Oiles Group Sustainable Procurement Guidelines
Fifth Edition

Revised on April 1, 2024

Oiles GroupTable of Contents
1. Purpose of the Oiles Group Sustainable Procurement Guidelines ····································· 2
2. Scope of Application·························································································· 2
3. Oiles Group Procurement Policy············································································ 2
4. Request to Our Suppliers ····················································································· 3(1) Compliance ································································································ 3① Compliance with Laws, Regulations and Corporate Ethics② Compliance with Antimonopoly Laws
③ Corruption Prevention④ Proper Transactions and Prohibition of Acts of Bribery⑤ Elimination of Relationships with Antisocial Forces⑥ Compliance with Prevailing Export Laws and Regulations⑦ Responsible Procurement of Minerals⑧ Respect for and Protection of Intellectual Property(2) Human Rights and Labor ················································································ 4① Abolition of Discrimination② Respect for Human Rights③ Prohibition of Child Labor④ Prohibition of Forced Labor⑤ Management of Working Hours⑥ Appropriate Wages and Welfare⑦ Education and Training for Human Resources⑧ Communication with Employees(3) Health and Safety ························································································· 5① Occupational Health and Safety Policy② Occupational Health and Safety Management System③ Safe and Healthy Work Environment④ Safety Measures for Machinery and Equipment⑤ Occupational Accidents and Diseases(4) Environment ······························································································· 6① Environmental Management System② Compliance with Laws and Regulations Governing the Environment and Hazardous
Substances③ Prevention of Environmental Pollution④ Promotion of Measures against Global Warming⑤ Conservation of Resources⑥ Preservation of Biodiversity(5) Quality and Safety ························································································ 6① Provision of Safe, High-quality Products and Services② Quality Management System③ Management of Chemical Substances in Products(6) Information Security······················································································ 6① Management of Confidential Information and Protection of Personal Information② Strengthening Information Security(7) Business Continuity Management··········································································· 6① Creation of Business Continuity Management (BCM)② Formulation of Business Continuity Plans (BCPs)③ Risk Reduction(8) Contribution to Society in Harmony with Local Communities ········································· 7(9) Dissemination Throughout the Supply Chain······························································ 71

1. Purpose of the Oiles Group Sustainable Procurement Guidelines
The Oiles Group has been expanding its business across the globe with the vision of becoming a leading
comprehensive manufacturer of oil-less bearings and serving society through technology. This vision is thefoundation of our approach to management, which is based on the spirit and aspirations of our establishedcommitment to “master tribology (friction, wear and lubrication) and damping technologies through innovative
research and development, deploy this technology globally and serve society.”
While the Oiles Group is actively conducting its sustainable initiatives, it also believes that it must pursue
these initiatives in concert with its suppliers, who play such a vital role in the Group’s businesses (“bearings”,“Damping & Isolation” and “construction equipment”). We formulated the Oiles Group Sustainable Procurement
Guidelines (hereinafter the “Guidelines”) and have been pursuing sustainable and ethical activities.
Furthermore, in July 2019, we became a signatory of the United Nations Global Compact (UNGC), whichaims to create a global framework for businesses to participate as responsible corporate citizens in achieving
sustainable growth. The UNGC advocates universal values in areas such as the SDGs, the environment and labor.
We work under these values as a banner for promoting our sustainable initiatives.
Promotion of sustainability is a major part of the Group’s corporate activities and the foundation forcontributing to the sustainable development of society as well as for creating new corporate value. The
Guidelines describe implementation of the Oiles Group Procurement Policy and requests for cooperation fromour suppliers from the perspective of reducing procurement risks related to our business activities.
In this context, the Oiles Group requests suppliers to work together with the Group to promote sustainable
initiatives based on a thorough understanding of the purpose of the Guidelines.

2. Scope of Application
The Guidelines apply to suppliers of divisions conducting Oiles Group materials procurement operations,
including equipment, outsourced processing and construction and logistics.
3. Oiles Group Procurement Policy
The Oiles Group collaborates with its business partners in compliance with laws and regulations, social norms
and corporate ethics to promote sustainable procurement activities that fulfill its corporate social responsibilities,including respect for human rights, consideration for occupational safety and health and environmentalprotection.
■ Compliance and Sustainable Procurement
We will promote sustainable procurement activities in compliance with laws and regulations in Japan andoverseas, ethics and social norms, with due consideration of human rights, environmental protection,social and corporate governance.
■ Transactions Based on Economic Rationality
We will make rational decisions based on such aspects as proper evaluation of quality, reliability, price,lead time, technological development capabilities and proposal capabilities.
■ Sound, Fair and Equitable Transactions
We will provide all business partners with fair and equitable opportunities for competition in order topromote highly transparent transactions.
■ Environmental Protection
We will proactively strive to protect the global environment and engage in procurement activities thatensure its protection.
■ Mutual Trust, Co-existence and Co-prosperity
We will seek to establish relationships of trust with our business partners with a mutual commitment todevelop, grow and prosper together.

