Teijin Group Slavery & Human Trafficking Statement for FY 2021

This statement is made in accordance with Section 54 of the Modern Slavery Act 2015
and covers the steps that the Teijin Group has taken during financial year from April 1,
2021 to March 31, 2022 (“FY2021”) to ensure that slavery and human trafficking is nottaking place in our business and our supply chains.
The Teijin Group recognizes that any activity of our business or our supply chainsshould not prevent anyone from enjoying human rights and, moreover, should have apositive influence on respecting the dignity and rights of all human beings. We also
recognize slavery and human trafficking are global human rights issues of our time. TheTeijin Group will continue to carry out actions to ensure that slavery and humantrafficking is not occurring in any part of our own business and in any of our supplychains.
1. Our business and organizational structure
The Teijin Group began with the establishment of Japan’s first rayon manufacturer in1918. The Teijin Group now combines wide range of businesses including aramid,carbon fibers, films and sheets, resin, composites, fibers and products converting,healthcare, IT and environment and engineering. The number of Teijin Group
companies is 169 in total, including 52 in Japan and 117 overseas (as of March 31,2022). There are 21,815 employees in the Teijin Group in total, including 9,654 in Japanand 12,161 overseas (as of March 31, 2022). Teijin Group’s net sales in FY2021 are926.1 billions of yen, 49.0% of which is overseas net sales.
For further details of the Teijin Group and our business, please visit the Teijin’s website
at the following link:
https://www.teijin.com/
2. Our policies in relation to slavery and human trafficking
In the following policies, the Teijin Group states that the Teijin Group will prevent anyslavery and human trafficking in any part of our own business and in any of our supply
chains.
Teijin Group Corporate Philosophy
Teijin Group Corporate Philosophy is “Enhancing the Quality of Life”, “In Harmonywith Society” and “Empowering Our People”. We conduct business based on thisphilosophy. The starting line of the Teijin Group’s Corporate Social Responsibility1

(CSR) is also this philosophy. We pursue CSR activities rooted in this CorporatePhilosophy.
Teijin Group Code of Conduct
The Teijin Group has established Teijin Group Code of Conduct as standard for actionthat aligns with our Corporate Philosophy.
Teijin Group Code of Conduct states “We — The Teijin Group, including its officers
and employees — act according to our conscience, with the aim of enhancing thequality of life for all stakeholders.” and “We act with integrity in compliance with laws
and regulations, and show respect for human rights and local communities in which weoperate.”
In order to better understand and practice Teijin Group Code of Conduct, we have alsoformulated How We Behave for each item of Teijin Group Code of Conduct and wehave been conducting publicity activities within our group.
For further details of Teijin Group Code of Conduct and How We Behave, please visit
the Teijin’s website at the following link:
https://www.teijin.com/about/philosophy/
Teijin Group Human Rights Policy
The Teijin Group has established Teijin Group Human Rights Policy as our basic stanceto respect every human’s dignity and rights, which is crucial for realizing the Corporate
Philosophy.
Teijin Group Human Rights Policy states “Acknowledging that it is our importantcorporate social responsibility to value human rights, we do our best to avoid direct
involvement, as well as indirectly influence through our relevant external parties, any
abuse of human rights.” In addition, we clearly state “"our relevant external parties" areall external organizations and people, including suppliers and partners, with whom werelate in our business” in our Human Rights Policy.
We also express in our Human Rights Policy that we follow the fundamental principles
described in the United Nation (UN) International Bill of Human Rights (the UniversalDeclaration of Human Rights, the International Covenant on Civil and Political Rights,
and the International Covenant on Economic, Social and Cultural Rights), and theInternational Labor Organization (ILO) Declaration on Fundamental Principles andRights at Work and we respect the UN Guiding Principles on Businesses and HumanRights and the 10 Principles of the UN Global Compact. Teijin Limited has joined theUN Global Compact since March 2011.

2

Furthermore, Teijin Group Human Rights Policy states “We develop the human rights
due diligence process to identify actual or potential negative impacts on human rightsand seek to prevent or mitigate the negative impacts.”
The Chief Executive Officer of the Teijin Group takes responsibility for implementing
this Human Rights Policy.
For further details of Teijin Group Human Rights Policy, please visit the Teijin’s website
at the following link:
https://www.teijin.com/csr/policy/human_rights.html
Policies for purchasing and procurement- Teijin Group Basic Policy for Purchasing and Procurement
Teijin Group Basic Policy for Purchasing and Procurement states “The Teijin Group
promotes purchasing and procurement from suppliers that respect human rights and do
not commit human rights infringements such as unjust discrimination, slave labor,forced labor, child labor, human trafficking, etc.”- Teijin Group Basic Stance of Persons in Charge of Purchasing and Procurement
We have also determined Teijin Group Basic Stance of Persons in Charge of Purchasing
and Procurement that describes in specific terms how purchasing and procurement
personnel should behave. Teijin Group Basic Stance of Persons in Charge of Purchasing
and Procurement states “Purchasing/procurement personnel do not force inappropriate
transaction terms on suppliers nor force them to accept unreasonably low prices, etc.
and promote purchasing and procurement from suppliers that respect human rights anddo not support forced labor or long working hours.”- Teijin Group CSR Procurement Guidelines
In accordance with Teijin Group Basic Policy for Purchasing and Procurement, we have
prepared Teijin Group CSR Procurement Guidelines including items relating to humanrights, such as forced labor, child labor and young workers, foreign workers, working
hours and holidays, wages and welfare benefits, discrimination, harassment, freedom ofassociation, consideration for local communities, contact point for consultations andinternal reporting and responsible supply chain promotion. The Teijin Group isrequesting our suppliers to conduct activities in compliance with our Guidelines.
For further details of Teijin Group Basic Policy for Purchasing and Procurement, TeijinGroup Basic Stance of Persons in Charge of Purchasing and Procurement and TeijinGroup CSR Procurement Guidelines, please visit the Teijin’s website at the followinglink:
https://www.teijin.com/csr/social/purchase_procurement/procurement.html

