GREEN PROCUREMENT GUIDELINE
Version 3.1

December, 2021
Sakai Display Products Corporation

TABLE OF CONTENTS
1． Sakai Display Products Environmental Philosophy............... 1

2． Purpose of Green Procurement............... 2

3． Purchasing Decision............... 2

4． Positioning of Green Procurement Guideline............... 2

5． Applicable Range............... 3

6． Evaluation and Judgment Guideline............... 3

6.1 Environmental Management Evaluation............... 3

6.2 Delivered Goods Evaluation............... 7

6.3 Overall Evaluation............... 8

7． Operation............... 9

7.1 Environmental Management Evaluation............... 9

7.2 Delivered Goods Evaluation............... 9

8． Confidentiality............... 9

9． Revision............... 9

10． Contact Information............... 9

1. Sakai Display Products Environmental Philosophy
We are pursuing the reduction activities of environmental loads in all aspects of its businessactivities.
Environmental Philosophy
We will make efforts to further contribute to global environmental conservation by strengthening
our development of proprietary technologies for protecting the global environment, and bycarrying out business activities in an environmentally conscious manner.

Contribution to Conservation of the Global Environment
1. To Conserve the Environment(1) We will comply with all applicable environmental laws, regulations, and regional agreements, andmake voluntary efforts to practice effective use and saving of resources and energy, in the recognition
that global environmental conservation is an essential fact of corporate and individual pursuits.
(2) We will work aggressively to reduce greenhouse gas emissions in all business activities, in order tocontribute to the prevention of global warming.
(3) To deal with environmental issues on a global scale, we will promote the practical application ofenergy-saving actions and environmental conservation technologies and work to contribute to reducing
environmental loads.
(4) We recognize that maintaining an eco-system where diverse living organisms coexist brings about arich environment in which both corporations and individuals can operate and live. To that end, we will
work actively to conserve biodiversity and promote the sustainable use of biological resources.
(5) In order to promote communication with local residents and other stakeholders, we will engage inacquiring environmental information at an international level, and providing internal reports thereof,
and work to actively make disclosure to the local community and other stakeholders.
2. To Develop Environmentally Conscious Products and Services, and Conduct Our Business
Operations in an Environmentally Conscious Manner(1) We understand the importance of internal company systems and the efforts needed to enhancemeasures based on SDP’s environmental policy, and we will observe relevant internal company rules.
(2) Toward the minimization of our consumption of natural resources such as energy, water, minerals, andthe like, we will positively engage in reduction in the size and weight of products, use of recycledmaterials, and the development of products and services that contribute to energy-saving, energycreating and long life of products.
(3) We will work to compile information related to harmful substances that might damage the environmentor human health, and will not, as a matter of principle, make use of these harmful substances in our
products and services.
(4) We will ensure proper use and control, and also reduce our consumption of chemical substances in ourbusiness activities, including research, development, and manufacturing, at levels meeting or exceeding
those stipulated by laws and regulations.
(5) We will, as a matter of policy, design recycling-conscious products with structures that are detachable
and decomposable and will use recyclable materials wherever possible.
(6) As to the resources needed for business activities (equipment, raw materials, subsidiary materials,
tools, etc.) , to the extent possible, we will work to conduct our business in such a way as to select andpurchase such resources that have the least adverse effect on the global environment, the local residents
and employees.
(7) We realize that waste material is a valuable resource, and we will actively take part in maximizing the
3Rs (reduce, reuse, recycle) and minimizing the amount of final waste disposal.

12. Purpose of Green Procurement
Sakai Display Products (hereafter "SDP") pursues the reduction of environmental burdens in all
aspects of its business activities.
When obtaining materials from our business partners, in particular, we follow the evaluation
criteria of the "Green Procurement Guideline" as we work together with them to conserve theglobal environment and to achieve a fully recycling-oriented society.
3. Purchasing Decision
Green procurement involves the conventional procurement of materials based on the criteria of"quality (Q), cost (C), delivery terms (D)", but it also comprises an overall judgment that is basedon environmental considerations (E).
Evaluation based on environmental considerations follows the "Environmental Management
Evaluation", criteria which appraise our partners’ organizational measures for environmental
conservation, It also follows the "Delivered Goods Evaluation", criteria for appraising their efforts to
reduce environmental burdens imposed by parts and materials we purchase from them (rawmaterials, multi-purpose parts, finished goods, semi-finished goods, supplementary materials, etc.).
Overall Evaluation
Environmental
Management Evaluation

