PAASED00217-0

Toshiba Plant Systems Group
Green Procurement Guidelines(Ver.3.0)

Source: Toshiba Group Green Procurement Guidelines (Version 9.0)

1. Foreword

Table of Contents

2. Toshiba Group's Environmental Future Vision 2050
3. Purpose of Green Procurement

4. Scope of Application of Green Procurement
5. Requests to Suppliers

5.1 Promotion of environmental management in accordance with Toshiba Group's
Procurement Standards(1) Construction of an environmental management system(2) Formulation of a basic environmental policy(3) Promotion of environmental impact reduction activities(a) Response to climate change(b) Response to the circular economy(c) Consideration of ecosystems(4) Promotion of management of chemical substances in products delivered to ToshibaGroup(5) Other management items

5.2 Conclusion of agreements for assuring the environmental quality of supply items
5.3 Cooperation in surveys(1) Evaluation of suppliers' environmental management(2) Surveys of chemical materials/substances in supply items(3) Other surveys necessary to ensure "5.1 Promotion of environmental management inaccordance with Toshiba Group's Procurement Standards" above-1-1. Foreword"Committed to People, Committed to the Future." is the long standing Basic Commitment of Toshiba
Group, a statement that expresses our enduring credo to contribute to the development of society

through our business. Since our founding, with the venture spirit that has inspired Toshiba for many

generations, our purpose has been to combine the power of invention with our expertise and desire fora better world, to tackle increasingly complex and serious social issues, and to turn on the promise of a
new day.

It is essential for Toshiba Group to contribute to resolving environmental issues and other social issues
with our highly reliable products and services, thereby realizing a sustainable society, and to further
increase corporate value. To achieve these goals, we believe that it is important to respond to global
trends from a long-term viewpoint.

Based on this idea, Toshiba Group has formulated "Environmental Future Vision 2050" as a new long-term vision from a global perspective that responds to such issues as carbon neutrality and thetransition to a circular economy. With the goal of "contributing to the realization of a sustainable
society through environmental management which aims to create enriched value and to ensureharmony with the earth," it aims to realize a sustainable society—in other words, a decarbonizedsociety, a resource circulating society, and a society in harmony with nature—by promoting theimplementation of initiatives in three areas: "response to climate change," "response to the circular

economy," and "consideration of ecosystems." Toshiba Group considers "response to climate change" inparticular to be our top priority task for the Group's environmental management, and we aim toachieve carbon neutrality throughout the entire value chain by FY2050. This vision is in line with
Toshiba Group's Basic Policy for the Environment and represents the ideal situation for 2050 asenvisioned by the Group.

To realize Environmental Future Vision 2050, it is essential to consider the environment throughout
the entire supply chain. Green procurement, which involves procuring products, parts andcomponents, and materials and services, etc. with minimal environmental impacts from suppliers thatproactively promote environmental management, is a high priority initiative for Toshiba Group. The

Guidelines present Toshiba Group's basic concept of green procurement and the specific content of ourrequests to suppliers. We invite our suppliers to work hand in hand with us to make green
procurement a resounding success.

Procurement Division

Industrial Safety & Environment Control Division

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATION-2-2. Toshiba Group's Environmental Future Vision 2050

With the goal of "contributing to the realization of a sustainable society through environmental

management which aims to create enriched value and to ensure harmony with the earth," Toshiba
Group's long-term environmental vision, Environmental Future Vision 2050, aims to realize asustainable society—in other words, a decarbonized society, a resource circulating society, and asociety in harmony with nature. As for specific areas of activities, we have selected response to climatechange and resource issues in both business activities and products and services, management ofwater resources and chemical substances, and conservation of biodiversity. Under "response to climatechange," we aim to achieve carbon neutrality throughout the Group's entire value chain by FY2050. As
a milestone, we aim to reduce GHG emissions by 70% by FY2030 compared to the FY2019 level.

To achieve the Vision, we have formulated Environmental Action Plan and are promoting activities inthe selected areas and managing progress while reviewing the Plan every few years.