3

3. Our steps to ensure that slavery and human trafficking is not taking place
Human rights due diligence
In accordance with our Human Rights Policy which states the human rights due
diligence, since FY2018, the Teijin Group has begun activities to build a process forhuman rights due diligence and to understand the negative impact and risks to humanrights due to the activity of our business or our supply chains.
As initiatives in the first fiscal year (FY 2018), the Teijin Group has conducted a survey
with the support of an external NGO in order to sort out the types of human rights issues
that could be considered for each our business, and to identify places where such issuesmight become apparent. The businesses targeted by this survey is a total of 11
businesses: aramid fibers, carbon fibers, resin, film, composites, fibers and products
converting, medicines, at-home medical treatment, IT, material new business andhealthcare new business. As a specific survey method, we quantitatively analyzed thehuman rights issues risk in each of the above 11 businesses, from the two perspectivesof “country / region” and “business contents”, based on the characteristic of each of theabove 11 businesses (country / region of operation and business contents etc.) and thecharacteristic of our suppliers of each businesses (place of operation, types of theirproducts and business contents etc.). Through this survey, we have confirmed that in thebusiness of fibers and products converting, human rights issues are most likely to takeplace, particularly in the countries of Myanmar, China, Vietnam and Thailand. Based on
the result of such survey, we continue to promote improvement in the business of fibersand products converting as a high priority business.
In FY 2021, through regular dialogues with the external expert of the fields of “Businessand Human Rights”, we have confirmed that we have the following three areas that areconsidered to have a significant negative impact and risks to human rights when and if
the problems become reality: (i) in the business of fibers and products converting, theworking environment at the contractors to whom we outsource sewing processing, (ii)in the pharmaceutical business, the working environment at the drug substancemanufacturer of febuxostat, the active ingredient of FEBURIC®, our therapeutic agent
for gout and hyperuricemia and (iii) in each business, the working environment for
migrant workers, especially employed at Teijin Group’s overseas bases. In these areas,
we have been already promoting efforts to respect human rights, we will continue topromote investigation and improvement as high priority areas.
For further details of Teijin Group human rights due diligence, please visit the Teijin’s
website at the following link:
https://www.teijin.com/csr/human_rights/initiatives.html
Responsible supply chain promotion
The Teijin Group conducts the following activities for responsible supply chain
promotion in cooperation with our suppliers.
4

