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Green Procurement
Standards
Ver.16.0

July 1, 2024
PANAC Co., Ltd.
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Contents
Foreword.....................................................................................P.3
PANAC’s Environment statement............................................P.5
1. Purpose.................................................................................. P.6
2. Scope.......................................................................................P.6
3. Term and Definition..............................................................P.7
4. How to advance Green Procurement................................... P.10
5. Request to Suppliers.............................................................P.11
6. Request for Global Environment Preservation Efforts.......P.12
7. Policy on Mineral Procurement............................................P.12
8. Revision of Green Procurement Standard...........................P.13
9. Contact us............................................................................. P.13
10. Revision histry.....................................................................P.14■ Appendix
Appendix 1 : Certificate of non-use of prohibited substances andmanagement substances report
Appendix 2 : Prohibited substances
Appendix 3 : Management substances

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Foreword
PANAC Corporation has built our business by positioning“preserving the global environment and realizing a sustainable
society” as a key concern of our corporate activity.
In this way, we believe we must give priority to procuring
materials that have little burden on the environment. We beganenvironment-friendly “green procurement activities” in 2006 when
we issued our “Green Procurement Standard (Ver1.0).”
As stated in our company’s Fundamental Environmental
Principles, “to keep a clean global environment to future
generations is the mission for us who now live on this earth.”
PANAC Corporation takes it as the mission for humanity,andmakes perpetual efforts to preserve the environment.
As exemplified by RoHS directive of EU, and REACH regulation,
throughout the world, law regulating chemical substances that arecontainted in products is being enforced and the scope is widend
year after year.
In these circumstances, we have revised its Green
Procurement Standard so that, as stated in our Fundamental
Environmental Principles, our Corporation and its entire staff
will further undertake sincere voluntary efforts to preserve andimprove the global environment, with gratitude for the benefits
we receive from nature. All our staff will understand thisStandard, comply with it, and put it into practice.
Moreover, we will continue to promote environment-friendly
procurement based on this Green Procurement Standard andcontribute to society together with our business partners.
We will appreciate your understanding and cooperation.
Thank you.

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PANAC Co., Ltd.
General Manager of Administration Headquarters
Yoshiharu Itou

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PANAC’s Environment statement
Environmental basic statement
To keep a clean global environment to future generations is
the mission for us who now live on this earth. With gratitude forthe benefits we receive from nature, PANAC Corporation and its
entire staff undertake sincere voluntary efforts to preserve andimprove the global environment.
Environment vision
1. In our business activities, we use resources effectively, andreduce waste and the presence of substances with an adverse
environmental impact, in order to improve the preservationof the environment.
2. We make efforts to prevent environmental contamination inroutine/non-routine production activities, and even in
emergencies, and continuously improve such prevention
measures.
3. To preserve the environment, we conform toenvironment-related laws and regulations, agreements withlocal communities, and the environmental requirements of ourcustomers and others.
4. We regularly review our environmental goals and targets andengage in continuous improvement activities to keep ourenvironmental control system up-to-date.
5. The Environmental Policies are documented, and the staff
members concerned are well informed of these policies.

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1. Purpose
In order to create and supply products that are in harmony with theenvironment, the purpose of the Standard is:1) to clarify the environmental impact substances the use of which our
Corporation prohibits, or otherwise to control the amount of such
substances contained in the products that we procure, or the in parts,
materials, and indirect materials of which such products are composed;2) to procure materials with low environmentalimpact (Green Materials)
from suppliers that make active efforts to preserve the environment(Green Suppliers); and3) to keep our suppliers well informed of our environmental considerations.
By means of the foregoing, we aim to provide environmentally considerate
products (Green Products) and improve the environmental quality of our
products.

2. Scope
This Procurement Standards is applied to each and every part, material,
indirect material, and so forth, that is contained in any PANAC products
procured from any suppliers, and in prototype products and products indevelopment entrusted to PANAC by any customers that are input to
PANAC’s production process.

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3. Term and Definition
Term

Definition

1) Materials

Products, components, and materials that are procured by
PANAC for production or their production processes.

2)Indirect materials

Packaging and packaging materials procured by PANAC.

3)Elements

Components, and materials that are procured by PANAC.
Chemical substances, from among the substances thatare contained in PANAC’s products, parts, andmaterials (components) or that are used in theirproduction, that PANAC determines to involve a greatrisk to the global environment and to human beings,
on the basis of any legislation or past cases, and that
PANAC designates as such.
The environmental impact substances contained in thecomponents of PANAC’s products are classified andcontrolled as Prohibited Substances and Management
Substances.
(1) Environmental impact substances that are prohibitedfrom being contained in any product/component, or thecontent of which is permitted only within respective
limited concentrations.