■ Toshiba Group's Environmental Future Vision 2050

Toshiba Group's Environmental Future Vision 2050:

https://www.global.toshiba/ww/environment/corporate/vision/vision2050.html-3-

■ Breakdown of Greenhouse Gas Reduction Targets Toward Carbon Neutrality■ Toshiba Group's Environmental Action Plan:

https://www.global.toshiba/ww/environment/corporate/vision/plan2.html

3. Purpose of Green Procurement

In collaboration with our suppliers, Toshiba Group aims to procure products, parts and components,and materials and services, etc. with minimal environmental impacts from suppliers that proactively

promote environmental management. Through such efforts, we will create environmentally conscious

products and services that contribute to reducing environmental impacts throughout their life cycles,

thereby contributing to the realization of a sustainable society—in other words, a decarbonized society,a resource circulating society, and a society in harmony with nature, as envisioned in Environmental
Future Vision 2050.

4. Scope of Application of Green Procurement

The Guidelines apply to all products, parts and components, and materials, etc. (hereinafter collectively
referred to as "supply items") to be delivered as well as services to be provided to Toshiba Plant
Sysytems Group.

-4-5. Requests to SuppliersThis section describes specific requests to suppliers. We request that suppliers engage in activities inaccordance with the Green Procurement Standards defined by Toshiba Group as well as to conclude

agreements with us for assuring environmental quality of supply items and to cooperate in various surveys.

We also ask our suppliers to request their suppliers to understand the Guidelines and to promote
activities accordingly. Due to industry trends and other circumstances, the details of requests to

suppliers may differ among Toshiba Group companies, so check the Green Procurement Guidelines
issued by the office in charge of procurement of the relevant Toshiba Group company, division,

operations, complex, factory, etc. Such Green Procurement Guidelines shall take precedence over thosedescribed in this document.

5.1 Promotion of environmental management in accordance with Toshiba
Group's Procurement Standards

We will prioritize transactions with suppliers who more actively promote environmental managementin accordance with the following procurement standards defined in connection with Environmental
Future Vision 2050 (*1).

(1) Construction of an environmental management system

The company has constructed an environmental management system in accordance with

ISO14001:2015 or equivalent and can demonstrate conformance to the standard through athird-party certification etc., or is preparing to be able to do so.

(2) Formulation of a basic environmental policy

The company has established its own basic environmental policy that describes the company's
thoughts on the environment in detail and has shared the policy within the company.

(3) Promotion of environmental impact reduction activities

The company is engaging in the following activities to reduce environmental impacts that are

related to "response to climate change," "response to the circular economy," and "considerationof ecosystems," which are the initiatives of Environmental Future Vision 2050.

(a) Response to climate change(a)-1-1 Has set the company's own greenhouse gas emissions (Scope1(*2) and
Scope2(*3) ) reduction target(s) and is managing progress.

(a)-1-2 (If you have set the target(s))

The target(s) is consistent with the standard of limiting the global averagetemperature increase to 1.5°C above pre-industrial levels (reduction target: atleast 4.2% reduction each year). (*4)
(If you have not set the target(s))-5-Reduction target(s) and performance management are expected to be set within two
years.

(a)-2-1 Has set a greenhouse gas emissions reduction target(s) for emissions from othercompanies related to the company's activities (Scope 3 (*5)), and is managing
progress.

(a)-2-2 (If you have set the target(s))

The target(s) is consistent with the standard of limiting the global averagetemperature increase well below 2°C above pre-industrial levels (reduction target:
at least 2.5% reduction each year). (*6)
(If you have not set the target(s))

(a)-3

(a)-4

(a)-5

Reduction target(s) and performance management are expected to be set within two
years.

Information on greenhouse gas emissions results for both (a)-1-1 and (a)-2-1, or

either of them, is disclosed to external parties (*7).

Has declared to achieve carbon neutrality within the company or throughout its
value chain.

Has requested that the company's primary suppliers reduce their greengas houseemissions.

(b) Response to the circular economy(b)-1 Has set (quantitative and/or qualitative) activity target(s) for waste reduction in
the company's business activities and is managing progress.

(b)-2 Has set (quantitative and/or qualitative) activity target(s) regarding reduction andrecycling of products and services that the company manufactures or provides aswell as packing and packaging materials, and is managing progress (*8).

(c) Consideration of ecosystems(c)-1 Has set (quantitative and/or qualitative) activity target(s) for chemical substancemanagement in the company's business activities and is managing progress (*9).

(c)-2 Has set (quantitative and/or qualitative) activity target(s) for chemical substancemanagement regarding products and services that the company manufactures orprovides, and is managing progress (*10).

(c)-3 Has set (quantitative and/or qualitative) activity target(s) for proper managementof water resources in the company's business activities and is managing progress(*11).

(c)-4 Has set (quantitative and/or qualitative) activity target(s) for the company's
biodiversity conservation activities and is managing progress (*12).

