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Environmental Report 2021

Supply Chain Management

Status of Green Procurement

Regulations on chemical substances related to products, including the EU RoHS Directive, are becoming stricter worldwide for products containing toxic substances.
 The JAE Group is reducing its uses of harmful chemical substances starting in the design stage while promoting green procurement in cooperation with suppliers.

JAE Group Initiatives and Activity Results in FY2020

Confirmation of VOC regulations in China
In terms of the overview of China’s VOC regulations, officially announced on March 16, 2020, and the anticipated impact, the Group confirmed that the target products bought locally at the manufacturing sites and imported can continue to be bought and used in December and beyond.

Response to US’s Toxic Substances Control Act
The US’s Environmental Protection Agency (EPA) added five new types of substances (use cursor to view details) to the Toxic Substances Control Act’s (TSCA) rules on PBT chemicals. The Group confirmed the use of the regulated substances by suppliers and took steps to ensure that the regulations were observed.

Confirmation of environmental quality by environmental advisors
The JAE Group introduced its own Environmental Advisor Certification System and certified approximately 400 environmental advisors in Japan and overseas. The advisors conduct environmental quality checks to determine if chemical substance controls were properly and efficiently managed for Group and supplier products.

(1) Confirmation of JAE Group environmental quality
At five domestic and seven overseas sites (includes six production sites and one non-production site), we conducted internal audits of environmental quality (click to open) to verify that the management of chemical substances in products was being properly and efficiently carried out.


(2) Check environmental quality of suppliers
Reviewed original check sheet and conducted environmental quality checks at 395 companies in Japan and overseas.

Communication with suppliers
In fiscal 2020, given the spread of COVID-19, the Group cancelled its customary annual Procurement Guideline Briefings and New Year Gathering to prioritize the health and safety of suppliers.

GHG (greenhouse gas) emissions throughout the supply chain
Referencing the Ministry of the Environment's “Green Value Chain Platform,” we calculated GHG emissions from the Company's production activities (scope 1 and 2), as well as GHG emissions throughout the entire supply chain (scope 3) to understand all GHG emissions related to the JAE Group’s corporate activities.

Just like the calculation results for domestic groups only, which were tabulated last year, we confirmed that about 60% of GHG emissions are comprised of Scope 3, category 1 from suppliers when producing raw materials.
 The main difference with the previous fiscal year was an approximately 50% reduction in GHG emissions from Category 6 business travel.