Teijin Group Sustainability Website Content 2022

Sustainability

Materiality 5 Further Strengthening of Our
Sustainable Management BaseWe will tackle the strengthening of our management base, which is the foundationstone toward the realization of our long-term vision of being a company that supports
the society of the future.
In our long-term vision, the Teijin Groupadvocates being a company that supports thesociety of the future. We have designated thethree years from FY2020 to FY2022 as a period for
creating growth platforms toward sustainablegrowth. We aim to achieve growth by creating
and providing value in three fields of business—environmental value solutions; safety, security,and disaster mitigation solutions; anddemographic change and increased healthconsciousness solutions.
Such growth cannot be realized without asustainable management base. Therefore, we will
endeavor to build an environment in which
diverse human resources, the driving force
toward the realization of our long-term vision, canbe active and to train such human resources; tostrengthen corporate governance, which isessential for sound and sustained growth; topromote corporate ethics and complianceactivities as the basis of trust; to respond properly
to various risks; to ensure information security,
which is becoming increasingly important in the IT
society; to engage in responsible procurement
and manufacturing to gain customer trust; and to
give due consideration to the environment,
security and disaster prevention, and health.

Teijin Group Sustainability Website Content 2022

Diversity and Inclusion

Corporate Governance

Promotion of Diversity & Inclusion
Human Resources System and Global Human
Resources Recruitment
Human Resources Development and Global
Talent Management
Workstyle Reform and Work-Life Balance

Corporate Ethics andCompliance
Promotion System
Main Activities
Security Export Control

Risk Management
Total Risk Management (TRM)
Risk Recognition
Status of Business Operations Risk Responses andBusiness Continuity Plans

Information Security andPersonal Information
Protection

ESH Management Activities

Security, Disaster Prevention,
and Occupational Safety
Activities

Health Management

Security and Disaster Prevention
Occupational Safety

Teijin Group Sustainability Website Content 2022

Product Liability and Quality
Assurance

Supply Chain Sustainability

Product Liability / Quality Assurance System

CSR Procurement

Current status of certifications

Green Purchasing

Basic Policy for Purchasing and Procurement

To All Our Suppliers

Social Contributions
Basic Policies for Social Contribution / Promotion
Systems
Expenses of Social Contribution Activities
Supporting the Development of Local
Communities
Fostering Volunteer Personnel
Supporting for Areas Affected by Disaster

Related information
Materiality and KPIs

Teijin Group Sustainability Website Content 2022

Sustainability

Diversity and Inclusion
The Teijin Group fosters a corporate environment that makes use of employee diversity
and facilitates the continuous creation of new value required by society, promotes
diversity and inclusion, and seeks to carry out various work styles that will achieve
this.
To promote our business activities globally, it is essential to make full use of the abilities of diverse
human resources who differ in race, religion, gender, cultural background, or other attributes. To
invigorate the Teijin Group’s organization and accelerate innovation, we will further promote diverse
workstyles, the advancement of women, and diverse human resources. Through these efforts, we aim
to be an organization that can leverage the capabilities of human resources with various values andexperience to the greatest extent possible, and that can spur diverse collaborations.

Promotion ofDiversity &Inclusion

Human Resources
System and Global
Human Resources
Recruitment

Human Resources
Development andGlobal TalentManagement

Workstyle Reformand Work-Life
Balance

Promotion of Diversity & Inclusion
The Teijin Group has maintained the belief that making full use of the abilities of diverse humanresources helps enhance its creativity and promote innovation. Since establishing the Diversity Office in
2000, we have been actively engaging in such efforts as recruiting global personnel and promoting theadvancement of women.
In light of the globalization of our businesses, we are currently expanding these efforts on a worldwide
basis. Under our Medium-Term Management Plan 2020-2022, we have created regional strategies that
address the issues in each region of operation and established group-wide diversity and inclusion KPIs
as follows.
Main Actions

Teijin Group Sustainability Website Content 2022
KPIs

Femaleexecutives

October

April

April

April

April

April

2019*62020*62021*62022*62023*6(Milestone)

2031*63

4

4

5

6 or more

10 or more

3

5

5

4

6 or more

12 or more

117

127

143

162

174

2

2

2

3

4

10

0

1

1

3

3

10

-

4*7

4

7

9

12

-

5*7

5

7

5 or more

8 or more

Diversity of executives*1
NonJapanese
executives

Japan*3

Managers (orhigher)Key goals for
women’s

U.S.

SeniorEU

Global core

China

Senior

ASEAN

Senioradvancements*2

managers*4

talent*5

managers*4

managers*4*1

Board of Directors, statutory auditors, Group executive officers, and Group corporate officers.

*2

Key goals are set based on regional situations (Targets in China and ASEAN were set in September 2020).

*3

Major subsidiaries in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., Infocom Corporation*4

President or his/her direct report in a Group company.

*5

Female senior managers selected and certified as executive candidates.

*6

As of October 1 and April 1, respectively.

*7

As of August 1, 2020, the most recent data at the time when KPIs were established.

300 ormore

Teijin Group Sustainability Website Content 2022

Power of culture project
The Teijin Group maintains the belief that corporate culture has a close relationship with innovation.
Guided by this belief, we aim to foster a new corporate culture that is agile, innovative, and inclusive. To
that end, we launched an initiative to transform our corporate culture, the "Power of Culture Project,"
in September 2020. Under this project, we aim to clarify the desired corporate culture for the Groupand promote reforms geared toward realizing that culture.
As the first stage of this project, in FY 2020 all corporate officers in Japan and overseas gathered
together to discuss the kind of new corporate culture we should foster and what actions need to be
reinforced to foster such a culture. As a result of this discussion, the Group's management agreed to
the new Teijin Group Leadership Charter, thereby demonstrating its commitment to reform.
In FY2021, we held a series of workshops in Japan and overseas, for general managers and core talentbelow executive level. First, we formulated our own commitments through an understanding thedirection of the transformation based on the Leadership Charter as well as the need for it. A few
months later, we shared with each other the status of the implementation of the commitments we had
made. We expect the introduction to the senior management to be almost complete by the end of thethree-year plan at the end of FY2022.

Designing the future award
In FY2021, we established the "Designing the Future Award" to commend outstanding initiatives thathave yet to show economic effects in the three domains of "Diversity and Inclusion," "Innovation," and"Sustainability."
The award is open to all Teijin Group employees. In the first year 58 applications were received globallyand five awards were conferred after two rounds of screening. More than 120 people participated fromall over the world in the online award ceremony. The ceremony also featured a demonstration of theexecutive team's commitment in actively supporting challenges the employees take on.
We are committed to building a corporate culture that promotes collaboration among organizations
and innovation creation while also sharing these values within the Group and globally.

Teijin Group Sustainability Website Content 2022

Global engagement survey
In FY2021, we commenced a global engagement survey targeting roughly 19,500 employees around theglobe in an effort to ascertain employee awareness of the Company and relevant organizations andemployee willingness to contribute to performance.
In the first round of this survey, around 60% of the participants responded with "very satisfied" or"satisfied" and about 30% answered "normal," indicating that the level of engagement was overall
good.
Going forward, we aim to continue to implement measures for improvement for issues at the
department and section level through regular surveys. Establishing an inclusive and highly engaged
environment in which all employees can demonstrate their skills to the greatest extent possible will
enable our employees to contribute to the success of our business activities. We are committed to therealization of our long-term vision through the implementation of the PDCA cycle for engagement
surveys.

Accelerating female career development
The Teijin Group first created a specialized organization to promote the empowerment of women in
2000. Since then, we have created systems and conducted training and education to achieve four
objectives: Expand the population of female employees, promote a good work-life balance, foster a
corporate climate of diversity and inclusion, and support the career continuation and enhancement of
women.
Since 2002, we have set goals for number of female managers in Japan and the heads of each businessand function (officers) have set KPI for individual businesses and functions and supported thedevelopment and careers of female employees. In addition, CHO reports on the status of diversity andinclusion to the Board of Directors.
Further, Empowerment of Women's Advancement training (half-year training that includes grouptraining, action learning, and presentations) is continuously conducted for selected employees of majorGroup companies in Japan, who are one step away from a management position. In FY2021, which isthe eleventh time this program has been conducted, 28 employees participated, bringing the total
number of participants to 226. Among them, there are who are currently enrolled in a select programfor core human resources and those who have been promoted to management positions where they
are exhibiting leadership at their workplaces.

