Green Procurement Guidelines for Sustainable Supply Chains

As a company that procures products and services from suppliers in regions and countries around the world, Hitachi was quick to introduce CSR and green procurement policies, which are being meticulously implemented by all Group companies. High expectations have been placed on the Responsible Business Alliance (RBA, formerly called EICC) Code of Conduct in recent years as an international CSR standard for the industry. We are further evolving our procurement activities in line with this code, not only reviewing our own CSR standards but also auditing and cooperating with the CSR initiatives of our suppliers. (pg. 74)

In fiscal 1998, we led the industry in developing Green Procurement Guidelines to define our basic position on procuring parts and products that do not have a negative impact on the global environment, as well as our requirements of suppliers, so that we can work together to promote green procurement. The guidelines set out supplier requirements for environmental conservation, including building an environmental management system and acquiring certifications. There are also requirements for reducing the environmental impact of products supplied to Hitachi, such as conserving resources and energy in production, recycling, managing chemical substances, and fully disclosing related information. (pg. 76)

There is a global trend toward tighter regulations on chemical substances. In fiscal 2013, we reviewed our categories for controlled chemical substances in our Green Procurement Guidelines to comply with the stipulations on restricted substances, authorized substances, and substances of very high concern (SVHCs) in Europe’s Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) regulation for managing chemical substances within the European Union. Specific changes include: (1) moving some chemicals to the prohibited substances list, (2) further breaking down the controlled substances list, and (3) adopting the industry association list. The previous guidelines were revised to version 8.5 and distributed through Group companies and business units to suppliers to ensure that they are fully informed. (pg. 76)

To read the Green Procurement Guidelines, click here.