May 2022

Midori Auto Leather's Procurement Policy of the Global Purchasing Division

1.

Fair and equitable transactions

Fraudulent acts that undermine fair competition are not tolerated in our company or our supply
chain. Likewise, we strive to build a company culture in which all employees clearly refuse toengage in fraudulent activities.

2.

Compliance with the law and social norms

We follow the laws of each country and region, and ensure compliance by engaging inprocurement activities that respect social codes of conduct.

3.

Respect for human rights

We promote procurement activities that consider respect for basic human rights, the workenvironment, and health and safety, throughout our company and our entire supply chain(such as prohibiting labor such as child labor, forced labor, and human traﬃcking, and prohibiting sex discrimination, abuse, and harassment).

We see employees as our most important resource, and treat all employees with dignity andrespect.

4.

Mutual trust with suppliers

We are building business relationships with our associates with the aim of long-term mutualprosperity.

5.

Consideration for the environment

We are helping to build a sustainable society where we can pursue business activities in harmony with the environment.

In 2021, Midori Auto Leather Brazil Ltda. and Midori Auto Leather Mexicana, S.A.DE C.V. obtained
a Leather Working Group (LWG) certiﬁcation. Midori Auto Leather Co., Ltd. (Japan factory) is also
aiming to obtain an LWG certiﬁcation, and continue taking measures to reduce the environmental burden particular to leather factories.

We are also working to save power and reduce carbon dioxide emissions and waste wherever
possible in our supply chain.

1

<On the procurement of hides, our main raw material>①We only use hides generated as a byproduct of meat production.
②Every year, we obtain a written oath from all suppliers on animal welfare, zero deforestation,and traceability.

・Animal Welfare
Animal welfare refers to the rearing of cattle in an environment featuring the following ﬁve
freedoms. All the hides we use meet the animal welfare conditions.
Five freedoms ※1
1. Freedom from hunger and thirst (securing feed and water supply)
2. Freedom from stress (supply of an appropriate rearing environment)
3. Freedom from pain, injury, and illness (prevention, diagnosis, and treatment)
4. Freedom to express normal behaviors (appropriate space, stimulation, and socialization)
5. Freedom from fear and distress (appropriate treatment)・Zero Deforestation and Traceability
For our raw materials, we do not source hides from cattle reared in livestock farms built fromillegal deforestation in South American regions such as the Amazon and Chaco.
We are also cooperating with suppliers to build a traceability management system in oursupply chain.
※1 FAWC (1993) Second Report on Priorities for Research and Development in Farm Animal Welfare. Farm Animal Welfare Council, DEFRA, London, UK

6.

Information management and protection

With regard to conﬁdential information relating to procurement transactions, we follow all

related and applicable laws and ordinances, and work to prevent risks such as unauthorizedaccess, leaks, tampering, and loss of conﬁdential information. Before using conﬁdential information, we conﬁrm the scope of use and other conditions, and ensure that our use stays withinthat scope.

2