Yaskawa Group
Sustainable Procurement Guidelines

YASKAWA ELECTRIC CORPORATION
Established in February 20210Introduction

Since its foundation in 1915, Yaskawa Electric has managed businesses with a constant commitment
to integrity, with the mission of "leveraging the pursuit of its business to contribute to the advancementof society and the well-being of humankind." Today, we are expanding significantly in our businessdomains and countries/regions where we operate.
On the other hand, societal need for CSR (Corporate Social Responsibility) initiatives, in which
corporations fulfill their social responsibilities through their corporate activities, is becoming
increasingly strong. For example, international documents such as Sustainable Development Goals(SDGs) , the Guiding Principles for Business and Human Rights, and the Guidelines for Multinational
Enterprises of the Organisation for Economic Cooperation and Development (OECD)have been issuedand revised.
Yaskawa Group has adopted a procurement policy and has been promoting sustainability-related
initiatives with our suppliers. In order to meet the expectations of society, we establish these guidelines.
We ask all of you for your cooperation in promoting activities in accordance with these Guidelines.

11. Our policy
Yaskawa Group Principle of Management
At Yaskawa our mission is to leverage the pursuit of our business to contribute to the advancement ofsociety and the well-being of humankind.
We will realize our mission by executing these core tenets:
1. Develop and enhance world-class technologies, with an emphasis on our foundation of quality.
2. Boost management and operation efficiency and achieve the returns necessary for the successful
growth of the company.
3. Satisfy the needs of the market and dedicate ourselves to serving our customers as a customer centricorganization.
Sustainability Policy
We will strive to realize a sustainable society and increase corporate value through the implementationof the Yaskawa Group Principle of Management which is to leverage the pursuit of our business tocontribute to the advancement of society and the well-being of humankind.
1. We will contribute to the value creation for customers and society through creating innovation bycutting-edge mechatronics technologies.
2. We will realize fair and transparent corporate management through communication andcollaboration with stakeholders around the world.
3. We will work to resolve social issues globally with the aim of achieving SDGs as a universal goal.
Procurement Policy
As stipulated in Yaskawa Group Code of Conduct as follows, Yaskawa Group pursues optimal
procurement through assessing its suppliers and implementing proper payment procedures. YaskawaGroup also strongly requests its suppliers to adhere to its compliance policies.
1. When selecting suppliers, we make a comprehensive assessment and rational decision based not
only on quality, price and delivery times but also on the state of their system for operations, such astechnical and operations capability, business soundness, legal compliance, environmental
conservation, health and safety, and other criteria.
2. In procurement transactions, we secure documents or data that show the agreement between eachsupplier for the unit price of the order and evidence that the products or services have been received.
We also carry out thorough recording of expenses, amounts of cost and times that are consistent2with the facts by following appropriate procedure.
3. We pay close attention in procurement transactions to whether there is any violation of the laws andregulations, risk for conflict of interest, or risk of involvement with organized crime group throughmoney laundering, etc. We have no relationship whatsoever with organized crime group and take afirm stance against its demands.
4. We examine the facts about suppliers and their eligibility as a trading partner before a transaction
starts and reexamine them regularly after the transaction starts. We also strive to understand as muchas possible about the subcontractors of suppliers.

32. Requests to Our Business Partners
Promoting responsible corporate behavior in the supply chain is essential to advancing sustainable
management for Yaskawa Group. In these guidelines, each of the items in the "Code of Conduct"shown in Section I and the "Establishing a Management System" shown in Section II are issues to beaddressed, including the supply chain.
These guidelines refer to the "Responsibility Business Conduct Guidelines" advocated by Japan
Electronics and Information Technology Industries Association (JEITA).
We ask our business partners to fully understand and observe these matters. At the same time, wewould like to ask not only your company, but also the suppliers related to your company to manage,supervise, and disseminate them thoroughly so that you can observe them.

4Section I Code of Conduct
1. Respecting the Laws and Internationally Recognized Standards
Companies must respect internationally recognized standards in addition to complying with thelaws and regulations of their home country as well as countries and regions where they conductbusiness.
2. Human Rights and Labor
Companies must respect the rights of workers in line with international human rights standards
including the ILO core labor standards in addition to complying with relevant laws and regulations.

