November, 2006 Tsuyoshi Horinouchi CSR Promotion Unit NEC Corporation

Transcription

1 NEC's green purchasing/ and expectations -Pacific to th Re November, 2006 Tsuyoshi Horinouchi CSR Promotion Unit NEC Corporation

2 Today s Agenda 1.Company Profile 2.NEC s Environment Polic 3.Green Products 4.Green Purchasing and 5.Expectations -Pacific to the Re A Page 2

3 Company Profile Company Name: Address: Established: Chairman of the Board: President: Capital: Consolidated Net Sales: Operations of NEC Group: Employees: Consolidated Subsidiaries: NEC Corporation 7-1, Shiba 5-chome, Minato-ku, Tokyo, Japan July 17, 1899 Hajime Sasaki Kaoru Yano billion - As of Mar. 31, ,824.9 billion - Fiscal year ended Mar. 31, IT Solutions Business Network Solutions Business Electron Devices Business NEC Corporation 23,528 - As of Mar. 31, NEC Corporation and Consolidated Subsidiaries 154,180 - As of Mar. 31, ( 142 Domestic, 214 Overseas ) - As of Mar. 31, Hajime Sasaki Kaoru Yano Page 3

4 (in billions of Yen) 5,000 4,663 Net Sales (NEC Corporation and Consolidated Subsidiaries) 4,860 4,802 4,825 Internati Domestic 4,000 1, % 1, % 1, % 1, % 3,000 2,000 1,000 3, % 3, % 3, % 3, % Page 4

5 Business Field and Main Products/Service IT Solution Network Solution SI/Service Software Computer Platform Personal Solution Broad-band Social Infrastructure IP NW / Optical NW Broadcasting / Postal/ FA Mobile Terminal /Mobile Infrastructure Semi-conductor Display Electronics Device Ｐage 5 Electron Devices

6 by Region Middle Greater East/Africa 11% 3% International Sales Europe 40% China North America 19% Asia Pacific 24% South America 3% Others by Business IT Solutions 13.9% 29.5% 28.8% Electronic Devices 27.8% The fiscal year ended March 31, 2006 NW Solutions Page 6

7 Today s Agenda 1.Company Profile 2.NEC s Environment Policy 3.Green Products 4.Green Purchasing and G 5.Expectations -Pacific to the Reg As Page 7

8 Business Environmental Movement Increasingly worse global environmental problems Environmentally hazardous substances (chemical substances) Global warming (climate change) Resource depletion/ waste disposal Thorough risk management - Compliance with restrictions for included chemical substances - Global warming prevention measures - Measures against soil contamination Internalization of social costs - 3R - Environmental taxes and emission credits Environment management aligned with business strategy Perfect measures as part of CSR Accountability and transparency when disclosing information - Enhance timely information transmissions Expand range of environmentally sound products - Strengthen market advantage - Strengthen brand image Establishment of recycling business system - Extend producer responsibilities - Aim at recycling businesses through production innovation Page 8

9 Environment Management Envisioned by NEC Concept of of NEC s Environment Management NEC Sustainable company management As part our business: Minimize environmental impact and environmental risks Improve resource efficiency Develop environmentallyconscious human resources Solutions Products Software/services Customers and society Reduction of environmental impact Enhancement of resource efficiency Page 9 Contribute to a sustainable society Increase of corporate value

10 NEC Environmental Management Vision 2010 CO2 Emissions Emission from Use of NEC Products (By Customers) Balance CO2 Reductions Emission through production activities Reduce CO2 emissions of of our our customers and society by by providing IT IT Solutions We will contribute to reducing CO2 emissions from our customers and society through advanced environmentally sound products and IT solutions. NEC aims the balance of CO2 emissions and CO2 reductions in FY Page 10

11 Environmental Awareness in All Business Processes Waste reduction (reduction in costs and environmental impact) Establishment of targets Eco Product standards Eco Symbol standards Development assessment: LCA Environmental engineering development Parts selection Green purchasing Energy saving No waste Reduction in chemical substances Production innovation Eco Symbol for product environmental information disclosure Reduction in packaging and using alternatives Improvement of transport efficiency Energy saving of equipment Maintenance Establishment of 3R system Provision of recycling information Development & design Material procurement Production Sales & logistics Use by customers Collection & separation IC Utilization of IT (information technology) All employees to become eco-oriented (Eco-oriented mindset, work, and lifestyle) Page 11

12 Today s Agenda 1.Company Profile 2.NEC s Environment Policy 3.Green Products 4.Green Purchasing and G 5.Expectations -Pacific to the Reg As Page 12

