（Requests for ”Responsible Procurement”）
Ver. 3.0
Established: November 1, 2014
1st Revision: October 1, 2018
2nd Revision: April 1, 2022

Contents

April 1, 2022
Nihon Parkerizing Co., Ltd.
Masayuki Yoshida,Director, General Manager of Technical Division"The 2030 Agenda for Sustainable Development Goals (SDGs)" were adopted at a UN General
Assembly on September 25, 2015. People worldwide have an eye for crises such as environmental
destruction and human rights abuse. Nihon Parkerizing Co., Ltd. is also engaging in CSR activities as
we recognize the social responsibilities of corporations and aim to communicate with and contributeto the neighborhood. At the same time, we try to minimize any adverse impacts on the environment
and people in our day-to-day activities.
After analyzing the potential impacts of our business on the environment and people, we haveconcluded that we are concerned about the manufacturing, sale and use of chemical products, which
is one of our core businesses. That is why we have initiated "Chemical Substances Control activities"
in addition to our quality and environmental management activities. These initiatives have beenongoing since 2014.
Furthermore, Nihon Parkerizing's chemical substances control covers the entire lifecycle of chemicalsubstances (product supply chain). They are raw materials procurement (including their manufacture
by suppliers and the preceding stage), research and development, manufacturing, and use by ourcustomers and end-users for the disposal of chemical substances. The ultimate goal is to reduce awide range of risks throughout the life cycle mentioned above, including eliminating hazards andtoxicity to people and the environment, improving the work environment and protecting human rights.
We need inputs from suppliers to ensure whether substances are highly hazardous or concerned tohumans or the environment. To achieve the ultimate goal, Nihon Parkerizing published its "Green
Procurement Guidelines" and related documents on October 1, 2018.
For some time, Nihon Parkerizing posted a "Prohibited and Controlled Substances for Packaging"list on our website. The company has recently extended the scope of the management of chemical
substances to the packaging materials for our products, as well as for raw materials, to respond tochanges in social conditions and the requirements of our customers. From now on, we will also survey
raw materials used in our products and raw materials packaging containers for our products. We would
appreciate your understanding and cooperation.
Nihon Parkerizing publishes these Green Procurement Guidelines and related documents on ourwebsite and updates them as necessary with social conditions. We will continue to engage in chemical
substance management activities as these are important for accumulating scientific knowledge andresponding to changing social conditions. Therefore, we would like to ask our suppliers and otherstakeholders to check the latest information as necessary and immediately report any new information
to our company.

■Definitions
The definitions of each term in these guidelines will be as follows;● Raw material
Materials and commodities procured for use in the products of Nihon Parkerizing.
● Container
All containers, packages and packaging materials used for raw materials procured by thecompany and used for the products manufactured by the company.
3 / 10E.g., Craft paper bags, cloth bags, cardboard boxes, flexible containers, plastic containers, steel
pails and drums, IBC containers, ISO containers, tank lorry tanks, and all other packaging
containers.
● Suppliers① All suppliers deliver products and commodities to Nihon Parkerizing, whether directly orindirectly (through an agent).
② Suppliers who deliver containers to be used for packaging the products of Nihon Parkerizing.
●Self-diagnosis Report
This means the "Self-diagnosis Report on Management of Chemical Substances Contained".

The Green procurement here means we preferentially procure raw materials and containers fromsuppliers with a low environmental load. It also means working together with each supplier to reducethe use of dangerous and hazardous substances.
We request our suppliers to implement the following measures for our Green Procurement.
Please submit the "Self-diagnosis Report on Management of Chemical Substances" in Item 1 in thelist below. We will not inspect Items from 2 to 7 below. A conclusion of the "Memorandum on
Management of Chemical Substances" in Item 8 will substitute item 2 to item7.
In August 2017, we requested that distributors submit updated SDS and labels. For distributors who
have already submitted the latest editions, there is no need to resubmit these in case the details havenot changed.
1.
2.
3.
4.
5.
6.
7.
8.

Submit a Self-diagnosis Report on the Management of Chemical Substances
Comply with the Nihon Parkerizing Chemical Substance Management Standards
Comply with Prohibited and Controlled Substances for Packaging List
Submit Safety Data Sheets (SDS) in compliance with GHS (Japanese)
Affix labels
Provide prior notice
Prevent leakage
Conclude a Memorandum on Management of Chemical Substances

