IWATSU Group Green Procurement Standards

Ver 1.0
March 2024

Introduction
The world is rapidly advancing efforts towards constructing sustainable societies, such as the
SDGs (Sustainable Development Goals) and the Paris Agreement. In this context, the role ofcompanies has become increasingly vital. At IWATSU Group, we recognize the preservation ofEarth's invaluable environment as a paramount global issue and position initiatives forenvironmental management, ensuring harmony between corporate activities and the global
environment, as one of our most crucial managerial priorities.
To achieve our group's environmental management goals, it's essential to engage the entire
supply chain. Therefore, we are now establishing green procurement standards incollaboration with our suppliers to collectively promote environmental conservation on a global
scale.
This standard supplements the environmental aspects outlined in the separately established'IWATSU Group Sustainability Procurement Guidelines,' which contain specific requests to our
suppliers. It details our group's environmental initiatives, legal compliance expected from our
suppliers, considerations to be taken into account, as well as the evaluation of suppliers andproducts in the procurement process.
In cases where the laws of the countries where each of our group's companies is located, local
ordinances, customer demands, etc., necessitate requirements different from this standard,
the specific requirements set forth by each of our group's companies shall take precedence.
Our group aims to promote environmentally conscious procurement activities based on thisstandard and intends to contribute to the preservation of the global environment alongside our
suppliers. We kindly ask for your understanding and cooperation with our group's green
procurement initiatives.

1

Introduction...................................................................................................................................... 1
Table of Contents............................................................................................................................ 2
Section 1: IWATSU Group Environmental Policy........................................................................ 3
Section 2: Requests to suppliers .................................................................................................. 4
2.1 Establishing a Management System.................................................................................. 4
2.2 Environmental Permits and Reports to the Authorities................................................... 4
2.3 Managing the Chemical Substances Contained in Products.......................................... 4
2.4 Chemical Substance Management...................................................................................... 4
2.5 Minimization of Environmental Impact (Wastewater, sludge, exhaust, noise,
vibrations, etc.) ........................................................................................................................ 4
2.6 Reducing Energy Consumption and Greenhouse Gas Emissions ................................... 5
2.7 Reducing environmental impact through product assessments ..................................... 5
2.8 Reduction and Management of the Use of Hazardous Materials ................................... 8
2.9 Effectively use resources and manage waste ................................................................... 15
2.10 Biodiversity conservation ................................................................................................... 15
2.11 Publication and Disclosure of Environmental Conservation Initiatives ...................... 15
2.12 Promotion of Supply Chain Initiatives .............................................................................. 15
Section 3: Supplier Evaluation ....................................................................................................... 16
3.1 Supplier Evaluation ................................................................................................................ 16
3.2 Evaluation Criteria .................................................................................................................. 16
Section 4: Miscellaneous ................................................................................................................ 17
4.1 Document History .................................................................................................................. 17
4.2 Inquiries ............................................................................................................................. ...... 172

Section 1: IWATSU Group Environmental Policy
In July 1999, IWATSU Group obtained the international standard ISO 14001 for environmental
management systems, including domestic affiliates. This marked the beginning of ourcontributions toward reducing environmental impact in our products and developing highefficiency energy-saving devices through power electronics measurement instruments. As amember of the local community, we have been committed to environmental conservation,
participating in volunteer activities and sponsoring various events, actively engaging inenvironmental initiatives.
Moreover, in our mid-term management plan 'REBORN' starting from the fiscal year 2022, wedeclared our commitment to ESG management and revised our environmental policy. Based on
this policy, our group aims to contribute to society as a responsible corporate citizen.

IWATSU Group Environmental Policy
The IWATSU Group will contribute to achieving a sustainable society by working to conserve
natural capital through our business activities.
1. As specific initiatives against climate change, we will work to reduce Scope 1, 2, and 3
emissions of greenhouse gases.
(Achievement of SBT-Certified Reduction Targets)
2. We will provide environmentally-friendly products and services, and endeavor to reduce
environmental impact over the lifecycle of products and services.
3. We will strive to prevent environmental pollution, conserve biodiversity, efficiently use
resources, and promote their circulation, thus endeavoring to reduce the environmental
impact of the activities of our business sites.
4. We will comply with legal and other requirements.
・Laws and regulations related to the environment
・Environmental ordinances of regional local governments
・Other requirements that the IWATSU Group consents to
5. We will continuously improve our environmental management systems, and endeavor toenhance environmental performance.