13 Environmental Restrictions on Products Spreading Globally from Europe RoHS ¾ Tighter regulations on use of chemical substances in particular¾ Directive (July 2006) (Administration on the EuP Directive ( ) Pollution Caused by Ele Reach 2007) Rule ( Information Products WEEE Directive (August 2005) ; March 2007) ELV Directive (July 2003) Packaging Waste Restrictions (December 1994) Netherland Cadmium Restrictions (June 1999) Korean RoHS EU (July ) 2007? China U.S. China RoHS Korea Japan California RoHS(Electronic (J-Moss= Waste Recycling Jan. ) 2007 Act; Revised Law for the P Packaging Heavy Metal Restrictions Effective (8 Utilization states) July ) 2006 Main Mercury Regulations (July 2002) Battery Directive (May 1996) Taiwan Battery Directive (January 2004) Taiwan Japan RoHS Product environmental awareness is is an important product quality! Page 13

14 Strategy on Eco Products Development Energy Saving Kyoto global warming countermeasures CO2 Reduction Law Use the new energy Energy saving technology Protocol EuP Bio Plastic Eco Plastic Hazardous Substances Reduction Hazardous substance management Abolition of the use of RoHS designated substances Lead Free VOC RoHS Material Recycle Law for Promotion of Effective Utilization of Resources Resource Recycling Home Appliance Recycling Law Halogen Free WEEE J-Moss Reach National Environmental Regulations Compliance with regulations + Establish competitive leadership through Eco products Contribute to NEC s Sustainable Growth Strategy Page 14

15 Eco Symbol; Self-declared environmental claims The objectives: to promote Eco Products development to disclose the environmental information to the customers Basic Conditions for Use of the Eco Symbol Must meet all environmental standards established by NEC Must be environmentally superior to conventional or competitors products Must assure transparency in product environmental information Standards for Environmentally Sound Products Calculate the CO2 emission for all life cycle of the products Must use a design promoting longer product life (LCA) Eco Design (consideration of Re-use, Easiness of disassembly, Recycle material usage, etc) Conduct Green Procurement in selecting the parts Product development, design and production shall be done at ISO acquired site or plant. RoHS compliant.. Page 15

16 Examples of Eco Symbol Products 3007 products of 55 products categories (as of Feb., 2006) CD-ROM Drive Multifunction Equipment Terminal Adapter Express 5800 resource resource efficiency efficiency (resource (resource conservation) conservation) Speax Mobile Phone green green materials materials (hazardous (hazardousreduction reduction Personal Computers LCD module high-performance computer istorage Personal Routers Global Global warming warming prevention prevention Ｐage 16 Energy Energyconservation conservation

17 Market-Leading Environmental Products and Branding as an Environmentally Sound Company Eco Symbol product: PCs Global warming prevention - Satisfy the international energy-saving standards (International Energy Star Program) - Conform to the Energy Conservation Law Mobile phones adopting bioplastic Adopt kenaf fiberreinforced bioplastic for the case "FOMA N701iECO" (launched on March 10, 06) Adopts lead-free solder to mount motherboard parts. Recycled plastic (front panel) Mate box-less model Resource recycling --Facilitate parts removal --Adopt recycled plastic -List materials on the product, accessories and packaging plastics. Environmental awareness --Adopt lead-free solder --Adopt halogen-free/ phosphorus-free flame retardant using plastic (NuCycle) --Chromium-free steel plates Advertisements for branding as an environmentally sound company Page 17

18 Kenaf Fiber-Reinforced Bioplastic for Mobile Phones Mar.06 Mar.06 on on sale sale FOMA N701iECO The world's first Bioplastic strengthened Kenaf fiber is used FOMA (N701iECO) A part of Earth-Conscious efforts High biomass constituent ratio approximately 90% in Plastics, the highest level in bioplastics used for electronic devices. Plant derived plastic consisting of poly lactic acid (PLA), the fiber of Kenaf and other biomass- based additives Lower use of petroleum and amount of CO2 emissions Broken down by microorganisms in the soil Mechanical strength improved by adding kenaf fiber Corn -> polylactic acid (PLA) Kenaf fiber This product is sold by NTT DoCoMo, Inc. for Japanese market only and available on March 10, "FOMA "FOMA, is a trademark or registered trademark of NTT DoCoMo, DoCoMo, Inc. in Japan and other countries. *NTT DoCoMo DoCoMo s FOMA FOMA service is only available to subscribers in Japan. Ｐage 18

19 Rental and Recycling Business Model ¾ NEC AccessTechnica: ADSL Modem Business Model ¾ Closed recycling at the Eco Park Contract informa- tion AccessTechnica Payment Contract Direct delivery Customer Direct return (%) 80 Share increase rate Development of rental business share Started rental business in June Jun. 03 Mar. 03 Sep. 04 Mar. 05 Profit and loss index Business profit and loss Improved (FY) Page 19 Environmental measures give new

