Suncall Group
Green Procurement Guidelines
Ver 6.0

Date of issue: March 1, 2023
Procurement and Logistics Management Department, Planning and Administration Division
Safety and Environmental Maintenance Department, Quality, Safety, and Environment Division-0-Table of Contents
1. Introduction ..................................................................................................................................... - 2 2. Commitment to Environmental Conservation ............................................................................. - 3 3. Green Procurement ......................................................................................................................... - 4 4. Requests to Suppliers ...................................................................................................................... - 4 4.1 Legal and regulatory compliance ................................................................................................ - 4 4.2 Establishment and maintenance of environmental management systems ................................... - 4 4.3 Control and reduction of environmentally hazardous substances ............................................... - 4 (1) Provision of information on environmentally hazardous substances and materials and chemical
ingredients ..................................................................................................................................... - 5 (2) Submission of certificates of non-inclusion of substances prohibited by the CSCL and
Declarable Substance Lists............................................................................................................ - 5 (3) Provision of risk and hazard information on raw materials, indirect materials, and other supplies
for our in-house use ....................................................................................................................... - 5 4.4 Commitment to environmental load reduction............................................................................ - 5 (1) Improvement of environmental performance .......................................................................... - 5 (2) Reduction of life-cycle CO2 emissions from products and services ........................................ - 5 (3) Water consumption reduction .................................................................................................. - 5 (4) Reduction of packing/packaging materials .............................................................................. - 6 (5) Reduction of CO2 emissions from logistics ............................................................................. - 6 5. Operation of the Green Procurement Guidelines ........................................................................ - 7 6. Submission of Forms ....................................................................................................................... - 8 7. Terms and Definitions..................................................................................................................... - 9 --1-1. Introduction
In recent years, society has become more aware of global environmental protection,
including global warming, natural resource depletion, and hazardous substance-containing
product issues. At the same time, corporate roles and responsibilities are becoming increasingly
important.
Suncall Group (hereinafter “we”) positions addressing environmental issues as an important
challenge in its business activities to promote manufacturing mindful of environmentalconservation and cuts on environmentally hazardous substances in all the processes fromdevelopment via production to disposal and recycling, while strengthening the development ofenvironment-friendly products and technologies. At the same time, we hope to contribute to therealization of a low-carbon society.
What matters in these efforts is to enhance the understanding and environmental awarenessof individuals involved in all business operations. To achieve this goal, we must share the sameenvironmental philosophy with Suppliers to promote environmental activities throughout thesupply chain. We recently issued our Green Procurement Guidelines to ask Suppliers forfurther cooperation and efforts of environmental conservation activities in procuring parts,materials, and other supplies.
We ask Suppliers to understand the intent of these efforts and cooperate with us.

Procurement and Logistics Management Department, Planning and Administration Division
Safety and Environmental Maintenance Dept., Quality, Safety, and Environment Division-2-2. Commitment to Environmental Conservation
Aiming to become a company in harmony with humans, the environment, and communities,
we shall contribute to building a recycling society and developing a sustainable society throughall business activities in product development, production, and sales.

Fundamental Philosophy
As a member of the global community, we shall take all measures available fornatural environment conservation in business activities revolving around thebusiness theme of creating technology-intensive precision products on the bases of
the utmost respect for public virtues and respect for human dignity and conserve
valuable resources to contribute to global environmental conservation.

Action Policies

1. We shall actively commit to environmental conservation in business activities forelectronic and information equipment-related parts, automotive product-relatedparts, and precision functional materials.
2. We shall promote our environmental management system and pursue continuous
environmental improvements to the extent technically and economically possible
to prevent pollution.
3. We shall adhere to relevant environmental laws, regulations, and agreements toaddress environmental conservation.
4. To promote environmental conservation, we shall specify environmental
objectives and targets and address waste reduction, energy savings, resourcesavings, and global warming gas emissions cuts. In addition, our environmental
targets shall be periodically reviewed and revised as necessary.
5. We shall consider environmental conservation around local communities andpursue business activities with local stakeholders’ trust.
6. These policies shall be disclosed upon request from outside the company.

