Expectations to Suppliers

Promoting this Procurement Policy requires active support from Suppliers; therefore, Nichia requests that the Suppliers review, understand, and implement the following requests.

1. Establishment of a Compliance System

Nichia selects Suppliers that promote developing an effective system to implement and ensure their compliance with applicable laws, and regulations, and social norms of the countries or regions where the Suppliers conduct business activities (“Compliance”).

(1) The Suppliers will comply with laws and regulations and will not instruct others to violate them.
(2) The Suppliers will not consent or acquiesce to violations of laws and relegations by others.
(3) The Suppliers will establish internal rules and implement the education and development relating to the Compliance.

2. Respect for Human Rights and Consideration for Occupational Health and Safety

Nichia selects Suppliers that respect fundamental human rights and make efforts to achieve a safe and clean working environment.

(1) The Suppliers will respect the fundamental human rights of all persons.
(2) The Suppliers will not tolerate human rights violation such as forced labor, inhuman treatment (including any slaves), human trafficking, and child labor.
(3) The Suppliers will not tolerate discrimination, sexual harassment, workplace bullying or any other acts that negates human dignity.
(4) The Suppliers will promote and ensure a safe, sanitary, and efficient working environment.

3. Environmental Consciousness

Nichia selects Suppliers that make efforts to reduce environmental waste and strive for the preservation of environment.

(1) The Suppliers will promote the establishment of an environmental protection system in accordance with ISO14001.
(2) The Suppliers will procure materials with low environmental burden including those which are reduced in hazardous chemical substances by way of investigating the use of substances that are controlled by Nichia’s green procurement policy.

4. Product Safety and Quality Assurance

Nichia selects Suppliers that ensure the safety and quality of materials or services so that products manufactured by Nichia ultimately meet its customers' needs.

(1) The Suppliers will promote the establishment of a quality management system in accordance with ISO9001
(2) The Suppliers will continually supply materials or services which meet Nichia’s specification and quality, and will improve their technology.
(3) The Suppliers will supply materials or services stably at a competitive price and lead time, and continually strive to reduce the price of materials or services.

5. Appropriate Management of Confidential Information

Nichia selects Suppliers that control appropriately all confidential information of Nichia or a third party to avoid misappropriation and unauthorized disclosure of the same, and establish an effective information security.

(1) The Suppliers will strictly control all confidential information of Nichia or a third party, or personal information obtained during the course of business transactions with Nichia.
(2) The Suppliers will maintain and promote the information security to protect information of Nichia or a third party and their information system in an appropriate manner.

6. Exclusion of Anti-Social Forces

Nichia selects Suppliers that take a firm stand against anti-social forces, sever all ties with them and not to provide any benefits to them.

7. Responsible Procurement of Minerals

Nichia selects suppliers that establish a management system which complies with "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas"¹.

Nichia requests the suppliers not to use the below minerals and raw materials that are mined in the Democratic Republic of the Congo and its adjoining countries, and may directly or indirectly finance or benefit armed groups and promote conflict, or that may be involved in human rights violations, labor issues, environmental destruction, etc.

(1) Conflict minerals (i.e. gold, tin, tantalum, and tungsten)
(2) Cobalt raw material

Nichia has also established an online notification process for this responsible supply chain of minerals. If an individual becomes aware that the supplier is or is likely to be in violation of the above stance regarding environment of the mining, trading, handling, and exporting of (1) and (2) above which Nichia uses, inform Nichia of such concerns via the "Contact Form" below.
Nichia will conduct a fact-finding investigation and promptly take appropriate corrective actions if necessary.
The results of the investigation and corrective actions will not be provided to the requester unless Nichia decides that such disclosure is necessary.
Nichia appreciates the support of individuals reporting concerns in good faith without falsehood or abuse of this system for improper purposes.

To submit a report, click the "Contact Form" button below, select the category as "Report on the Procurement of Minerals," and fill in the required information.

¹ https://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf

8. Implementation of Responsible Procurement Activities

Nichia requests that the Suppliers communicate this Procurement Policy to their suppliers, and request their suppliers to review, understand and implement the above requests.