Toyodenso
Supplier Sustainability
Guidelines

Toyodenso Co., Ltd.
April 20241Table of Contents
Ⅰ. Introduction

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Ⅱ. Purchasing Basic Policy

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Ⅲ. Operation of these Guidelines

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1.

Safety and Quality

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2.

Human Rights and Labor・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7

3．Environment

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4．Responsible sourcing of minerals

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5．Compliance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10

6．Risk Management

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12

7．Information Disclosure

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8．Social Contribution

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9．Self and Supplier Development
Ⅳ. Supplier Self-Inspection

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・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13[Consideration on Gifts and Entertainment]

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Ⅰ．Introduction
The environment surrounding companies is undergoing rapid changes, such as global
virus outbreaks, conflicts, and climate change. Despite such situation, we have strived
to fulfill our corporate social responsibility of consistently producing and providing safe,
high-quality products in a safe manner, with the cooperation of our valued partners likeyourselves.
Previously, we have issued the "Supplier CSR Guidelines" in 2016 and revised themover time. Furthermore, in 2020, we introduced the "Supplier SDGs Guidelines" tofurther clarify the expectations we wished you to understand.
However, due to the recent rapid changes in societal conditions, the objectives wemust achieve together with our partners are constantly evolving.
Therefore, we have integrated the previous "Supplier CSR Guidelines" and "SupplierSDGs Guidelines" into the newly revised "Toyodenso Supplier Sustainability Guidelines,"
incorporating new content.
In November 2022, when our 75th anniversary, we revisited our founding spirit,
reaffirmed our corporate philosophy, and redefined it as follows: "We, by cherishingharmony, contribute to the future society by providing products full of dreams withreliable technology." We believe that the achievement of this corporate philosophy
relies not only on us but also on the understanding and cooperation of all stakeholders.
Once again, we kindly ask our valued partners to understand the essence of theseguidelines, implement them within your company, and request similar understanding
and cooperation from your suppliers.

3Ⅱ．Purchasing Basic Policy
To achieve our corporate mission, which is our corporate philosophy ”Harmony is thekey to our philosophy, with safe and reliable technology, Products inspired from ourdream, we will contribute to the society of the future”. We conduct business activities
not only with customers who use our products but also with our partners whocooperate with us.
Therefore, our purchasing department actively seeks and supports those suppliers whoexcel in global quality, cost, delivery, technology, environment, and ethical procurement,
and starts transactions with suppliers who meet our standards based on thesefundamental principles.

April 2024
Production Department, Purchase Department

4Ⅲ. Operation of this Guideline
This guideline is organized alongside not only the corporate philosophy, code of conduct,human rights policy, and environmental declaration of the Toyodenso Group, but also
consolidates the content that our trading partners are expected to adhere to,referencing internationally recognized norms and frameworks such as the International
Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work,the Universal Declaration of Human Rights and International Human Rights Treaties,
the United Nations Guiding Principles on Business and Human Rights, and the OECD
Guidelines for Multinational Enterprises. aiming for compliance with our trading
partners.
＜Scope of Application＞
This guideline applies to all suppliers including those involved in the procurement ofproducts, materials, raw materials, and services by our company. In this guideline,"employees" refer to directly employed personnel such as regular employees, contract
employees, part-time workers, temporary staff and part-time workers, while "workers"
encompass indirect employees including dispatched workers and subcontractedlaborers.
＜Request Items for Operations＞
1) Establishment of Management Structure
To promote efforts corresponding to the sector-specific requirements of this guideline,
we ask you to establish an internal structure and strive for continuous improvement
through appropriate operation.
2) Supply Chain Management
Please ensure that your company's policies, standards, and guidelines, including thosethat incorporate the content of this guideline, are disseminated to your suppliers(including subcontractors and subcontracted companies), and make efforts tounderstand the actual situation of suppliers and initiate corrective actions if issues arise.
3) Confirmation of Response Status
The Response status with this guideline may be confirmed through monitoring surveys
conducted by our company in the future (including self-assessment surveys, on-site
inspections, third-party audits, etc.). Monitoring surveys aim not only to identify
potential risks but also to enhance the sustainability of the entire supply chain throughcontinuous dialogue and collaboration, including the sharing of exemplary practices.
5