20 Activities for used PC NEC is promoting the reduce of Environmental Load by the combinations of Reuse and Reduce. Reduce the Waste Recycling of resources Purchase of PC by customer Sales of refurbished PC Useful resources In Use Recycle Material Recycle Reuse Used Products Collection /Recycle Refreshing Re-purchasing Service 2003~ NEC Refresh PC Re-Installation of WindowsOS and approved software 6 months guarantee Security check Support service same as new one Software back-up service Ｐage 20

21 Today s Agenda 1.Company Profile 2.NEC s Environment Policy 3.Green Products 4.Green Purchasing and G 5.Expectations -Pacific to the Reg As Page 21

22 Green Procurement Policy Green Procurement Concept Environmentally sound suppliers Manufacturing process with low env. impact Products and materials with low env. impact Green Procurement Supplier evaluation Green certification Env. rating Awarded to suppliers who fulfill green supply criteria Suppliers are evaluated and ranked in accordance with their environmental preservation activities Page 22

23 Identification of Green Suppliers Identify with suppliers fulfill the requirements for green suppliers Env. sound suppliers Manufacturing process with low env. impact Products and materials with low env. impact Most important requirement Create an EMS Other requirements Do not use banned substances in the manufacturing process Products shall not contain any banned substances Establish a corporate framework for complete elimination of the substances Cooperate on surveys NEC achieved 100% green procurement using green suppliers in the beginning of April 2006 Page 23

24 Investigation for Chemical Substances in Products NEC is adopting the JGPSSI format as one of the investigation sheet Same substances with NEC s s guide Page 24

25 Suppliers Green Procurement Data Managing Hazardous Substance Data/ Analysis Data Green Procurement Data Base Product Data Management System BOM D/B Access /Down Load Product level Hazardous check Engineer Designer Customers Customers Page 25 Management of Eco-Action Plan Customers Internet Eco-Products information Provision Company Level Eco-Products Data Base (Eco-Portal System) Eco Assessment for all Products RoHS compliancy 3R Energy emission LCA Eco-Plastics usage Eco-Symbol compliancy.

26 Risk in RoHS Directive RoHS Directive The fact that you have contravened the law is sufficient to allow a Court to convict, even you didn t intend to do wrong or unaware of requirements Rationale by Due Diligence If one can prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence, he might be entitled to be acquitted. Company s View Company has verified as much as possible DIRECT VERIFICATION Physical Analysis Social View Verifying Method is Technically Acceptable? INDIRECT VERIFICATION Suppliers Declaration Indirect-Verification is Effective? - We must show the rationale of direct-verification methods. - We must show the rationale of indirect-verification procedure. Page 26

27 RoHS compliant procedure Environmental Hazardous Hazardous Chemical Chemical Management Process Substance Management Process Procurement Process Process -Chemical substance management in suppliers - Development Process Development Process -Database - Manufacturing Process -Change management - Pre-shipment inspection -... Emergency Responses Responses Process Process Compliance Evidence Self Declaration of Compliance Positive Proof Record Storage Compliant with EU-RoHS NEC built the Supplier Management Program for chemical substances Page 27

28 Supplier Management Program Win-Win though RoHS Activities NEC s Support is: A Technical Incentive for suppliers Valued Customers Contribution to Customer s Business The Team ( Consistent Quality Management ) NEC Supplier Process Management Review Egg Chart Page 28

29 Assessment Sheet Management System Assessment MGMT Evidence SYSTEM MFG FLOW Introduction of EHSP PMR Management Responsibility (10x) #1 EHSP Management System (5x) #2 Internal Awareness Training (5x) #3 EHSP Assessment System (5x) #4 Management of Suppliers and Sub-contractors (5x) #5 Management of Parts and Materials (5x) #6 Management of Manufacturing Process (5x) #7 Traceability (5x) #8 Chemical Analysis and Data Management (5x) #9 EHSP Information and EHSP Communication (5x) #10 Response to Non-Conformance (5x) Conformance and Readiness Review Data and Records Verification Assessment results CIP Should be Improved Page 29

30 Today s Agenda 1.Company Profile 2.NEC s Environment Policy 3.Green Products 4.Green Purchasing and G 5.Expectations -Pacific to the Reg As Page 30

31 Expectations to Asia-Pacific Region 1.Build the smooth flow of substance information, i which composes a supply 2.Reliability securing of t Page 31

32 NEC s Corporate Social Responsibility Promote CSR communications including the disclosure and accountability with multi-stakeholders CSR web site; Annual CSR Report Annual Environmental Report Page 32

33 NEC Environmental Management Vision 2010 The NEC Group aims to be a truly excellent organization, one that promotes the development of social systems, business practices and lifestyles and that contributes to achieving a sustainable society through providing IT solutions Page 33

34 Ecology through IT We are helping customers and society as a whole contribute to environmental conservation through our IT businesses. Page 34