Teijin Group Sustainability Website Content 2022

Changes in number and ratio of newly recruited career-oriented female university graduates* Figures are totaled based on number of employees recruited as of April of each fiscal year.
* Four core group companies in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., Infocom Corporation

Changes in number of female employees in managerial positions* Data as of March 31 of each fiscal year
* Four core group companies in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., Infocom Corporation* Percentage of female employees in managerial positions of the total number of managerial positions in the companies.

Career building support for employees
There are few female role models in positions such as sales, research and development, andengineering compared to other jobs. In FY2021, we held online workshops conducted by guest
lecturers to encourage young sales employees to know about the theory of mind necessary for sales.
In addition, round-table discussions were held with senior employees to develop the career awarenessof women in science and technology who are engaged in research and development, among otherthings.

Teijin Group Sustainability Website Content 2022

At the same time, in our participation in the "Riko-challe" sponsored by the Cabinet Office for the firsttime, we entrusted our group of young science and engineering employees with everything fromplanning to operations, and were thus able to build a network transcending business andorganizational boundaries.
Some employees must unavoidably interrupt their careers when a spouse is transferred overseas. We
established a leave program for employees accompanying a spouse to an overseas assignment that
permits leaves of up to three years so that these employees can continue their careers. While on leave,some employees study a language or engage in other self-development and enhance their work skills
and then return to work. To date, 22 employees have made use of this program.

Re-employment systems
Teijin Limited and Teijin Pharma Limited have established the Hello-Again system for employees wholeft the companies for reasons including marriage, pregnancy, child-rearing, nursing care, or worktransfer of their spouses. Employees in this situation who wish to return to the Teijin Group due to thereason for leaving no longer applying will be rehired as full-time employees on the condition that it is
not more than 10 years since they left and if the need exists. Up to the end of FY2021, 14 employees
who had left the companies had been rehired through the Hello-Again system.
We have also established a system by which employees at all domestic group companies may continue
to work after retirement. In FY2021, a total of 46 employees

continued to work after retirement at 43

group companies.

Employment of people with disabilities
As of April 1, 2022 at 31 group companies (consolidated) subject to a legal requirement to employ
people with disabilities in Japan, the total number of employees with disabilities* was 275 , more thanthe 272 specified by the related laws and regulation. Due to the large impact of the higher statutory
employment rate and the retirement effective from March 2021, etc., 16 individual companies

failedto meet the legal requirement for employment of people with disabilities. In FY2022, we will sharesuccessful cases of hiring employees with disabilities in each company in an attempt to employ more
people than the recruitment number required by laws and regulation.
In February 2019, Teijin Limited established the special subsidiary Teijin Soleil Co., Ltd., with theobjective of creating workplaces in which people with disabilities can experience the satisfaction andenjoyment of working. Teijin Soleil offers a diverse range of workplaces and work duties mainly inagricultural work (cultivation and sale of produce and flowers) and office support (administrative
assistance). In April 2021, we launched a new office support team in Iwakuni district. In addition, weestablished a support team and started a cleaning business in the Hino district as well in June 2021.
Since then, we have continued working to expand the range pf work duties and work sites in eachregion.
* Number of employees with disabilities does not refer to the headcount, but to number of persons with disabilities
calculated taking into consideration the type of disability and the working hours. These form the basis for calculating theemployment rate of persons with disabilities as per the employment quota system for persons with disabilities.

Teijin Group Sustainability Website Content 2022

Expanding diversity awarenessTo strongly promote our business activities globally, it is essential to
make full use of the abilities of diverse human resources who differ innationality, race, gender, sense of values, ideas and experience. The
Teijin Group upholds "Empowering Our People" as part of its corporate
philosophy, and accordingly has put in place a work environment inwhich every Group member can fully harness their individuality andattractiveness to make the most of their abilities.
We promote diversity and inclusion as a management strategy, andmanagement uses various opportunities to disseminate our diversity andinclusion objectives and policies to employees.
We have also issued a pamphlet entitled "together" to raise awareness ofdiversity every year since 2002. Starting with the 2020 version, in addition
to the Japanese version, an English version is prepared so that it can be
distributed to all group employees. In the latest 2022 issue, we havepresentations by five executives including the current CEO discussing thesignificance of Power of Culture and their own experiences in aroundtable discussion format, under the theme of "Creating a New
Corporate Culture." Further, the issue includes a special feature on
domestic and global initiatives on innovation creation and efforts topromote the active participation of women.
We have incorporated LGBTQ issues in diversity courses conducted as apart of new employee training and new manager training since FY2015 toraise understanding., and from FY2019, training on LGBTQ issues was
conducted in conjunction with Teijin Group Corporate Ethics Monthtraining. In addition, we conducted training and e-learning for humanresources and general affairs personnel who serve as contacts for LGBTQ
related employee consultations using virtual reality.
Since FY2017, interested employees have participated in the Tokyo
Rainbow Pride parade, one of Japan's largest LGBTQ event. From July
2020, we have revised the human resources and salary systems at Teijin
Limited and Teijin Pharma Limited, ensuring that same-sex partners of
LGBTQ parties concerned are treated in the same way as spouses forvarious allowances and benefits. Following on from last year, inrecognition of these efforts, we received the gold certification at workwith Pride in 2021 as well.
We will continue our efforts to create an environment of acceptanceregarding sexual orientation, sexual identity, sexual expression, and soon in the future.

Teijin Group Sustainability Website Content 2022

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Sustainability

Corporate Ethics and Compliance
The Teijin Group considers compliance to be essential for creating a sound corporate
culture. With this in mind, the Group is committed to ensuring that its officers andemployees always act responsibly with high ethics.

Promotion System

Main Activities

Security Export Control

Compliance and Risk Management (CRM)
Promotion System
We hold meetings of the Group CSR Committee, which is chaired by the Chief Social Responsibility
Officer and has the general managers of each business unit as its members, as a forum fordeliberation and sharing information on compliance and risk management policies, measures, andactivities within the group.
In addition, the Group Compliance Subcommittee, which is chaired by the general managers of CSR
and Compliance Department and has the general manager of departments responsible for compliancein each business group or unit as its members, is established. The Subcommittee deliberates andshares information on specific measures and activities in accordance with the policies of the Chief
Social Responsibility Officer and disseminates that information to each business division.
Compliance and Risk Management Promotion Managers (CRM Promotion Managers) are appointed ateach worksite and promote the implementation of activities.
In addition, we hold the global CSR meeting, which has compliance personnel at main overseas groupcompanies as its members. In FY2021, the meeting was postponed due to effects of the COVID-19
pandemic.
The Teijin Group is expanding into a diverse range of businesses, and as it continues to do so, it willneed to address the increasing social demands and self-regulation. To this end, we are committed toreviewing and further strengthening our compliance promotion system in the new Medium-Term
Management Plan scheduled to commence in 2023.

Teijin Group Sustainability Website Content 2022

Positioning of compliance and risk management

PDCA cycle of compliance and risk management activities

Teijin Group Sustainability Website Content 2022

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Sustainability

Risk Management Activities
The Teijin Group has in place a Total Risk Management (TRM) systems targeting both
strategic and operational risks to comprehensively manage risks, and the TRM
Committee has been conducting total risk management.

