Iseki Group CSR Procurement Guidelines(2nd edition)

December 1st, 2018 First edition
November 1st,2021 Revised

ISEKI & CO., LTD.

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<Introduction>
For the purpose of "Contributing to the realization of a prosperous and sustainable society" throughagricultural machinery, the Iseki Group promotes initiatives for corporate social responsibility (CSR).
Since its establishment in 1926, Iseki has worked to modernize Japan's agriculture as a specialized
manufacturer of agricultural machinery, based on the founder Kunisaburo Iseki's philosophy of"Aiming to free farmers from hard labor" and "Offering products that satisfy customers". Considering
the world's population growth and food problems, the food self-sufficiency rate, national landconservation, and global environmental problems, agriculture will play a major role and the social
mission of agricultural machinery manufacturers will become increasingly important.
In the ISEKI Group, in order to fulfill our social responsibility together with our business partners
across the entire supply chain, we have established the "CSR Procurement Guidelines" in 2018 inlight of recent trends and requests from the international community. The Iseki Group will continue towork with our business partners on CSR procurement with the aim of achieving sustainable growthand increasing corporate value. We appreciate your understanding and cooperation.
The Iseki Group's CSR activities have just begun. We look forward to the guidance, support, andcooperation of our business partners in promoting CSR procurement that takes advantage of thestrengths of the Iseki Group.

[Structure and positioning of the CSR Procurement Guidelines]
The Guidelines consist of "CSR of the Iseki Group", "CSR Procurement Policy", "CSR ProcurementGuidelines" and “Green Procurement Guidelines”.
〔1〕 CSR of the Iseki Group・ This section presents the basic philosophy of the Iseki Group's CSR (corporate social responsibility).
〔2〕 CSR Procurement Policy
・This is a policy for the Iseki Group to observe in its procurement activities and promote CSRprocurement.
〔3〕 CSR Procurement Guidelines
・ Basic matters for promoting CSR procurement with our business partners. We would like ourbusiness partners to understand them.
〔4〕 Green Procurement Guidelines
・Basic matters for promoting Green procurement. It complements the contents of “4. Environmental
conservation and green procurement” in the CSR Procurement Guidelines.
〔5〕 Implementation of the CSR / Environmental Management Evaluation Sheet・ This section explains how to use the CSR / Environmental Management Evaluation Sheet basedon the status of our business partners' efforts, questionnaire surveys and evaluation operations.
〔6〕 Revision history2

〔1〕 CSR of the Iseki Group
1. We will contribute to the realization of a prosperous and sustainable society.
･ Contribute to agriculture in Japan and around the world･ Contribute to a recycling-oriented society

2. We will solve social issues through our business and strive to increase corporatevalue.
･ Establish a strong position in both domestic and overseas markets･ Promote human resource development (Human resource development and utilization of diverse
human resources)■ Management philosophy and basic approach to CSR<The Spirit of Iseki: The Founder's Philosophy>"Aiming to free farmers from hard labor"
The founder, Kunisaburo Iseki, worked to further develop agriculture by reducing
labor through mechanization of harsh agricultural work that uses manual labor andanimal power.
Our founder's commitment to providing products that satisfy customers continues today
as the "The Spirit of Iseki".
<Mission Statement>

Our management philosophy is
1. Offering products that satisfy customers,
2. Providing employees with a stable workplace, and
3. Providing shareholders with appropriate dividends,
thereby fulfilling our social mission<Iseki Group Code of Conduct>
In order to fulfill our responsibility as a member of society and to aim for development
integrated with society, we have established the <Basic Philosophy> which is common senseand basic to be observed by all members of the Iseki Group, and the <Iseki Group Code ofConduct> which consists of more concrete "Code of Conduct", as the basis of our daily activities.

<Basic Philosophy>
1. Comply with laws and regulations
2. Respect fundamental human rights
3. Respect social decency
4. Disclose information appropriately and fulfill social accountability
5. Work to protect the environment3

〔2〕 CSR Procurement Policy
The Iseki Group strives to be a company trusted by society through CSR
procurement in cooperation with our business partners, with the aim of giving
priority to the procurement of materials and the provision of products and services
that take the environment and society into consideration.
 Fair and equitable transactions
 We will conduct fair and equitable transactions with all business partners based on theprinciple of appropriate "Quality, cost and delivery time".
 Building of trust relationship and mutual development
In addition to the "Quality, cost and delivery time", we aim to build a relationship of mutual
trust and mutual development by conducting procurement based on appropriate evaluation
standards, taking into full consideration such factors as innovativeness, technologicalcapabilities, and management stability.