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(4) Promotion of management of chemical substances in products delivered to
Toshiba GroupThe company is conducting the following activities to promote delivery of products as well as
parts and components, etc. with minimal environmental impacts.

(a) The company has established response procedures in the event of noncompliance, etc. with respect to its chemical substance management
regulations, etc.; has ensured that all parties concerned in the organization
are aware of such procedures; and thoroughly investigates the causes andimplements recurrence prevention measures.

(b)The company is aware of the two categories, namely "Rank A (Prohibitedmaterials/substances)" and "Rank B (Managed materials/substances)"(listed in the table below) defined by Toshiba Group for the purpose ofmanaging chemical substances in supply items, and manages chemical
substances belonging to each of these categories in accordance with Toshiba
Group List of Environment-Related Materials/Substances (in Products).
*See below URL*https://www.global.toshiba/ww/procurement/corporate/greenprocurement.html■ Two categories of chemical substance management
Category

Rank A (Prohibitedmaterials/substances)

Rank B (Managed

materials/substances)

Definition

Materials/substances

Materials/substances whose presence is Appendix_Toshibaprohibited in procurement items

Group List of

products (including packaging) is

Products)_ Table 1

Materials/substances whose

Appendix_ Toshiba

reduction of use and substitution, orMaterials/Substances (in(including packaging) in Toshiba Group.
Materials/substances whose use inprohibited or restricted by domestic andforeign laws and regulations.

Environment-RelatedMaterials/Substances (inenvironmental impact should beGroup List of

recovery and detoxification in a closed

Products)_ Table 2

reduced, based on their actual usage, via Environment-Related
system.

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(5) Other management items

The following activities are being undertaken to address environmental risks and raise
environmental awareness.

(a) Has created a management system for environmental risks, and has procedures in place forpreventive and corrective measures (*13).
(b) Provides employees with environment-related education (*14).
(c) Has informed the manufacturers of products delivered to Toshiba Plant Sysytems Groupthrough your company, of the Toshiba Plant Sysytems Group Green Procurement Guidelines
and have requested them to comply with the requests to suppliers as described in the
Guidelines. Or, the evaluation check sheet of Evaluation of Suppliers` Environmental
Management is distributed to manufacturers (subject to trading companies).

5.2 Conclusion of agreements for assuring the environmental quality of supply
items
To ensure the environmental quality of supply items, we request each supplier to conclude a Quality
Assurance Agreement prior to transactions. In addition, we may request a supplier to submit an

Agreement Concerning the Restriction of the Use of Specified Hazardous Substances as necessary.

5.3 Cooperation in surveys

To confirm the status of suppliers' initiatives concerning "5.1 Promotion of environmental

management in accordance with Toshiba Group's Procurement Standards" above, we ask suppliers tocooperate in various surveys, including regarding the following items:(1) Evaluation of suppliers' environmental management

To strengthen partnerships with suppliers that are proactively engaged in environmental

management activities, we periodically evaluate the status of environmental management

activities by suppliers. We determine ranks based on the response results, and we prioritize
procurement from suppliers who are rated highly. For suppliers with low ratings, Toshiba

Group may plan remediation activities, make requests for remediation, and provide guidance
and assistance. In addition, if a supplier does not make improvements according to theremediation plan despite receiving a request for remediation and the provision of guidance andassistance, we may stop transactions with said supplier.

(2) Surveys of chemical materials/substances in supply items

Prior to the approval of new procurement items from suppliers and judgment as to whether

existing procurement items require substitution, we conduct surveys concerning the presenceof the chemical materials/substances in procurement items. The main items of the surveys are
as follows:-8-• Confirmation of the non-use of prohibited materials/substances via the "Declaration of
Use/Non-use of Environment-Related Materials/Substances (in Products)"• Survey on the use/non-use and content of any substance of very high concern (SVHC, *15)
to be a candidate for authorization under the EU REACH Regulation (chemSHERPA®, *16)

• Survey on the analysis and evaluation results

*1:

*2:

(3) Other surveys necessary to ensure "5.1 Promotion of environmental
management in accordance with Toshiba Group's Procurement Standards"
aboveStandard items may differ depending on the supplier's business category, supply item type, necessity, etc. In addition,

standard items are subject to change. For the details of the latest standard items, refer to the Green Procurement
Guidelines issued by the relevant Toshiba Group company, division, operations, complex, etc.