We ask all our trading partners to create and maintain documents and records todemonstrate their activities. Moreover, as part of monitoring, we may request
disclosure and sharing of these documents and records from our company and/or third
parties designated by us, conduct on-site inspections, and carry out interviews withworkers. If any issues contrary to this guideline arises, we request prompt reporting toour company and efforts towards improvement.
4) Agreement to this Guideline
Our company commits to compliance with this guideline throughout the entire supply
chain supporting manufacturing. We ask all our trading partners to thoroughly readand understand this guideline and collaborate with us in promoting initiatives together.
All trading partners who receive this guideline are requested to confirm their agreementwith our company's principles and sign and submit the designated form for compliancewith the requirements of this guideline regarding all products and services supplied toour company.

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1 ．Safety・Quality
1.1 Provision of Products that Meet Customer (Client/Consumer) Needs
Understanding customer (client/consumer) needs and developing/providing socially
useful products.
※Socially useful products refer to products that are easy to use for anyone regardlessof age, gender, disability, etc., which Easy to use for everyone or environmentallyfriendly products such as energy-saving, resource-saving, and environmental
conservation products.
1.2 Provision of Appropriate Information on Products/Services
Providing appropriate information about products/services to client / consumers.
1.3 Ensuring Product/Service Safety
Producing/providing products that comply with safety regulations established in eachcountry/region.
1.4 Ensuring Product Quality
Establishing and operating a company-wide system to ensure quality.
2 ．Human Rights・Labor
Basic policy of Toyodenso
Toyodenso has established the "Toyodenso Group Human Rights Policy"(hereinafter referred to as "this policy") based on the corporate philosophy ofvaluing "WA”, which means harmony. This policy applies to all officers andemployees of the Toyodenso Group. We expect understanding and support fromour trading partners and business partners.
2.1 Prohibition of Discrimination
In all employment situations, discrimination based on race, ethnicity, nationality,religion, gender, or any other grounds is prohibited.
※In all employment contexts, this includes but is not limited to recruitment, hiring,promotion, compensation, termination, assignment of tasks, and disciplinary actions.
2.2 Prohibition of Harassment
Not only within the workplace but also in the advancement of business objectives,
harassment in any form against any party is not tolerated.
2.3 Prohibition of Child Labor
We do not permit the employment of children who have not reached the legal working
age as defined by the laws and regulations of each country or region. ※The legal
working age generally refers to the age specified in conventions or recommendations
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of the International Labor Organization (ILO) (ILO Convention No. 138: Principle 15years old).
2.4 The Prohibition of Forced Labor, Modern Slavery, and Human Trafficking.
We ensure that all labor is voluntary and that employees are free to resign, and we donot engage in forced labor, slavery, or human trafficking.
2.5 Wages
We adhere to the laws and regulations of each country or region regarding minimum
wage, overtime work, wage deductions, piece-rate wages, and other benefits.
※Minimum wage refers to the level set by wage-related laws and regulations in therespective country.
2.6 Labor Hours
We comply with the laws and regulations of each country or region regarding thedetermination of employees' working hours (including overtime), as well as thegranting of holidays, annual paid leave, and other related matters.
2.7 Dialogue and Consultation with Employees
We recognize the right of employees to freely associate or not associate in accordancewith the laws and regulations of each country or region. Additionally, we engage insincere individual and/or collective negotiations through dialogue and consultation with
employees directly or through their representatives on matters mutually affecting theworkplace, such as wages and other working conditions.
2.8 A Safe and Healthy Working Environment
We prioritize ensuring the safety and health of employees in the performance of theirduties and strive to prevent accidents and disasters.
2.9 Human Resource Development
We support employee career development and skill enhancement through humanresource development.
3 ．Environment
Basic Policy of Toyodenso
To promote harmony with nature and the environment as part of our corporate
philosophy, Toyodenso establishes the ' Toyodenso Group Environmental
Declaration'and'Toyodenso

