Environmental Report 2019

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 FY2018

Dealing with regulated substances
Revision of Green Procurement Guidelines that incorporate the regulations of each country concerning toxic substances contained in products.
 Establishing a system that does not include the four phthalates that are newly regulated in the EU RoHS Directive

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 to verify that the management of chemical substances in products was being properly and efficiently carried out.


(2) Confirmation of environmental quality of suppliers
Environmental quality checks were conducted on 422 companies in Japan and overseas based on our own check sheets.
Environmental Advisor Education
Contents of Environmental Advisor Education

Communication with suppliers
The key to improving environmental quality is having a cooperative framework based on mutual trust. Toward this end, we have taken steps such as creating an environmental control system at suppliers and providing data on the inclusion of chemical substances. In fiscal 2018, we held a Procurement Policy Briefing and a New Year’s Party to create opportunities for communication and build solid relationships.
Procurement Policy Briefing
New Year’s Party

GHG (greenhouse gas) emissions throughout the supply chain
To understand all GHG emissions related to the JAE Group’s corporate activities, 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). When calculating, we referenced the Ministry of the Environment’s “Green Value Chain Platform.”

After calculation, it was confirmed that scope 3 category 1 from suppliers when procuring materials and raw materials accounted for about 60% of GHG emissions. To reduce greenhouse gas emissions, the breakdown shows the targets for selecting raw materials with lower GHG emissions and promoting resource conservation, in particular in the area of thermoplastic materials for the whole company, and other materials for each individual business.