IDEC Group Green Procurement
Guidelines
Version 2.2

July 2023

ContentsIntroduction ･･････････････････････････････････････････････････････････ 2
Environmental Policy ･･････････････････････････････････････････････････ 3
1. About these IDEC Group Green Procurement Guidelines ････････････････ 4
1.1. Purpose
1.2. Scope
2. About chemical substances contained in materials delivered････････････ 4

2.1. IDEC Group restricted chemicals
2.1.1. Prohibited chemicals (Annex 1)
2.1.2. Controlled chemicals (Annex 2)
2.2. Development of a system for control of restricted chemicals
2.3. Information disclosure and communication
3. Requests to suppliers ･･･････････････････････････････････････････････ 5
3.1. Development of environmental management systems
3.2. Conforming to laws and regulations in business activities
3.3. Lessening of impact on water resources
3.4. Waste reduction
3.5. Effective utilization of resources
3.6. Control and reduction of CO2 and other greenhouse-gas emissions
3.7. Initiatives to protect biodiversity4. Terminology ･･･････････････････････････････････････････････････････ 8
4.1. Laws and regulations
4.2. Other terms
Annexes
Annex 1. Prohibited chemicals ･･･････････････････････････････････････ 10
Annex 2. Controlled chemicals ･･･････････････････････････････････････ 12
Annex 3. Applicable laws and regulations ･･････････････････････････････ 12
Annex 4. Exemptions ････････････････････････････････････････････････ 13
Revision History ････････････････････････････････････････････････････ 141

Introduction

Recognizing coexistence with the planet to be a shared wish of humanity and with regard
to the relationship between business management and the environment the IDEC Groupaims to realize sustainable growth by acting based on assigning top priority toenvironmental protection in all of its business activities.
As part of these efforts, these IDEC Group Green Procurement Guidelines have been
established based on environmental laws and regulations in Japan and around the world,
and the Group carries out environmental protection activities intended to lessen its
environmental impact.
The understanding and cooperation of suppliers is essential to advancing green
procurement activities to protect the environment. Suppliers’ cooperation would be highly
appreciated as we advance environmental protection activities as part of our corporatesocial responsibilities, in partnership with our suppliers.

2Environmental Policy
Philosophy
Recognizing the goal of a harmonious existence with the earth that we all share,
the IDEC Group makes environmental safety and quality a top priority in all
aspects of our business while pursuing sustainable business growth.

Policy1. We shall further strengthen the concept of "SAVE ALL," and shall develop ourorganization and management structure for promoting and practicing activities toconserve the global environment throughout our business activities.
2. We shall monitor the impact of our business activities on the environment and set
environmental objectives within an economically and technologically possible range,
hold reviews, and implement continuous improvements for the conservation of theglobal environment, including the prevention of pollution.
3. We shall obey all applicable laws, ordinances, agreements related to environmental
aspects, and shall establish voluntary standards to achieve even further
environmental conservation.
4. Our planning and development departments shall engage in conserving the global
environment by developing new environmentally friendly products and improving ourexisting products.
Our production department shall strive to develop and improve environmentallyfriendly manufacturing technology, shall reduce and monitor production waste, andshall engage in conservation of the global environment.
Our sales and logistics departments shall engage in conservation of the globalenvironment through reducing the environmental burden involved with all aspects ofdistribution.
5. We shall strive to save resources and energy, promote recycling, reduce waste in allof our business activities, and engage in conservation of the global environment.
6. We shall construct an environmental management system and implement internalaudits, and strive to maintain and continually improve the system.
7. We shall hold environmental education and training, inform all employees of theEnvironment Policy, and raise their awareness.
8. We will actively participate in and contribute to social activities related toenvironmental conservation.

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1. About these IDEC Group Green Procurement Guidelines
1.1. Purpose
The IDEC Group aims to advance materials procurement, manufacturing, and sales
activities with minimal environmental impact. These Guidelines express our basic
concepts and specific requirements intended to proactively act to protect the earth’s
environment together with our suppliers, in order to fulfill our responsibility to society tosteadily decrease our environmental impact through activities, including thoroughcompliance with laws and regulations and thorough chemical substances management,
efficient use of resources, and protection of biodiversity, throughout the entire product life
cycle.
1.2. Scope
These Guidelines apply to activities related to all materials delivered to the IDEC Groupfor use in products and product packaging and packing materials.
Definition of materials: Raw materials, parts, products, subsidiary materials, labels,
packaging materials, packing materials, user’s manuals, OEM/ODM products
2. About chemical substances contained in materials delivered
2.1. IDEC Group restricted chemicals
The IDEC Group has identified IDEC Group restricted chemicals. It manages chemicalsubstances contained in products in two categories: prohibited chemicals and controlledchemicals.
Depending on circumstances in the destinations of product delivery or sale, somechemicals may require separate handling. Information on such handling will be provided
on a case-by-case basis as necessary.
2.1.1. Prohibited chemicals (Annex 1)
In principle, all materials delivered to the IDEC Group must be free from content of theprohibited chemicals identified in Annex 1 to these Guidelines in excess of theirthreshold values. In principle, use of these prohibited chemicals is prohibited under laws
and regulations of Japan and other countries.
Suppliers are required to prove that the materials they deliver do not use any
prohibited chemicals and to submit documentation, such as the IDEC Group
Certification of Non-use of Prohibited Chemicals.