3Section 2: Requests to suppliers
To achieve the policies and goals outlined in Chapter 1, our group will promote green
procurement, considering environmental impacts as part of our efforts, including the entire
supply chain. We kindly ask for your cooperation on the following matters, including theprovisions in our separately disclosed 'IWATSU Group Sustainability Procurement Guidelines'(hereinafter referred to as the Sustainability Procurement Guidelines).
2.1 Establishing a Management System
Please obtain certification for the ISO 14001 Environmental Management System or establish
and operate mechanisms for reducing environmental impact in line with this standard. For
details, please refer to the Sustainability Procurement Guidelines (Section 2, Item A).
2.2 Environmental Permits and Reports to the Authorities
Businesses must comply with the regulations of their operating location, obtaining thenecessary permits, approvals, registrations, and making the required reports for theiroperations. For details, please refer to the Sustainability Procurement Guidelines (Section 41).
2.3 Managing the Chemical Substances Contained in ProductsCompanies must adhere to all applicable regulations and customer requirements regarding theprohibition or restriction of specific substances in products, including labeling for recycling andwaste disposal. For further details, please refer to the Sustainability Procurement Guidelines(Section 4-8). Additionally, management aspects and content are outlined in Section 2.7.
2.4 Chemical Substance Management
Companies must comply with regulations in each country and manage the identification,labeling, and control of chemicals and other substances that pose risks to human health andthe environment. It is essential to ensure their safe handling, transportation, storage, use,
recycling, reuse, and proper disposal. For more details, please refer to the Sustainability
Procurement Guidelines (Section 4-7).
2.5 Minimization of Environmental Impact (Wastewater, sludge, exhaust, noise, vibrations,etc.)Companies must comply with regulations in their operating country concerning wastewater,sludge, emissions, noise, vibration, and similar factors. Additionally, they should implement
voluntary standards for further improvements when necessary. For further details, please referto the Sustainability Procurement Guidelines (Sections 4-3, 4-4, 4-5).

4

2.6 Reducing Energy Consumption and Greenhouse Gas Emissions
Companies should strive for improved energy efficiency and engage in continuous efforts to
reduce energy consumption and greenhouse gas emissions. For more details, please refer tothe Sustainability Procurement Guidelines (Section 4-2).
2.7 Reducing environmental impact through product assessments
Companies are required to conduct product assessments and voluntarily engage in design,
manufacturing, and other measures to reduce their environmental impact (refer to Sustainability
Procurement Guidelines, Section 4-9). Table 1 outlines the items to be considered during
product assessment. Additionally, besides the items listed in Table 1, we request voluntary
implementation of designs and measures aimed at reducing environmental impact.
Table 1 Items to consider during a product assessment
Items1)Materials

DetailStandardization

Please standardize the types of materials used in productsof Materials

as much as possible.

Selection of-Materials

When selecting materials for use in products, avoid
composites and other difficultto-recycle materials asmuch as possible.

-

Use recycled materials as much as possible for thematerials used in products.

-

Avoid plastics to use materials in the products as muchas possible, When it comes keep them to a minimum,and use recycled materials and biomass plastics
whenever possible.

Biodiversity

If materials are of biological origin, we ask thatconsideration be taken of biodiversity.

Exhaustible

Endeavor to procure sustainable raw materials and reduceresources andthe use of exhaustible resources and scarce resources as

scarcemuch as possible.

resources

If using such materials, we ask that suppliers provide thenames of the materials and clearly state the amount used.
As needed of the IWATSU Group, we ask to suppliers to
explain the techniques they use to prevent leaks during
usage, to keep such materials separate from otherproducts, in shipping and transport, for recycling, and for
disposal.

2)Product

EnergyDesign product energy (electric power and fossil fuels)

Designs

Conservation

consumption to be as small as possible.
5-Specified equipment specified in the "Act on
Rationalizing Energy Use" must have performance inaccordance with that law.

-

Products eligible for the "International Energy Star
Program" must have performance equivalent to this.