4) Environmental
impact substances

5) Environmental
impact substances
control category

6) Prohibited
substances

7) Management
substances(2) Any content exceeding the threshold (applicable scope)in products delivered to PANAC is prohibited.
(3) It is required that use prohibited substances arereported to PANAC irrespective of the concentration
thereof. Moreover, if a content of those substances wasfound by some kind of means, this should be reported to
PANAC irrespective of the concentration.
(4) Even if it is a prohibition substances, We can procure
the component density of prohibition material of the
product after the processing if the threshold is within it(1) Environmental impact substances the intentionaluse of which is not restricted, but of which thecircumstances of use in products should be understoodwith respect to human health, safety and hygiene, andproper disposal.
(2) Prohibited substances which, according to PANAC
customer standards, are designated for usage purposesthat are exempt from the prohibition, are handled as use
management substances.

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7) Management
substances8)Homogeneousmaterials9) Contained(Productcontained)10)Contained
concentration(Content Rate)
11)Intentional use(Intentional
addition)(3) If a management substance is a known chemical
substance, it must be reported to PANAC, regardless of its
concentration.
Homogeneous materials is a material that cannot be
decomposed mechanically into different materials. The
following are examples of such materials:a) Compound, polymer alloy, or metal alloy states;b) A single layer of coating, printing, or plating, andeach single layer of multiple layers of coating,printing, or plating;c) Paint, adhesive, ink, or paste after it is driedand cured;d) Resin polymer after being molded; ande) Glass and ceramics after being molded.
(1) Without regard to it being intentional orunintentional, causing a substance to be contained in,
added to, filled into, mixed with, or adhered to acomponent of a product (including a substanceunintentionally being mixed with, remaining in, or
adhering to a component of a product in its production
process).
(2) A substance intentionally added in a production
process in order to maintain the process conditions or
the functions or quality of a product or component,
which is then contained in the product or component.
(3) A chemical substance that is contained in natural
materials or that remains after the industrial refining
process (i.e., an impurity) is also considered to be acontained substance (however, it is not considered to
be a contained substance if it is not regulated by
Japanese laws/regulations, or if its inclusion would be
impossible to predict or if there is no information on
its content).
The ratio of the weight of an environmental impact
substance contained in a portion made of a uniform
material to the weight of the portion (in ppm, wt%,
and so on).
Intentional use of a chemical substance in a product,
or in a component in its production, in order tomaintain or improve a specific function, appearance or
quality, to maintain a process condition, or to develop
some kind of ability.

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Date of issue12) Impurity13) Threshold(Content
allowance value)

14) Conflict
Minerals
CobaltMica(1) A chemical substance, contained in natural
materials, which cannot be completely removed in therefining process for industrial materials by means ofexisting technologies (a natural impurity)(2) A chemical substance that is not intentionallyadded but that is produced as a side product in achemical synthetic reaction, or is a catalytic residue,
and so on, and that cannot completely be removed bymeans of existing technologies(3) A substance that is said to be an impurity for the
purpose of distinguishing it from the principal
materials.
If a substance in (1) or (2) above is used intentionallyto change the properties of a material, it is notconsidered to be an impurity, but is considered to be acontained substance.
(4) If a permissible concentration is set for an impurity,
the concentration of that impurity should not exceed
the permissible value.
(1)A threshold is a permissible content value for a use
within the scope of the Standard.
(2) Any content of use prohibited substances exceeding thethreshold (applicable scope) in products delivered to
PANAC is prohibited.
(3)If the prohibited substance content of a product or acomponent exceeds the permissible maximum content
threshold, the substance is considered to be a contained
substance, and if it is below the threshold, the substanceis not considered to be a contained substance.
Given concerns that resources of the minerals “tantalum,tin, tungsten, and gold” (3TG) that are illegally mined in
the Democratic Republic of the Congo (DRC) and nineneighboring nations in Africa supply money to armed
groups that cause human rights violations, environmental
destruction, and other problems, these minerals aredefined as “conflict minerals” in the Dodd–Frank WallStreet Reform and Consumer Protection Act (commonlyreferred to as the “Dodd-Frank Act”) of the United States.
Listed companies of the United States are being asked to
procure “conflict-free minerals” due to humanitarianconcerns. Also, due to concerns about human rights issues
such as child labor, responsible procurement of cobalt andmica is being promoted.

