Procurement Activities

Yanmar Group Green Procurement Guidelines

Yanmar Logo

January 2023 (8th Edition)

Introduction

Environmentally-aware conscious corporations are calling the 21st century the “Century of the Environment” because civilization cannot grow without harmonizing with the natural world. Businesses are strongly urged to point their business activities in a direction which will lead to the formation of a “recycling-oriented socio-economic system”.

Yanmar Group, in full recognition that it handles products which can impose environmental load, undertakes to contribute to the growth of a sustainable society as a pioneer in energy technology. We have Yanmar’s Global Environmental Charter, and environmental considerations are also shown in our business activities. Our group action policy is:

  • “We implement Group-wide environment management”,
  • “We establish voluntary environmental regulations in order to achieve superior levels of environmental conservation”,
  • “We promote environmental conservation throughout Yanmar Group”,
  • “We actively share information about environmental conservation both internally and externally” and
  • We promote effective measures for environmental management systematically and on a continuous basis”.

We also have established a code for suppliers, under the basic procurement policy.

In accordance with these policies, our products are made with parts and materials provided by many suppliers. In view of that, our efforts alone do not suffice towards reducing environmental load, such as the impact of environmentally hazardous substances on people and the environment, and the impact of greenhouse gases (GHG) across all stages of production. It is absolutely essential that our suppliers from whom we purchase items, parts and materials also cooperate in our environmental efforts.

Based on this belief and foundation, this Guideline summaries our green procurement standards for our suppliers and our request for the suppliers’ cooperation to further enhance our environmental performance.
This is the eighth edition of our “Green Procurement Guidelines”.
We ask for your continued cooperation in connection with this important subject.

Procurement Division,
YANMAR GLOBAL EXPERT CO., LTD.
PLM Process Innovation Division
Innovation & Technology Division
YANMAR HOLDINGS CO., LTD.

Contents

  1. Green Procurement Guidelines
    1.1 Scope of Application
    1.2 Green Procurement Selection Criteria
    1.3 Restrictions of Use for Environmentally Hazardous Substances
  2. Record of Revisions

1. Green Procurement Guidelines

These guidelines outline the principles by which Yanmar Group promotes global environmental protection relating to general procurement activities under the spirit of our Yanmar global environmental charter and our basic procurement policy.

Yanmar Global Environmental Charter

(1) Environmental Philosophy

Yanmar Group aims to contribute to the sustainable development of society by constructing a harmonious relationship between the group development and the needs of the environment.

(2) Action Guidelines (Excerpt)

① We position environmental preservation as one of the most important management objectives of Yanmar Group for the purpose of group-wide environment management.
② We strictly observe the laws of all countries and the ordinances and regulations of all districts where we conduct production activities, and when necessary establish voluntary environmental standards in order to achieve superior levels of environmental conservation.
③ Yanmar Group Global Environment Committee establishes the environmental promotion guidelines and disseminates them throughout the group for the overall promotion of environment preservation by the group.
④ We actively disseminate environmental preservation information internally and externally to promote the understanding of the need for cooperation in the promotion of efficient environmental preservation activities.
⑤ We promote effective measures systematically and on a continuous basis in the following four environmental areas:
(ⅰ) Establishing technologies that contribute to environmental preservation and products and services that reduce environmental load
(ⅱ) Reducing environmental load in each stage of business operations
(ⅲ) Joining forces and cooperating with external parties to contribute to local communities and disseminate environmental information
(ⅳ) Raising environmental awareness among employees, internal environmental education, lifestyle innovation, etc.

For more information on YANMAR GREEN CHALLENGE 2050, please visit the following website:

Please check the website below for the basic procurement policy and the code for suppliers.

1.1 Scope of Application

These guidelines apply to general procurement activities in Yanmar Group.
The terms used in this guideline have the following meanings.

(1) Items

Refers to chemicals, parts, and finished goods delivered by suppliers to Yanmar Group companies.

(2) Service

Services include construction, cleaning, landscaping, distribution, outsourced work, maintenance, creation of information deliverables, and all other services that suppliers provide to Yanmar Group companies.

(3) Yanmar Group products

Yanmar Group products refer to items and services designed, manufactured, and sold by Yanmar Group companies, including the following points.

① Products designed and manufactured by Yanmar Group companies
② Products whose design and manufacturing have been commissioned by a third party
③ Products for which Yanmar Group companies outsource design and manufacturing to third parties and sell under the name of Yanmar group companies
④ Products purchased by Yanmar Group companies from third parties and sold under the name of Yanmar Group companies
⑤ Products purchased by Yanmar Group companies from third parties and sold under third party names

(4) Items and services related to Yanmar Group products

① Items and services which are attached to or incidental to Yanmar Group products
② Items and services which are consumed during the manufacturing, transportation, sales activities of Yanmar Group products or other business activities

1.2 Green Procurement Selection Criteria

The following selection criteria are set for green procurement:

  • Criteria for Selecting Suppliers
  • Criteria for Selecting Items and Services
(1) Criteria for Selecting Suppliers

In addition to selecting suppliers based on quality, price and delivery dates, Yanmar shall include a preference for suppliers that establish an environmental management system and voluntarily introduce environmental protection activities.

