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Green Procurement Guidelines

Apr 2023

T.RAD Co., Ltd.

△7Green Procurement Guidelines1）Introduction2）Environmental Principle3）Environmental Policy4）Green Procurement Requirements① Purpose of Green Procurement② Subjects of Green Procurement③ Goals of Green Procurement
5）Fulfillment and Enhancement of Environmental Management System① Acquisition and Update of Environmental Management System Certification② Control for Substances of Concern of Parts and Materials Delivered to T.RAD③ Environmental Engagement relating to Business Operation of Suppliers④ Reduction of Packaging and Packing Materials for Logistics⑤ Observance of Idle Stop Practices

1） Introduction
We wish to express our gratitude for the continued support and cooperation of ourmanufacturing and procurement activities.
Since the company’s establishment in 1936, the T.RAD Group foundation of ourbusiness has been the stable partnership with all of our suppliers. We will continue
to base our business growth on mutual reliance with all business partners.
T.RAD develops and manufactures clean products, while at the same time
participating in activities to reduce the environmental burden under the key
management principle “Superior heat exchanger products and contributes to theevolution of society and environmental preservation with our technology andservices.”
We must maintain a greater awareness of the needs of society and the environmentby using parts and materials for products that create less of an environmental
burden. T.RAD alone cannot achieve the goal alone. We require cooperation andclose coordination from all our suppliers.
We would like to ask our suppliers to understand the intension and requirements ofthis guideline and to cooperate with us to achieve our goals.
Director
Satoshi Iwasaki

2） Environmental Principle
T.RAD Co., Ltd., and the worldwide T.RAD Group Companies (hereinafterreferred to as “T.RAD”), aim to become the world’s No. 1 manufacturer of heatexchanger systems. Giving the first priority on love to environment, every employee
works on conservation of environment, biodiversity and nature and contributes andcontributes to develop affluent and happy society.

3） Environmental Policy (Code of Conduct)
In order to achieve the environmental principle, T.RAD shall assess theenvironmental impacts throughout all lifecycle stages of our products, establish
objectives and goals for conservation of environment and biodiversity, and utilize
and continually improve the environmental management system throughout theorganization of T.RAD in order to achieve an affluent and happy society.
① Establish and enhance the environmental management system and endeavor tostrengthen management for a sustainable environment.
② Endeavor to improve the level of environmental conservation by coordinating
and cooperating with suppliers.
③ Establish and implement a system for the engineering and development inconsideration of the earth’s environment.
④ Comply with environmental regulations and other requirements and establish
self-imposed standards to improve the level of environmental conservation.
⑤ Strengthen and implement educational programs to develop an awareness of theenvironment by all members of the T.RAD organization.
⑥ Proactively disclose environmental information inordertoestablish

communication with stakeholders.
⑦ Endeavor to conserve environment, biodiversity and nature through proactiveinvolvement in community activities.
⑧ Reduce emissions of greenhouse gases to prevent global warming.
⑨ Reduce emissions of pollutants into the environment to prevent pollution.
⑩ Endeavor to recycle and save resources for effective utilization and reduction ofwaste.

4）Requirements of Green Procurement① Purpose of Green Procurement
In order to enable the manufacture of environmentally responsible products,green procurement intended for procurement of materials that create less of aburden on the earth’s environment shall be introduced to achieve a sustainable
society in partnership with suppliers who are also proactive in environmental
conservation activities.
② Subjects of Green Procurement
Procurement of materials (raw materials and indirect materials) and parts(purchased parts and supplier parts) for the T.RAD manufacturing operationsshall be covered in the Green Procurement Guidelines.
③ Goals of Green Procurement
In order to minimize the load on the earth’s environment throughout the areas ofoperations relating to all stages of the product lifecycle (development,engineering, procurement of parts and materials, manufacture, transportation,and use), green procurement, or the procurement of parts and materials with lessof an environmental load, is essential as well as implementing lessenvironmental burdensome manufacturing activities and developing lessenvironmentally burdensome products when in use and after disposal.

5）Fulfillment and Enhancement of the Environmental Management SystemT.RAD expects that all suppliers worldwide will provide us with high quality
products on a long term and stable basis, based on regulatory compliance, respects
for the norms of society, and consideration of the environment. We request that oursuppliers implement the following:
Details of the requirements differ depending on the supplier category. Refer to thetable below.

Supplier Category

Parts

Raw
Materials
and Indirect
Materials

Logistics○○○

Discontinuation ofbanned substances○○

Reduction of restrictedsubstances○○①Compliance with environmental regulations

○

○

○

②Improvement in environmental performance

○

○

○

4 Reduction in CO2 emissions andpackaging and packing materials forlogistics

○

○

○

Environmental Aspect

1 Acquisition and update of environmental
management system certification
2 Control for substances of concern of partsand materials delivered to T.RAD①Control of substances of concern
and an increase in recycling

3 Environmental activities related
business operations of the supplierto

5 Observance of Idle Stop Practices○① Acquisition and Update of Environmental Management System Certification
T.RAD manages environmental conservation activities in an organized manner andis committed to continual improvement. Thus, we ask all suppliers to establish amanagement system that implements environmental conservation activities andallows continual improvement. Consequently, we ask our suppliers to obtain“Environmental Management System” certification. Also we ask our suppliers acquired
the Environmental Management System certification to update it and organize the continualacquisition.
In addition, we ask for your cooperation in the survey Environmental Management System
certification as needed.
Environmental Management system : ISO 14001, KES, Eco Action 21 or any other.

② Control of Substances of Concern of Parts and Materials Delivered to T.RAD
We ask you to implement the following procedure according to the relevant
regulations and our in-house provisions for parts and materials delivered to us.
※Prohibit the use of asbestos※Control and self-check substances of concern for abolition of the 10 SOCs (lead,cadmium, mercury, hexavalent chromium, PBB, PBDE, DEHP, BBP, DBP andDIBP ) in use.
※Reduce the use of SOCs other than the 10 SOCs, such as PVC and VOCs.
※ Control, report, and exchange information on the restricted chemical
substances under REACH of EU.。
※Submit environmental data for the lifecycle assessment (LCA)
Energy Consumption; emissions of CO2, NOx, and other greenhouse gases into
the atmosphere; and waste volume※Reduce waste and increase the recycle ratio.
③ Environmental Engagement relating to Business Operation of Suppliers
In addition to the activities described in ① and ② above, we ask suppliers forproactive participation in environmental activities in business operations.
※Compliance with the relevant environmental regulations.
※Enhancement of activities for conservation of environment, biodiversity andnature, and control of chemical substances.
※ Expedient presentation and submission of the relevant documents uponrequest.
※Promotion of CO2 reduction to achieve carbon neutrality.
Details of the designated chemical substance refer to the T.RAD HP of Green
Procurement Guidelines Standard No.003-01-01-A “Standard for Control ofSubstance of Concern”.
④ Reduction of Packaging and Packing Materials for Logistics
Reduce packaging and packing material for parts and materials delivered to us
and/or increase the use of returnable packing cases.
⑤ Observance of Idle Stop Practices
Revision.
No.

DateRevision Detail△1December, 2007

Addition of reference document. Addition of Text.

△2July, 2009

Deletion of reference document, Addition of Text

△3July, 2010

Addition of word “biodiversity”△4May, 2018

Change officer name△5Dec, 2020

Change officer name, Addition of word “SDGs”△6May, 2022

Change officer name, Addition of word “Carbon neutrality”△7Apr, 2023

Change officer name, Addition of word “Control ofSubstances of Concern ”