CITIZEN Group Modern Slavery and Human Trafficking Statement for theFiscal Year Ended March 31, 2023 (Proposal)
This statement is made pursuant to the United Kingdom Modern Slavery Act of 2015.
The CITIZEN Group (CITIZEN WATCH CO., LTD. and its group companies)
endeavors to ensure that there are no violations of human rights nor complicity inthe violation of human rights in any way in our own business operations or our
supply chains. We hereby provide this disclosure statement regarding our activities
to prevent and tackle modern slavery and human trafficking.

1. Organizational structure, businesses and supply chains
The CITIZEN Group has been engaged in the manufacturing and sales of products
in various business fields, such as Watches, Machine Tools, Devices & Components
and Electronic Products, based on the compact precision technology which CITIZEN
has developed since its establishment in 1918. Details of our corporate and businessinformation can be found on the “About Us” page of the CITIZEN WATCHʼs website.
Our business activities in the UK consist of sales of products and provision of services
by our group companies: CITIZEN WATCHE UNITED KINGDOM, LTD. and CITIZENMACHINERY UK LTD.
Materials, parts and some finished products used for production by the CITIZEN
Group are purchased from external suppliers in and outside of Japan. There wereabout 4,100 suppliers as of the end of the fiscal year ended March 31, 2023(“Period”). The majority of our overseas suppliers are located in China, thePhilippines, Thailand, Vietnam and Malaysia.
2. Policies related to modern slavery and human trafficking in operations and supply
chains-CITIZEN Group Code of Conduct
The CITIZEN Group Code of Conduct, which sets forth the basic stance of theCITIZEN Group's social responsibility and serves as a standard for the behavior andjudgment required of each and every employee of the Group, has been establishedand translated into 10 languages for global deployment.
-CITIZEN Group Human Rights Policy
Based on the "respect for human rights" and "responsible and sustainableprocurement" as stipulated in the CITIZEN Group Code of Conduct, we haveformulated the CITIZEN Group Human Rights Policy to further respect "universaland fundamental human rights" and apply the policy to all officers and employees
within the CITIZEN Group.
-CITIZEN Group CSR Procurement Guideline
Through the CITIZEN Group CSR Procurement Guideline, we strongly demand thatsuppliers in our supply chain prohibit "forced labor, inhumane treatment, and childlabor”. At the same time, we require their cooperation in ensuring that the CITIZEN
Group addresses social issues related to human rights, labor, the environment, andanti-corruption throughout its supply chain, to promote responsible procurementthat supports the development of a sustainable society. These efforts are in linewith the Ten Principles of the UN Global Compact.
-CITIZEN Group Responsible Mineral Procurement Policy
The CITIZEN Group recognizes that the use of minerals (tantalum, tin, tungsten,gold, and cobalt) originating from conflict and high-risk areas (CAHRAs), such as
the Democratic Republic of the Congo and its neighboring countries, as a source offunding for armed groups, contributing to conflict, human rights abuses andenvironmental destruction, is an important international issue. The CITIZEN Group
Responsible Mineral Procurement Policy states that the Group will not use any
mineral that may contribute to human rights abuses, such as child labor and forcedlabor, environmental destruction, conflicts, terrorist financing, money laundering,corruption, or illicit financing through mining, trading, handling, or export. Under
our policy of not using these minerals, we are conducting surveys in line with theDue Diligence Guidance for Responsible Supply Chains of Minerals from Conflict andHigh Risk Areas, issued by the Organization for Economic Cooperation andDevelopment (OECD).
The CITIZEN Group has also supported the Ten Principles of the UN Global Compact
since we joined in it in April 2005.

3. Due diligence process and risk assessment related to modern slavery and humantrafficking
Within the CITIZEN Group, we conduct human rights and labor monitoring surveys
annually in accordance with the above “CITIZEN Group Human Rights Policy” toensure that there is no child labor or and forced labor practices. In addition, officers
and employees of the CITIZEN Group can report to the internal or external
compliance hotline if they know that the Code of Conduct has been, or is likely tobe, violated. Whistleblowers are protected as they can report anonymously and any
prejudicial treatment of whistleblowers is prohibited. The CITIZEN Group endeavors
to detect and correct human rights risks as early as possible, by establishing various
compliance hotlines.
An audit was conducted at the two companies in the Citizen Group where foreigntechnical intern trainees are enrolled. As a result, no typical behaviors or situations
were identified, such as passport retention by the company and illegal long working
hours.
With regard to possible human rights risks in the supply chain, the CITIZEN Groupis working on group-wide risk management such as human rights and procurement
risk identification and improvement under the leadership of the CITIZEN Group
Sustainable Procurement Committee (human rights risks within the Group arepromoted by the CITIZEN Group Human Resources Committee). Specifically, weendeavor to identify risks in the watch business by referring to the human rights
risk identification method learned at the Sustainable Procurement Committee's
expert workshop (first meeting in FY2021) and materials from the Caux
Roundtable's stakeholder engagement program, as well as by collecting information
through interviews with people who have been stationed at overseas bases. As aresult, potential risks were identified in the labor environment of suppliers thatprovide conflict minerals and raw materials. In FY2022, a study was made tominimize the risk of conflict minerals. We also sought to identify human rights risks
at each of our operating companies.
In FY2023, the entire CITIZEN Group will work together to examine and correct themeasures to minimize human rights risks, including examining measures to correct

the labor environment of raw material suppliers in the watch business.
With regard to our suppliers, we are working to eliminate risks in the supply chain,including modern slavery and human trafficking, by requesting suppliers to comply
with the CITIZEN Group CSR Procurement Guideline. Briefing sessions for suppliers(including video streaming format) were also conducted for the fiscal year ending
March 31, 2023. Due to the impact of the COVID-19 pandemic, the fact-findingsurvey (supplier audit) was conducted for 14 companies, in a remote format. We
will continue to expand the scope of our self-assessment and factfinding surveys,
and request appropriate corrective measures in cases where there is a risk of humanrights violations on the part of suppliers.
The CITIZEN Group implements responsible mineral procurement initiatives inconjunction with CSR procurement. Targets and results are reported at the CITIZEN
Group Sustainable Procurement Committee, which meets twice a year, and arelinked to ongoing efforts and improvements aimed at realizing the CITIZEN Group
Human Rights Policy.
4. Training and capacity building related to modern slavery and human traffic
To deepen understanding of the importance of human rights and how it ties into
our business, we designated December as “CITIZEN Group Human Rights Month”,
starting in the year ended March 31, 2019. Panel displays on the CITIZEN Group
Human Rights Policy and the contents of all 30 articles of the Universal Declarationof Human Rights were held at domestic Group companies and four overseas
companies. In addition, 6,300 domestic Group employees (99.6% participationrate) took an e-learning course on "Business and Human Rights," while fouroverseas companies provided a similar course.
Each year, the CITIZEN Group Sustainable Procurement Committee invites outside
lecturers to conduct "expert study sessions" to improve procurement risks andresolve issues. In FY2022, we held a study session on the grievance redress
mechanism,utilizing

anexternal

advisory

service.

Afterdeepening

ourunderstanding of the system for remedies in the supply chain, we established andbegan operating a "Supplier Hotline" in April 2023. In addition, training on thecontents of the anti-corruption policy was conducted at a briefing session forsuppliers in China.
This statement was approved by the Board of Directors of CITIZEN WATCH CO.,LTD. on June 19, 2023.
June 19, 2023

President & CEO
CITIZEN WATCH CO., LTD.