CSR Procurement Guidelines
Our Group, the Sumitomo Heavy Industries (SHI) Group, aims to provide products and services that
help advance economic and technological development toward realizing a sustainable society. We haveestablished these CSR Procurement Guidelines to achieve this aim. The cooperation of all SHI Groupsuppliers will be essential to our success. Therefore, we request your understanding and cooperation in
joining us to promote progress in each item established herein.

1. Fair and equitable competition and transactions and thorough attention to compliance-Compliance with all business laws and regulations*
Ensure thorough compliance by acting in strict accordance with the laws and regulations,
legal requirements, treaties, other legal requirements, and social norms of all countries andregions in which you do business.

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Realization of fair and equitable competition and transactions*
Strictly observe the laws and regulations of the countries and regions in which you do businessand do not engage in any conduct that restricts or inhibits fair and equitable competition andtransactions.

-Protection of and respect for intellectual property*
Respect and do not infringe upon the intellectual property rights (i.e., rights pertaining to patents,utility models, designs, programs, copyrighted works, trade names, trademarks, and other legallyprotected interests) owned by third parties.

-Prohibition of the offering of improper advantages*
Strictly observe the laws, regulations, and business customs of the countries and regions in which
you do business, and do not offer improper advantages or demand improper services.
Additionally, engage in activities to prevent improper acts and establish a system for the early
detection of improper acts.

-Compliance with laws and regulations related to import and export*
Strictly observe with laws and regulations concerning trade and conduct proper import/export
procedures by establishing a clearly defined trading system.

-Preservation of confidentiality*
Do not improperly and illegally acquire, use, disclose, or leak confidential information, technicalinformation, personal information, or other information of a sensitive nature.

-Responsible mineral procurement
Ensure that delivered products do not contain minerals originating from the Democratic Republicof the Congo (DRC) and neighboring countries, high-risk areas (CAHRAs), or other conflict areas.

-Severing of relations with antisocial forces
Take a firm stand against antisocial forces and sever all relationships with them.

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Establishment of an internal reporting system
Establish and maintain an internal reporting system that allows workers to report and discuss
violations of laws and regulations or internal rules or facts concerning potential violations.
Additionally, protect the privacy of those who use the internal reporting system and ensure thatthey will not receive disadvantageous treatment due to their use of the system.

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2. Human rights, labor, and health and safety-Compliance with labor laws and regulations*
Comply with labor laws and regulations in the countries and regions in which you conduct
corporate activities with respect to wages, working hours, hiring, and other mattersconcerning employees’ labor conditions as well as occupational health and safety.

-Respect for human rights and prohibition of unfair discrimination, labor, and harassment
Do not tolerate discrimination in any form, including discrimination based on age, nationality, race,ethnicity, origin, religious affiliation, creed, political beliefs, marital status, family structure, gender, sexualorientation, gender identity, disability, employment status, or other such characteristics or attributes.
Additionally, do not allow acts of harassment of any kind that harm the dignity of an individual, such as
sexual harassment and abuse of authority.

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Prohibition of child labor and forced labor*
・Prohibit the employment of persons under the minimum working age and the assignment ofyoung workers to hazardous or harmful labor.
・Prohibit force anyone to work in any way whatsoever such as slavery and apprenticeship.

-Occupational health and safety
・Provide safe, hygienic, and healthy work environments that are free from accidents, and provide
the facilities necessary for employees’ health management and daily living.
・Install firefighting equipment, secure evacuation routes, and conduct regular evacuation drills.
・Provide adequate lighting, temperature control, and ventilation and prevent excessive noise. Whennecessary, provide equipment to ensure the health and safety of employees in workplace withoutcharge.

-Appropriate management of working hours and consideration for living wages*
・Appropriately manage working hours and do not require work long hours in accordance with thelabor standards law of each country. Additionally, pay no less than the minimum wage
stipulated by the laws and regulations of each country, give consideration to living wages, andpay extra wages at the rates stipulated in said laws and regulations for work exceedingscheduled working hours.
・Give employees 24 consecutive hours of leave every 7 days, and keep records of attendanceand days off.

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Respect for freedom of association and collective bargaining
Respect workers’ rights to freedom of association and collective bargaining.

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3. Consideration of the environment-Compliance with relevant laws*
Comply with the environmental laws and regulations of the countries and regions in which
you conduct corporate activities.

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Establishment of an environmental management system
Establish and continuously improve an environmental management system and strive toeliminate environmental accidents.

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Prevention of environmental pollution and control of hazardous chemical substances
Identify pollutants and the like and implement appropriate controls to prevent environmental
pollution in accordance with laws and regulations. Additionally, limit the emission of, or prohibit
the use of, hazardous chemical substances in your business activities and manufacturing
processes, and strive to prevent environmental pollution by appropriately controlling thechemical substances contained in your products.

-Effective use of resources/energy and reduction of negative environmental impact
Make effective use of resources and energy and reduce negative environmental impact in yourmanufacturing processes through 3R+Renewable and Circular Economy initiatives, supply
chain-wide reductions of GHG emissions based on green transportation and energy/power
conservation, and activities associated with water resource conservation.

-Consideration for biodiversity
Strive to preserve biodiversity by taking into consideration the impact of our businessactivities on the natural and ecosystems.
4. Promotion of communication with stakeholders through information disclosure
Strive to disclose useful information (such as information related to management, financial affairs,
the environment, conservation, and social contributions) to stakeholders in a proper and timely
manner and promote communication with society.

5. Social contribution and coexistence/co-prosperity with local communities
Value coexistence and co-prosperity with the international community as well as local
communities that provide the foundation for your business activities, and engage in dialogue
with the community and society, social contribution activities, volunteer activities, education,and regional employment.

6. Application throughout the supply chain
Ensure that you disseminate the contents of these CSR Procurement Guidelines to yourown suppliers and promote their adoption throughout the entire supply chain.
*When there is a conflict between international norms and the laws and regulations of a country orregion in which you do business, pursue ways of remedying the problem in accordance with evenhigher standards.

Established in May 2017
Revised in September 2023

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