Purchasing Decision+ Delivered Goods Evaluation

Items relevant to environment conservation in our "CSR Procurement Survey" are included in"Environmental Management Evaluation"

4. Positioning of Green Procurement Guideline
The positioning of the "Green Procurement Guideline" is shown below;

Green Procurement
Environmental

Delivered Goods

Management Evaluation

Evaluation

Green

Supply-Chain CSR

Procurement

Deployment

Guideline

GuidebookStandard Manual forManagement ofChemical Substances
Contained in Parts andMaterials

With regard to standards and survey procedure of contained substances in a product, please refer
to "Standard Manual for Management of Chemical Substances Contained in Parts and Materials".

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5. Applicable Range
This guideline targets our business partners who are delivering all the products SDP procures orpurchases.
All products herein are shown as follows.
Our business partner to whom contracted the assembly using supplied parts and materials by SDP
and the process etc. of materials only is also included.
1) Direct material: Parts and raw materials to be assembled in the SDP products
2) Packaging material: Packaging materials to pack the SDP products
3) Indirect material: Auxiliary materials such as chemical, gas etc. used in the manufacturing
process4) Finished product: Finished products SDP purchases and delivers to customers5) Semi-finished product: Semi-finished products to be assembled in the SDP products6) Others: Equipment and its consumption materials etc.

6. Evaluation and Judgment Guideline
6.1 Environmental Management Evaluation
As a part of Environmental Management Evaluation items, question items relevant to"(1)Chemical Substance Management" and "(2)Conservation of Biodiversity" are described below.
For other items, please refer to "Supply-Chain CSR Deployment Guidebook"1) Item for Evaluation(1) Chemical Substance Management
No.

Question Item

1

Parts and materials
incorporated in the SDP
products, finishedproducts delivered to
SDP’s customers aredelivered to SDP.

2

A "Report on Chemical
Substance contained in
the Product" issubmitted for newly
used parts delivered to
SDP.

Explanation
Whether our business partners deliver following 1) - 4) or not are
confirmed.
1) Direct material: Parts and raw materials to be assembled in
the SDP products
2) Finished product: Finished products SDP purchases anddelivers to customers
3) Semi-finished product: Semi-finished products to beassembled in the SDP products
4) Packaging material: Packaging materials to pack the SDP
products
If deliveries fall into following 5) to 6), please select "No"
5) Indirect material: Auxiliary materials such as chemical, gas
etc. used in the manufacturing process6) Others: Equipment and its consumption materials etc.
(Note) If deliveries to SDP are only 5) or 6), please select "NotApplicable" in question items No.2 to No.14.
A "Report on Chemical Substances Contained in the Product"
surveys whether or not a product contains "Materials Prohibited toUse" designated by SDP. Please submit this report by attaching toa copy of delivery specifications or drawings when exchanging
delivery specifications.
Subjects of submitting "Report on Chemical Substances Containedin the Product" are parts and materials which are adopted newly
by SDP.
(Note) Packaging materials used when parts and materials deliver
to SDP are not subjected. However, ones used when shipped from
SDP for service are subjected.

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No.

Question Item

3

A "Parts Environment
Survey Sheet" issubmitted for used parts
delivered to SDP.

4

Evidence to show noninclusion of RoHS
restricted substances,such as analysis report,
is submitted.
And, originals of its
evidence is stored andmanaged.

5High-risk parts
designated by SDP aredelivered to SDP.

6

An in-house verification
system exists due toadoption of an X-ray
fluorescence
spectrometer and/or
other necessary analysis
equipment.