-3-3. Green Procurement
For procurement items constituting products and goods we manufacture and sell, we shallprocure low-environmental load procurement items from Suppliers with an establishedenvironmental management framework as part of our efforts to promote global environmentload reduction.

4. Requests to Suppliers
4.1 Legal and regulatory compliance
Suppliers are asked to comply with relevant laws and regulations in the countries and regionsof their business activities.

4.2 Establishment and maintenance of environmental management systems
Suppliers delivering us materials, parts, and indirect materials are asked to address theestablishment and maintenance of an environmental management system certified by a third
party according to ISO 14001, Eco-Action 21, or KES so that they can systematically manage
environmental conservation activities and continuously implement improvements.
Suppliers with an established and maintained environmental management system are asked
to maintain and improve the operation of that system.

4.3 Control and reduction of environmentally hazardous substancesCountries worldwide, including European countries, are tightening regulations onenvironmentally hazardous substances. While ensuring legal and regulatory compliance andreducing the use and discharge of substances that may significantly affect the environment, we
perform environmental risk assessments during the business activities' planning phase toprevent pollution due to environmentally hazardous substances.
Suppliers are also asked to ensure rigorous control of environmentally hazardous substances.

-4-(1) Provision of information on environmentally hazardous substances and materials andchemical ingredients
Suppliers intending to deliver us materials, parts, and indirect materials are asked to provide
us with information on chemical substances or material components specified by our requesting
departments or persons.
(2) Submission of certificates of non-inclusion of substances prohibited by the CSCL and
Declarable Substance Lists
Suppliers intending to deliver us materials, parts, and indirect materials may be asked tosubmit certificates of non-inclusion concerning European ELV Directive/REACH Regulations.
(3) Provision of risk and hazard information on raw materials, indirect materials, andother supplies for our in-house use
Suppliers intending to contract works, cleaning, or landscaping are asked to ensure thatmaterials to be delivered or materials to be brought in (including lubricants and chemicals
supplied with equipment) do not contain substances prohibited from manufacturing, Class I
designated chemical substances, and other substances unusable without permission under such
regulations as the Industrial Safety and Health Law and the Chemical Substances Control Law.

For operational details, see “Suncall Environmentally Hazardous Substances ControlStandards.”

4.4 Commitment to environmental load reduction(1) Improvement of environmental performance
Suppliers are asked to actively commit to cutting CO2 emissions, waste, PRTR-controlled
substances emissions, and VOC emissions and improving energy intensities.
(2) Reduction of life-cycle CO2 emissions from products and services
Suppliers commissioned to deliver us purchased items and logistics service providers
commissioned to handle the logistics of our products are asked to set targets for their products,services, and hubs and to address the reduction of CO2 emissions.
(3) Water consumption reduction
Depletion of water resources is a globally important issue. Suppliers are asked to commit
themselves to water consumption reduction through water consumption estimation, daily
improvements, and other efforts.
-5-(4) Reduction of packing/packaging materials
Suppliers are asked to deliver us purchased items wrapped in packing/packaging materials tomaintain quality, prevent damage in transit, and for other protective purposes. At the same time,
however, Suppliers are asked for cooperation and proposals for improved or simplified
packing/packaging, switching to returnable containers, and other measures contributing towaste cuts to minimize the environmental impacts of packing/packaging waste.
(5) Reduction of CO2 emissions from logistics
Logistics service providers to us are asked to reduce CO2 emissions from our outsourced
logistics and intensity indicators (fuel consumption, traveling distance, fuel mileage, etc.).