Total Risk Management (TRM)
In addition to enhancing shareholder value, the mission of the Teijin Group is to conduct sustainablebusiness activities that deliver value to its shareholders and all of its other stakeholders.
In light of this mission, the Group strives to comprehensively and effectively assess, evaluate, andmanage the various risks that could threaten the realization of its mission. By doing so, the Group
adopts an organizational and systematic approach to risk management that leverages its Groupwide
management capabilities.
Specifically, the Group has in place a Total Risk Management (TRM) system targeting both strategicrisks which relate to such factors as the formulation of management strategies and plans, theimplementation of strategic actions, and the determination of individual investment projects andoperational risks, which involve various adverse events that can negatively affect the Group's
operations, in order to address the various risks that impact the sustainable growth of the Group.
Established in fiscal 2003, the TRM Committee, chaired by the CEO, serves under the Board of Directors.
The Board of Directors deliberates and decides the basic policy and annual plan related to TRM
proposed by the TRM Committee.
At the same time, the Board of Directors formulates systems for managing important risks andensuring business continuity. Also, the statutory auditors conduct audits to check whether the Board of
Directors is appropriately handling policy decisions, overseeing, and monitoring with regard to TRM.
The CEO is in charge of assessing strategic risks and provides this assessment as valuable information
to the decision-making process of the Board of Directors and other bodies. The Chief Social
Responsibility Officer (CSRO) is in charge of overall Groupwide operational risks, including risks facing
overseas Group companies, and works on a cross-organizational level to ascertain and confirm thestatus of risk management in each business group and at each Group company as well as to formulateconsistent response policies.
Through these efforts, the CSRO helps reinforce Groupwide risk management. In addition, the Group is
working to clarify how risks and opportunities presented by trends in the macroeconomic environment
relate to its materiality and follows up on such risks accordingly.

Teijin Group Sustainability Website Content 2022

Responding to risks related to the COVID-19 pandemic
Amid the prolonged COVID-19 pandemic, we are monitoring the impact of the pandemic on theGroup's operations and are executing response measures to address areas that have already been
impacted by the pandemic. At the same time, we are preparing response measures on an ongoingbasis in anticipation of the pandemic's prolongation.
The pandemic's impact on the global economy has had a major effect on our performance in the
Materials Business Field, for which automotive and aircraft applications serve as the main market. In
particular, demand for carbon fibers for aircraft remains sluggish, although a recovery trend is starting
to emerge.
As part of our efforts to address this issue, we are working to enhance production and operational
efficiency by expanding into other applications for which demand is robust. We are also striving toincrease profitability by improving our sales mix.
Furthermore, while rigorously monitoring profitability, we are promoting development geared toward
the acquisition of large-scale programs for carbon fiber intermediate materials for aircraft for which
demand is expected to recover over the medium to long term.
In regard to the lockdowns and other policies in China following the country's zero-COVID policy, weare closely monitoring the impact on supply chains and the suspension of operations at our
manufacturing facilities and those of our customers.

Response to Geopolitical Risks
With regard to the Russian invasion of Ukraine in February 2022, we have set up an emergency
response structure under which we have been providing humanitarian aid. We have also been carryingout appropriate measures to respond to the risks brought about by this invasion after analyzing andevaluating its direct and indirect impacts on our operations.

Risk Recognition
The details on the recognition of strategic risk and operational risk that the Group manages under the
TRM Committee are as follows.

Strategic Risks: Identification and Analysis, and Relevant
Response Measures
We have analyzed specific and recent strategic risks, including those already actualizing in our businessstrategies, from the perspectives of level of impact, period of actualization, and fluctuation trends, bymaking use of a risk map. Based on this analysis, we have established response measures inaccordance with the level of urgency and impact and have swiftly begun to put these measures into
action.

Teijin Group Sustainability Website Content 2022

Identify and analyze strategic risks

Strategic Risks: Overall Risks and Basic Response Policies
Risk category

Risk summary

Basic response policy

Macro

Fluctuations in sales due to the

We are taking steps to identify and assess

environment

economic trends and conditions in eachprimarily trends that could have arisks

country and region of operation as wellsubstantial impact on our performanceas the trends in the automotive andand financial position, such as the impact

aircraft markets, which are majorof the COVID-19 pandemic on themarkets where the Group supplies

automotive and aircraft markets.

products and services

We are also working to reduce risks

Fluctuations in costs due to changes in
raw material and fuel prices

through a broad range of measures. For
example, we are stabilizing raw material
and fuel prices by securing appropriate

Fluctuations in the exchange rates

inventory levels, entering into long-term

needed to reflect transactions in foreignpurchasing contracts, and implementing

currencies in the financial statements

appropriate selling price measures. For

and convert the foreign currencies in theexchange rates, we are also utilizing

financial statements of overseas

foreign exchange forward contracts andconsolidated subsidiaries into yen (e.g.,

procuring funds for overseas investment

if the yen appreciates by ¥1 against the

in local currencies. In terms of interest

US$, over the year it will push down

rates, we are pursuing long-term debt

operating income by approximately ¥0.3

with fixed interest rates.

billion)Fluctuations in interest expenses due tochanging interest rates

Teijin Group Sustainability Website Content 2022

Policy change risk

Tightening of GHG emissions

To respond to policy change risk such as

regulations, plastic product regulations,tightening environmental regulations andand other regulations to a greater extent

the emergence of protectionism aroundthan expected between the U.S. andthe globe, as well as market andChina as well as rising economic security

competitive environment fluctuation risk,

risks

we are creating contingency plans in

Emergence of global protectionism
including the recurrence of trade
conflicts between the U.S. and China as
well as rising economic security risks

advance for individual businesses affectedby such risks. At the same time, we arepromoting ongoing monitoring activities,
including detecting signs of risk
occurrences, and ensuring we are

Acceleration of domestic drug priceprepared to swiftly respond to risks byrevisions and other government policies

revising our strategies and otherto curtail medical costs

measures. In addition, we are working tocollect relevant information on economic

Market andFluctuations in supply-demand structurecompetitive

due to changes in the competitiveenvironment

environment

fluctuation risks

security to promptly ascertain a potential
crisis.

Inventory adjustments that exceed thereal economy in each stage of the supply
chain caused by changes in end-user
demand within the materials, intermediate materials, and components supply
businesses
Fluctuations in supply-demand structure
due to production activities being
impacted by infectious disease
outbreaks, natural disasters, andgeopolitical risks as well as to supply
chain disruptions such as a suspension
in logistics activities

Resource

Cancellation of or delay in the execution

For large-scale investment projects toinvestment risksof capital expenditures or M&As due tocreate and expand businesses, we are

the inability to find projects compatible

taking steps to ascertain the businesswith strategies

environment and prioritizing follow-up

Major divergence of R&D results fromtargets against the R&D expenses
investedmeasures toward action plans forindividual issues.

Teijin Group Sustainability Website Content 2022

Fundraising andOccurrence of an impairment loss onfinancialnon-current assets owned by the Group,soundness risks

owing to such factors as a decline inprofitability from an extreme worseningof the economic environment, among

In addition to regular monitoring of the ratioof net interest-bearing debt to EBITDA, theshareholders' equity ratio, and the debt-toequity ratio, we are assessing the scale forrisk of loss on shareholders' equity throughother factors

the continuous monitoring of assets with

Occurrence of loss on deferred tax
assets in the event some or all deferred

optimal procurement methods in

tax assets are deemed unrecoverable
due to changes in estimated futuretaxable income

impairment concerns and deferred tax
assets. When procuring funds, we examineconsideration of financial soundness andbased on demand for large-scale funding
over the near to medium term as well as therisk of loss on shareholders' equity.
Furthermore, we are making thoroughefforts to streamline assets through working
capital management and the reduction ofcross-shareholdings.

Operational Risks: Identification and Analysis, and Relevant
Response Measures
We have identified and analyzed recent operational risks based on their level of impact and frequencyof occurrence. By doing so, we have positioned four categories of Groupwide risks as "serious Grouprisks" and are formulating policies to respond to these categories, which include: i) Climate changerisks; ii) Risk of human rights infringements in the supply chain; iii) Information security risks; and iv)
Geopolitical risks (see table below).
Identify and analyze operational risks

Teijin Group Sustainability Website Content 2022

Operational Risks: Specific Initiatives toward Serious Group Risks
Relevant
Risk category

Risk summary

material
issuesClimate change

Inability to respond to

risks

1

Frequency
Response measuresofoccurrence*

We assess and manage

Medium-system and policy

climate change-relatedHighchanges, etc., resulting

risks impacting each of ourfrom climate change could

businesses in ahinder business continuity.

comprehensive andsystematic manner. We also

Occurrence of natural

work to enhance climate

disasters due to climatechange risk identification

change. For example, inand strengthen risk

the Materials Business

management PDCA cycles

Field, we anticipate thatin each business.

natural disasters will

Additionally, risks impacting

disrupt logistics

specific businesses that

operations and impact

qualify as strategic risks are
responded to as suchsupply chains. We also
expect to see massive
increases in raw material

within our efforts tomanage strategic risks.

and other prices due toenergy transitions.
Risk of humanInability to respondrightsinfringements inthe supply chain5

We use consistent policies

Medium-appropriately to humanand guidelines to assessHighrights-related issues within

and monitor not only ourthe supply chain could

business partners'

hinder business continuity.

adherence to laws andregulations but also their
response to soft laws. In
this way, we arestrengthening themanagement of suppliercompliance.