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4. Requests to Our Suppliers(1) Compliance① Compliance with Laws, Regulations and Corporate Ethics• Comply with the laws and regulations of all countries and regions associated with projects.
• Formulate compliance policies, create compliance manuals and establish compliance systems.
• Conduct compliance training for officers and employees.
② Compliance with Antimonopoly Laws
• Comply with antimonopoly laws, including those similar to antitrust laws, of all countries and regions
associated with projects.
• Do not participate in activities that create unreasonable transaction restrictions including cartels andbid rigging.
• Do not employ unfair transaction methods including abuse of a dominant position.
• Do not establish a private monopoly.
③ Corruption Prevention• Make political donations and contributions in accordance with applicable national and regional laws
and strive to maintain fair and transparent relationships with public, political and government
institutions.
④ Proper Transactions and Prohibition of Acts of Bribery• Prohibit the distribution or receiving of inappropriate profits.
• Do not participate in the exchange of entertainment, gifts, or money with customers, suppliers, or otherbusiness partners for the purpose of obtaining or maintaining inappropriate profits or preferentialtreatment.
• Engage in projects via fair, transparent and open competition.
• Do not pursue profits via unfair or unreasonable means.
• Do not commit acts of bribery domestically or overseas.
⑤ Elimination of Relationships with Antisocial Forces• All employees must exclude antisocial forces and resolutely refuse to engage in relationships withthem.
• Do not provide any benefit to forces or organizations that adversely affect social order and soundcorporate activities.
⑥ Compliance with Prevailing Export Laws and Regulations• Confirm whether goods such as parts, products, technology, equipment and software subject to thelaws and regulations of countries and regions where projects are to be performed are also regulated byinternational laws or the laws and regulations of other relevant countries and regions and prepare and3

provide export procedures and certificates of non-applicability to ensure thorough control.
⑦ Responsible Procurement of Minerals• In procuring mineral and natural resources and raw materials, confirm that there are no direct orindirect relationships with organizations or activities that negatively impact local communities, such as
regional conflicts, human rights violations, or environmental destruction. In the event any involvement
is discovered, immediately take steps to discontinue their use.
⑧ Respect for and Protection of Intellectual Property• Respect and never violate the intellectual property rights of other companies, such as those related topatents, utility models, designs, trademarks and copyrights.
• Manage and preserve intellectual property rights that belong to or are owned by your company.
• Do not illegally obtain or improperly use the intellectual property of third parties or illegally copy
software or books.
(2) Human Rights and Labor① Abolition of Discrimination• Do not discriminate on the grounds of personal attributes such as race, physical characteristics, creed,gender (including gender identity and sexual orientation), social status, family origin, ethnicity,
nationality, age, marital status and disability, in any employment or treatment (including application,hiring, promotion, compensation, right to education, job assignment, wages, benefits, punishment,
dismissal and retirement).
② Respect for Human Rights• Do not tolerate any types of workplace harassment or inhumane treatment, including abuse andcorporal punishment.
• Respect the rights of persons with disabilities and the rights of ethnic and cultural minorities, sexual
minorities and social minorities such as migrant workers.
③ Prohibition of Child Labor• Do not employ or violate the obligation to protect persons who are under the minimum working age as
specified by the laws of the countries and regions where projects are to be conducted, or persons who
are under 15 years of age.
• Do not allow employees under 18 years of age to engage in dangerous or harmful work.
④ Prohibition of Forced Labor• Employ workers in accordance with the laws and regulations of the countries and regions whereprojects are to be conducted.
• Prohibit detained labor, debt labor, prisoner labor and forced labor through slavery or human4