Explanation
When the "Survey of Chemical Substances Contained in Parts andMaterials" is requested, please be sure to submit the "Parts
Environment Survey Sheet".
This survey’s subjects are all parts and materials newly adopted by
SDP. For detail, "Standard Manual for Management of Chemical
Substances Contained in Parts and Materials" could be referred.
As evidence to show non-inclusion of RoHS Directive restricted
substances, "Analysis Report" should be attached. It is necessary
to include measurement site, actual measurement value and nameof measurement institute in the analysis data.
Objective documents which can be confirmed conformity withstandards of SDP are accepted as evidence.
- Analysis report issued by third-party measurement body ispreferred.
- In case of metal materials, compliance with JIS or other publicstandards which meet RoHS requirements is regarded as
evidence.
- In case of parts or materials which consist of more than one
homogeneous material, the document which is summarized the"Analysis Report" of each homogeneous material is acceptable.
However, an original analysis data should be managed andsubmitted to SDP as required.
- If parts or materials are clearly made with the same
constituent material, "Analysis Report" for a typical part ormaterial can be used for each maker, even if part codes aredifferent.
- "Analysis Report" less than one year old since the issue dateshould be submitted.
- Latest "Analysis Report" which is renewed within one year
should be stored.
<Not Applicable> Only if there no part which is newly adopted
after April 1st, 2009, please select "Not Applicable".
Whether our business partners deliver following high-risk parts or
not are confirmed.
1) Colored resins, inks, labels (red, orange, yellow, pink, green)
2) Vinyl chloride resin
3) Soldered parts (mounting boards, connector terminals, leadterminals etc.)
4) Glass for metal seals
5) Chromating or electroless nickel plating parts except terminalsof electronic components (steel sheet, screws, nuts, washersetc.)6) Flame-retardant plastics
7) Parts using resins or rubbers(Cables, Rubbers, Adhesives, glue, Shrinkable tube, label,emblem, silver paste, etc.)
8) Finished products, semi-finished products or parts including
above 1) - 7)
SDP recommends that our business partners develop their own inhouse verification systems when delivering high-risk parts to SDP.
More specifically, we recommend the development of a system toenable in-house verification of compliance with RoHS, for example,
introducing an X-ray fluorescence spectrometer (XRF) and/or othernecessary analysis equipment (e.g. ultraviolet-visible
spectrophotometer (UV-Vis)) and educating staff so they canconduct analysis.
<Not Applicable> Only if deliveries are NOT high-risk parts, please
select "Not Applicable".
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No.

Question Item

7

At receiving and storage
area, control standard
for prevention of
improper use andcontamination isestablished andoperated properly.

8

At manufacturing
process, control
standard for preventionof improper use andcontamination isestablished andoperated properly.

Explanation
SDP requires that control standard for prevention of improper use
and contamination of "banned substances" designated byregulations and SDP is established and operated properly atreceiving and storage area.
Especially, we requires that establishment of the control standard
and the proper operation for prevention of contact transfer ofphthalates to resins or rubbers.
<Not Applicable> Only when no possibility of improper use andcontamination is confirmed, please select "Not Applicable".
SDP requires that control standard for prevention of improper use
and contamination of "banned substances" designated byregulations and SDP is established and operated properly atmanufacturing process shown below:- Line process (including its surroundings)
SDP requires that manufacturing lines are separated amongproducts which have different requirement from regulations
or customers. When their line cannot be separated, operate
after the clear measures to prevent from contamination ofprohibited chemical substance at the mixed flow process.
Also, the distinction of the product depending on regulations
or customer requirements is implemented.
- Work-in-progress storage (including the long-term WIP storagearea)- Rework process (ex. a repair process for soldering and not a
normal production line)- Production equipment, tools and jigs (if they touch or attach toparts or materials)<Not Applicable> Only when no possibility of improper use andcontamination is confirmed, please select "Not Applicable".

910

At the delivery
warehouse where
products are stored,
control standard forprevention of improper
use and contamination isestablished andoperated properly.
For outsourcing
organizations, processcontrols mentioned fromquestion item No. 7 to
10 are requested.

SDP requires that control standard for prevention of improper use
and contamination of "banned substances" designated byregulations and SDP is established and operated properly at thedelivery warehouse where products are stored.
<Not Applicable> Only when no possibility of improper use andcontamination is confirmed, please select "Not Applicable".
Request your outsourcing organizations for the execution ofprocess control on the product chemical substance content toprevent mixing or contamination at (No.7) receiving and storage
area, (No.8) manufacturing process and (No.9) the delivery
warehouse where products are stored.
<Not Applicable> Only when deliveries to SDP are not parts /materials / finished products / semi-finished products, please
select "Not Applicable".