-Consider the following as performance that should be
suppressed.
✓Average power consumption: Average amount of power
used under the presented usage conditions✓Calorific value: Calorific value inside the device under
the presented usage conditions✓Maximum power consumption

WeightMake products as lightweight as possible.

reductionLong service

Give products as long a service life as possible.

life
Ease of

Give products a structure that enables easy disassembly

disassembly

into recyclable components or reusable materials as muchas possible.

Processing

Avoid, as much as possible, using the following types ofmethods toprocessing on plastic materials used in products. If such

avoid, etc.

types of processing are necessary, provide such information
to the IWATSU Group as requested.
-

Painting and plating of plastic surfaces-

Affixing labels, etc. (However, this does not apply tocases in which the label material is of the same type as
the plastic material, and where the label is affixed [e.g.
via welding] without using adhesive.)3)Labeling－

Adding tempered glass or other filler

Display the information necessary for recycling and optimal
disposal of products and parts, such as clearly indicating
the name of the material, in a way that does not easily
disappear as much as possible.

Display the①Citation standards

name of the-plastic material

JIS K 6899-1 (ISO 1043-1) “Plastics - Symbols andabbreviated terms - Part 1: Basic polymers and their
special characteristics”-

JIS K 6899-2 (ISO 1043-2) “Plastics - Symbols andabbreviated terms - Part 2: Fillers and Reinforcing
6Materials”-

JIS K 6999 (ISO 11469) “Plastics - Generic
Identification and Marking of Plastics Products”②Identification symbols for materials
Display identification symbols for materials for molded
products made of plastic materials used in products andparts in accordance with JIS K 6899-1, JIS K 6899-2, and JIS
K 6999, as much as possible.
③ Labeling method
As a general rule, products should not be displayed usinglabels, but should be displayed using a method that takes
recycling into consideration, as shown in the example
below.
(Examples)-Etching the symbol into the mold and using the mold forlabeling-

Embossing-

Melt imprint

However, this does not apply to cases in which the labelmaterial is of the same type as the plastic material, And
where the label is affixed without using adhesive. [e.g. via
welding]④Label location
Put the label in a place that can be easily seen during
disposal and disassembly.
Hazardous

For labeling pertaining to hazardous substances, include

substance

information in accordance with J-Moss.

labeling-

J-Moss: JIS C 0950, “The marking for presence of thespecific chemical substances for electrical andelectronic equipment”

4)Packaging

Structurematerials

Ensure that packaging materials are given a structure thatenables them to be reused as much as possible.

Materials

Avoid using plastic in packaging materials as much as
possible and try to reduce the amount of resources used.
Also use recycled materials and renewable resources (e.g.
paper, biomass plastic).
7

Labeling

Label the name of materials used in packaging materials insuch a way as the labels do not easily come off or fade.
Also, if using plastic in packaging materials, label the nameof the material in accordance with section 3) in this table.

5)Ease of－disposalDesign products such that, when products (including
packaging materials) undergo interim processing and final
disposal, they have as little impact as possible on theprocessing facility and the environment surrounding thefacility.

6)Recycling－

Suppliers should create procedural documents for productandrecycling and disposal methods, and explain thosedisposalprocedures to the IWATSU Group at IWATSU Groupʼsmethods

request. Also, as much as possible, plastic should berecycled via material recycling.

2.8 Reduction and Management of the Use of Hazardous Materials
As a principle, please refrain from using substances that require special disposal or are
considered harmful, in adherence to laws and regulations. In the event such substances areused, suppliers are requested to clearly disclose the names and quantities of these hazardous
materials. Additionally, at the request of our group, suppliers are required to provide
information on leakage prevention during use, segregation from products, transportation,
recycling, and disposal methods.
Our group classifies and manages hazardous substances contained in products in threestages:-Prohibited Substances:
Substances prohibited from inclusion in products. These are materials that are evidently
harmful to the environment and human health, with manufacturing restrictions mandated
by regulations, and designated by our group.

-

Restricted Substances:
Substances for which inclusion in products should be limited. These substances areevidently harmful to the environment and human health, subject to regulatory control(including overseas regulations), and specified by our group based on societal conditions
and technological trends.

