Respectable Procurement

Purchasing Way

Nissan Shatai aim to achieve sustainable, profitable growth by developing a relationship with suppliers based on mutual trust and benefit. Through a productive dialogue and capitalization on ideas and recommendations identified with suppliers on a level-playing field, we are able to integrate industry best practice and endeavor to stay ahead of the fierce competition within the automobile sector. Nissan shatai operates using a fair and transparent process to select suppliers, providing a wide range of opportunities for companies to do business with us, irrespective of their nationality, size or our past business relations. External control of our business practices is ensured through close communication in our day-to-day dealings with suppliers, as well as the regular exchange of ideas through meetings and surveys. We maintain the highest standards of impartiality and fairness in all our business transactions.

Green Purchasing Guideline

A variety of environmental challenges--climate change, pollution and scarcity of natural resources-- now effect our entire world. It has become crucial for every individual in the world as well as business entities, governments, on-governmental and non-profit organizations to think and act proactively in order to address these challenges.
Nissan Motor Co. Ltd. (Nissan) has promoted environmental impact reduction through actions such as quality control and substance management in cooperation with our entire supply chain, by sharing the value of Nissan’s procurement policy and environmental philosophy with suppliers. Nissan conducts surveys of suppliers’ actions related to CO2 reduction, setting science based targets, and ensuring proper management of substances by suppliers for parts and materials through their compliance with "Nissan Green Purchasing Guidelines", as well as with "Alliance Nissan Product Quality Procedure" (NPQP) and "Restricted Use of Substances" of Nissan Engineering Standard. These guidelines and standards are based on "Nissan Supplier Sustainability Guidelines" and "Nissan Green Program (NGP)"

Dependence on and impact of depletable energy sources in our business activities

Throughout each stage of our business activities, from vehicle development, procurement of raw materials and parts, and production, to logistics and shipping, the Nissan Shatai Group depends on electricity, fuel, and raw materials derived from depletable energy sources such as coal, oil, and natural gas. We recognize that the use of these resources generates emissions, including greenhouse gases (CO2), and places a certain burden on the global environment, including effects on climate change and the atmospheric environment. In addition, the progression of climate change may also affect the Group’s business activities, through more severe abnormal weather, an increase in natural disasters, rising energy costs, and greater risk in the procurement of raw materials. For this reason, we believe it is important to continuously reduce energy use and greenhouse gas emissions in our business activities in order to achieve both a sustainable society and enhanced corporate value. Based on this understanding, the Nissan Shatai Group is working to identify and evaluate its dependence on depletable energy sources through its business activities and the resulting environmental impact, while also promoting initiatives toward achieving carbon neutrality.

Dependence on and impact of non-renewable energy in automobile manufacturing

Value
Chain
Process Business Activities Dependencies Impacts
Upstream Development Design and testing of vehicles (commercial vehicles and premium cars) ·Electricity (IT infrastructure such as CAD/CAE/analysis servers, test facilities)
·Gas and water (test facilities)
·Materials/supplies (test vehicles, prototype parts, raw materials)
·GHG emissions associated with electricity use
·Resource consumption in prototype production
·Fuel consumption from test‑vehicle driving
·Noise and vibration generated by operation of test facilities
Design and testing of Specially Equipped Vehicles
Procurement Procurement of raw materials required for manufacturing automotive parts ·Logistics infrastructure (ports, roads, vessels)
·Fuel for transportation (diesel, gasoline, etc.)
·Resources such as steel, aluminum, copper, resins
·CO2 emissions during transportation
·GHG emissions from raw‑material production
·GHG emissions and waste generation associated with parts manufacturing
Procurement of parts from suppliers
Downstream Production Production of vehicles and parts ·Electricity and gas (equipment used in plant operations)
·Industrial water and tap water
·Chemical substances such as paint, welding materials and lubricants
·GHG emissions associated with energy use
·Generation of wastewater
·Generation of industrial waste
·Generation of noise, vibration and odor
Body building of Specially Equipped Vehicles ·Body‑building parts, electricity, auxiliary materials (adhesives, paints, etc.)
Logistics / Shipping Shipping of finished vehicles and service parts ·Logistics infrastructure (ports, roads, vessels)
·Fuel for transportation (diesel, gasoline, etc.)
·Packaging materials
·CO2 emissions during transportation
·Generation of noise
·Resource consumption due to use of packaging materials and generation of packaging waste
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