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No.

11

12

13

14

Question Item
It is stipulated that
information on content
of "Banned substances"
designated by SDP is
obtained for purchased
goods (materials, parts,
products) used inparts/materials delivered
to SDP. The term
"purchased goods" also
includes materials used
for prototyping, andauxiliary materials (tape,ink, grease etc.) which
remain on the product.
It is checked whether
content information on
SDP's "Banned
substances" obtained byyour company complies
with control standards.
And, checked documents
are stored andmanaged.
When there has been achange in design,materials, process orpurchasing source either
at your company, yoursuppliers or outsourcing
contractors, it is checked
whether "Banned
substances" designatedby SDP are notcontained by evidence,such as "Analysis
Report", a constituent
table etc.

Rules are established if
problem occurs, such as
non-compliance with
"Materials Prohibited toUse" designated by SDP.

Explanation
In order to determine whether the chemical substances containedin your company's products are compliant with SDP's requirement(Banned substances), it is necessary to obtain information on
contained chemical substances for parts and materials purchasedfrom suppliers (e.g. materials, parts, units, equipment).
- Rules* for obtaining information on chemical substances
contained in purchased parts and materials to ensure that
information is obtained without any omissions should beestablished.
- Materials used in prototypes and auxiliary materials (tape, ink,
grease etc.) which remain on the product are included.
<Not Applicable> Only when your company outsource anassembly or processing with parts and materials supplied from
SDP, please select "Not Applicable".
It is necessary to check whether information on SDP's "Banned
substances" obtained by the company meet the company's own
standards or SDP standard values. Operating rules* areestablished to check without omission, and also the measures incase of non-conformity with requirements are clarified.
Content information obtained and their confirmation results aremanaged in order to submit to SDP as required.
<Not Applicable> Only when your company outsource anassembly or processing with parts and materials supplied from
SDP, please select "Not Applicable".
If there has been a change in design or material etc., there is apossibility that a material or part has become non-compliant with
SDP's standard (Banned substances). Before making a change indesign or material etc., first resubmit to SDP "Report on Chemical
Substance Contained in the Product" together with its evidence(e.g. "Analysis Report") and obtain authorization from SDP.
<Not Applicable> Only when your company outsource anassembly or processing with parts and materials supplied from
SDP, please select "Not Applicable".
Establish and operate rules*, including procedures for stopping
shipment and emergency notification routes (including SDP), forthe case of revealing non-compliance with company's standard or
SDP standard by information on chemical substances obtained by
the company, the results of the company's analysis or otherinformation.
<Not Applicable> Only when your company outsource anassembly or processing with parts and materials supplied from
SDP, please select "Not Applicable".

* When rules are designed, "Guidelines for the management of chemical substances in products" (issued by Joint
Article Management Promotion-consortium (JAMP)) can be referred.
JAMP website: http://www.jamp-info.com/

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(2) Conservation of Biodiversity
No.

15

16

Question

Explanation

Establish a policy on
the conservation of
biodiversity and thesustainable use ofnatural resources inbusiness activities.

Consider the below items when setting out the policy.
The company is aiming to lessen its impact on biodiversity and touse natural resources in a sustainable way through businessactivities which may affect biodiversity directly or indirectly.
The guidelines which each country issued are examples for yourreference of the Biodiversity policy.

Specific activities whichhave been promoted
under the Biodiversity
policy.

Define specific promotional activities within the organization ofwhich the executive is in charge.
For example- Company-wide promotion under the executive and thedepartment in charge.
- Promote understanding of Biodiversity and thereby help toreduce the impact on biodiversity through own businessactivities (Environmental burdens such as CO2 emissions andwaste handling).
The guidelines which each country issued as reference.

2) Criteria for Evaluation
Based on the survey result of the Environmental Management Evaluation, we rank our
suppliers is classified into 4 levels. The business partner with evaluation rank "A" is called"Green Supplier" from whom the priority procurement will be made.
For the business partners with evaluation rank "B" or below, the direction and assistance for
improvement etc. will be made by SDP.
For the new business partners with evaluation rank "D", the dealing contract will not made asa principle.