Please download the formats for items below, marked as "See Website" and substances list fromthe Nihon Parkerizing website.
URL: https://www.parker.co.jp/CSR/s_with_customers.html
1. Submit a Self-diagnosis Report on Management of Chemical Substances (See website)
This document aims to learn the state of management of chemical substances at each supplierand check whether the control of the chemical substance is ongoing. Suppliers, who havealready submitted this Self-diagnosis Report as part of registering a raw material, do not needto resubmit the report. We will review the information previously submitted.
Nihon Parkerizing will review the report received. If the review results indicate that a supplier isqualified, we will continue with the transactions. We may continue the transactions even if thereview results indicate the supplier is not permitted. However, the transactions will be"conditional". We may request improvements, and we would appreciate your cooperation.
(Please refer to the flow chart on Page 7 and on.)4 / 101.1 If a supplier cannot satisfy the requirements of Nihon Parkerizng:(1) If a supplier cannot satisfy the requirements of Nihon Parkerizing, we will issue a "Request forImprovements" to the supplier.
(2) Please resubmit the Self-diagnosis Report by the deadline specified in the Request forImprovements*.
(3) If the results of the review of the resubmitted Self-diagnosis Report indicate that the suppliersatisfies the requirements of Nihon Parkerizing, we will continue transactions. If the results do
not meet the criteria of Nihon Parkerizing, we will conduct a Process Audit.
(4) We will continue transactions when a supplier meets the requirements of the Process Audit. If
the supplier fails the audit, the transactions will be "conditional". We will take measures such as
inspecting the production lot at all delivery or adding inspection items.
(5) If transactions with a supplier become "conditional", we will once again send a "Request for
Improvements" to a supplier after a certain period so that we can resume regular transactions.
We would appreciate your cooperation with this process.
Note: The improvement deadline is six months after receiving a "Request for Improvements".
However, this will be within three months in the case of critical items.
1.2 Self-diagnosis Report for distributors
The Self-diagnosis Report for distributors confirms views of chemical substances management,
and we presume that distributors are qualified. We do not anticipate that a distributor will fail.
Even if the Self-diagnosis Report submitted by a distributor is unsatisfactory, it will be considered
to meet the chemical substances management criteria of Nihon Parkerizing as long as thesupplier's Self-diagnosis Report is qualified.
2. Compliance with the Nihon Parkerizing Chemical Substance Management Standards* (seewebsite)
Please comply with the Chemical Substance Management Standards established by Nihon
Parkerizing. Please refer to the attached "Nihon Parkerizing Chemical Substance ManagementStandards". The management standards are based on the regulations on the management ofchemical substances in Japan and overseas and scientific knowledge on the hazards of chemicalsubstances. Then, Nihon Parkerizing has selected substances that it has deemed banned or tobe reduced or controlled. The Company has disclosed its views on chemical substancesmanagement and a list of prohibited substances and substances to be reduced or controlled.
We post the latest version of the NP Chemical Substance Management Standards on ourwebsite. Please check the Nihon Parkerizing Chemical Substance Management Standards asnecessary and endeavor to control products (commodities) and containers in according withour Standards. Please let us know without delay if anything arises that we must learn.
2.1 Nonuse of banned chemical substances in products supplied to us
Do not use the banned chemical substances listed in the Nihon Parkerizing Chemical
Substance Management Standards. If a banned substance is detected in products delivered to
Nihon Parkerizing or its customers, the deliveries of such products will be temporarily suspended.
Substances with defined threshold values should be controlled not to exceed those ranges.
Similarly, if the point has exceeded the specified range, the deliveries will be temporarilysuspended.
5 / 102.2 Chemical substances to be reduced or controlled
We have selected target chemicals to be reduced from among chemicals that the Nihon
Parkerizing consumes a large amount of and may pose a risk to people and the environment.
As to chemical substances to be controlled, we have selected substances that the company
needs to rule based on regulations in Japan and overseas and from the perspective of socialresponsibility.
We will prohibit the use of toxic or hazardous chemicals to people or the environment in thesame way as the banned chemical substances in Section 2.1 and establish thresholds.
Unintentional contamination should be foreseen and monitored to the same extent as prohibitedchemical substances.
3. Comply with Prohibited and Controlled Substances for Packaging List (See website)
Please comply with the List of Prohibited and Controlled Substances for Packaging establishedby Nihon Parkerizing. Please check that the prohibited substances are not contained inpackaging materials (bags, cans, drums, and plastic drums). If packaging materials containbanned substances, there is a risk that such substances may leach out and contaminate theproduct delivered.
Nihon Parkerizing will approve the Company to use such packaging material.
i.
If the surface of the packaging material in contact with the product is coated with aprotective coatingii.
and such coating does not contain a prohibited substance, even though such packaging
material contains a prohibited substance,iii.
and in case Nihon Parkerizing determines there is no leaching out.
Please check the List of Prohibited and Controlled Substances for Packaging on the website of
Nihon Parkerizing.
4. Submit Safety Data Sheets (SDS) in compliance with GHS (Japanese)
SDSs must be submitted as they contain information for handling the delivered products, suchas the chemical and physical characteristics, applicable laws and regulations, toxicity andemergency procedures. (No need to resubmit if already submitted.)
As our main business is manufacturing and selling chemical products using chemical products
and commodities procured from suppliers, we are required to constantly obtain the latest
information and communicate it to our customers and society through our supply chain.
Therefore, when revisions are made to SDS, please submit the revised version promptly to ourProcurement Group. In addition, please submit SDS that conform to the latest GHS based on
the most up-to-date information possible.
If there is an undisclosed CAS No. for an ingredient, please provide a separate report on therelevant ingredient's hazards, toxicity, and handling precautions.
5. Labelling
Please affix labels that meet the content of the SDS. If an SDS is revised, please check thedetails written on labels and update the labels if necessary. For products already in the trade,6 / 10please check the content of the label and SDS and submit a sample of the revised label ifchanges are required. Submit a revised SDS to the Procurement Group if revisions are made.
6. Advance notice
A decision on whether or not to continue using the substance will be made based on acomprehensive assessment of the name of the substance, the amount contained and otherdetails. If you make any changes (changes in raw materials or manufacturing processes) thatconflict with our Chemical Substance Management Standards, please notify the Procurement
Group at least six months in advance. Please inform the Procurement Group at least six months
in advance if you change SDS and labels. Depending on the timing of amendments to relevantlaws and regulations, it may not be possible to give six months' notice, in which case, please
give information without delay.
7. Preventing leakage
The packaging of raw materials should be made of materials that will not leak during transport
to our company, during acceptance, and after acceptance, until used in manufacture by ourcompany. Pallets should also be inspected when making a shipment to prevent damage to thecargo and leakage during transport.
In addition, the adhesion of raw materials to the outside package may cause contamination
inside our factories after acceptance. Please ensure that raw materials do not adhere to theoutside container during filling.