(Informative tips) The following table shows the environmental efforts we ask from Suppliers:(i)(ii) (iii) (iv) (v) (vi)No

Efforts

Materials/product members

Packing/packaging materials

Equipment/equipment parts

Delivery items other than those in(i) to (iii)

Works/maintenance, etc.

Logistics

1

Legal and regulatory compliance
Provision of information on
environmentally hazardous substances andmaterials and chemical ingredientsControl andreduction ofSubmission of certificates of non-inclusion
environmentally of substances prohibited by the CSCL andhazardous
Declarable Substance Lists
substances
Provision of risk and hazard information on
raw materials, indirect materials, and othersupplies for our in-house use○

○

○

○

○

○

○

○

○

○

IMDS, JAMA Sheet

○

○

○

○

Certificate ofnon-inclusion

○

○

○

○

CO2 emissions reduction
Reduction of PRTR-controlled substances
emissions and VOC emissions

○
○

○

○

Waste generation reduction○○○

23Commitment toenvironmentalload reduction

Water consumption reduction
Reduction of packing/packaging materials
Reduction of CO2 emissions from logistics-6-○

Special remarks

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SDS

○
○
○

○

(Forms to be submittedetc.)○○

5. Operation of the Green Procurement Guidelines
Suppliers are asked to submit the following forms to promote green procurement:(i) Submission of the Green Procurement Questionnaire for Suppliers (Attached Sheet 1)• ISO 14001 certification status• Status of commitment to green procurement• Information on the management framework for environmentally hazardous substances• Information on environmental conservation activities(ii) Submission of Declaration of Non-inclusion (or Inclusion) of Environmentally Hazardous
Substances
Delivery items to us shall be checked against Attachment 1) Form Submission Check Flow.
The results shall be recorded and submitted in the Declaration of Non-inclusion ofEnvironmentally Hazardous Substances (Attached Sheet 2) or Declaration of Inclusion ofEnvironmentally Hazardous Substances (Attached Sheet 3).
(iii) Submission of Environmental Contact Officer Registration (Attached Sheet 4)
A Supplier’s Environmental Contact Officer shall be registered based on the information
submitted and shall be the contact person for environment-related inquiries after registration.
Suppliers are asked to notify us using the same form when their contact person is changed.

Attachments• Attachment 1) Form Submission Check Flow
• Suncall Environmentally Hazardous Substances Control Standards
Attached Table 1) Environmentally Hazardous Substances Control Standards (Automotive Parts)<<Forms>>• Green Procurement Questionnaire for Suppliers (Attached Sheets 1-1 and 1-2)
• Declaration of Non-inclusion of Environmentally Hazardous Substances (Attached Sheet 2)• Application for Inclusion of Environmentally Hazardous Substances (Attached Sheet 3)• Environmental Contact Officer Registration (Attached Sheet 4)-7-

6. Submission of Forms[Deadline for submission]
When requested by our responsible department for submission, Suppliers are asked toadhere to the prescribed deadline.
[Method of submission]
Suppliers are asked to submit the prescribed form by mail.
[Submitted/addressed to]
Procurement and Logistics Management Department, Planning and Administration
Division, Suncall Corporation
14 Nishiura-cho, Umezu, Ukyo-ku, Kyoto 615-8555 Japan
Call the following phone number for inquiries, consultations, or other clarifications about
form submission:
Procurement and Logistics Dept.: Phone: +81-75-881-4441
Information submitted to us will be used to report to environment-related customers or
public agencies and will not be disclosed for any other purpose.

-8-7. Terms and Definitions• REACH (Registration, Evaluation, Authorization, and restriction of CHemicals)Comprehensive regulations on chemical substances in Europe. For raw materials and indirectmaterials produced or imported in Europe, it is mandatory to register chemical substances contained inthem. For products and parts, disclosing information about inclusions of the substances of very highconcern (SVHC) designated by these regulations is mandatory. These legal regulations have beeneffective since June 2007, expanding in stages the range of regulated chemical substances and that ofcontrol targets.

