AKEBONO REPORT 2015

42/64

Initiatives at the Purchasing StageAkebono aims to deliver greater environmental quality by working together with its suppliers.Striving to Ensure Worksite Safety throughout theSupply ChainAkebono believes that the continued operation of a business ispremised on the maintenance of safety consideration for the environmentand CSR. In particular it recognizes safety as key toachieving higher product quality and cost competitiveness sinceonly a safe working environment can allow workers to concentrateon duties without constraint.However over the last few years Akebono has seen a series ofmajor accidents at suppliers’ worksites. To eliminate occupationalaccidents throughout its supply chain Akebono will strive to raisethe awareness of its suppliers urging them to develop safer workplacesthrough suppliers’ meetings and Seiwa Kai study sessions.Response to the Conflict Minerals*1 IssueThe U.S. Congress passed the “Conflict Minerals Rule ” whichaims to cut off sources of funding for armed groups in theDemocratic Republic of Congo and neighboring countries. The rulerequires manufacturers to ensure public disclosure and reportingrelated to “conflict minerals ” obliging them to thoroughly trackthe origins of minerals that are supplied to them.Akebono has been working systematically in accordance withstandards stipulated by industrial associations to meet theserequirements. Since the commencement of full-scale tracking infiscal 2013 no conflict minerals have been detected in its productcontent. From fiscal 2015 Akebono will strive to enhance its suppliers’understanding of this issue and achieve an even higherresponse ratio to its tracking surveys.Suppliers’ Meetings Held around the WorldAkebono holds annual suppliers’ meetings every year to facilitatetheir understanding of the Company’s initiatives. In fiscal 2014 inaddition to convening these meetings in Japan North America Indonesia and Thailand Akebono held suppliers’ meetings inGuangzhou and Suzhou China for the first time reflecting itsintention to step up global expansion.We gave presentations on each business unit’s policies aimed atachieving the goals of our current midterm business plan whilesharing information on initiatives undertaken in regions worldwide.Also we urged suppliers to pursue quality enhancement activitiesand ongoing cost reductions.Going forward Akebono will pursue uncompromising costreductionand quality-control efforts in collaboration with its suppliers.Suppliers’ meeting in Indonesia(February 25 2015)Suppliers’ meeting in Thailand(February 27 2015)Suppliers’ meeting in Suzhou China (March 26 2015)General suppliers’ meeting in Japan (February 5 2015)Ranking and Management of Environmental ImpactSubstances under Green Purchasing*2 a GuidelinesTargeted chemical substances are categorized into three ranks and controlled as follows:Rank Chemical substancesExamples ofcontrol measuresUsage prohibitedSubstances that are strictlybanned from use andproduction by law andregulationProhibit use/draw upplans for abolishment ifthere is substance in useUsage restrictedSubstances which areprojected to come under legalregulation and substances forwhich emission regulationsare set under existing lawsConduct research onalternative materials orreduction methods anddraw up reduction planPropermanagement ofusage informationrequiredSubstances listed in GADSL*3 that is substances requiringdeclaration of usage amountEnsure propermanagement of usageinformation and worktoward reduction of usage*1 Conflict MineralsThe Section 1502 of the Dodd-Frank Act targets minerals containing tungsten tantalum gold and tin produced in the Democratic Republic of Congo and neighboring countriesthat provide sources of funding for armed groups involved in the conflict.*2 Green purchasingThe absolute selection and acquisition of products that cause less negative environmentalimpact. Scope of products covers materials secondary materials office articlesand equipment used in the course of manufacturing. Manufacture of “Green Products”requires the practice of green purchasing.*3 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 United Statesand Europe. It is an industrywide standard targeting the following substances whichare 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 if usageexceeds defined threshold limits.”