
President and Chief Executive Officer
Saving Energy, Conserving Resources and Preserving Biodiversity in Business Activities throughout the Entire Supply Chain
Under Ushio's Green Procurement Standards, the Company asks its business partners to build an environmental management system such as ISO 14001 or Eco Action 21. Ushio requests each corporate customer to conduct a survey on the status of its environmental initiatives at an appropriate time, and engages in preferential trade with business partners with outstanding response capabilities, maintaining and enhancing environmental preservation activities throughout the entire supply chain.
The ongoing CSR Procurement Questionnaire follows through and asks for self-assessments on initiatives related to avoiding contamination, effective use of resource energy, and reduction of greenhouse gases and waste in business activities. By collecting the overall results and confirming the position of each company, Ushio strives to raise the awareness of its customers.
Contributing to Initiatives through Corporate Collaboration within Industry Bodies
In October 2010, Ushio signed and declared its support for the United Nations Global Compact's Ten Principles. Ushio has joined the Supply Chain Working Group of the Global Compact Network Japan, and as a member, it is conducting activities in pursuit of its vision for CSR procurement activities. One of Ushio's accomplishments was contributing to a proposal published in 2013 entitled “Building the Sustainable World: A Vision of Desirable CSR Activity in the Supply Chain,” together with other participating companies.
Furthermore, as an industry-wide environmental preservation initiative, Ushio is advancing environmental activities in the area of mercury recycling by participating in the Council on Collection of Mercury from Used Mercury-Additive Lamps, which was formed by lamp manufacturers and mercury lamp processors in the Japan Lighting Manufacturers Association.