42.1.2. Controlled chemicals (Annex 2)
The controlled chemicals identified in Annex 2 to these Guidelines are chemicalsubstances that, while not restricted at this time, are ones for which regulators are
considering prohibiting use or ones thought to have environmental impact and for which
the IDEC Group ascertains information on whether or not they are contained in products
and, if applicable, their concentrations.
2.2. Development of a system for control of restricted chemicals
Suppliers are requested to develop control systems that make it possible to ascertain
the latest information on subjects, such as whether or not prohibited chemicals (Annex 1)
and controlled chemicals (Annex 2) are contained in materials delivered to the IDECGroup and, if applicable, their concentrations, and to keep the data in such systems up todate.
2.3. Information disclosure and communication
If asked to provide information on parts and materials used in materials delivered to theIDEC Group (i.e., types of materials included, whether or not any IDEC Group restrictedchemicals are included, and, if so, their concentrations), suppliers are requested tocooperate in responding swiftly using formats, such as chemSHERPA-AI/CI.
3. Requests to suppliers
Suppliers are requested to understand and support the IDEC Group’s environmentalprotection activities and to cooperate in proactively implementing the following items.

3.1. Development of environmental management systems
To promote environmental protection activities throughout the entire supply chain, it isrecommended that suppliers develop environmental management systems throughattaining and renewing third-party certifications, such as ISO 14001. Even suppliers thathave not attained such certification are requested to develop systematic environmental
management systems that include legal and regulatory compliance and environmental
protection initiatives.
We can provide support for suppliers thinking about newly attaining ISO 14001 or otherthird-party certification or developing new environmental management systems. Pleasefeel free to consult with us concerning such initiatives. As necessary, the IDEC Group’sactivities may include auditing of suppliers’ environmental protection initiatives and control
of chemical substances included in products, through on-site audits or questionnaires.

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3.2. Conforming to laws and regulations in business activities
Suppliers are requested to prevent air, soil, and water pollution through strict
compliance with the requirements of environmental regulations and applicable laws in thecountries and regions in which their companies and business sites are located and proper
handling and monitoring of restricted chemicals.
In Japan, suppliers are requested to comply with the Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc., the Industrial Safety and Health
Act, the Air Pollution Control Act, the Water Pollution Prevention Act, and other applicablelaws and regulations, in both the procurement and manufacturing stages.
3.3. Lessening of impact on water resources
In light of the significant possibility of a massive reduction in water resources availablefor use due to growth in demand for such resources resulting from population growth andeconomic development, as well as variations in precipitation, the need to balance use withresidence, the impact of climate change on water resources, and water pollution, theimpact of business activities on water resources needs to be reduced. Suppliers arerequested to strive to reduce their water use, improve the quality of drain water
discharged, and protect water resources.
3.4. Waste reduction
In addition to proper disposal of waste at supplier facilities in accordance with laws andregulations, suppliers are requested to promote recycling and to strive to reduce waste.
3.5. Effective utilization of resources
The IDEC Group is promoting the supply of eco-friendly products reflecting consideration
for resource saving and energy saving. Suppliers are requested to proactively propose theinitiatives described under (1)-(9) below with regard to effective utilization of resources andpromotion of recycling.
(1) Not using, or reducing use of, raw materials at risk of depletion(2) Appropriate use of renewable resources(3) Utilization of closed-loop recycling(4) Use of materials with consideration for recycling after product use(5) Extending product life spans(6) Simplification of packing and packaging materials in distribution and reuse andrecycling of packing materials(7) Reducing products’ weights and sizes(8) Reducing electricity consumed and on standby(9) Simplification of disassembly for recycling63.6. Control and reduction of CO2 and other greenhouse-gas emissions
To combat global warming, the IDEC Group strives to reduce emissions of CO2 andother greenhouse gases. Suppliers are requested to implement proactive initiatives toreduce emissions of greenhouse gases throughout the product life cycle fromprocurement of raw materials used in products and parts delivered to disposal as waste
after product use.
Greenhouse gases: carbon dioxide, methane, dinitrogen monoxide (nitrous oxide),ozone-depleting substances, fluorine greenhouse gases

3.7. Initiatives to protect biodiversity
Consideration for living creatures and ecosystems is essential to environmental
protection. Suppliers are requested to join us in consideration for protecting nature andbiodiversity. In cases when building new facilities or expanding existing ones or changing
waste storage locations or waste discharged, please implement an environmental impact
assessment and try to minimize the impact on nature.