Teijin Group Sustainability Website Content 2022

Information

Unexpected information

We respond to risks related

Medium-security risks

leaks could not only5

to the management andHighdamage ourtransfer of informationcompetitiveness but also

assets and trade secrets

violate laws and be subject

and risks related toto fines.

cyberattacks based on theperspective of physicalCyberattacks could hinder

threats and vulnerabilities,business continuity andtechnological threats andresult in major information

vulnerabilities, and humanleaks and demands forthreats and vulnerabilities.

ransom payments.

To that end, we have set up
an information security
governance structure andestablished various
processes and arepromoting specificinitiatives through theGroup Information Security
Subcommittee.

Geopolitical risks

Conflicts and terrorist

5

We have been working to

attacks could threaten theestablish emergency

lives of Group employees

response structures during

and Group assets andnormal times to enable thecould hinder businessprovision of support to ourcontinuity by severingbusiness locations acrosslogistics and procurement

the globe, should any one

systems andof them become involved ininfrastructure.

a conflict. We are alsoLowpreparing a global crisis
management structure andare implementing relevant
training and drills.
* Materiality: 1 = Climate change mitigation and adaptation; 2 = Achievement of a circular economy; 3 = Safety and securityof people and local communities; 4 = Realization of healthy and comfortable living for people; 5 = Further strengtheningof our sustainable management base

Teijin Group Sustainability Website Content 2022

Groupwide system for operational risk management
We conduct Groupwide operational risk management including overseas subsidiaries based on thesystem below. The CSRO and the Corporate CSR and Compliance Department strengthens the risk
management system for the entire Group by grasping and confirming the individual risk management
conducted by each business group (unit) and Group company across the entire Group, and by
establishing unified risk response guidelines.

Operational Risk Management Activities
In FY2021, through risk assessments (July-September) and the Chief Social Responsibility Officer Review(October), we checked the management status of serious material risk items in each business andfunctional area and confirmed that concrete responses were taken.
In the same fiscal year, in addition to the use of the risk management tool (ERMT) globally, we havepositioned the four risks of climate change risk, risk of human rights violations, information security
risk, and geopolitical risk as "significant Group risks", and have started examining response guidelines
and the like with the Chief Officers.
Further, we are committed to improving the systems and maintenance of risk management-related
regulations and frameworks. The Teijin Group's basic concepts of risk management, which have been
included in the existing risk management regulations, have been summarized in the Group Risk
Management Regulations, and the risk assessment methods and crisis management operation
procedures common to the Teijin Group have been clarified as for the Risk Management
Implementation Regulations , and reorganized as subordinate rules. Furthermore, as a risk
management system for the entire Group, we have newly introduced the "three lines of defense*" ofan integrated framework for internal control.
* The first line of defense (business units, Group companies, etc.); Basically business units and Group companies respondto risks as risk owners.
The second line of defense (chief officers, CSR Committee, subcommittees, regional control etc.): Basically providing
support and monitoring the first line of defense to prevent and reduce serious risks, etc. to the Group among otherthings.
Third line of defense (Corporate Audit Department): From an independent standpoint from the first and second lines ofdefense, it provides rational advice and recommendations etc. on risk management.

Teijin Group Sustainability Website Content 2022

Status of Business Operations Risk Responses andBusiness Continuity Plans
Response to Natural Disasters
There were no reports of damage to Teijin Group personnel or facilities in FY2021 due to theearthquake in Japan. Operations were suspended at some business sites due to the heavy rains in WestJapan that occurred in July 2021, but there were no casualties. In the healthcare business that sustains
home healthcare, we confirmed the safety of patients using therapeutic oxygen concentrators in areasthat were severely affected and delivered spare cylinders.

Implementation of Business Continuity Drills
As a part of our Business Continuity Management (BCM) efforts, disaster prevention drills andearthquake evacuation drills are conducted annually at Teijin's business locations and researchfacilities in Japan.
In FY2021, we began considering Business Continuity Management (BCM) in the event of a large-scaledisaster that would affect multiple businesses in a wide area, something that had not been anticipatedin the past, including the establishment of a system at the head office.

Safety Verification Drills
Safety verification drills for a time of emergency utilizing a system ("Emergency Call") provided by
Infocom Corporation of the Teijin Group are conducted annually.
Following the undersea volcanic eruptions in Tonga that occurred on January 15, 2022, in response totsunami warnings issued by the Japan Meteorological Agency, EMC performed safety checks
throughout Japan except the Hokuriku region at midnight of the same day. In the evening of the nextday, the Teijin Group in Japan confirmed that there was no direct damage caused by the tsunami.

Teijin Group Sustainability Website Content 2022

Sustainability

Information Security and Personal
Information Protection
Recognizing the possibility of risks that damage competitiveness or obstruct business
continuity due to unforeseen information leakage caused by cyberattacks, etc., or therisk of having to pay penalties for legal infringements, the Teijin Group adopts
measures to prevent leakage on both the hard and soft sides and responds properly to
globally diversifying personal information protection legislation.

Information Security
The Teijin Group identifies the leakage of information assets and business secrets and cyberattacks as
information security risks. From the perspectives of physical threats and vulnerability, technical threats
and vulnerability, and human threats and vulnerability, we adopt risk countermeasures and respondproperly to globally diversifying personal information protection legislation.**

In addition to the General Data Protection Regulation (GDPR) in the European Union, similar regulations are
becoming common in the United States, China, and Southeast Asia. In view of these developments, we respond to thevarious regulations in each country based on our response to the GDPR.

Privacy Policy

Teijin Group Sustainability Website Content 2022

Main Initiatives
The Teijin Group is promoting the building of an information security governance structure andprocess, as well as specific initiatives through the Information Security Committee. Each division
designates a person responsible for information technology, a person responsible for personal
information protection, and a person responsible for the management of trade secrets.
These responsible persons check the management status of information assets, such as information
systems, networks, facilities, personal information, and business secrets every year. At the same time,
the Corporate Audit Department conducts information security audits and personal information
protection audits of all Group companies.
In FY2021 the number of cyberattacks threatening to infect Teijin's network with viruses increased overthe previous fiscal year, but there were no reports of actual damage caused by information leakage
from Teijin's network.

Response to physical threats and vulnerability
We are studying our response to facilities and equipment handling confidential information,
including entry and exit, as well as our response to such IT devices as servers and computers.
Response to technical threats and vulnerability
We are studying the management of access to information assets, etc., as well as antivirus measures,
data recovery response, etc.
Response to human threats and vulnerability
As measures to reduce risks caused by human factors, we are studying education for employees, etc.
(implementation of information security training, irregular targeted email training, caution against
suspicious email, etc.), as well as our response to management at work consignees.
Appropriate response to personal information protection
In addition to Europe's GDPR, regulations are being tightened in Japan, China, Thailand, andelsewhere. In these circumstances, in FY2021 we strengthened our personal information protection
structure by adding the regional headquarters of our three global poles to the Teijin Group Global
Personal Information Task Force. Furthermore, through the system of designating persons
responsible for personal information protection, we are promoting the thorough implementation of
measures.

Teijin Group Sustainability Website Content 2022

Sustainability

ESH Management Activities

The Teijin Group positions Environment, Safety and disaster prevention, and Health(ESH) as a key issue relating to all business operations and is engaged in activities toreduce environmental impact affecting both the global environment and the local
society, as well as to ensure the safety and health of residents and employees. We also
quantitatively measure the investment and expenses relating to ESH, leading toefficient promotion and improvement of ESH activities.

Teijin Group ESH Basic Policies
1.

We make safety our highest priority, following our philosophy of protecting human life.

2.

ESH is the responsibility of every production line manager.