-

Managed Substances:
Substances for which inclusion in products should be managed. These materials areevidently harmful to the environment and human health, with regulations requiring
management of their use, as specified by our group.
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① Designation of hazardous materials
The designation of hazardous substances shall be as follows:-

For items procured with the intention of use within Japan, please refer to Table 2.

-

For items intended for use outside Japan, compliance with the regulations of therespective country or region is required. Substances subject to restriction should include
those specified by our group as listed in Table 2.

-

The list of hazardous substances can also be obtained from the 'Managed Substances
Information' on chemSHERPA, operated by the Japan Article Management Promotion
Consortium (JAMP). (chemSHERPA Website: https://chemsherpa.net/)

Please ensure to refer to the latest regulations. Additionally, even for substances not listed inTable 2, efforts should be made to avoid using substances with evident harmful effects (suchas chronic toxicity by inhalation or ingestion, carcinogenicity, reproductive toxicity, etc.).
Table 2 Hazardous substances designated by the IWATSU Group
ProhibitedClass I Specified Chemical Substances as per

Chemical

substances

Article 2, paragraph (2) of the Act on the Regulation

Substancesof Manufacture and Evaluation of Chemical

Regulation Act

Substances.
Substances banned from manufacturing as per

Industrial Safety

Article 55 of the Industrial Safety and Health Act

and Health Act

Hazardous substances as per Article 14-3 of theWater Pollution

Water Pollution Prevention Act that are required toPrevention Act

have a cleanup standard value of “not detected” inAnnexed Table 2 of the Enforcement Regulations of
the Water Pollution Prevention Act.
Specified substances as per Article 2 of the Act on

Ozone Layer

the Protection of the Ozone Layer Through theProtection Act

Control of Specified Substances and Other
Measures that are also specified in the Annexed
Table of the Enforcement Order of that Act.
However, Group I in Annex C is excluded.
Substances as per Article 2, paragraph (1) of the

Dioxins Act

Act on Special Measures against Dioxins.
Substances as per Article 1 of the Act on Special

PCB Special

Measures for the Promotion of Proper Treatment of

Measures Act

Polychlorinated Biphenyl Wastes.
Substances as per Annex III of The Rotterdam

Rotterdam

Convention on the Prior Informed Consent

Convention9Procedure for Certain Hazardous Chemicals and（PIC

Pesticides in International Trade

Convention）

Specified Poisonous Substances as per Article 2,

Poisonous andParagraph 3 of Poisonous and Deleterious

Deleterious

Substances Control Act

Substances
Control Act

Specified Hazardous Substances as per EU RoHS

EU RoHS

Directive (excluding cases that fall under the

Directive

exemptions of Annex III of the Directive)（Directive
2011/65/EU）

Specified Dust (Asbestos) as per Article 18 of Air

Air Pollution

Pollution Control Act

Control Act

Not Included Substances as per EU ELV Directive

EU ELV Directive(EU End-of Life Vehicles Directive) (excluding cases（Directivethat fall under the exemptions from Annex II of the

2000/53/EC）

Directive)
Substances as per EU Packaging and Packaging

EU Packaging

Waste Directive that the gravimetric concentration

and Packaging

must not exceed 100 ppm

Waste Directive（Directive
94/62/EC）

Banned Substances listed in Annex I of EU POPs

Annex I of EU

Regulation

POPs Regulation（Regulation(EU)
2019/1021）

Restricted Substances as per Annex XVII of EU

EU REACH

REACH Regulation (excluding cases that fall under

Regulation

the exemption provisions of the Regulation)（Regulation(EC)
1907/2006）

Persistent, Bioaccumulative, and Toxic (PBT)U.S. TSCA

Chemicals under TSCA Section 6(h)Mercury and Cadmium exceeding the standard

EU Batteries

values as per EU Batteries Directive

Directive（Directive
2006/66/EC）

Prohibited and Restricted Substances as per Table

Ship Recycling

A of Ship Recycling Convention

Convention

10

（The Hong Kong
Convention）
Prohibited and Restricted Substances as per EU

EU Ship

Ship Recycling Regulation ANNEX I

Recycling
Regulation（Regulation(EC)
1257/2013）

Substances prohibited by the IWATSU Group in

IWATSU Groupconsideration of the size of their environmental

designatedimpact, social conditions, and technological trends

substances

Restricted

Metals, chemical substances, etc. that are

Waste

substances (Ifrequirements for Specific Hazardous Industrial

Management andthese overlap

Wastes as per Article 2-4, paragraph (5) of the

Public Cleansing

with prohibited

Enforcement Order for the Waste Management andActsubstances,

Public Cleansing Act, that are also listed in Annexedclassification will

Table 2 of the Enforcement Regulations of the Act.