〔3〕 CSR Procurement Guidelines
The Iseki Group has established the "Iseki Group Code of Conduct" as the basisof its daily activities and is committed to CSR procurement in accordance with thefollowing items based on the Code of Conduct. We appreciate your understanding.
Also, please share these contents or similar guidelines of your company with yourcompany's business partners.
1.

Customer satisfaction and quality assurance(1) Customer satisfaction
To provide products and services that satisfy customers through activities to improve customersatisfaction (CS).
(2) Quality assurance
To take all possible measures to ensure the quality of our products, and in the event of aquality problem, respond promptly and sincerely.

2.

Compliance with laws and regulations and ethical corporate activities(1) Compliance with laws and regulations
To fully understand and comply with laws and regulations related to our operations.
(2) Appropriate accounting
To conduct appropriate accounting in accordance with laws, regulations, principles and internal
rules at all times.
(3) Respect for intellectual property rights and compliance with laws and regulations of respective
countries/regions as well as international rules
4To recognize the importance of intellectual property (Patent rights, copyrights, etc.), work toaccumulate and preserve intellectual property, and respect the intellectual property rights ofothers.
(4) Protection and management of trade secrets
To appropriately manage trade secrets and not to disclose them outside the company during or
after employment.
(5) Respect for social decency
To refrain from acting out of social decency as a member of society.
(6) Fair relations with business partnersRelations with business partners must be fair and impartial, so not to give unfair
disadvantages by taking advantage of a superior position in transactions.
(7) Moderate entertainment and gifts
Not to accept entertainment or gifts that exceed social norms.
(8) Prohibition of mixing public and private matters
Not to receive private benefits or favors by taking advantage of one's position at work.
(9) Appropriate use of company assets
To use company assets (Facilities, equipment, information systems, etc.) only for authorizedpurposes.
3.

Respect for human rights and creation of healthy and safe workplace(1) Respect for human rights
To respect fundamental human rights and refrain from discriminating or harassing others on
the basis of nationality, race, creed, gender, disability, or other grounds. In addition, forcedlabor and child labor are not permitted.
(2) Responsible mineral procurement
If the use of conflict minerals(*) is found, we will work to avoid using it.
(*) Tantalum, tin, tungsten, gold and its derivatives produced in the Democratic Republic of the Congoand its surrounding countries, funded by rebel armed groups that repeat inhumane acts.

(3) Prohibition of harassment
To prohibit all harassment (power harassment, sexual harassment, etc.).
(4) Healthy and safe workplace
To aim to create a healthy, safe and rewarding workplace.
(5) Protection of personal information
To properly manage personal information and not to leak it.
4.

Environmental conservation and green procurement(1) Environmental conservation
To carry out corporate activities in harmony with environmentally conscious nature, with"Agriculture and Agricultural Machinery" as the cornerstone of management.
(2) Promotion of green procurement
To promote green procurement to build a sustainable recycling-oriented society.
See "Iseki Group Green Procurement Guidelines"

55.

Coexistence with local communities and international cooperation(1) Contribution to local communities
To actively contribute to local communities as a responsible member of society.
(2) International cooperation
To respect the laws, regulations, customs and culture of each country and region and contributeto local communities in our overseas operations.
(3) Insulation from antisocial forces and organizations
Not to have any relationship with antisocial forces or organizations, and not to provide any
economic benefits, facilities or privileges under any pretext.

6.

Management transparency and accountability(1) Information disclosure
To recognize the importance of social accountability, work to disclose necessary information
promptly and accurately, and strive to create a transparent company.
(2) Prohibition of insider trading
Not to engage in any act that violates insider trading (securities trading using undisclosed
material internal information) regulations.