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4. How to advance green procurement
1. Green Suppliers

2. Green Materials

Procurement from suppliers that areactivein environmental management activities.
≪Major requirements/evaluation items≫(1) Construction operation of environmental
management system(2) Construction and operation of systemof guarantee of environmental protection
material(3) Cooperative relationship to environmental
protection material content investigation(4)Non-Use of prohibited substances used in
manufacturing process

Procurement of parts, materials, indirectmaterials, and so on, with lessenvironmental impact, which do
not contain designated substances.
≪Major requirements/evaluation items≫(1) Certificate on the non-use of substances
designated by PANAC as use prohibited
substances(2) Information disclosure concerningchemical that parts, materials, andsub-materials contain

PANAC’s Green procurement

Green Materials from Green Suppliers are
given priority in procurement.

≪Request for environmental study and flow of data≫
Environmental data
investigation request

Environmental data
investigation request

First
supplier

PANAC
AnswerSecondsupplier
Answer

If there are second suppliers and suppliers beyond that, obtain theinvestigation request from the first supplier, and also obtain the reply.
Please conduct your environmental investigation so as allow the partsprocured by PANAC to be traced back to their raw materials.

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5. Request to Suppliers
When we take on a new supplier or a new part/material/indirect material,or change suppliers or parts/materials/indirect materials, we will conduct
an evaluation (authorization) in advance. We will then request that you
provide the materials noted below. We will appreciate your cooperation.

5.1. Submitting Documents and making and submitting points
Please submit the following documents to the division in charge at the
PANAC or PANAC overseas bases.
Submitting Documents

PointsDocument to be provided when apart/material/indirect material that we may
ask you to supply satisfies the following
requirements: it contains no substances that
1.Certificate of non-use of
are included among the prohibitedprohibited substances andsubstances, or such substances are only
management
substancespresent below their permissible content
reportvalues.
If a part/material/indirect material contains
sunstances specified in “management substances”,
document it regardless of concentration.
Sheet on which are recorded the name,physical/chemical properties, hazards,
2.SDS
cautions for handling, and so on, of thechemical substances, and other information.
Analysis data on the RoHS 10 substances (Pb,Cd, Hg,
Cr6+, PBB, PBDE, DEHP, DBP, BBP, DIBP)The RoHS analysis data that are submitted should be
not older than one year from the date of document
3.Analysis dataissuance.
(Analyses have to be made in the third party
organization(s) which has obtained ISO/IEC 17025.)
Analysis data on halogens and other substances may berequested as necessary.
Data entry support tool for information transmission ofchemical substances contained in products in the
supply chain released by the Ministry of Economy,
4.chemSHERPA CI or AI
Trade and Industry. When substances registered in thelist by chemSHERPA are contained, the content rate ofeach homogeneous material shall be stated.

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5.2. If we ask you for correspondence with deffrent standards
from this Green Procurement Standards
Depending on domestic and overseas regulatory compliance andindividual requirements of customers, if necessary, we need to ask you to
submit documents other than those mentioned above or responddifferently from this procurement standard. We appreciate yourcooperation at that time. (Ex:JAPIA Sheet, TSCA, Conflict Minerals
Reporting Template)

5.3. Handling of information provided
Note that documents provided by you may be provided to our customers.
We thank you for your understanding.

5.4 . Indication on your specifications
When you submit your specifications to PANAC, please confirm whether
any use prohibited substances defined in the Green Procurement
Standard of PANAC are used or not, and include the following phrase:“None of the Prohibited Substances defined in PANAC’s Green
Procurement Standard is used.”

6. Request for Global Environment Preservation Efforts
PANAC may ask you to investigate the actual situation regarding thefollowing activities or the like.
1) Reduction of greenhouse substances
2) Reduction of waste emissions
3) Management of chemical substances
4) Environmental assessment (air pollution prevention, water pollution
prevention, soil pollution prevention, noise prevention, vibration
prevention)5) Assessment of biodiversity preservation