Group

Environmental

ActionChallenge'(hereinafter referred to as 'this policy') with the aim of achieving carbon
neutrality by 2050. We hope for the understanding and support of our business
partners and customers for this policy.
83.1 Environmental Management
To promote a wide range of environmental activities, we comply with the laws andregulations of each country or region and establish a company-wide management
system to continually operate and improve.
3.2 Reduction of Greenhouse gas Emissions
To contribute to the prevention of global warming, we manage greenhouse gas
emissions in our business activities and promote reduction efforts. Additionally, westrive for the efficient utilization of energy.
3.3 Prevention of Environmental Pollution in the Atmosphere, Water, Soil, etc.
Compliance with laws and regulations concerning pollution prevention in theatmosphere, water, soil, etc. in each country or region, along with continuous
monitoring and reduction of pollutants, to prevent environmental pollution.
3.4 Resource Conservation and Waste Reduction
Reduce consumption of natural resources (such as water and energy), while complying
with laws and regulations regarding proper waste disposal, recycling, etc., in eachcountry or region, and strive to reduce the amount of waste through effective resource
utilization.
3.5 Chemical Substance Management
We ensure the safe management of chemical substances with potential forenvironmental pollution. For products, we ensure compliance with regulations in eachcountry or region by excluding chemicals prohibited by local laws and regulations. In
manufacturing processes, we refrain from using banned chemicals and adhere toregulations by monitoring emission levels and reporting to authorities as required.
3.6 Biodiversity conservation
We understand the importance of biodiversity conservation and take maximum care.
3.7 Data Collection and Progress Reporting
We provide as much information as possible regarding the status of initiatives andacquired data related to environmental activities in response to requests from ourbusiness partners, including our company.
4. Responsible Sourcing of Minerals
We do not use minerals that could serve as a source of funding for armed groups in
conflict regions, or that could lead to human rights abuses and environmental pollution.
In the procurement of mineral resources used in our products (such as conflictminerals(※) and cobalt), we engage with suppliers who refrain from using minerals
that pose risks to human rights and environmental pollution, and who engage in9

conflict-free refining and processing. Additionally, we conduct investigations into theseissues within our supply chain."※Tin, tantalum, tungsten, gold
5．Compliance
5.1 Compliance with Laws
We comply with laws and regulations in each country and region. To ensure thoroughcompliance, we establish and implement company-wide policies, systems, andmechanisms such as codes of conduct, reporting systems, and education.
5.2 Compliance with Competition Law
We comply with competition laws in each country and region (such as the Antimonopoly
Act and Subcontract Act in Japan), and do not engage in acts such as privatemonopolization, unfair trade practices (cartels, bid rigging, etc.), unfair trading
methods, or abuse of dominant positions.
※A cartel refers to agreements among competitors regarding product prices, quantities,
sales territories, etc.
※Bid rigging refers to agreements among bidders to determine the winning bidder orbid price.
※Abuse of dominant position refers to the unilateral determination or modification oftransaction terms, imposition of unreasonable demands or obligations on trading
partners, etc., utilizing the position of purchaser or contractor.
5.3 Prevention of Corruption
We do not engage in any form of corrupt behavior, including bribery, collusion, money
laundering, fraudulent accounting, embezzlement, etc., and do not facilitate suchcorrupt acts through third parties. Political contributions and donations are made inaccordance with the laws and regulations of each country and region, and efforts are
made to establish healthy and normal relationships with politics and administration. No
entertainment, gifts, monetary exchanges, or favors are provided or received to obtainor maintain unfair advantages or preferential treatment through conflicts of interest
transactions or business partners.
5.4 Protection of Whistleblowers and Reports
Protection of whistleblowers and reports
We create an environment conducive to internal whistleblowing, and internal
whistleblowers are protected from retaliatory actions such as dismissal by the employer,
10as internal whistleblowing is considered a legitimate act.
5.5 Management and Protection of Confidential Information
We obtain and manage customer, supplier, third-party, and employee personal
information, as well as confidential information from customers, suppliers, and thirdparties, through legitimate means. We handle this information with strict confidentiality,
use it within appropriate boundaries, and protect it.
5.6 Export Trade Management
We conduct appropriate export procedures and management for the export of goods
and technologies regulated by laws and regulations in each country and region.
※Goods and technologies regulated by laws and regulations in each country and region
refer to components, products, technologies, equipment, software, etc., subject toexport regulations based on international agreements and other regulations.
5.7 Protection of Intellectual Property
We protect our own intellectual property rights and those belonging to us, and refrainfrom obtaining or using third-party intellectual property rights through illegitimate
means or infringing upon them.
※Infringement of intellectual property rights refers to the unauthorized infringementof patents, utility models, designs, trademarks, copyrights, etc. This includes illegal
replication of computer software and other copyrighted materials, as well as the illegal
acquisition and utilization of third-party trade secrets.