(1) Prohibiting Forced Labor
Companies must not use labor obtained by forced, bonded, exploitative prison labor, slavery, or
human trafficking. Companies also must not force to work, and must keep the right of workers toterminate employment.

(2) Prohibiting child labor and respecting the rights of young workers
Companies must not allow children who are under the minimum age for employment.
Furthermore, companies must also not allow young workers under the age of 18 to performhazardous work that is likely to jeopardize their health or safety, including night work orovertime.

(3) Decent Working Hours
Companies must not allow workers to work exceeding the maximum working hours set by local
laws and regulations, and appropriately manage working hours and days off in consideration ofinternationally recognized standards.

(4) Adequate Wages and Allowances
Companies must comply with all applicable laws and regulations regarding payments of work
(including minimum wage, overtime payments, and allowances and deductions required by law).
Furthermore, it is expected that companies pay wages at a level that allows workers to support
their basic needs (a living wage).

(5) Prohibiting Inhumane Treatment
Companies must respect the human rights of workers and must not treat workers in a mannerthat is or may be construed inhumane, including physical and psychological abuse, coercion, orharassment. Companies must also provide workers with individually secured accommodations
for storing their personal and valuable items, and a reasonable personal space along withreasonable entry and exit privilege.

(6) Prohibiting Discrimination
Companies must not engage in discrimination or harassment. Companies must also consider
5requests from workers regarding religious practices where appropriate.

(7) Freedom of Association and Right to Collective Bargaining
In conformance with local laws and regulations, companies shall respect the right to collective
bargaining of workers and openly communicate with workers for improving working
environments and wage conditions.

3. Health and Safety
In addition to complying with relevant laws and regulations, Companies must take consideration ofstandards such as ILO health and safety guidelines to minimize injury and illness in the workplaceand maintain a safe and healthy working conditions.

(1) Occupational Safety
Companies must identify and assess risks regarding occupational safety and maintain safety
through proper design, engineering and administrative controls. Taking reasonable steps mustalso be taken to protect pregnant women and nursing mothers.

(2) Emergency Preparedness
Companies must identify the possibility of emergency situations by such as natural disasters oraccidents that may adversely affect human life or safety, establish procedures in case ofemergency to minimize harm to workers and property, install the required equipment, andconduct training and drills so that the required responses can be taken in case of emergency.

(3) Occupational Injury and Illness
Companies must identify, assess, record, and report the status of occupational injury and illness,and implement appropriate countermeasures and corrective actions.

(4) Industrial Hygiene
Companies must identify, assess, and appropriately control the risk of workers being exposed tohazardous biological, chemical, or physical agents in the workplace.

(5) Physically Demanding Work
Companies must identify and assess worker exposure to the hazards of physically demanding
tasks and appropriately control such work so that it does not lead to occupational injury andillness.

(6) Machine Safeguarding
Companies must evaluate the machinery used by workers for safety hazards and provide
appropriate safeguarding.

(7) Health and Safety at Facilities
Companies must appropriately maintain the health and safety of facilities and accommodations
provided to workers (such as dormitories, cafeterias, and toilets). Dormitories also requireappropriate emergency egress to be provided.
6(8) Health and Safety Communication
Companies must provide training on appropriate health and safety information regarding various
workplace hazards that workers are exposed to in the workplace in languages and methods thatthe workers can understand. A system that enables workers to provide feedback on safety is also
required.

(9) Worker Health Management
Companies must conduct appropriate health management for all employees.

4. Environment
Companies must actively address environmental problems such as resource depletion, climatechange, and pollution, as well as address regional environmental problems considering the healthand safety of its relevant local community.

(1) Environmental Permits and Reports
Companies must obtain the permits and approvals required for conducting business as well as
register and report according to local laws and regulations.

(2) Reducing Energy Consumption and Greenhouse Gas Emissions
Companies must address energy efficiency and make continuous efforts for reducing greenhousegas emissions and energy consumption.

(3) Air Emissions
Companies must comply with relevant laws and regulations and implement appropriate measures
for reducing the emission of hazardous substances to the atmosphere.

(4) Water Management
Companies must comply with laws and regulations, monitor the source, usage, and discharge ofwater used, and save water. All wastewater must be tested as required, and monitored, controlled,and processed before discharge or disposal. Sources of pollution that may cause water pollution
must also be identified and appropriately managed.