  1. Environmental Management Systems (EMS)
    1. The supplier should conduct environmental protection activities under an EMS accredited to ISO 14001 or similar.
    2. The supplier should have a corporate philosophy and policy on environmental protection activities, which must be known by all departments and employees, and disclosed to the general public.
    3. The supplier should have an organization for promoting environmental protection activities and have environmental management plans.
    4. The supplier should establish and continually improve an evaluation and management system for assessing the environmental aspects of its item, and its compliance with pertinent laws and regulations.
    5. The supplier should impart environmental education and awareness activities to its employees and contractors.
    6. The supplier should be involved with resource conservation, energy conservation, use of renewable energy and the streamlining of distribution.
    7. The supplier should set goals and strive to improve the reduction of greenhouse gases (GHG). (Reports on achievements may be requested by Yanmar.)
  2. Thorough management of environmentally hazardous substances
    1. A system has been established for managing environmentally hazardous substances.
    2. Submission of required information in relation to the inclusion of environmentally hazardous substances in items delivered to Yanmar.
    3. Correct use of the information system which Yanmar Group designates to enable investigation into inclusion of chemical substances in items delivered to Yanmar, and accurate submission of chemical data.
    4. Requests for appropriate management of environmentally hazardous substances upstream in the supply chain.
    5. Acceptance of audit inspections relating to environmentally hazardous substances.
    6. Prompt contact to Yanmar when the use of prohibited substances is discovered or when the content of the report is changed. Also, prompt contact to Yanmar in advance when manufacturing conditions change.
    7. Identification of chemical substances that affect or may affect human health and ecosystems, and manage and handle them in a safe manner. (Yanmar may request the submission of safety data sheets, etc.)
    8. Efforts to reduce the use and emission of environmentally hazardous substances.
(2) Criteria for Selecting Items and Services

In addition to selecting items and services based on the required quality, functionality, economic feasibility and logistics, Yanmar will buy items and services provided by suppliers which satisfy the below requirements for reducing environmental load on a priority basis:

  1. Items and services must comply with all applicable laws and regulations concerning recyclable resources, energy, etc.
  2. Items and services must not contain the “YANMAR Group prohibited substances” and the “Prohibited substances subject to separate actions” under the “Restrictions of use for Environmentally Hazardous Substances (YIS V-0001E)” of Yanmar Group.
  3. The content of the “Substances subject to separate investigation” under the “Restrictions of use for Environmentally Hazardous Substances (YIS V-0001E)” of Yanmar Group is ascertained, and labeling and notification, etc. shall be carried out in accordance with legal requirements.
  4. There shall be low load on the environmental (air pollution, water pollution, etc.) throughout the life cycle of the products.
  5. Unwanted or unused items must be recycled, energy must be renewable, and the products must be as small as possible in order to reduce the consumption of resources, including energy, and to minimize the emission of GHG throughout the life cycle.
  6. Items and services should be designed for recycling.
  7. The contained amount of environmentally hazardous substances as specified in 1.3 below is understood and satisfies the Yanmar Group criteria.

1.3 Restrictions of Use for Environmentally Hazardous Substances

The latest version of “Restrictions of Use for Environmentally Hazardous Substances (YIS V-0001E)” shall be complied with. Use of the below substances shall be prohibited or managed so as to understand the quantity of any such included substances.

(1) YANMAR Group prohibited substances

These are substance groups whose use is mandatorily prohibited in general procurement activities in Yanmar Group. The examples of substance groups are as follows:
Asbestos, ODSs (such as CFCs, HCFCs), PCBs, PBB/PBDE, mercury, cadmium, hexavalent chromium, lead, RCF (Refractory ceramic fibers), and PFOA, its salts, and PFOA-related substances
For details, please refer to the latest “Restrictions of Use for Environmentally Hazardous Substances (YIS V-0001E)”.

(2) Prohibited substances subject to separate actions

These are substances which are mandatorily prohibited from being used/contained at a percentage content above the threshold value as set forth in the laws/regulations of each country/region.
General procurement activities in Yanmar Group are covered.

(3) Substances subject to separate investigation

These are substances whose use/presence or percentage content should be investigated pursuant to the laws/regulations of each country/region.
Investigating are required about Yanmar Group products and items that are attached or incidental to Yanmar Group products.
In case of services, and items consumed in manufacturing, transportation, sales activities of Yanmar Group products and other business, please make effort to investigate.

“Restrictions of Use for Environmentally Hazardous Substances (YIS V-0001E)” is a purchasing specification that describes detailed requirements for environmentally hazardous substances, and the latest version is disclosed to Yanmar Group business partners.
*YIS V-0001E is an English translation of YIS V-0001J.

2. Record of Revisions

  • First Edition April 2003
  • Second Edition December 2006
  • Third Edition August 2010
  • Fourth Edition August 2011
  • Fifth Edition September 2012
  • Sixth Edition June 2019
  • Seventh Edition September 2020
  • Eighth Edition January 2023

If you have any inquiries regarding these guidelines, please use the contact form below. When making an inquiry, please specify the relevant department/responsible person.