• RoHS (Restriction of the use of certain Hazardous Substance in electric and electronic equipment)
Directives on the restriction of the use of certain hazardous substances. Established in Europe, these
directives restrict the use of four heavy metal substances (lead, cadmium, mercury, and hexavalentchromium) and specified bromine-based flame retardants (PBB and PBDE).

• ELV (End of Life Vehicle)
European end-of-life vehicle directives. Established in Europe, these directives restrict the recyclingof automotive vehicles and the use of four heavy metal substances (lead, cadmium, mercury, andhexavalent chromium).

• GADSL (Global Automotive Declarable Substance List)
A chemical substance list publicly disclosed by the Global Automotive Stakeholders Group (GASG).
This list includes certain information on chemical substances that are contained in parts and materials
supplied through supply chains to OEMs (Original Equipment Manufacturers/complete vehicle
manufacturers), are current/future targets of regulation, or adversely affect human health and theenvironment.
http://www.gadsl.org/-9-• IMDS (International Material Data System)
An internet-based system that collects environment-related information on parts and materials insupply chains of the automotive industry for many multinational automotive manufacturers.

• JAMA Sheet
A form agreed upon by the Japan Automobile Manufacturers Association, Inc. (JAMA) to be used forsurveys on materials and compounds contained in products.

• SDS (Safety Data Sheet)
Material safety data sheet. This document contains the information necessary to ensure the safe
handling of a chemical product (product name, manufacturer’s name, chemical substance’s properties,
handling method, types of risks and hazards, safety measures, emergency measures, etc.).

• PRTR (Pollutant Release and Transfer Register)
The Pollutant Release and Transfer Register is a system used by the national government, tradeassociations, and other institutions to monitor, compile, and publish data on emissions of hazardous
chemical substances into the environment and their sources or amounts transferred in waste to outside
establishments.

• VOC (Volatile Organic Compounds)“Volatile organic compounds” is the collective term for substances that easily volatilize into the air at
ordinary temperature and pressure and is used to refer mainly to artificially synthesized substances.
Gasoline, thinners, alcohol, and similar substances are also included in the category of VOC.

• Supply chain
The whole flow from raw materials procurement to sales, which includes inter-corporate cooperation
until the delivery of manufactured products to consumers (and may include the design/development
process and the after-sale stages until disposal).

- 10 -

• Life cycle
All stages from procurement of raw materials for products and services via production, distribution,and use/maintenance until disposal/recycling.

Revision HistoryVer

Date of revision

Revision description

Ver 1.0

February 13, 2005

EstablishedVer 2.0

March 14, 2008

Full revision
Change of Environmental Executive Officer; revision of the Suncall List ofVer 2.1

July 1, 2011

Environmentally Hazardous Substances Prohibited for Use/Inclusion(Appendix Tables 1 and 2)• Change of Environmental Executive Officer; revision of the Suncall Listof Environmentally Hazardous Substances Prohibited for Use/Inclusion(Appendix Tables 1 and 2)• Declaration of Non-inclusion of Environmentally Hazardous Substances

Ver 3.0

July 1, 2013
(Attached Sheet 2) or Declaration of Inclusion of Environmentally
Hazardous Substances (Attached Sheet 3) became the form to be submitted
per the Environmentally Hazardous Substances Check Flow (AppendixTable 3).
Change of Environmental Executive Officer

Ver 4.0

April 1, 2015

Revision of the Suncall List of Environmentally Hazardous Substances
Prohibited for Use/Inclusion (Appendix Tables 1 and 2)
Change of Environmental Executive Officer
Revision of (Appendix Table 1) Environmentally Hazardous Substances

Ver 5.0

April 1, 2017

Control Standards (Automotive Parts) and (Appendix Table 2)
Environmentally Hazardous Substances Control Standards (Electrical andElectronic Products)

Ver 6.0

March 1, 2023

Text fully revised- 11 -