3.

ESH efforts are integral to every stage of business activities.

The Teijin Group Global Environmental Activity Goals
Promotion of environmental preservation activities
1.

Throughout our business operations, we will make efforts to reduce our environmental
impact, including the reduction of CO2 emissions, conserve energy and resources, and makeeffective use of waste.

2.

We will appropriately manage biological and chemical substances in compliance with therelated laws and regulations to ensure that our use of these substances will not cause
damage to the environment or to the safety and health of people.

3.

We will provide as many people as possible with appropriate information and support so thatour products will be transported, used, and disposed of in a safe and environmentally friendly
manner.

Teijin Group Sustainability Website Content 2022

Promotion of design for environment and environmental business4.

We will design products in an environmentally friendly manner in cooperation with ourcustomers and suppliers, while promoting green purchasing and procurement as well as
green transportation. In addition, we will conduct necessary assessment at the planningstage of business projects, thereby reducing potential risks to human health and theenvironment.

5.

We will further develop technologies for environmental preservation and environmental
improvement, including technologies that contribute to energy conservation and 3R activities(activities to promote the reduction, reuse, and recycling of materials) and will expand ourenvironmental business taking advantage of our Group’s proprietary technologies and strong
market presence.

Expansion of environmental communication and social contribution activities
6.

We will clearly show our commitment to making contributions to society by such measures assetting and announcing environmental impact reduction targets and will engage incommunication with a range of our stakeholders, including local communities in which we
conduct business.

7.

We will raise the awareness of all Group employees and provide them with education on
environmental preservation as well as support them in conducting environmental
preservation activities, such as energy conservation activities at their households and in theirlocal communities.
(Established in December 1992; revised in July 2007)

Group ESH Management System
The Teijin Group established the Group ESH Subcommittee under the Group CSR Committee to practiceintegrated ESH (environment, safety, health) management. The Group ESH Subcommittee holds
regular meetings twice a year to deliberate on policy, measures and activities regarding ESH
management, which are then expanded within the group.
The ESH Committee members appointed for each business group (Unit) serve as Chairpersons of the
ESH Committee and promote ESH management for each business.
In addition, the Chairperson of the ESH Committee of each business group and the Chief Social
Responsibility Officer conduct ESH audits once a year respectively. In the ESH audits, the ESH
management status, any accidents occurrence and the status of countermeasures thereof are checked,
and then confirmation and guidance are provided in relation to future issues and actions required
before the next audit.

Teijin Group Sustainability Website Content 2022

ESH education
A "Group ESH Educational Workshop" designed to enhance the level of ESH management is held once
per annum. The workshop targets the ESH staff of business groups (Unit) and group companies as wellas production line managers, group company presidents and factory managers. In FY2021, we
postponed implementation due to the impact of COVID-19, among other things. We are consideringholding the workshop as a remote course in FY2022.

ESH asssessment
Through the ESH assessment system, Teijin reviews and verifies the related laws and regulations
together with the ESH risk related to project implementation and day-to-day matters, and endeavors to
implement appropriate measures in line with compliance and risk.

ESH auditing
We conduct ESH Audits A and B in accordance with our ESH Audit Regulations, forming a double audit
system. Audit A is conducted by the Chairperson of the ESH Committee for each business group (Unit)
and Audit B is conducted by the Chief Social Responsibility Officer or a person nominated by the Chief
Social Responsibility Officer.
As part of the audit process, each business group reports on ESH management status, any accidents,
the status of countermeasures, and the status of ESH activities. This content is then audited, andconfirmation and guidance is provided in relation to future issues and actions required before the next
audit.
Outline of the ESH Audits
Outline of the audits

Auditors

FY2021 audit results

ESH Audit

ESH audits at production

Chairperson of Business

25 basesA

sites

Group (Unit) ESH Committee(14 within Japan, 11 overseas)

ESH Audit

Audits of the results of each

General Manager of the CSR

18 cases (2 composites

Bbusiness group and unit's

and Compliance Department

factories, 11 business

ESH Audits

units/business groups, 5
directly managed companies)

Teijin Group Sustainability Website Content 2022

Training for internal auditors of ESH complianceTo enhance compliance with laws and regulations related to ESH, every year we hold a course to traingroup employees as internal auditors for ESH compliance. In FY2021, 92 employees were newly
certified as Grade 1 internal auditors for ESH compliance and 28 employees were certified as Grade 2
internal auditors for ESH compliance.

Group ESH results report
Every year, the Teijin Group holds the Group CSR Committee, where Group-wide EHS results andactivities status are reported. The 2021 Group CSR Committee meeting was held at the Tokyo head
office in April 2022 (including online participation). In addition to results and status of activities, futureissues and plans were also presented and there was active exchange of opinions.

Responding to an ESH accident
In preparation for the occurrence of an ESH-related accident, the Teijin Group defines and enforces
rules about swiftly reporting any incidents to the responsible persons within the Group.

Teijin Group Sustainability Website Content 2022

Sustainability

Security, Disaster Prevention, andOccupational Safety Activities

Following the principle of safety first in everything, the Teijin Group aims to realize
zero disasters and zero accidents.

Security and Disaster Prevention

Occupational Safety

Security and Disaster Prevention Activities
System to promote disaster prevention management
The Teijin Group is engaged in disaster-prevention management and has established Group-wide
Disaster-Prevention Guidelines. For each fiscal year, we design plans based on these guidelines relating
to preventative measures, such as disaster-prevention assessment, fire prevention, and earthquake
countermeasures, as well as planning and implementing initiatives including the strengthening ofdisaster-prevention training and drills and upgrading of fire-prevention equipment.
Each Business Group / manufacturing site manages the implementation status and achievements ofthese disaster-prevention activities and gives guidance to improve any areas of noncompliance. The
results of this are then audited by the Chief Social Responsibility Officer at the end of each fiscal year.

Implementing disaster prevention assessments
The Teijin Group has been conducting disaster prevention diagnoses since 1980 and mini disasterprevention diagnoses since 2008 in line with our own independent standards.
In Teijin's aramid business, process safety management (PSM) has been introduced at Teijin Aramidaffiliated chemical plants in Japan and Asia.
Disaster-prevention diagnoses and PSM are used to assess safety every five years by experts in
manufacturing, facilities, and ESH* at a total of 15 plants globally. These are Teijin Group plants wherelarge amounts of hazardous substances are handled.

Teijin Group Sustainability Website Content 2022

In FY2021, disaster prevention diagnoses were conducted at two plants and PSM was implement at one
plant.
Mini-disaster-prevention diagnoses mainly examine fire prevention, focusing on small-scale locations
with a risk of fires, such as boilers and places where hazardous materials and combustibles are stored(25 factories). We conduct an examination every 5 years. In FY2021, we carried out diagnoses at 18 risk
areas in 7 factories.
Trends in the Number of Disaster-Prevention-Assessed Plants

Other activities aimed at realizing zero serious accidents
To achieve our aim of zero "serious accidents," which we have defined as including explosions, fires,and external leakage/spills of hazardous substances, we are taking various measures to reinforce
disaster prevention including disaster prevention diagnoses, training, and drills at our chemical plants
and power plants.
In FY2021, there were no serious accidents.
Trends in the Number of Serious Accidents and Disaster* A serious accident refers to explosions or fire accidents, accidents involving leakage or outflow of hazardous materials or
hazardous substances, which have caused human damage (lost-time injury accidents), or have affected the local
community, or have involved full-scale company-external support.
* Figures are calculated based on calendar years

Teijin Group Sustainability Website Content 2022

Fire prevention activities
Since 2008, November 10 has been the Teijin Group FirePrevention Day. On this day, each group company conducts its
own fire-prevention activities, as well as common activities for thewhole Teijin Group, such as periodical fire-prevention checks.
These activities are shared Group-wide in order to strengthen thefire-prevention system.

Early-stage fire-extinguishing drills
at an overseas factory (China)

Disaster-prevention training (evacuation drills)
Since the Great East Japan Earthquake struck on March 11, 2011,
the Teijin Group has continued to implement evacuation drills
assuming the outbreak of a natural disaster. After the drills, wehold review meetings and endeavor to improve ourantiearthquake manual.
Training was carried out at plants and facilities in Japan in FY2021
as well (including tabletop exercises).
Evacuation drill roll call (Mishima
Factory)Teijin Group Sustainability Website Content 2022

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Sustainability

Health Management
We are committed to promoting the mental and physical health of our employees andto the creation of a comfortable workplace.

