Introduction

Purchasing Policy

The IDEC Group will make the following commitments onsourcing of tantalum, tin, tungsten, and gold in the products
manufactured by the Group.

1 The Group will not use minerals that are a source of funds

2 T he Group will make efforts to source minerals fromconflict-free smelters by performing due diligence on theorigin and distribution areas of minerals based on survey
using the CMRT (Conflict Minerals Reporting Template)
and the EMRT (Extended Minerals Reporting Template)issued by the RMI (Responsible Minerals Initiative).

GlobalBasic approach

Procurement transactions shall be conducted in compliance withlaws and regulations, and standards related to environmental
protection and proactive efforts shall be made to lessen
environmental impact through means, such as development ofenvironmental management systems together with suppliers,
thorough management of chemical substances, and promoting
recycling of resources, to procure eco-friendly materials with low
environmental impact.
CSR procurement

Sustainability Committee
Reporting

Deliberation anddecision-making

CSR activities incooperation with partners

Procurement
Department

Suppliers

Code of Conduct for Procurement Activities

Logistics StrategyDepartment

Logistics companies

1 Compliance with the Subcontract Act and other legislation

Overseas
manufacturing company
purchasing functions

Suppliers

When procuring materials, we will comply with the Act against Delay inPayment of Subcontract Proceeds, etc. to Subcontractors and otherrelated legislation.

2Sustainability
Management
Department

PDCA cycle for CSR procurement

Prohibition of abuse of dominant bargaining position

PLAN

We will not take advantage of our dominant bargaining position totreat our materials suppliers or business partners in an unfair manner.

IDEC GroupCSR Procurement Guidelines

3 Procurement activities at appropriate prices
To supply products to customers at appropriate prices, we will act toensure that we can procure appropriately priced materials, etc.

4 Prohibition of demands for entertainment and gifts
We will not demand nor accept entertainment and gifts from ourmaterials suppliers or business partners. We will not behave in a mannerthat allows our selection of materials suppliers or business partners
and our procurement activities with them to be affected by whether
or not entertainment and gifts are offered.

ACTIONIDEC

DO

Reporting results tosuppliers and requesting
improvements

Purchasing Policy
Responsible Minerals
Sourcing Policy

Supplier CSR
procurement activities

CHECK
Supplier self-assessments
and IDEC on-site audits

Data andCompany Overview

CSR procurement shall be advanced, based on consideration
for matters, such as legal and regulatory compliance, respectfor human rights, occupational health and safety, relevant efforts
for responsible minerals sourcing, environmental protection,
coexistence with society, timely and appropriate disclosure ofinformation, and protection of confidential information.

Supply and Demand
Management Department

SecretariatAuditing

Foundation for
Value Creation

66 IDEC Report 2024

Green procurement

TransformationPromotion Department

are a source of funds for armed groups, is discovered,
the Group will promptly take corrective action.

Fair and impartial
Pursuing equal opportunities for transactions, the Group will
engage in fair transactions regardless of company size ornationality. Relations shall be built based on mutual cooperationand trust through transactions reflecting comprehensive, fairevaluation of matters, such as quality, price, delivery time, stabilityof supply, and CSR.

Board of Directors
ReportingBusiness Strategy

Supply chain management in line with the concept ofsustainability—including aspects such as compliance, humanrights, labor, health and safety, and consideration for the globalenvironment—is essential for the IDEC Group to conduct its
business operations. As our basic policies on purchasing, wehave established a Purchasing Policy, a Responsible Minerals
Sourcing Policy, and a Code of Conduct for Procurement
Activities. To engage in CSR activities together with oursuppliers, who are important partners, we have publishedthe IDEC Group CSR Procurement Guidelines and IDEC Group
Green Procurement Guidelines in accordance with international
standards, and require suppliers to comply with the guidelines,perform CSR self-assessments, and conduct surveys on
conflict minerals. We also engage in “White (ethical) Logistics”
in cooperation with logistics companies.
Going forward, the IDEC Group will continue working
together with its business partners to build a strong and resilient
supply chain, and engage in more sustainable activities to fulfill
its social responsibilities.

3 In the unlikely event that the use of conflict minerals, which

SCM Division

Initiatives for
Realization of Vision

To enable global production activities, outstanding partsand materials shall be procured from global suppliers in theoptimal locations.

For the IDEC Group’s CSR procurement, the SCM Division
works in cooperation with other relevant departments todevelop plans and activities to tackle sustainability issues.
The progress of these plans and activities is reported to theSustainability Committee, which is chaired by the CEO, fordeliberation and decision-making. The content discussed isaudited by the Board of Directors.

Value Creation Storyfor armed groups in Conflict-Affected and High-Risk Areas
defined by the Organisation for Economic Co-operationand Development (OECD).

Implementation structure
Message

Supply Chain
Management

In engaging in new transactions, the IDEC Group will provide
an environment in which all suppliers can trade with it in a fairand impartial manner. To increase customer satisfaction evenfurther, it will strive to build a supply-chain management (SCM)
system on a global basis, seeking to secure an extensive rangeof suppliers around the world. Together with aiming to procurematerials with outstanding quality, cost, and delivery (QCD)
performance and low environmental impact, it also will aim torealize coexistence and co-prosperity with suppliers as goodbusiness partners, and contribute to a sustainable society.

Responsible Minerals Sourcing Policy

Introduction

Supply Chain Management

CSR activities in cooperation with suppliers

TargetResponse
companies submitted

Required

CSR Procurement Briefings
We have been holding CSR Procurement Briefings at ourhead office and at production companies in China, Taiwan,
and Thailand as opportunities to ask suppliers for theirunderstanding and cooperation with CSR procurement
since 2018.
At these briefing sessions, we interact with suppliers
through request for cooperation with CSR procurement,
introduction of products, and factory tours.