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6．Risk Management
6.1 Risk Management Framework
We analyze the risks associated with corporate activities and establish and operate acompany-wide management framework.
6.2 Development of Business Continuity Plan
We developed a Business Continuity Plan (BCP) for prompt recovery in response todisasters or accidents.
※A Business Continuity Plan (BCP) refers to a plan aimed at ensuring that criticalbusiness functions continue without interruption even in the event of a disaster oraccident, and to expedite resumption if interruption occurs. This involves theformulation of plans, training, and periodic reviews to establish necessary mechanisms
for business continuity.
7．Information Disclosure
7.1 Disclosure of Information to Stakeholders
We endeavor to disclose information such as financial status, performance, andbusiness activities to stakeholders (interested parties) in a timely and appropriatemanner and strive to maintain and develop mutual understanding and trust withstakeholders through open and fair communication.
8. Social Contribution
8.1 Contribution to the Community
We continue our activities towards building a better future society, including
engagement in activities within the local community where our business operates.
9 Self and Supplier Deployment
9.1 The Framework and Implementation of Sustainable Activities Within OurCompanyWe establish and appropriately implement company-wide policies, structures, codes ofconduct (guidelines), and educational mechanisms for the deployment of sustainable
activities within our company.
9.2 The Framework and Implementation of Sustainable Activities from Our
Company to Our Suppliers
We strive to understand the actual implementation of sustainable activities by oursuppliers and provide education and support as necessary.
129.3 Approaches and Policies Towards Suppliers
When building positive relationships with suppliers, we establish internal regulations
and conduct ongoing efforts based on principles of 'fairness' and 'impartiality', striving
to lead by example.
Ⅳ．Supplier Self-InspectionFor sustainable initiatives, we encourage all our business partners to conduct self-audits(assessments) and voluntarily make necessary improvements. To facilitate this process,please utilize our guidelines provided for your reference.
【Consideration on Gifts and Entertainment】
To establish a healthy and positive business relationship with our business partners,
employees are prohibited from requesting or hinting at any gifts, entertainment, orsocializing from our business partners.
Furthermore, we prohibit accepting any gifts, entertainment, or socializing from ourbusiness partners that exceed the bounds of social norms. We appreciate yourunderstanding and cooperation in this matter.
Specifically, we prohibit the following gifts, entertainment, and socializing:(1) Prohibition of dining entertainment from business partners except for companydesignated events.
(2) Prohibition of golfing, traveling, and other activities with business partners except
for company-designated events.
(3) Prohibition of accepting gifts from business partners.
(4) Prohibition of receiving monetary gifts, checks, gift certificates, and similar items
from business partners.
(5) Prohibition of acquiring stocks based on undisclosed information or insider
information from business partners.
(6) Prohibition of receiving discounts on products through arrangements made bybusiness partners.
(7) Prohibition of receiving any other personal benefits from business partners.
Sincerely13