Promoting Health Management
The Teijin Group has for many years proclaimed through its corporate philosophy both internally andexternally to be a company that values employee health. In FY2016 we declared this basic value in theform of the Teijin Group Health Management Declaration, and are engaged on an ongoing basis avariety of activities. As part of this health management initiative, we compiled and distributed the
Health Management Handbook as an opportunity for each of our employees to contemplate their own
health as an important issue. Strongly believing that employees are a company's ultimate
management resource, each individual company of the Teijin Group will continue to work in close
collaboration to promote the creation of positive, meaningful working environments with employees
who enjoy both physical and mental health.
The Teijin Group was recognized as a Certified Health and Productivity Management Organization by
the Ministry of Economy, Trade and Industry for our excellent health management. We have received
this recognition six years running.

The Teijin group health management declaration
The Teijin Group believes that employees are the ultimate management resource.
We are committed to promoting the development of employees who are full of vigor and to thecreation of vibrant workplaces for the sustainable growth of the company, and will continue toactively promote the mental and physical health of our employees.
At the same time, the Teijin Group strives to contribute to the health of people around the world
and improve quality of life through its business activities.
(Established on June 16, 2017)

Teijin Group Sustainability Website Content 2022

Health management policy
The Teijin Group is strategically involved in the health management of its employees based on its
corporate philosophy.
Health Management Policy

Teijin Group Sustainability Website Content 2022

System for promoting health management
The Health Care Administration Office is positioned as a promotion department, and healthmanagement is promoted in cooperation with the Teijin Group Health Insurance Association, industrial
physicians, and occupational health staff under the direction of top management.
The following four priority issues are listed.
1. Improvement of lifestyle-related diseases
2. Reducing the risk of onset of disease
3. Promoting workstyle reform
Improve work engagement
Build highly engaged organizations
4. Reducing stress
Organization Chart of the Promotion System

Teijin Group Sustainability Website Content 2022

Mental health care measures through close cooperation
In regards to mental health, Teijin has established consultation
services for employees both internal and external to thecompany and the Health Care Administration Office provides
tailored mental support under the guidance of medical
specialists.
In 2021, staff of the Health Care Administration Office (clinicalpsychologists, health nurses, nurses) and the external EAP(Employee Assistance Program) received a total of 2,658
consultations including online and telephone consultations.
Preventive education for mental health is also carried out
periodically. In FY2021, an online system was used for staff at the
Health Care Administration Office to conduct various training
sessions such as new employee self-care seminars and line-careseminars. In all, 23 online sessions were held, attended byapproximately 1,000 individuals.

Implementation of training andeducation focused on mental healthcare at various locations andcompanies

Teijin Group Sustainability Website Content 2022

Implementation of a diagnosis to measure the "Iki-Iki" levelof individuals and workplaces
The Teijin Group has been diagnosing stress levels in all workplaces in Japan every year since 2003.
Furthermore, in line with stress check legislation, in July 2016 it implemented the annual initiative of adiagnosis to measure the iki-iki (cheerfulness) level of individuals and workplaces. This diagnosis
combines the workplace stress diagnosis with a stress diagnosis for individuals.
Those workplaces which were diagnosed as exceeding a certain level were the focus of workplace
improvement activities to achieve bottom-up improvement through discussions with employees in thefield. The results of the June 2021 diagnosis (an effectiveness measurement) showed that these
activities had led to improvements in around 75% of the workplaces concerned.
Furthermore, from FY2019, we have been conducting "briefings on how to view the results of diagnosis
to measure the iki-iki (cheerfulness) level of workplaces" targeting managers and encourage eachdepartment to improve the understanding of the results of group analysis and the methods of utilizing
it, and are working on promoting activities to improve the workplace environment.
Teijin will continue aiming to create cheerful and comfortable workplaces through these diagnosis andimprovement activities.

Prevention and health promotion measures for health incollaboration with health insurance providers
The Teijin Group is collaborating with health insurance providers to implement a data health plan
(Colla-Health) based on analysis of health data. This involves utilizing the data of individual employees
held by our company and health insurance providers to roll out health insurance business narrowing
down the target by risk type and deploying various health insurance businesses ranging from popular
approach (approaching a particular group overall) to severe illness prevention.

Teijin Group Sustainability Website Content 2022

Sustainability

Product Liability and Quality Assurance
The Teijin Group rigorously complies with laws and regulations and customer contract
stipulations pertaining to quality, while taking steps to establish a quality assurance
structure that responds to its global development.

Product Liability / Quality Assurance
SystemCurrent status of certifications

Product Liability / Quality Assurance Management
SystemThe Teijin Group Product Liability / Quality Assurance Regulations apply to all Teijin Group products
and services and are the basis for our product liability / quality assurance activities. Based on theseregulations, the Group CSR Committee and the Group Product Liability / Quality Assurance
Subcommittee decide the basic policies and associated targets for all product liability / quality
assurance issues of the Teijin Group, and reflect them in product liability / quality assurance activities
conducted by business groups (Unit).
We have also created an original unit-based management system for product liability / quality
assurance that is applied to the products of each business group. This management system aims toenhance customer satisfaction, prevent product defects, and ensure appropriate responses in theevent that defects occur. The system not only covers the scope of the ISO 9001 standards for quality
management systems but also incorporates perspectives of product liability / quality assurance, suchas response to customers and product safety.

Teijin Group Sustainability Website Content 2022

Group-wide product liability / quality assurance system
As of April 1, 2021

Implementation of Product Liability / Quality
Assurance Audits
Product liability / quality assurance activities are conducted as the responsibility of each productliability / quality assurance unit. The CSR and Compliance Department, which is in charge ofsupervising Group-wide quality, audits these activities and checks that product liability / quality
assurance mechanisms are operating appropriately.
In FY2021, we conducted regular audits of 10 business units and 6 directly managed companies withthe objective of verifying operational status. Based on feedback from the audit results, we arecontinually enhancing the product liability / quality assurance system and process.

Teijin Group Sustainability Website Content 2022

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8JUIPSNPSFFNQMPZFFTTeijin Group Sustainability Website Content 2022

Sustainability

Supply Chain Sustainability
The Teijin Group aims to engage in sustainable business activities and enhance its
corporate value by exercising its social responsibilities and obtaining the confidence
and trust of society (stakeholders).

Basic Policy for
Purchasing andProcurement

CSR Procurement

Green Purchasing

To All Our
Suppliers

Basic Policy for Purchasing and Procurement
The Teijin Group aims to engage in sustainable business activities and enhance its corporate value by
exercising its social responsibilities and obtaining the confidence and trust of society (stakeholders). It
is an important social responsibility to provide superior products in a sustainable and stable manner tosatisfy customers. We believe that to fulfill this responsibility, it is vital to improve the quality of ourpurchasing and procurement of raw materials, components, and services, and we have therefore
established this Basic Policy for Purchasing/Procurement with the aim of forging sound relationships
with suppliers. We have also determined Basic Stance of Persons in Charge of Purchasing /Procurement that describes in specific terms how purchasing / procurement personnel should behave
to ensure that they do not establish inappropriate relationships with suppliers, and to promote
initiatives based on cooperation with the aim of sustainable purchasing and procurement.

Teijin Group Sustainability Website Content 2022

Basic Policy for Purchasing and Procurement
1.

Compliance with laws and regulations
The Teijin Group observes laws and regulations of respective countries and endeavors tounderstand and respect international norms and guidelines in conducting its procurement
activities.

2.

Fair trade
The Teijin Group endeavors to engage in highly transparent transactions that are just andfair, and does not participate in cartels or bid-rigging.

3.

Basis of product and supplier assessment
The Teijin Group, in addition to quality, prices, delivery dates, and procurement periods,
properly assesses the financial situation, technological capabilities, social responsibility
initiatives, etc. of suppliers, and engages in transactions that are based on rational decisionmaking.

4.