depend on the

Substances as per Article 2, paragraph (3) of the

Global Warming

designation

Act on Promotion of Global WarmingAct

thereof.)Countermeasures, and Article 1 and 2 of the
Enforcement Order of that Act, that fall under
Article 2, paragraph (5) of the Act.
Hazardous substances as per Article 14-3 of theWater Pollution

Water Pollution Prevention Act, but excluding those

Prevention Act

required to have a cleanup standard value of “notdetected” in Annexed Table 2 of the Enforcement
Regulations of the Water Pollution Prevention Act.
Specified substances as per Article 2 of the Act on

Ozone Layer

the Protection of the Ozone Layer Through theProtection Act

Control of Specified Substances and Other
Measures that are specified as Group I in Annex Cof the Annexed Table of the Enforcement Order ofthat Act.
Specified hazardous substances as per Article 2 of

Soil

the Soil Contamination Countermeasures Act that

Contamination

are specified in Article 1 of the Enforcement OrderCountermeasuresof that Act.

Act

Authorized Substances as per Annex XIV of EU

EU REACH

REACH Regulation

Regulation
11

（Regulation(EC)
1907/2006）
Candidate Substances for authorization (substances

EU REACHof very high concern: SVHC) as per EU REACH

Regulation

Regulation（Regulation(EC)
1907/2006）

Substances as per Annex VI of EU CLP Regulation

EU CLP
Regulation（Regulation(EC)
1272/2008）

Hazardous Substances as per Table B of Ship

Ship Recycling

Recycling Convention

Convention（The Hong Kong
Convention）

IHM Listed Substances as per EU Ship Recycling

EU Ship

Regulation ANNEX II

Recycling
Regulation（Regulation(EC)
1257/2013）“Conflict minerals” are specified by the IWATSU

IWATSU Group

Group in light of social circumstances anddesignatedtechnological trends.

substances*Companies listed in the United States are required(United States

to disclose their usage, etc., of conflict minerals in

Dodd-Frank Act)

products. (“Conflict minerals” are tantalum, tin,gold, tungsten, and other minerals designated by
the U.S. Secretary of State)
Controlled

Type 1 and Type 2 substances in Annexed Table 3

Industrial Safety

substances (Ifof the Enforcement Order for the Industrial Safety

and Health Act

these overlap

and Health Act

with prohibited

Substances as per Article 2, paragraph (2) of the

Substances or

Act on Confirmation, etc. of Release Amounts ofrestricted

Specific Chemical Substances in the Environment

substances,and Promotion of Improvements to the Managementclassification will

Thereof that fall under the substances in Article 5
12

PRTR Actdepend on the(excluding items (iii) and (iv)) of the Enforcement

designation

Order of that Act; as well as substances as perthereof.)

Article 2, paragraph (2) of the Act that fall under
Article 6 (excluding items (iii) and (iv)) of the
Enforcement Order of that Act.
Class Ⅱ Specified Chemical Substances as per

Chemical

Article 2, paragraph (3) of the Act on the Regulation

Substancesof Manufacture and Evaluation of Chemical

Regulation Act

Substances.
Monitoring Chemical Substances as per Article 2,

Chemicalparagraph (4) of the Act on the Regulation of

Substances

Manufacture and Evaluation of Chemical

Regulation Act

Substances.
Poisonous Substance as per Article 2, paragraph (1)Poisonous andof Poisonous and Deleterious Substances Control

Deleterious

Act

Substances
Control Act

Deleterious Substance as per Article 2, paragraphPoisonous and(2) of Poisonous and Deleterious Substances

Deleterious

Control Act

Substances
Control Act

Reportable Substances and Substance Groups

IEC 62474

Included in IEC 62474 reportable substance list
Hazardous Substances as per EU WEEE Directive