trafficking. Ensure that all labor is voluntary and that employees are free to leave or terminate theiremployment. Providing a passport, official ID, work permit, or immigration application shall not berequired as a condition of employment.
⑤ Management of Working Hours• Comply with the laws and regulations of the countries and regions where projects are to be conductedwith respect to employee working hours (including overtime), holidays, annual paid leave and so forth.
⑥ Appropriate Wages and Welfare• Comply with the employment laws and regulations of the countries and regions where projects are to
be conducted concerning minimum wage, overtime work, wage deduction, piecework wage and otherbenefits. In addition, fulfill the requirements of legally mandated welfare programs.
⑦ Education and Training for Human Resources• Develop employee education and training programs under applicable laws and customer requirements
such as the acquisition of necessary business-related knowledge and skills.
⑧ Communication with Employees• Uphold employee rights of freedom to associate and freedom to not associate in accordance with thelaws and regulations of countries in which business activities are being conducted.
• Guarantee the rights of employees or their representatives to communicate directly with management
without fear of retaliation, intimidation or other negative impact. Share information on the businessenvironment, business conditions and issues and freely converse about the work environment andworking conditions.
(3) Health and Safety① Occupational Health and Safety Policy• Formulate policies, guidelines and regulations related to occupational health and safety to clearly
acknowledge and fulfill social responsibility for occupational health and safety.
② Occupational Health and Safety Management System
Health and Safety• In compliance with laws and regulations concerning occupational health and safety, identify risks ofaccidents that may occur while at work and the occurrence of chemical substances, noise and odorsthat are harmful to the human body; implement and enforce appropriate safety and related measures.
Physically Demanding Tasks• Assess and properly control the conditions of physically demanding labor such as the manual handlingof raw materials, heavy lifting, excessively repeated physical tasks that could result in repetitive stressinjuries, and prolonged standing and provide employees engaging in such activities with the5appropriate tools.
③ Safe and Healthy Work Environment• Ensure a safe and hygienic environment so that everyone can work with a sense of security, bymaintaining comfortable indoor workplaces in terms of odor, temperature and lighting, providing
necessary facilities such as washrooms and restrooms and securing space for dining such as cafeterias.
Promote employee well-being through health-related activities and providing professional guidance on
disease prevention.
④ Safety Measures for Machinery and Equipment• Effectively manage the safety of machinery and equipment through periodic maintenance andperformance tests as well as securing safety devices and interlocks and similar measures.
⑤ Occupational Accidents and Diseases• Take appropriate actions to address occupational accidents and diseases including the following
actions, in accordance with timely monitoring and reporting systems and procedures.
• Encourage reporting by employees.
• Classify and record accidents and diseases.
• Provide necessary treatment.
• Investigate accidents and diseases and take corrective actions to eliminate the causes.
• Support employees in confidently returning to work.
(4) Environment① Environmental Management System• Create and operate a system with clear goals to promote a wide range of environmental conservation
activities and continue to improve the system to achieve those goals.
② Compliance with Laws and Regulations Governing the Environment and Hazardous Substances• Comply with the laws and regulations concerning the environment and hazardous substances in thecountries and regions where businesses are operated, manage hazardous chemical substances byeliminating or reducing their use and implement the appropriate precautions when using hazardous
chemical substances in the manufacturing process.
③ Prevention of Environmental Pollution• Safely and appropriately dispose of waste and prevent environmental pollution of the air, water andsoil in order to maintain the human living environment while preserving the natural environment.
④ Promotion of Measures against Global Warming• Set voluntary reduction targets for energy conservation and greenhouse gases throughout business6activities and work to reduce them.
⑤ Conservation of Resources• Strive to reduce emissions of waste throughout business operations by setting voluntary targets as wellconsistently ensuring the sustainable utilization of resources through such actions as recycling andimproving the efficiency of water use. In addition, provide reports when information is requested.
⑥ Preservation of Biodiversity• Promote initiatives to conserve biodiversity and ensure the sustainable use of natural resources.
(5) Quality and Safety① Provision of Safe, High-quality Products and Services• Provide products and services that meet the safety standards and required quality standards stipulatedby the laws and regulations of the countries and regions where projects are to be conducted.
② Quality Management System• Continuously improve quality by establishing and operating an effective quality management system.
③ Management of Chemical Substances in Products• Identify and safely manage chemical substances that may pollute the environment or negatively impact
human health. Products should not use chemical substances prohibited by national or regional laws andregulations. Do not use such substances in the manufacturing process; monitor the use of chemical
substances designated by the laws and regulations of the specific country or region and report on theirlevels of emission to government authorities in accordance with the prevailing laws and regulations.
(6) Information Security① Management of Confidential Information and Protection of Personal Information• Properly manage and use confidential and personal information to prevent any leakage.
② Strengthening Information Security• Promote the strengthening of information security to respond to equipment failures caused by virus
infection, unauthorized invasion, information leaks and disasters.
(7) Business Continuity Management (BCM)① Creation of Business Continuity Management (BCM)• To respond to risks, formulate a BCP to ensure business continuity, secure resources, implement
advance measures, implement education and training, conduct inspections and make continuous
improvements.

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② Formulation of Business Continuity Plans (BCPs)• Formulate a plan indicating policies, systems and procedures to ensure that important operations are
not interrupted in the event of an emergency or unexpected circumstances and, if they are interrupted,
to restore them as quickly as possible.
③ Risk Reduction• Evaluate risks that affect your business activities, such as earthquakes, wind and flood damage, fires,industrial accidents and violations of laws and regulations in products and business activities and strive
to take measures to reduce the risks. In addition, promote necessary measures to identify and reducerisks to your suppliers.
(8) Contribution to Society in Harmony with Local Communities• For the sound development of the local community, understand local issues and conduct social
contribution activities in collaboration with the community.
(9) Dissemination throughout the Supply Chain• Encourage your suppliers to comply with the items stipulated in the Guidelines and strive todisseminate them throughout the entire supply chain.

Issued by Procurement Division, Oiles Corporation
Contact for Inquiries: +81-466-44-4814

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