Human rights/Labor
The Teijin Group promotes purchasing and procurement from suppliers that respect humanrights and do not commit human rights infringements such as unjust discrimination, slavelabor, forced labor, child labor, human trafficking, etc.

5.

Safety and Health
The Teijin Group promotes purchasing and procurement from suppliers that properly
manage health and safety risks and take action to improve occupational health and safety on
an ongoing basis.

6.

Environment
The Teijin Group promotes purchasing and procurement from suppliers that practiceenvironmental management by, for example working to conserve the environment andprotect natural resources.

7.

Blocking of relationship with antisocial forces
The Teijin Group blocks relationships with antisocial forces such as crime organizations,refuses inappropriate requests, and does not provide them with money.

8.

Relationship with stakeholders
The Teijin Group proactively communicates with stakeholders and promotes sustainablepurchasing and procurement based on cooperation grounded in trust relationships.
Furthermore, the Teijin Group collaborates with suppliers to promote initiatives based on the
CSR Procurement Guidelines.
(Established September 1, 2006; Revised November 1, 2017)

Teijin Group Sustainability Website Content 2022

Basic Stance of Persons in Charge of Purchasing and Procurement
1.

Compliance with laws and regulations
Purchasing/procurement personnel observe relevant country laws and regulations. In
addition, they will constantly monitor international norms and guidelines, industry standards
and their trends and strive to respect them in engaging in transactions.

2.

3.

Fair trade(1)

Purchasing/procurement personnel do not participate in cartels or bid-rigging, andendeavor to maintain sound relationships with suppliers. They also do not abuse theirstatus to demand inappropriate discounts, services, contributions, etc.

(2)

Purchasing/procurement personnel do not have personal interests with any supplier,and do not accept personal benefits such as rewards or gifts.

Information security
Purchasing/procurement personnel carefully manage confidential information relating totransactions and safeguard intellectual property rights.

4.

Basis of product and supplier assessment
Purchasing/procurement personnel rigorously assess goods and services, and engage intransactions where consideration is given to quality, prices, delivery dates, and procurement
periods, as well as the financial situation, technological capabilities, corporate approach, andsocial responsibility initiatives of the suppliers.

5.

Human rights/Labor
Purchasing/procurement personnel do not force inappropriate transaction terms on
suppliers nor force them to accept unreasonably low prices, etc. and promote purchasing andprocurement from suppliers that respect human rights and do not support forced labor orlong working hours.

6.

Safety and HealthPurchasing/procurement personnel promote purchasing and procurement from suppliers
that ensure occupational health and safety and take action to maintain and improve thehealth of their workers.

7.

Environment
Purchasing/procurement personnel promote green purchasing and procurement andpurchasing/procurement of environmentally-friendly products and services.

8.

Blocking of relationship with antisocial forces
Purchasing/procurement personnel adopt a firm attitude toward criminal organizational andother antisocial forces, not allowing their involvement, and blocking any and all relationships
with them.

9.

Relationship with stakeholders
Purchasing/procurement personnel collaborate with suppliers to promote initiatives based on
the CSR Procurement Guidelines. Furthermore, they endeavor to ensure suppliers'
understanding of the Guidelines and collaborate with suppliers with regard to initiatives for
improvement.
(Established September 1, 2006; Revised November 1, 2017)

Teijin Group Sustainability Website Content 2022

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Sustainability

Social Contributions

In addition to developing social contribution activities common to the Teijin Group, we
also engage in social contribution activities that take advantage of the individuality ofeach business unit and business site.

System to
PromoteSocialContribution
Activities

Expenses ofSocialContribution
Activities

Supporting

Support fortheFostering

Areas Affected

Development

Volunteer

by Disaster,of Local

Personnel

HumanitarianCommunities

SupportThe Teijin Group established the Basic Policies for Social Contributions based on its SDGs Approach
Policy.

Teijin Group Sustainability Website Content 2022

Teijin Group System to Promote Social Contribution
Activities
Based on the Code of Conduct, the Teijin Group promotes social contribution activities in each businessgroup and business site from the standpoints of science and education, culture, health and sports
activities, environmental preservation activities and disaster prevention activities.
In addition, the CSR Planning and Promotion Department plays a central role in supporting volunteer
activities and proposing Group-wide social contribution programs in which employees can easily
engage. Through these programs, we are fostering human resources who can participate
independently in and promote social contribution activities.

Expenses of Social Contribution Activities in FY2021
Since joining the Keidanren (Japan Business Federation) 1% Club in FY2003, the Teijin Group has been
aiming to set aside at least 1% of ordinary income for social contribution costs. Expenses of social
contribution activities in FY2021 were approximately 475 million yen, 1.0% of ordinary income.
Expenses of social contribution activities in FY2021

Teijin Group Sustainability Website Content 2022

Breakdown of expenses of social contribution activities in FY2021
AmountItem

Description(millions ofyen)

Monetary

Monetary donations and other expenses for social contribution362

activities
Donations of goods

Donations of our products and other goods to social welfare

8organizations
Free renting of

Expenses for free renting of company facilities such as gyms andcompany facilities

playgrounds

Participation/Dispatch

Personnel expenses for employees who participated inof employees

philanthropic activities during their work hours, such as joining

30

74

local events as part of their work, and employees who gave
lectures at meetings
Total

475

* Data for all group companies, based on the Keidanren "Procedures for Implementing FY2018 Survey on Results ofCorporate Philanthropic Activities".

Supporting the Development of Local Communities
Science and education
Scholarship system in Japan and China
Since 1953, the Teijin Group has offered the Teijin Kumura Scholarship named after Seita Kumura, apioneer in the Japanese chemical fiber industry, with the aim of passing on and developing an original
R&D spirit and fostering young scientists who will contribute to social development and the creation of
new culture (reorganized to the Teijin Scholarship Foundation in 2011). One of the oldest scholarships
in Japan established and operated by a private company, it was awarded to 48 people in 2021 and has
benefited more than 1,700 technical students so far.

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Establishment of the Nantong Teijin Charitable Scholarship FundIn April 2014, Nantong Teijin Co., Ltd. established the Nantong
Teijin Charitable Scholarship Fund for students enrolled in juniorand senior high school and university in Nantong, Jiangsu
Province, China. Nantong Teijin Co., Ltd. is the Teijin Group’s
manufacturing and sales base for textiles in China. This fund wasestablished with the aim of contributing to the community of
Nantong by providing economic assistance to local students; it
was the first charitable fund associated with a company name in
the Nantong Economic and Technological Development Zone. In
FY2021, we extended support of about the same amount of
18,000 yuan to the Nantong Teijin Charitable Scholarship Fund.

Co-sponsor of the "All Japan Science Koshien"
Aiming to foster human resources for science and technology by integrating industry-governmentacademia research groups, the Japan Science and Technology Agency established the Science Koshien
in FY2011.

The Teijin Group has co-sponsored the Science Koshien for seniorhigh school students since FY2011, and also began sponsoring
the newly established "Science Koshien Junior" for junior highschool students from FY2013.
The All Japan Science Koshien Junior for junior high school
students was held in December 2021, and the all Japan Science

Logo of the "All Japan Science
Koshien"

Koshien for senior high school students was held in March 2022.
The awards ceremonies were held without spectators to preventthe spread of COVID-19, and scenes from the event werestreamed live via the internet.

On-site Course on the SDGs
The Teijin Group conducted an on-site course for sixth graders at
an elementary school located near a Group company housing
facility.
This was a valuable opportunity, not just to provide
environmental education to the students, but also as an aspect ofcareer education in which the students learned about advanced
efforts by companies.
An on-site courseTeijin Group Sustainability Website Content 2022

Sports activities
Co-sponsor of the All Japan High School Soccer Tournament
On the basis of our corporate philosophy of "enhancing thequality of life" and growing "in harmony with society," the TeijinGroup has co-sponsored the All Japan High School Soccer
Tournament since 1991 in line with our goal of contributing tosociety by supporting amateur and youth sports.
Every year we donate soccer balls using CORDLEY artificial
leather to the participating schools representing each prefecture
in Japan.