6〔４〕 Green Procurement Guidelines
In order to build a sustainable recycling-oriented society, the Iseki Group shall evaluatebusiness partners' environmental efforts based on the Guidelines, and preferentiallypurchase environmentally-friendly products and conduct transactions with business partners
that meet the standards. We appreciate your understanding and cooperation in promoting
green procurement with us.
1. Scope of application and operation of green certification<Scope>(1) The Guidelines shall apply to business partners who cooperate in the entire life cycle of Iseki
products, such as purchasing, manufacturing, distribution, use and disposal of products.
(2) They shall apply to products delivered to the Iseki Group.
(3) Design and production consignment products and OEM supply products shall basically conformto the green procurement standards of OEM.
(4) For products for which materials are specified by the Iseki Group in specifications, theevaluation of the environmental characteristics of the products is not applicable.
<Evaluation and judgment>(1) You will be asked to self-evaluate the evaluation criteria of "business partners' environmental
efforts" and "environmental characteristics of the delivered products themselves" on the "CSR /Environmental Evaluation Sheet".
(2) We will evaluate and judge based on self-evaluation, and give priority to purchasing productswith a high overall green rating.
(3) As green procurement information, into the business partner's overall evaluation and reflect thestatus of environmental conservation activities in our decisions to select business partners.
<Green supplier certification>(1) Based on the submitted results of self-evaluation, we shall evaluate the degree of achievement of
the basic requirements of the evaluation standards, and determine that business partners that meet orexceed the Iseki Group certification standards be "Green procurement supplier".
(2) In making a judgment, we may visit or interview business partners as necessary in order toconfirm the results of self-evaluation.
(3) The department in charge will inform you of the result of the judgment. At that time, we will
issue a "Green Procurement Supplier Certificate" to business partners who are certified as "Greenprocurement supplier".
2. Standards for Evaluating Business Partners' Environmental Activities
This section explains recommendations and evaluation criteria for our business partners'
environmental efforts in all business activities such as research and development, production, andsales.
<Basic requirements>
We encourage our business partners to acquire environmental management system certification inorder to promote environmental conservation activities and green procurement. If you have notobtained certification, we shall conduct the evaluation based on the Requested items and status ofimplementation thereof.
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(1) Obtaining certification: Recommendation
・ISO14001 or comparable in-house standard
・Other certification by third-party regarding environmental management system.
(2) Requested items and status of implementation
・There is a policy on environmental conservation.
・An organization and system for environmental conservation are in place.
・You understand and comply with environmental laws and regulations.
・You work on reducing energy consumption and CO2 emissions.
・You work on reducing water consumption.
・You work on reducing the use of hazardous substances such as chemical substances.
・You make efforts to promote 3R (Reuse, reduce, and recycle) of wastes.
・You are engaged in activities that take biodiversity conservation into consideration.
・You provide education and awareness-raising activities on environmental conservation to allemployees.
・You publish information on environmental efforts on the Internet and in environmental reports.
3. Standards for Evaluating Environmental Characteristics of Products Delivered
This section explains the items and evaluation criteria requested for the environmental
characteristics of the products delivered to the Iseki Group.
<Basic requirements>(1) They comply with environmental laws and regulations.
(2) You make efforts to reduce the amount of resources (Materials, etc.) used in manufacturingthem.
(3) You make efforts to reduce energy consumption and CO2 emissions in manufacturing them.
(4) You make efforts to promote 3R (Reuse, reduce, and recycle) of wastes in manufacturing them.
(5) You give consideration to improving the recycling rate at the time of product disposal.
(6) You are able to respond to the survey request made by the Iseki Group concerning the hazardous
chemical substances contained in products.
(7) You work on improving the efficiency of product transportation and reducing packaging
materials.
(8) You disclose environmental information on products.

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〔5〕 Implementation of the CSR / Environmental Management Evaluation
Sheet
We may ask our business partners about their efforts through questionnaire surveys,
phone calls or visits. If there are any items that have not been implemented in the survey,
please consider them in-house and promote your efforts. Thank you for your understanding
and cooperation.
1. About investigation of the status of efforts
・For the survey, please describe your self-evaluation on the "CSR / Environmental Management
Evaluation Sheet" (paper or Web).
・In principle, the survey will be conducted once a year and will be announced by the department
in charge of the Iseki Group.
・Surveys may be conducted irregularly as necessary.
・New business partners shall be requested to do so at the start of business.
・If you use a trading company as an agency, it shall be evaluated as well.
2.others
・The materials you respond to and the information obtained through hearings will be used only
for the purposes specified in the guidelines and will not be disclosed to the outside
・This guideline and the content of the survey on the status of efforts may be revised without
notice due to changes in social conditions and revisions to laws and regulations.
・Please refer to the latest information for laws and regulations that do not specifically indicate
this guideline.

〔６〕 Revision history
1. Green Procurement Guidelines
Established in June 2006
Revised in October 2010 (2nd edition)
Revised in September 2015 (3rd edition)
Revised in December 2018 (4th edition)
2. CSR Procurement Guidelines
Established in December 2018
Revised in November 2021 (2nd edition) *Integrated Green Procurement Guidelines

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