7. Policy on Mineral Procurement
In order to avoid contributing to conflicts or serious human rights abuses
through our sourcing practices, Panac identifies certain minerals which aresourced in conflict affected and high-risk areas and which are high-risk for
Panac from corporate social responsibility viewpoints as the “High-Risk
Minerals”, and sets the policy to refrain from purchasing any products,
components or materials that contain High-Risk Minerals, knowing thatsuch High-Risk Minerals are contributing to conflicts or serious humanrights abuses in the chain of custody.
To ensure compliance with this policy, Panac requires our suppliers tosource High-Risk Minerals from smelters determined to be compliant with
the Responsible Minerals Assurance Process (RMAP) protocols establishedby the Responsible Minerals Initiative (RMI).
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Panac exercises due diligence on the source and chain of custody of HighRisk Minerals in our supply chain to determine supplier compliance with
our policy. We follow the Organization for EconomicCo-operation andDevelopment (OECD) Due Diligence Guidance for Responsible Supply
Chains of Minerals from conflict affected and high-risk areas (OECD
Guidance).
High risk minerals = tantalum, tin, gold, tungsten, cobalt, mica

8. Revision of Green Procurement Standard
This Procurement Standard is subject to change without prior notice.

9. Contact us
Please direct inquiries regarding the Green Procurement Standard to the
PANAC site you are working with.
PANAC Co., Ltd.
Quality Assurance department the person in charge of environment
Tel: +81-3-6630-8705 Fax: +81-3-6630-8715
Suzhou PANAC Co., Ltd.
Quality Assurance department the person in charge of environment
Tel: +86-512-6807-5315 Fax: +86-512-6841-1119
Shenzhen PANAC Technology LTD.
The person in charge of environment
Tel: +86-755-2961-9333
Shanghai PANAC Plastic Film Co., Ltd.
Quality Assurance department the person in charge of environment
Tel: +86-21-5866-7070 Fax: +86-21-5866-0530
Taiwan PANAC Co., Ltd.
The person in charge of environment
Tel: +886-4-2359-0011 Fax: +886-4-2359-2522
PANAC ADVANCED FILM MALAYSIA SDN.BHD
Quality Assurance department
Tel: + 60-4-5230373

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10. Revision record
Revisedversion

Revision day

Revision reason

ApprovalConfirmation

MakingVer.1.0
Ver.2.0

December 1,2006
May 1, 2009

AkiyamaAkiyama

Takahashi
Takahashi

TanakaKubotaVer.3.0

November 1,2010

SugayaTakahashi

KubotaVer.3.1

July 1, 2011

Kobayashi

Takahashi

Doi

Ver4.0Ver5.0Ver6.0July 1, 2012
July 1, 2013
July 1, 2014

Kobayashi
Itou
Itou

KubotaKubotaKubota

Doi
Doi
Doi

Ver7.0July 1, 2015

Itou

KubotaDoi

Ver8.0July 1, 2016

Itou

NomuraKobayashi

Ver9.0July 1, 2017

Itou

NomuraKobayashi

Ver10.0

July 1, 2018

Enactment
The overall revision
The investigation target productis expanded.
Addition of a part of submittingMaterial.
Addition of number of materials
according to revision Law
Concerning the Examination andRegulation of Manufacture, etc of
Chemical Substances
enforcement.
Addition of number of materials
according to new and Europe
instruction enforcement.
Addition of number of materials
according to new and Europe
instruction enforcement.
The overall revision
The overall revision
Addition of prohibited substances.
Addition of prohibited substances.
Addition of a part of Term andDefinition
Corrected the sentence.
Update due to revision of the
Chemical Substances Control Law.
Add red phosphorus to
management substances.
Setting the changes of substancelist in red letters.
Corrected the sentences.
Reviewing of submitting
documents.
Changed chlorine number ofprohibited substances “PCN”
Reviewing of submitting
documents.
Update List as a result of therevision of CSCL

Itou

NomuraKobayashi

Itou

KubotaDate

Ver11.0

July 1, 2019

Changing the expression of thestandard book
Addition of prohibited substances
List updating accompanying toJapan Industrial Safety and
Health Law revision
Adding Cas No of red phosphorus

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Ver12.0

Ver13.0

Ver14.0

Ver15.0

Ver16.0

July 1, 2020

Added cobalt procurement policy
BNST deletion of manegement
substances
Correction of typographical errors
etc

Itou

KubotaDate

July 1, 2021

Partial change of the standard
contents
Addition of prohibited substancesand management substances

Itou

KubotaDate

Itou

KubotaDate

July 1, 2023

Added Policy on Mineral
Procurement
Added inquiry contact (Malaysia)
Addition and change of prohibited
substances and management
substances, and error correction

Itou

KubotaDate

July 1, 2024

Addition of prohibited substancesStandardization of descriptions ofprohibited substances andmanagement substances andsubstances (English ver, Chinese
ver)

Itou

KubotaDate

July 1, 2022

Added mica procurement polic
Addition of prohibited substancesand management substances

PANAC Co., Ltd.