Cooperating with Business Partners: CSR Procurement
In order to address CSR throughout its supply chain, N.E. CHEMCAT shares its procurement policy
and CSR procurement guidelines with its suppliers and works with them to resolve social issues.

SOCIALCSR Procurement Guidelines
1. Environment

CSR Procurement
Procurement Policy
N.E. CHEMCAT practices CSR procurement based on its
Corporate Philosophy. We established a new procurement
policy in April 2022, and have shared it with our suppliers
and other stakeholders.
We completely avoid the use of conflict minerals andengage in environmentally friendly green procurement.

this supplier and will work with them to formulate and implement measures to achieve improvement.
We will continue to conduct an annual CSR survey andwork to ensure responsible procurement.
CSR Survey Process
Corporate Philosophy and Corporate Guiding Principle

2) We will select our suppliers with fairness and equity, conduct transactions in good faith, and strive to strengthen
and develop mutual understanding and trust.

Dissemination of CSR Procurement Guidelines to suppliers

Selection of CSR survey sites

4) We will give attention to conserving the global environment and strive to reduce environmental impacts
through our procurement activities.

Collection of suppliers' responses to the CSR survey

N.E. CHEMCAT began conducting CSR surveys in FY2022,
using the CSR/Sustainable Procurement Self-assessment
Questionnaire developed by Global Compact Network Japan (GCNJ).
In the first fiscal year, we asked 19 of our main suppliers
to complete the questionnaire and obtained responses
from 15 suppliers (a response rate of 78.9%). The averagescore for responding companies exceeded 90%. However,
one supplier only scored 50%. We shared the results with27SUSTAINABILIT Y REPORT 2023

Our suppliers comply with the laws and regulations concerning
the prevention of air, water, and soil pollution in each country
reduce environmentally hazardous substances.
(4) Resource Conservation and Waste Reduction

region in which they operate, and they ensure that resources areeffectively utilized.
Our suppliers comply with the laws and regulations concern-Trade in minerals such as tin, tantalum, tungsten, gold,and cobalt mined in the Democratic Republic of Congoand adjoining countries in Africa has been identified as asource of funding for armed groups.
N.E. CHEMCAT manufactures products using gold andtungsten, and its CSR Procurement Guidelines stipulatethat the company avoids the use of conflict minerals.
The guidelines also stipulate that the company does
not procure minerals that may be involved in human rights
abuses such as child labor, forced labor, and environmental destruction, which are problems not only in the region
but also for the international community.

strive to prevent accident and injury.

4. Raw Material Procurement(1) Conflict Minerals
Our suppliers do not procure minerals that may be associatedwith child labor, forced labor, or other violations of human rights,
or that may cause environmental destruction, or that may provide a source of funding for armed groups.
(2) Raw Materials Associated with Human Rights Violations
Our suppliers do not conduct business with companies suspected of committing human rights abuses such as forced labor (orthose with business ties to such companies).

5. Legal Compliance(1) Legal Compliance Systemthroughout the product life cycle to prevent environmental pol-Our suppliers comply with the laws and regulations of eachlution and adverse effects on the human body.

country and region in which they operate and maintain a system(1) Quality Assurance Management System
Our suppliers maintain a quality assurance management system(2) Product Safety
In the event a defective product is discovered, our suppliers takeformation in a timely manner, investigating the cause, and thoroughly implementing measures to prevent recurrence.

to promote compliance.
(2) Compliance with Competition Laws
Our suppliers comply with the competition laws of each country
and region in which they operate and do not engage in unfair
restraint of trade (cartels, bid rigging, or other practices), unfair
trade practices, or abuse of superior bargaining position.
(3) Prevention of Corruption
Any political contributions and donations our suppliers make are
made in accordance with the laws and regulations of each country and region in which they operate, and they maintain fair relationships with political parties and governments. Our suppliers

3. Human Rights

do not provide entertainment, present gifts, or give money to, or(1) Prohibition of Discrimination

receive money from, business partners for the purpose of obtain-Our suppliers do not discriminate in recruitment, hiring, or treatment on the basis of race, creed, gender, social status, family

Conflict Minerals

Our suppliers ensure health and safety in the workplace andthey operate. Our suppliers strictly control chemical substances

all appropriate measures to ensure safety, including sharing in-Improvement activities at suppliers

region in which they operate.
(6) Safe and Healthy Working Environment

ing chemical substances in each country and region in which

quality improvement activities.

Achieving responsible procurement

CSR Surveys

emissions generated by their business activities.
(3) Environmental Impact Reduction

to ensure product quality and safety and conduct continuous

Management Structure

In order to practice CSR activities throughout the supply
chain, we established CSR Procurement Guidelines in April
2022 to define our approach to CSR procurement including environmental, human rights, and legal compliance.

Our suppliers undertake activities to reduce greenhouse gas

2. Quality

Improvement request/support activities

Establishment of CSR Procurement
Guidelines

in accordance with the laws and regulations of each country and(2) Greenhouse Gas Reduction(5) Chemical Substance Management

3) We will eliminate conflict minerals and will not procure articles that may be associated with humanrights violations.

The company practices CSR procurement under the leadof the Corporate Administration Dept., which cooperates
with the purchasing sections of plants in this effort.

ate with, and choose not to associate with, groups of their choice

the proper disposal and recycling of waste in each country andCSR Procurement Guidelines

Our suppliers recognize the right of employees to freely associ-tem for implementing environmental activities.

Our suppliers comply with the laws and regulations concerning

Procurement Policy(5) Freedom of Association

Our suppliers establish and operate a general management sys-and region in which they operate, and they continuously work toProcurement Policy

1) We will comply with all laws and regulations, and conduct procurement activities based on social ethics.

(1) Environmental Management System

origin, sexual orientation, gender identity, or disability.
(2) Prohibition of Inhumane Treatment
Our suppliers respect the human rights of their employees anddo not tolerate sexual harassment, power harassment, bullying,or any other conduct that may degrade the work environment.
(3) Prohibition of Forced and Child Laboring or maintaining unfair advantage or preferential treatment.
(4) Respect for Intellectual Property
Our suppliers protect intellectual property rights owned by orbelonging to their company and do not infringe on intellectual
property rights owned by third parties.
(5) Confidential Information Management and Protection
Our suppliers maintain a system for managing the confidential and personal information of customers and third parties in

Our suppliers hire only employees who work of their own freeaccordance with the laws and regulations of each country andwill, ensuring that they are not forced to work and are free toregion in which they operate. Our suppliers do not illegally ac-leave their jobs as desired. Our suppliers do not use the labor ofchildren who have not reached the legal working age under thequire, use, or leak this information.
(6) Exclude Antisocial Forces

laws and regulations of each country and region.

Our suppliers do not maintain relationships with such antisocial(4) Compliance with Work Hours and Wage Payment

forces as organized crime groups or corporate blackmailers, orOur suppliers comply with the maximum working hours set by
the laws and regulations of each country and region, as well as

make payments to these groups, under any circumstances.
(7) Export Transaction Managementwith those regarding salaries and wages, including minimum

Our suppliers follow appropriate export procedures and controls

wage, overtime pay, and piece-rate wages.

for the export of technology and goods as regulated by the laws
and regulations of each country and region in which they operate.

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