Supplier newsletters
With the aim of gaining understanding with regard to theIDEC Group and strengthening cooperation with suppliers
through dialogue, distributing information, and communication
with suppliers, the Sustainability Management Department
has been issuing a newsletter every December since 2018
and distributing it to approximately 300 companies via theProcurement Department.
In this newsletter, we present examples of CSR initiatives bysuppliers along with details of IDEC’s CSR activities, businessoverview, and new products, etc.

CSR self-assessment
We actively encourage CSR self-assessments so that suppliers
can check the progress of and make improvements totheir CSR activities. Assessment items are divided into six
categories in line with the contents of the IDEC Group CSR
Procurement Guidelines. There are a total of 34 questions,
including questions relating to human rights issues such as
child labor and forced labor, as well as considerations for theworking environment and health and safety. Each question isassessed on a five-point scale, based on the evaluation criteria.

4Supplier is engaging in most aspects of the activity.
There are also documents or record that show
partial engagement in the activity.

3

Supplier is engaging in most aspects of the activity.
There are no documents or records.

2

Supplier is hardly engaging in the activity, but will doso within around one year.

1

Supplier has no plans to engage in this activity forthe time being.

Notrequired

We conducted this assessment at all major suppliers of
IDEC Group production companies in Japan, China, Taiwan,and Thailand. We also collect good examples of activities
based on the assessment results and present them in oursupplier newsletter, and request suppliers with issues toaddress to make improvements.
Through this assessment, we are working to raise the levelof CSR at all suppliers.
Number of companies conducting self-assessments,
average assessment score
CategoryYear

Numberofcompanies

Labor

FY
2023

143

4.1

3.9

FY
2024

211

4.1

3.9

Health andEnvironment
SafetyManagement Average
SystemEthics

Product
Safety

4.0

3.9

4.2

3.6

3.9

4.0

4.0

4.1

3.6

4.0

Surveys into responsible minerals sourcing
With regard to conflict minerals, we use templates (CMRT,EMRT) issued by the Responsible Minerals Initiative (RMI)
and ask our suppliers to submit reports indicating that theirmaterials do not contain 3TG*, cobalt, or mica refined inconflict-affected or high-risk areas.
* 3TG: tin, tantalum, tungsten, and gold

EMRT (cobalt and mica)
Response
TargetResponse
ratio
companies submitted

Response
ratio

FY2023584475.9%32

2062.5%

FY2024655381.5%655381.5%

CSR activities together with logistics operators“White (ethical) Logistics”
IDEC endorsed the “White Logistics” movement being
advocated by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism, the Ministry of Economy, Trade andIndustry and the Ministry of Agriculture, Forestry and Fishers
since March 2019, submitting a declaration of voluntary action
in September 2019.
Since then, we have given extra care and consideration
to ensure that our partner logistics companies comply withlaws and regulations relating to labor issues and the cargovehicle transportation business, and have clarified andensured compliance with the contents of contracts relating
to transportation, cargo handling, and other services suchas inspection.
Specifically, we are reducing cargo handling time by using
pallets, trolleys, and containers, etc., working to separate
vehicle / machinery operation and ancillary work, shortening
cargo waiting times, implementing safety measures for cargohandling operations, and suspending operations in the eventof abnormal weather conditions.
As a cargo shipper, we will continue to work with ourpartner companies to implement work style reforms andachieve highly productive and sustainable logistics.

Data andCompany Overview

67 IDEC Report 2024

CMRT (3TG)

Foundation forValue Creation

The IDEC Group aims to help create a low-carbon,
recycling-oriented society by positioning environmental
conservation as the top priority in all aspects of its businessactivities. As part of these activities, we have publishedthe IDEC Group Green Procurement Guidelines, which
are based on both domestic and international laws andregulations relating to the environment.
The guidelines indicate items that we would like our
suppliers to work on proactively together with us, including
compliance with laws and regulations and thorough chemical
substances management, CO 2 reduction, efficient use of5IDEC Group Green Procurement Guidelines

EvidenceBusiness Strategy

Green Procurement Guidelines

Evaluation criteria

Supplier is engaging in all elements of the activity.
There are documents and records necessary forengaging in the activity.

Initiatives for
Realization of Vision

IDEC Group CSR Procurement Guidelines

Score

Number of companies surveyed for
conflict minerals (3TG), cobalt and mica

Value Creation Story

The IDEC Group complies with the laws, regulations, andsocial norms of each country, responds to the expectations
and requests of stakeholders, and engages in procurement
initiatives in accordance with international CSR standards andguidelines. Based on the IDEC Group Code of Conduct, andin compliance with the Ten Principles of the United Nations
Global Compact, the ILO international labour standards, andthe Responsible Business Alliance (RBA) Code of Conduct,
we formulated the IDEC Group CSR Procurement Guidelines
to present specific concepts, which consist of six key areas:(1) labor, (2) health and safety, (3) environment, (4) ethics, (5)product safety, and (6) management system. We have alsoestablished the IDEC Group Partner Hotline, as a contact point
for receiving consultations and reports regarding compliancefrom suppliers. (The contact information for this hotline is also
included in the guidelines.)
The IDEC Group engages in CSR procurement incooperation with its suppliers based on these guidelines.

Evaluation criteria for the self-assessment

Message

CSR Procurement Guidelines

resources, and protection of biodiversity, throughout the entire
product life cycle.