Pioneer is building a Group-wide environmental hazardous substances (EHS)^*1 management structure and systems and is implementing green procurement in an effort to eliminate any and all presence of EHS in its products and materials. Through these means, the Company is endeavoring to deliver to its customers products that can be used in total safety, as well as to ensure there are no chemical substances present in its products that can pollute the environment after product disposal. In addition, Pioneer is working steadily to conform to the REACH regulation^*2 , a new set of European rules and regulations applicable to chemicals and chemical substances.

*1 EHS stands for Environmental Hazardous Substances.
*2 REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) is an EU regulation requiring registration of all chemical substances in order to manage risks to the environment and human health from the perspective of harmful effect, production volume, uses, persistence, etc.

Promoting Green Procurement

Green Procurement Standards

Pioneer provides its suppliers with guidelines relating to the control and management of EHS through its Green Procurement Standards. At the same time, the Company implements a Green Score system that serves as one component in its comprehensive criteria for judging whether or not Pioneer deals with particular suppliers. Through these and other means, the Company is soliciting the support and collaboration of suppliers with respect to green procurement. The Green Procurement Standards focus mainly on the control and management of EHS. Since their issue in July 2000, these standards have been openly disclosed to all suppliers. Pioneer’s Green Procurement Standards are also revised from time to time. It sets out clearly the key points of EHS management for suppliers to enable them to satisfy environmental compliance and procure safe and environmentally friendly components and materials.

Pioneer evaluates suppliers from three perspectives: environmental management system, EHS management and 3Rs (Reduce, Reuse, Recycle), and awards each supplier a Green Score based on the evaluation results. This Green Score serves as the criteria for judging whether or not Pioneer deals with a particular supplier.

Pioneer's environmental evaluation of suppliers (Green Score)

• A rank: Compliant
• B rank: Semi-compliant
• D rank: Improvement needed

In addition to the Green Score, we minimize the risk of EHS through spot measurement of procured components and EHS management audits at production sites.

Using a fluorescent X-ray analyzer to rigorously check for hazardous substances

Pioneer endeavors to keep hazardous substances out of its products through green procurement. One of the methods we employ is analysis of EHS content by fluorescent X-ray analyzer at various bases throughout the group. Our credibility is enhanced by such in-house analysis of products using the analyzer in addition to information provided by suppliers on EHS in products.

Complying with New Rules and Regulations

Pioneer is bolstering its chemical substance information control and management systems in order to address the requirements outlined under such existing rules and regulations as the RoHS Directive* as well as new chemical rules and regulations stipulated under the REACH regulation. In complying with the REACH regulation, there is an undeniable need to put in place a framework that is capable of smoothly disclosing and conveying information regarding products containing chemicals throughout the supply chain. Pioneer accordingly took the initiative to prepare in advance by holding a REACH briefing session for all of its suppliers in January 2009. The Company then commenced in earnest investigations into products containing chemicals in fiscal 2010. By incorporating the industry’s standard format into its investigations, Pioneer is ensuring efficient investigations across the entire supply chain. In addition, the Company activated an integrated environment database in order to promote chemical substance control and management and is building a system to facilitate the flow of information and the efficient exchange of information regarding products containing substances from suppliers through to the Company’s customers.

*A law promulgated in Europe prohibiting the use of specific hazardous substances in electrical and electronic equipment. The six prohibited substances are lead, mercury, cadmium, hexavalent chromium, PBB and PBDE.

A system for conveying information regarding chemical substances Suppliers Environmental information