- Teijin Group supplier surveys
We have developed and launched an original system for surveying and rating oursupplier’s status of efforts on CSR. The system utilizes a questionnaire to confirm
whether or not suppliers are complying with the Teijin Group CSR Procurement
Guidelines, and the results are used to determine their place in a 5-level ranking system.
In addition, we conduct detailed interviews, etc., as necessary, based on the contents ofeach supplier’s response to such survey, and request the suppliers that we consider to beat risk to create an improvement plan and we check their implementation status andprovide necessary support. We also conducted such survey in FY2021 and wereconcerned about the responses of 51 companies in Japan and overseas to the questions
regarding human rights issues such as not employing children under the age of 15 years
and not allowing young workers to engage in late-night work or overtime work.
Accordingly, we conducted detailed interviews directly with such 51 companies andhave confirmed, for 48 companies of them, that slavery, human trafficking and otherhuman rights risks do not actually occur. Regarding the remaining 3 companies, wecould not confirm the same within FY2021. Therefore, we are working on theconfirmation these 3 companies’ actual situation.
- Compliance surveys using database
We are considering incorporating a database-based compliance survey of supplier inpreliminary surveys when selecting new suppliers and in monitoring surveys to confirm
that human rights risks do not occur at existing suppliers. In FY2021, we started to
conduct trials of such compliance surveys of our suppliers using the database.
- Efforts in the business of fibers and products converting
In the business of fibers and products converting, we are making further efforts.
Teijin Frontier Co., Ltd. (“Teijin Frontier”), a Teijin Group company with an integrated
value chain from material development/procurement to product realization operating ona global scale, in the business of fibers and products converting, has created an originalStandards for Sustainable Procurement in Japanese, English and Chinese and sends it toits suppliers in Japan and overseas that conduct transactions on a continuous basis. InFY2021, Teijin Frontier has continued to send its Standards for SustainableProcurement to new suppliers including suppliers of the subsidiaries of Teijin Frontier.
In addition, based on the results of the above Teijin Group supplier surveys, Teijin
Frontier requests its suppliers to cooperate in on-site-survey. In FY2021, Teijin Frontier
could not actually visit to some factories due to the influence of COVID-19, but in thatcase, Teijin Frontier conducted actual condition surveys using a remote conference
system to the extent possible. Consequently, Teijin Frontier was able to conduct actualcondition surveys of 15 processing or sewing factories etc. in Japan and overseas,including remote surveys.
In addition, since 2014, Teijin Frontier has been holding a CSR Supply Chain Seminar
every year for local processing, sewing and embroidery factories, material
manufacturers, etc. with the aim of enforcing legal compliance and the protection of5human rights. In FY2021, Teijin Frontier held such seminars for Vietnam, China andJapan respectively, using a remote conference system due to the influence of COVID-19.
The Teijin Group believes it is important to raise awareness of CSR procurement locallyon an ongoing basis.
- Efforts with foreign technical intern trainees in the business of fibers andproducts converting
The business of fibers and products converting, which has adopted foreign technicalintern trainees by utilizing the foreign technical intern training system for years,
conducted its internal survey and found the fact that the foreign trainees have come to
Japan by paying a large fee to the sending agency in their own country. To improve this,
Teijin Frontier has launched so called, ‘ZERO-FEE PROJECT’ which would eliminate
the foreign trainee's fee burden by having the factory that accepts the foreign trainee pay
such fee from FY2019. Subsidiaries of Teijin Frontier that accept the foreign trainee
have established a Code of Conduct regarding Foreign Workers and informed thesupervising organization, and from FY2020, such subsidiaries have born such fee
required for sending foreign trainees. In order to secure this ZERO-FEE, such
subsidiaries have decided to accept foreign trainees from the supervising organizationthat discloses the information on fees at the sending agency. Such subsidiaries also
confirm directly with the foreign trainees that they have not paid such fees.
For further information of the Teijin Group responsible supply chain promotion
activities, please visit the Teijin’s website at the following link:
https://www.teijin.com/csr/social/purchase_procurement/procurement.html
Whistle-blowing
Since 1999, the Teijin Group has established counseling and reporting center for all
Teijin Group company employees. As of FY2021, such procedures are available in 18
languages of the Teijin Group’s major bases.
We also have the reporting desk on the Teijin’s website to receive notifications fromother than the Teijin Group company employees, such as suppliers.
In addition, since FY 2021, in cooperation with our suppliers, we have begun
considering establishing the dedicated reporting desk for receiving reports from theemployees of our suppliers.
For further information of the Teijin Group whistle-blowing procedures, please visit theTeijin’s website at the following link:
https://www.teijin.com/csr/materiality5/compliance.html

6

Training
The Teijin Group has been holding the Corporate Ethics Workshop every year during
Cooperate Ethic Month (October) targeting all executives and employees (including
contract/temporary employees) of our group. Our corporate ethics workshop includes
case studies and group discussions. We have been deepening the understanding of thepolicies of the Teijin Group on human rights through this workshop. In FY2021, we
conducted this workshop utilizing a remote conference system in consideration of thesituation of COVID-19.
For further information of the Teijin Group training, please visit the Teijin’s website atthe following link:
https://www.teijin.com/csr/materiality5/compliance.html
EffectivenessIn FY 2021, continuing from the previous year, we held dialogues with the leading
experts who active in the fields of “Business and Human Rights”, as part of reviewing
the method and results of human rights due diligence in our group, confirming its
effectiveness, and considering our policy for future efforts. In such dialogues, we
received good evaluation that the commitment of the Chief Executive Officer and theboard of directors is clear and our attitude of exploring new issues and constantly
responding to changes is excellent. On the other hand, we were pointed out that
understanding of issues by combining human rights and the environment is an urgent
issue and it is necessary to identify such issues and take measures from that perspective.
We also received the comment, from the external expert of the fields of “Business andHuman Rights” with whom we have regular dialogues, that the Teijin Group isadvancing human rights due diligence process in stages for the entire Teijin Groupconsidering the characteristics of its diversified and global business structure. Inaddition, they also commented that they hope the Teijin Group will appropriately deal
with, monitor and disclose information if there is any content that needs any
improvement regarding the three areas (*) extracted in such due diligence process.
* Refer to the three areas mentioned in the section of Human rights due diligence.

In order to assess the effectiveness of the steps we are taking to ensuring that slavery
and human trafficking is not taking place in our business or supply chains, we willcontinue to (i) conduct the human rights due diligence survey periodically, (ii) review
the results of the surveys of our suppliers and (iii) monitor the number and the contentsof reports made through the whistle-blowing procedures from employee, suppliers orothers who convey concerns about slavery and human trafficking.

7