8. Conclusion of a "Memorandum on Management of Chemical Substances Contained"(hereinafter a "Memorandum")
After receiving a Self-Diagnosis Report and ascertaining other relevant information, we willconclude a Memorandum on Management of Chemical Substances Contained. The details inthe Memorandum will be decided based on the status of Green Procurement activities. Thecompany will disclose the Memorandum in advance. Please confirm the content before
concluding the Memorandum. This form is not posted on the company's website. It will be sent
separately.

7 / 10Following is a flow chart of transactions. Preference will be given to suppliers who have passed
the Self-diagnosis Report and concluded a Memorandum with Nihon Parkerizing.

■BeforeCriteria

Review of raw materials

Transactions

Comprehensive
review of four criteria

Start transactions ofnew productQuality

Price
Delivery
Stabilityof supply■After the introduction of Green Procurement Guidelines
Criteria

Review of raw materialsQualit
Price
Delivery

Stability ofsupply① Pass the Selfdiagnosis Report② Conclude aMemorandum
Preference given tosuppliers whocompleted the above

Self-diagnosis Report
Memorandum on Managementof Chemical SubstanceContained in Product8 / 10Transactions

Start transactions ofnew product■Flow charts
1. Flow charts for Self-diagnosis Report on Management of Chemical Substances
Contained and Transactions with Conditions(For Manufacturer)
Flow ｰ

Document, process

Download format

Nihon Parkerizing Website

Manufacturer(Already filled in)

Manufacturer

Self-diagnosis Report

SubmitParty in charge

Our Procurement Gr.

(Already filled in)

Review

Self-diagnosis Report

FailPass

Our Procurement Gr.
Our Quality Assurance Dept.
(Our Procurement Gr.)

Request for Improvement

Correction deadline: 6 months

Manufacturer(Important items: 3 months)(Corrections filled in)

Review

Self-diagnosis Report

Our Quality Assurance Dept.
(Our Procurement Gr.)

FailPass

Manufacturer

Manufacturer
Our Quality Assurance Dept.

Audit*
Pass(Our Procurement Gr.)Fail＊

Lot acceptance inspections Manufacturer
Add inspection items
Our factory

ConditionalTransaction

Lot acceptance inspection results Our Quality Assurance
Dept.

Delivery inspection results Our Production Dept.

RepeatReview/Audit

Pass

Our Procurement Gr.

FailPart ofTransactions will be with conditions if no improvement is seen inthe audit, transaction with conditions or the repeat review (audit)
stages.

Continue transactions⇒
Conclude Memorandum

Conditional
Transaction-7-

9 / 102. Self-diagnosis Report(For Distributors)
Flow

Document, Process

Party in charge

Nihon Parkerizing website

Distributor(Already filled in)Distributor

SubmitSelf-diagnosis Report

Our Procurement Gr.

Review

Self-diagnosis Report

Download format(Already filled in)

PassFail

Our Procurement Gr.
Our Procurement Gr.

Request improvement(Corrections filled in)
Self-diagnosis Report

ReviewDistributor
Our Procurement Gr.

PassContinue transactions⇒
Conclude Memorandum

End
Inquiries & document submission: Procurement Group, Manufacturing Dept. TechnicalDivision, Nihon Parkerizing Co., Ltd.
15-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-0027
TEL:03-3278-43TELEFAX:03-3278-4580
Mail to: :eco_koubai@parker.jp

Thank you for your understanding and cooperation.

10 / 10