6.2 Delivered Goods Evaluation
1) Parts and Materials
Items of evaluation on parts and materials we purchase from our suppliers (raw materials,
parts, finished and semi-finished goods, supplementary materials, etc.) are as shown in thefollowing.
(1) About the delivered goods evaluation of Parts and Materials
SDP carries out delivered goods evaluation before contract of the delivery specifications,prohibits purchase of parts and materials without delivered goods evaluation. We will also
request additional product environmental surveys and renewal of old productenvironmental data due to customer requests, destination laws, enforcement ofregulations, etc. Please cooperate.
(2) Evaluation on the content materials in parts and materials will be implemented
by following three methods; Furthermore, these surveys on parts andmaterials are required.
a. Survey of Chemical Substances Contained in Parts and Materials
Please submit the chemical substance contained and analysis report information etc.
for each homogeneous material in "Parts Environment Survey Sheet".
7b. Report on Chemical Substances Contained in the ProductOn the materials of "Banned substances"*, yes or no of its content is surveyed. At
the time of contracting the delivery specifications, attaching to the delivery
specifications or copy of drawings, and submission is duly requested.
*The "Banned substances" means chemical substances which should not be containedin parts and materials specified by SDP. The "Banned substances" is divided into two
kinds; one is "Substances banned in all cases" which is prohibited to use in any usage
and the other is "Substances banned depending on the application" which can be usedin particular usage but prohibited to use in other usage.
"Content" refers to the content of a chemical substance, as a constituent of acomponent, material, or product. The "content" includes cases wherein a chemical
substance that is contained naturally (an impurity) is included, or wherein a substancethat is left over from a common industrial refining process (an impurity, a residual
solvent, a non-reacted monomer, or other residual substance) is included. Additionally,
if it is obvious that a chemical substance is intentionally added or contained, it isconsidered as "content" regardless of its amount.
c. Evidence (Analysis report etc.)
Evidence, such as "Analysis report etc." of substances restricted by RoHS, are duly
requested on "Report on Chemical Substances Contained in the Product".
2) Chemicals, Equipment and Tools etc.
Chemicals, equipment and tools we purchase from our suppliers will be handled as indicated in
the following:a. For chemicals we purchase, we ask vendors to provide SDS and carry out the risk
assessment separately based on our company rule.
b. For equipment and tools for production and research, we give priority to purchase of
equipment with mechanisms and functions that reduce environmental loads.
6.3 Overall Evaluation
Overall Evaluation will be made based on the evaluation result on the environmental
management, considering the evaluation on delivered goods additionally.

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7. Operation
7.1 Environmental Management Evaluation
The survey is executed once a year in principle.
However, please correct your replies promptly in cases of:- any changes in your replies after submitting a survey report

Time to Survey- any new business, new delivery and changes in contents of"Environmental Management Evaluation".
Subjects ofSurveyIt is applied as a unit to production work site where parts, materials, chemicals,
equipment, tools and printed materials, etc. are manufactured.

Reply Procedure

Based on the "CSR Procurement System Manual" separately specified.

Notice of Result

The survey result (evaluation rank) is informed from our procurement center,
including in the result of our CSR procurement survey. Also note that there
might be the case to ask the audit of our business partner depends on thecontents of reply.

7.2 Delivered Goods Evaluation
Time to Survey

The survey is executed each time when new delivery of parts or materials
occurs. Your quick reply is duly requested.

Subjects ofSurveyIt is applied to parts, materials, finished goods, semi-finished goods and submaterials etc., and the survey is undertaken for each delivery as a unit.
* It is not necessary to reply basically, however, submission of document
might be requested partially in some case as stated in the clause 6.2 2).

Reply
Procedure

Based on the "Standard Manual for Management of Chemical Substances
Contained in Parts and Materials" separately specified.

8. Confidentiality
Information you give us is used only in SDP and is never disclosed to outside.

9. RevisionThis Guideline will be reviewed and revised properly due to changes in social conditions and trendsof laws and regulations.

10. Contact Information
Please contact following e-mail address if there are any queries relating to this Guideline.
E-mail：shizai_csr_green@sharp.co.jp

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