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DENSO Announces New Green Procurement Guidelines for Suppliers


August 2006
 Filed under: AUTOMOTIVE MANUFACTURING Car News | AUTOMOTIVE MANUFACTURING Headlines
TOKYO (August 24, 2006) - DENSO Corporation today announced the company's new "Green Procurement Guidelines" to further reduce the use and release of environmentally hazardous substances in supply chains for global business activities. The guidelines are based on DENSO's long-term environmental policy, "DENSO EcoVision 2015," announced last year.
The new guidelines expand DENSO's targets to all suppliers, including equipment, construction, and distribution suppliers. The previous procurement guidelines targeted only suppliers for parts and materials (including secondary raw materials). Also, the new guidelines increase the areas suppliers are required to follow from two to five, while adding further requirements in the original two areas: (1) Establishing an environmental management system; and (2) Managing and reducing the use of environmentally hazardous substances.

The new Green Procurement Guidelines focus on:

• Establishing an environmental management system
DENSO has required suppliers of parts and materials to establish an environmental management system with the intent of acquiring external certifications such as ISO14001 and, when necessary, has provided support in establishing the system. The same requirements and support will now be targeted to all suppliers.

• Managing and reducing environmentally hazardous substances
To manage and reduce environmentally hazardous substances contained in products, DENSO has prohibited the use of such substances in parts and materials delivered and has requested reports from suppliers on the types and quantities of chemical substances included in deliveries.

In addition to these requirements, the new guidelines require that analyses be conducted for the four environmentally hazardous substances subjected to abolition under the EU End-of-Life Vehicle Directive (lead, mercury, cadmium and hexavalent chromium). These analyses should be highly reliable and submitted to DENSO. And each supplier will be required to develop a system to manage environmentally hazardous substances.

To manage and reduce environmentally hazardous substances not included within products but used within the company, DENSO has required either the prohibition of or reduction of 44 environmentally hazardous substances, as well as reports from suppliers on the types and quantities of chemical substances included in new deliveries. The new guidelines prohibit the use of 464 environmentally hazardous substances, and will now target all suppliers including equipment and construction suppliers.

• Promoting environmental improvement activities in the production stages at suppliers

DENSO will require suppliers to:
- Improve environmental performance by reducing CO2 emissions, emissions of substances subject to the Pollutant Release and Transfer Register (*), emissions of volatile organic compounds, and waste.
-Manage and reduce the use of 464 environmentally hazardous substances, which are prohibited for use at DENSO.

• Supporting the use of a lifecycle assessment (LCA)
To develop and manufacture environmentally friendly products, DENSO plans to introduce indicators to identify the effects that products have on the environment throughout the entire life cycle from materials procurement to manufacture, use and discard. Along with this, DENSO will require suppliers to numerically quantify and report the environmental effects of parts and materials from material procurement to production in terms such as energy consumption and CO2 emissions.

• Reducing CO2 emissions and packaging materials in distribution
DENSO will require distribution suppliers to reduce CO2 emissions and packaging materials, and to periodically report their reduction progress.
DENSO explained the new guidelines to DENSO's suppliers in Japan and requested their cooperation at a meeting, held in Kariya City, Japan. The guidelines will be applied to suppliers of DENSO group companies in and outside Japan, while considering situations in each region.
" As a contribution to the sustainable development of society, DENSO will continue to promote efforts to reduce adverse environmental effects of business activities at DENSO group companies and their suppliers worldwide," said Masatohi Ano, senior managing director of DENSO. "We are targeting 2010 for full implementation of these guidelines."

*: Pollutant Release and Transfer Register (PRTR): System by which businesses that make, use or release subjected chemicals must identify, tabulate and announce the amount of subjected chemicals released or transported from their business sites for waste treatment. Suppliers in Japan are subject to PRTR DENSO will require suppliers outside Japan to reduce emissions in accordance with similar systems in each country.

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs approximately 106,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2006 totaled US$27.3 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to www.globaldenso.com


Source: DENSO Corporation

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