A soccer ball made with CORDLEY®
artificial leather

Supporting youth football in Southeast Asia
Teijin Polyester (Thailand) Limited (TPL) has been an official sponsorof the Japan Dream Football Association (JDFA) since 2012. The JDFA isan organization set up in 2011 by Masao Kiba, the former captain of
Gamba Osaka professional soccer team. By conducting football
workshops and other activities in Southeast Asian countries, the JDFA
aims to inspire children to pursue their dreams for the future, alongwith spurring the development of soccer in Japan and Asia.

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Environment
Cosponsor of the Green Lane environmental diary project
The Teijin Group cosponsors the Green Lane environmental diary
project, an environmental education initiative organized by Green
Cross Japan for elementary school children in Japan. This project
involves children keeping an environment-related diary for 12
weeks, thereby raising their awareness of the importance of theenvironment.
In FY2021 about 100,000 diaries were distributed to elementary
schools and other facilities nationwide. The Teijin Group's
initiatives in pursuit of a carbon-free society were introduced inthese diaries. The environmental diary contest was held in
October 2021, with 4,159 entries received from 128 organizations.
Although the award ceremony was cancelled due to the COVID-19
pandemic, award certificates were sent to the recipients.

Exhibit at EcoPro 2021: Toward the realization of a sustainable society
The Teijin Group exhibited at EcoPro 2021, Japan's largest
environmental exhibition, raising environmental issues andpresenting information on materials, products, and initiatives forsolving problems. The Teijin booth also displayed drawings madeby children concerning the theme "What will become of ourworld?"

Beautification programs
Employees of Teijin Chemicals Plastic Compounds Shanghai Ltd.
participate in beautification programs as a part of the company's
environmental preservation and community contribution
measures.
In FY2021, a total of 74 employees collected trash from a roadnear the company's plant.

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Fostering Volunteer Personnel
Group-wide activities
Promotion of Volunteer Support Program
In June 2011, we established the Volunteer Support Program. Under this program, the administrationcommittee decides which volunteer activities are to be supported from volunteer activities that group
employees in Japan are engaged in, and partial financial support for the activities is provided via the
Teijin Group Social Contribution Fund made up of donations from volunteer employees and directors
as well as from companies.
The fund donated operating money to the following 9
nonprofit organizations (NPOs) in FY2021:
Tokachi Soratabidan Hot Air Balloon Club (100,000 yen)Group to Enliven Kushiro with Marimo (100,000 yen)(NPO) Kodomo e no Manazashi (100,000 yen)

Tokachi Soratabidan Hot Air Balloon Club

(NPO) Minuma Farm 21 (100,000 yen)(NPO) Matsuyama Suicide Prevention Center (100,000 yen)
Protecting the Nature of Hino Organization (100,000 yen)(NPO) Japan Association for Galapagos (100,000 yen)
Teijin Soccer School (100,000 yen)(Public Interest Incorporated Association) Natural Environment
Conservation Society of Osaka (100,000 yen)(Public Interest Incorporated Association) Natural
Environment Conservation Society of Osaka

Picture book donating activities-Book Dream Project
The Book Dream Project, which started in FY2008, uses money
received in exchange for used items provided by Group
employees in Japan to buy Japanese picture books and donate
them to libraries overseas. Before donations are delivered,volunteer employees affix translated seals to the books so thatthey can be read in the local language.
In FY2021, we donated 36 picture books to a library, special-needs
school, elementary school, and kindergarten in Indonesia. We
also donated 44,288 yen of the money received from theexchange of books to a mobile library activity operated by Sikkha
Asia Foundation in Thailand.

The picture book shown in thephoto is The Big Turnip at Fukuinkan
ShotenPhoto courtesy the Sikkha Asia
Foundation

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Support for Areas Affected by Disaster,
Humanitarian Support
Support for areas affected by the Great East Japan
Earthquake
To support the areas affected by the Great East Japan Earthquake, the Teijin Group has extended
support of over 500 million yen in total, including monetary donations; blankets, masks and other relief
goods; and free provision of home healthcare equipment such as oxygen cylinders and oxygen
concentrators.

In addition, we are also engaged in ongoingreconstruction support through our business activities. In
2013, the IT Business Group's Infocom Corporation
opened a multipurpose facility "Minna no Ie" (Home-forAll) in Iwanuma City, Miyagi Prefecture. From this facility,
Infocom is providing reconstruction support for
agriculture utilizing IT and creating businesses to support
ongoing reconstruction. In FY2021, we supported direct
sales by farmers impacted by the disaster and worked todevelop "sixth industry" products using produce grown
directly by farmers.

"Minna no Ie" (Home-for-All) in Iwanuma City

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Examples of support for areas affected by Natural Disasters
The Teijin Group makes donations and provides products free of charge with the aim of helping people
and communities recover from natural disasters.

Main support in JapanOn July 20, 2020, Teijin Limited donated a total of 3 million yen
as assistance for the region affected by torrential rainfall inthat month.
On the occasion of the torrential rainfall in July 2020, Teijin
Healthcare Limited, a member of the Teijin Group, giving toppriority to ensuring the safety of patients, confirmed safety,
sent oxygen cylinders, and installed oxygen concentratorsand other equipment. In addition, on the occasion of a

Evacuation shelter in Kurashiki City,
Okayama Prefecture (elementary school)

magnitude 7.1 offshore earthquake that hit Fukushima
Prefecture on February 13, 2021, amid concern about the
spread of COVID-19, Teijin Healthcare again placed toppriority on the safety of patients and, after completing theconfirmation of safety as quickly as possible, implemented
emergency response support.

Main support overseas
Teijin Automotive Technologies, a Group company, donated200 U.S. dollar in food and toiletries and 700 U.S. dollar in cash
to the Indiana Dream Center, a facility in Kentucky that was
severely damaged in the tornado disaster that struck six statesof the United States in December 2021.
In July 2020, Teijin Limited donated 500 kg of OLSORB, a highperformance oil-absorbent sheet, to assist the cleanup of fueloil spilled when the freighter Wakashio ran aground off theisland of Mauritius in the Indian Ocean. (This amount would
allow the absorption of about 10 tons of oil.) Teijin made the
donation to the government of Mauritius through Mitsui O.S.K.
Lines, Ltd., which was tackling environmental recovery in thearea.

A certificate of appreciation received by
Teijin Automotive Technologies
from the Indiana Dream Center

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Humanitarian support for Ukraine
The Teijin Group decided to donate up to 40 million yen in humanitarian aid to Ukraine. Based on this,Group companies in Japan, Europe, and other regions donated 10 million yen to the United National
Children's Fund (UNICEF) and the United Nations High Commissioner for Refugees (UNHCR) and madeother donations.

Teijin Automotive Technologies provided financial assistance todirectly-employed Ukrainian employees to support refugee
families with day-to-day and housing expenses. Teijin Carbon
Europe and Ziegler provided clothing, bedding, medical
supplies, and other goods to displaced families. Additional
support will be provided on an on-going basis.

Goods provided to refugees in Poland

Support for the prevention of COVID-19 infection
The Teijin Group as a whole (domestic and overseas) made donations of approximately 119,000 masks,
300 protective clothing wear, 3,200 nitrile rubber gloves, and 2,800 medical gowns to facilities, including
medical institutions, welfare nursing homes, and airline companies (return charter flights) where
essential workers were engaged in work.
Furthermore, in Japan, we provided polycarbonate resin sheets for use in face shields (equivalent to
700,000 yen) and non-woven fabric for masks (equivalent to 1,500,000 yen ) free of charge tomanufacturing companies and others.
Overseas, Esteve Teijin Healthcare (Spain) donated about 700,000 yen to hospitals, Continental
Structural Plastics Holdings Corporation (United States) donated about 100,000 yen to food banks,
Teijin Chemicals Plastic Compounds (Shanghai) donated about 50,000 yen to charities, and Inapal(Portugal) guaranteed salaries for employees who worked as volunteer firefighters. This aid isequivalent to 22 million yen (from February 2020 to end of March 2022).
In addition, the Group has declared support for the prevention of COVID-19 infections and stated that it
will not seek any consideration or compensation for acts aimed at the diagnosis, prevention,
containment, and termination of the spread of COVID-19 infections and will not exercise patent rights,
utility model rights, design rights, and copyright rights held by the company for a certain period oftime.