(5) Effective Utilization of Resources and Waste Management
Companies must comply with laws and regulations and implement appropriate management inorder to promote the 3Rs (reduce, reuse, and recycle), ensure the effective utilization ofresources, and minimize waste.

(6) Chemical Substance Management
Companies must comply with laws and regulations to identify, label, and manage chemical andother substances posing hazard to humans or the environment, and conduct management toensure safe handling, transport, storage, use, recycling, reuse, or disposalof such substances.

(7) Managing the Chemical Substances Contained in Products7Companies must comply with all laws, regulations, and customer requests applicable to theprohibition and restriction of specific substances contained in products.

5. Fair Trading and Ethics
Companies must conduct business activities based on high ethical standards in addition tocompliance with the law.

(1) Preventing Corruption
Companies must not be involved in bribery, corruption, blackmail, or embezzlement in any form.

(2) Prohibiting Inappropriate Provision and Improper Benefit
Companies must not provide or accept any promises, propositions, or approvals as a means ofobtaining bribes or any other illicit or inappropriate benefit.

(3) Fair Information Disclosure
Companies must disclose information regarding labor, health and safety, environmentalactivities, business activities, organizational structure, financial situation, and performanceaccording to applicable laws and regulations and industry practices. Falsification of records or
the disclosure of false information is not allowed.

(4) Respecting Intellectual Property
Companies must respect intellectual property rights and the transfer of technology and expertisemust be performed in a manner where intellectual property is protected. Companies must also
protect the intellectual property of third parties such as customers and suppliers.

(5) Conducting Fair BusinessCompanies must engage in fair business, competition, and advertising.

(6) Protecting Whistleblowers
Companies must protect the confidentiality of information regarding whistleblowing and theanonymity of whistleblowers, and avoid retaliations towards whistleblowers.

(7) Responsible Minerals Procurement
Companies must exercise due diligence to ensure that the minerals such as tantalum, tin,tungsten, and gold contained in its products manufactured do not cause or contribute to serious
human rights abuses, environmental destruction, corruption, or disputes in Conflict-Affected andHigh-Risk Areas.

6. Quality and Safety
Companies must ensure the safety and quality and provide correct and accurate information on
provided products and services.

(1) Ensuring Product Safety
Companies must fulfill their responsibility as a supplier by ensuring that products meet safety8standards stipulated by national laws and conduct design, manufacturing, and sales to ensure
adequate product safety.

(2) Quality Management
Companies must comply with their own quality standards and customer requirements in addition
to all laws and regulations applicable to the quality of products and services.

(3) Providing Accurate Information on Products and Services
Companies must provide correct and accurate information on products and services that will notcause misunderstandings.

7. Information Security
Companies must prevent leaks of confidential information and personal information, and enhance
information security.

(1) Defense from Cyber Attacks
Companies must implement protective measures against threats such as cyber attacks andconduct management to prevent damage to the company and others.

(2) Protecting Personal Information
Companies must comply with relevant laws and regulations and appropriately manage andprotect all personal information of suppliers, customers, consumers, and employees.

(3) Preventing Leak of Confidential Information
Companies must appropriately manage and protect the confidential information not only of theirown but also received including from customers and third parties.

8. Business Continuity Planning
Companies must make preparations to ensure that they can quickly resume business activities inorder to fulfill their responsibility of supply in the event that the company or a business partner
becomes a victim of such as a large-scale natural disaster.

(1) Developing and Preparing a Business Continuity Plan
Companies must identify and assess risks to business continuity, examine their impact on thebusiness, and establish preparatory measures required in the medium to long term and a business
continuity plan (BCP) that indicates the status of those initiatives.

9Section II Establishing a Management System
A. Establishing a Management System
Companies must establish a management system in order to comply with the code of conduct in
Section I.

B. Supplier Management
Companies must establish a process for communicating the requirements of the code of conduct in
Section 1 to suppliers and monitoring supplier compliance.

C. Proper Import/Export Control
Companies must maintain a clear management system and conduct appropriate procedures for theimport and export of technologies and goods regulated by law.

D. Establishing a Grievance Mechanism
Companies must establish a grievance mechanism that can be used by stakeholders including
workers and suppliers in order to prevent illicit behavior in their inside as well as throughout thesupply chain.

E. Disclosing the Activities
Companies must disclose information regarding their actions according to these guidelines andrelevant laws and regulations.

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