74. Terminology
4.1. Laws and regulations(1) EU RoHS Directive
The EU RoHS Directive (2011/65/EU) (RoHS2 Directive) is an EU directive prohibiting useof harmful substances (cadmium, lead, mercury, hexavalent chromium, polybrominatedbiphenyl [PBB], and polybrominated diphenyl ethers [PBDE]) in electrical and electronicequipment (EEE).
While the timing varies by product category, the substances of bis(2-ethylhexyl) phthalate(DEHP, DOP), benzyl butyl phthalate (BBP), dibutyl phthalate (DBP), and diisobutyl
phthalate (DIBP) have been added as well. The maximum permissible concentration is0.01 wt% for cadmium and 0.1 wt% for the other substances.
(2) REACH Regulations
The REACH Regulations were enacted by the EU in 2007 to control chemical substances.
The following duties must be complied with when exporting articles to the EU.
Duty of restriction of use: Products containing the restricted substances identified in Annex
XVII may be exported to the EU only in conformity to the restrictiveconditions indicated.
Duty of communicating information: When exporting to the EU articles containing morethan 0.1% by weight of substances of very high concern (SVHC),
information to that effect must be communicated.
(3) Chinese RoHS
Restricts six specified harmful substances (toxic chemical substances and elements):
cadmium, lead, mercury, hexavalent chromium, polybrominated biphenyl (PBB), andpolybrominated diphenyl ethers (PBDE). While the threshold values it specifies are thesame as those of the EU RoHS Directive, it does not include any exempted uses.
Requires products to be labeled with their environment-friendly use periods.
(4) Minamata Convention on Mercury and Act to Prevent the Mercurial Pollution of theEnvironment
Prohibits manufacture of specific products using mercury and use of mercury and relatedmaterials in manufacturing processes. Requires labeling of products using componentsthat contain mercury as using mercury or similar materials.
(5) Act on the Evaluation of Chemical Substances and Regulation of their Manufacture,etc.
A law intended to prevent environmental pollution by chemical substances that could be
harmful to human health or be detrimental to the habitation or growth of plants andanimals.
Includes restrictions on importation, manufacture, and use of chemical substances
depending on their properties (i.e., decomposition, accumulation, toxicity, andenvironmental residuals).
(6) Industrial Safety and Health Act
A law intended to protect the health and safety of workers as well as encouraging theformation of comfortable working environments.
(7) Air Pollution Control Act
Establishes emissions standards by type of pollutant and type and size of facility foratmospheric pollutants emitted or dispersed from plants and other business sites.
(8) Water Pollution Prevention Act
Requires compliance with drain water standards related to drain water from plants andother business sites and establishes regulations, such as restrictions on groundwater
penetration.

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4.2. Other terms(1) Non-use
Clear indication that a chemical substance is not included in more than the threshold value
in homogenous materials, whether as an intentional additive or an unintentional impurity.
(2) Homogeneous materials
Materials with a homogenous composition that cannot be broken down furthermechanically.
(3) Threshold valueThe threshold value for a prohibited chemical is the regulatory value of the concentrationof such chemical, derived as the content of that chemical substance divided by the massof the homogeneous material.
(4) Impurities
Substances included in natural materials that cannot be removed through refining or
subjects arising through reactions in manufacturing processes that cannot be removed
technically.
(5) Exempted uses
The EU RoHS Directive permits exceptional use of content in excess of thresholdvalues, for a temporary period, for uses for which substitution is technically unfeasible.
However, these are subject to periodic review.
(6) Closed-loop recycling
Recycling remnants and scrap into the same products with similar levels of quality.
(7) Subsidiary materials
These include materials, such as solder, grease, adhesives, ink, and residual detergentsor chemicals remaining in delivered materials.
(8) Labels, packaging materials, packing materials
These include, respectively, base materials and film, coating materials, and ink andcushioning materials.
(9) chemSHERPA-AI/CI
A scheme for communicating throughout the entire supply chain information on
chemical substances that may be used in products, developed under the leadership ofthe Ministry of Economy, Trade and Industry of Japan to integrate the informationcommunication schemes used by individual organizations. Tools downloadable from thechemSHERPA website include chemSHERPA-AI, used to support preparation of dataon articles and chemSHERPA-CI, used to support preparation of data on chemicalproducts.
Revision Record
Revised Date
October, 2018

Ver. 1January,2020 Ver 2

Revised contents
Established2.3. Information disclosure and communication
Deleted JAMP-AIS/MSDSplus from information disclosure format.

March, 2022 Ver.2.1Changed the department in charge to Procurement Dept., Production/SCM Div
and Environmental Promotion Office.

July, 2023 Ver.2.2

Revision of IDEC Group’s restricted chemicals in Annex

9Procurement Dept., Production/SCM Div.

Environment Promotion Dept.

2-6-64 Nishimiyahara, Yodogawa-ku,

2-6-64 Nishimiyahara, Yodogawa-ku,

Osaka 532-0004, Japan

Osaka 532-0004, Japan

Tel: +81-6-7668-7580

Tel: +81-6-6398-2507

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