Basic purchasing policy
Nidec aims to constantly grow and leap forward based on good quality, cost, delivery, speed, and service, provides all companies in the world with equal opportunities, and purchases materials and components based on a fair evaluation.
Through collaboration with our business partners, we promote CSR-based activities not only within Nidec but also the entire supply chain. For our business partners to share our CSR Code of Conduct with us, we stipulate Nidec's CSR Charter in the Basic Business Agreement, and describe the Charter's standard in the "Nidec Supply Chain CSR Promotion Guidebook."
Major activities in FY2010
Managed environmentally hazardous substances more closely
Nidec Establishes an Environmentally Hazardous Substances Management System with Business Partners
Based on "Harmony with the society" of our CSR Charter, we promote "green procurement," which prioritizes purchasing less environmentally harmful materials and components to produce eco-friendly products. As laws and regulations to restrict the use of environmentally hazardous substances that affect the human body and the environment (e.g. the RoHS Directive*1 and the REACH Regulation*2) take their effect globally, in February 2011, Nidec introduced the NEWS (Nidec Environment Web System) system that smoothly collects and distributes information regarding environmentally hazardous substances throughout the supply chain. With the understanding and support of our suppliers, we will respond to the tightening legal restrictions and the needs of our customers by controlling environmentally hazardous substances more efficiently and sharing information more speedily throughout the complete global supply chain.
- *1 RoHS Directive:
- A directive restricting the use of certain hazardous substances in electrical and electronic equipment.
- *2 REACH Regulation:
- An EU Regulation concerning the registration, evaluation, authorization and restriction of chemicals.
CSR-based procurement status survey
In order to expand CSR procurement over the complete supply chain, Nidec established in January 2009 the "Nidec Supply Chain CSR Promotion Guidebook" and has worked on the further penetration of our CSR charter with explanatory meetings with suppliers, etc. At the same time, to get an overview over the implementation status of CSR procurement, a self-check sheet - the "Nidec Supplier CSR Self-assessment" - that checks the status of compliance with the Nidec CSR charter was created, through which we receive reports on the compliance status from suppliers. Until end of March 2011, we received reports regarding the self-assessment results from 422 suppliers, of which 339 companies meet the Nidec CSR procurement standard.
Based on the result of the supplier self-assessment and in order to understand the actual situation correctly as well as to ensure a quick improvement, we started in FY 2010 to conduct on-site audits of main suppliers. Until end of March 2011, 42 suppliers were thus audited. With the enlargement of our business comes a diversification of our suppliers; however, we will continue to promote CSR activities throughout the supply chain in cooperation with our suppliers.
Reduced the use of environmentally hazardous substances
Not only to comply with the relevant laws and regulations but also to further global environmental protection and minimize the impact on the ecosystem, Nidec is promoting the procurement of environmentally-friendly materials and components. We have stipulated an "Environment-related Substances Control Standard," clarified banned substances as well as substances which we aim to fully phase-out, strengthened the control of substances that constitute an environmental burden, and we also promote the reduction of the use of these substances, such as Lead*1, etc.
Our incorporation of the restrictions of the RoHS directive*2 is already complete; however, to respond to an expected further tightening of legal restrictions and the needs of our customers, we have stipulated substances for voluntary control and continue to make all necessary efforts.
- *1 Lead:
- A substance which can accumulate in the human body, show acute and chronic toxicity and acts as a carcinogen.
- *2 RoHS Directive:
- A restriction of the use of certain hazardous substances in electrical and electronic equipment.