AKEBONO REPORT 2012

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AKEBONO REPORT 2012 Akebono Brake Industry Co. Ltd. 39Exercising CSR in Purchasing ActivitiesAkebono’s consideration for the environment and CSR begins at thematerial procurement stage?with the cooperation of its suppliers Akebono selects materials secondary materials and parts that havelower environmental loads in accordance with “Green Purchasing*Guidelines” formulated in fiscal 2005.In compliance with the ELV directive** as well as the latest regulationson chemicals represented by REACH *** manufacturers arerequired to further enhance their chemical substance managementstructures.REACH requires a manufacturer to establish a system that coversthe entire supply chain enabling the smooth disclosure and communicationof information on chemical substances contained inproducts. In response Akebono has adopted the JAMA StandardMaterial Datasheet† and International Material Data System †† comprisingindustry wide standard forms and methodology to enhancethe efficiency of its monitoring of chemical substance usage in supplychain.In fiscal 2011 Akebono revised its Green Purchasing Guidelinesand set forth its method of investigation pertaining to environmentalload substances.Also we constantly work to keep our suppliers aware of the importanceof taking action and working in partnership to promote environmentpreservation. We thereby ensure their understanding of andcooperation in our green purchasing activities across the supply chain.In addition the U.S. Congress passed the “Conflict MineralsRule ” which aims to cut off sources of funding for armed groups inthe Democratic Republic of Congo and neighboring countries byimposing public disclosure and reporting requirements related to“conflict minerals” on manufacturers. To meet the abovementionedreporting obligations the origins of minerals that suppliers handlemust be thoroughly researched. As a member of the JapanAutomobile Manufacturers Association Inc. (JAMA) and Japan AutoParts Industries Association (JAPIA) Akebono is involved in planningthe methodology of research that does not impose excessive burdenson its suppliers.Targeted chemical substances are categorized into three ranks and controlled as follows:Rank Chemical substances Examples of control measuresUsageprohibitedSubstances that are strictlybanned from use and productionby law and regulationProhibit production and use/draw up plans for abolishmentif there is substance inuseUsagerestrictedSubstances which are projected tocome under legal regulationregarding production and substancesfor which emission regulationsare set under existing lawsConduct research on alternativematerials or reductionmethods and draw up reductionplanProperManagementof UsageInformationRequiredSubstances listed in GADSL that is substances requiringdeclaration of usage amountEnsure proper managementof usage information andwork toward reduction ofusageWorking Together with Suppliers to Enhance QualityThrough cooperative activities with suppliers to reduce defects andpromote streamlining Akebono seeks to understand the difficultiesthat suppliers confront and express its expectations to them to thisend maintaining close communications and sharing information withthem.Specifically Akebono’s relevant sections (R&D QualityAssurance Production and Purchasing) work together with suppliersand strive to solve troubles arising in production reduce productdefects improve yield ratios and cut back workloads. At the sametime Akebono recognizes that its quality enhancement and costreduction activities are also part of its environmental conservationefforts and contribute to improvements in energy efficiency andwaste reduction.In fiscal 2011 various activities aimed at quality enhancementand streamlining were conducted including “Expectation ValueActivities” involving 17 suppliers and Seiwa Kai group studies(please see page 21 for details). Looking ahead we will strive tobuild mutually beneficial and friendly relationships with our suppliersthrough such efforts.* Green purchasingThe affirmative selection and acquisition of products that cause less negative environmentalimpact. Scope of products covers materials secondary materials officearticles and equipment used in the course of manufacturing. Manufacture of “GreenProducts” requires the practice of green purchasing.** ELV directive (End-of Life Vehicles Directive)Directive of the European Union enforced in 2003 aimed at reducing the negativeenvironmental impact arising from end-of-life vehicles. It sets forth the restrictions onusage of cadmium lead mercury and hexavalent chromium as environmental loadsubstances.*** REACHThe European Community Regulation on registration evaluation authorisation andrestriction of chemicals enforced on June 1 2007† JAMA Standard Material DatasheetMaterial data system formulated by the Japan Automobile ManufacturersAssociation Inc. (JAMA)†† International Material Data SystemA global data repository used by the automotive industry to gather data for reportingrequirements††† GADSL (Global Automotive Declarable Substance List)A list of chemical substances requiring proper management formulated by automobilemanufacturers their parts suppliers and material suppliers in Japan the UnitedStates and Europe. It is an industrywide standard targeting the following substances which are possibly contained in parts and materials supplied to automotive manufacturers:1. Substances that are subject to regulation under the laws of each country2. Substances that are expected to come under legal regulation3. Substances with a proven negative impact on health and/or the environmentThe list contains substances classified into such categories as “Substances prohibitedfrom use in all applications ” “Substances prohibited from use in certain applicationsor that must be declared if used” and “Substances that must be declared ifusage exceeds defined threshold limits.”Ranking and Management of Environmental LoadSubstances under Green Purchasing Guidelines“Partnership 2012?General Meeting of AkebonoSuppliers” held at Hotel Okura Tokyo (February 2 2012)Quality enhancement activities with suppliers at aworksite (May 11 2012)Special Feature Social Repor t Environmental Repor t Economic Repor t Reference MaterialsWorking Together with Our SuppliersInitiatives at the Purchasing Stage

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