EU WEEE
Directive（Directive
2012/19/EU）

Substances as per California Law Perchlorate Best

California Law

Management Practices regulations

Perchlorate BestManagement
Practices
regulations

Substances other than those listed above in
chemSHERPA Controlled Substances (latest
edition) (including GADSL regulated substances)

13

chemSHERPA

②Management of Hazardous Materials in Products
Suppliers are requested to manage and provide records of the presence of prohibited,
restricted, and managed substances in their products. Furthermore, suppliers are expected topresent management information upon request from each of our group's companies.
As a general principle, the management information to be provided should include the details
outlined in Table 3.
-

Basic Information: Information to be managed regarding prohibited, restricted, andmanaged substances.

-

Additional Information: Information to be managed regarding restricted and managed
substances.
Table 3 Managed information to be provided
Managed information
Basic

-

Presence of hazardous materials-

Concentration of hazardous

Prohibited

Restricted

Controlled

substances

substances

substances

Yes

Yes

Yes

Yes

Yes

information
Additional
information

substances-

Amount of hazardous materials
used (contained) per product (or
unit)

-

Purpose of use and location ofuse of hazardous materials-

Possibility of leakage ofhazardous materials into theenvironment during use(operation) or during disposal of
the product-

Method of separating the places
where hazardous materials areused-

Recycling and disposal methods-

Methods of restricting the use ofhazardous substances(availability of alternative
substances), etc.

14

2.9 Effectively use resources and manage waste
Companies are required to comply with regulations and implement proper management topromote the principles of Reduce, Reuse, and Recycle (3Rs). By doing so, effective resource
utilization is achieved, minimizing waste generation to the greatest extent possible. For further
details, please refer to the Sustainability Procurement Guidelines (Section 4-6).
2.10 Biodiversity conservation
Companies are required to consider biodiversity conservation in the materials they use. They
should also engage with stakeholders, including employees, local authorities, experts from
NGOs, and others, to undertake conservation activities for ecosystems within and outside theirpremises, as well as the preservation of rare flora and fauna. For further details, please referto the Sustainability Procurement Guidelines (Section 4-10).
2.11 Publication and Disclosure of Environmental Conservation Initiatives
Companies are required to disclose information regarding their adherence to this guideline andinformation related to relevant regulations. For further details, please refer to the
Sustainability Procurement Guidelines (Section 2, Item E). Additionally, at the request of eachof our group's companies, we kindly ask for cooperation in surveys, questionnaires, or site
visits.
2.12 Promotion of Supply Chain Initiatives
Please engage with upstream suppliers regarding the environmental conservation activities
outlined in 2.1 to 2.11 above.

15

Section 3: Supplier Evaluation
3.1 Supplier Evaluation
Our group conducts evaluations through "Corporate Evaluation" and "Product Evaluation"
concerning the business conduct of our suppliers and the products they procure.
-

Corporate Evaluation: We assess the efforts of companies in terms of Environment (E),
Social (S), and Governance (G).

-

Product Evaluation: We evaluate primarily the environmental considerations of the
products.

3.2 Evaluation Criteria
This will be based on the 'IWATSU Group Sustainability Procurement Guidelines' and thestandards set forth in this criterion, the 'IWATSU Group Green Procurement Standards'.
3.3 Evaluation Method and Operation
The evaluation will be conducted through written assessments using survey forms(questionnaires) and, if necessary, on-site evaluations. Regarding the submission of survey
forms and the implementation of on-site evaluations, we will contact you through therespective contact departments of each company within our group as needed. Your
cooperation is greatly appreciated. Additionally, each company within our group will prioritize
the procurement of products from suppliers with excellent evaluation results, as a general rule.

16Section 4: Miscellaneous
4.1 Document History
Revision

Date

1.0

March 2024

Description
Initial release-

The Standards are translated the Japanese version
established in January 2013.

4.2 Inquiries-

Regarding the contents of this guideline:
IWATSU ELECTRIC Co., Ltd.

Compliance Officee-mail: iso@iwatsu.co.jp-

Matters concerning written assessment via survey forms (questionnaires) and on-site
evaluations:Contact department for each supplier within our group17