Direct emissions from owned or controlled sources (e.g., fuel combustion and industrial processes).
https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf*3:

Indirect emissions from the generation of purchased energy (e.g., electricity, heat, or steam).

*4:This standard is consistent with the SBT approval criteria. SBT (Science Based Targets) are scientifically grounded GHG

https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf

reduction targets set by companies on a medium- to long-term basis in order to limit the global average temperature

increase this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase

even further to 1.5°C. Companies are now required to set up SBTs based on collaborations with their suppliers to reduce
*5:

*6:

*7:

GHG emissions throughout their value chain.

All indirect emissions (not included in scope 2) that occur in the value chain of the company, including both upstream
and downstream.

https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf

Same as *4.

Has answered to the latest CDP questionnaire or has disclosed greenhouse gas emissions results other than through CDP.

CDP is an international non-profit organization (headquartered in the U.K.) that conducts an annual survey and evaluationof environment-related initiatives of companies and local governments. The results are disclosed to institutional investors,
evaluation organizations, and clients.

*8:

The amount of resources saved and plastic resources recycled in products manufactured or provided by the company as*9:The amount or management method of chemicals emitted during the company’s business activities, etc.

well as packing and packaging materials, promotion of circular economy businesses, etc.

*10: The amount or management method of specified chemical substances contained in products manufactured or provided
by the company, etc.

*11: Water risk assessment, management of amount of water received, wastewater recycled, rainwater used, etc.

*12: Establishment of biotopes, green space management, protection of rare species within the premises as well as
conservation of forests, rivers, and oceans outside the premises, etc.

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*13: Development and formulation of company-wide policies and regulation on environment-related legal compliancemanagement, and implementation of legal compliance management in accordance with such policies and regulations.

*14: Promotion of awareness-raising education on legal compliance, including sharing of the latest trends in legal

regulations, the company's environmental risk management system, and case studies on accidents that have occurred

within the company, etc.

*15: Substance of Very High Concern (SVHC). Substances that fall under the criteria defined in Article 57 of the EU REACH

Regulation and that have been selected as candidate substances for authorization according to the procedure defined in
Article 59 of said regulation.

*16: A scheme for communicating information on the chemical substances contained in products; this scheme is available
across the supply chain.

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Toshiba Group Green Procurement Guidelines Table of revisions
Established on: December 1, 1999
Revised on:June 1, 2003
November 1, 2006
May 1, 2011
February 1, 2015
January 1, 2017
December 1, 2019
February 1, 2021
April 27, 2021
November 1, 2021
March 31, 2022
August 25, 2022
April 7, 2023
July 13, 2023
January 18, 2024
September 1, 2024
Toshiba Plant Systems Group Green Procurement Guidelines Revision history
Edition Date of establishment
No.

1.0

/ revision

May 30, 2023

2.0

June 1, 2023

2.1

2023.8.15

2.2

2024.1.25

9.0

2024.9.1

Reason and contents of revision"Toshiba Plant Systems Group Green Procurement Guidelines" newly
established

Revision of “5. Requests to Suppliers. ” Mainly revision of the standards andnotes of “5.1 Promotion of environmental management in accordance with

Toshiba Group’s Procurement Standards. ”

Revision of the diagram “Breakdown of Greenhouse Gas Reduction Targets

Toward Carbon Neutrality,” revision of “<Appendix 2> Toshiba Group Listof Environment-Related Materials/Substances (in Products) Rank B:

Managed materials/substances (category)” (B16,B17), revision of backcover (adding notes for Basic Commitment of the Toshiba Group) etc.
PFHxS, its salt and PFHxS-related substances (A59) added to Rank A:
Prohibited materials/substances of List of Environment-RelatedMaterials/Substances (in Products) (Appendix

・Separate <Appendix 1> and <Appendix 2> of Toshiba Group List ofEnvironment-Related Materials/Substances (in Products) as "Appendix_Toshiba
Group List of Environment-Related Materials/Substances(in Products)."
・Addition of notes to B17 PFAS of Rank B: Managed materials/substances(category) in <Table 2> of "Appendix_Toshiba Group List of EnvironmentRelated Substances (in Products)" in accordance with the revision of the law.
・Added disclosure of greenhouse gas emissions results to external parties to“(3) Promotion of environmental impact reduction activities " under “5.
Requests to Suppliers.”
・Other changes in wording, etc.

Inquiry on Toshiba Plant Systems Group Green Procurement Guidelines:

General inquiries (mail): TPSC Procurement - Environment contact TPSC-green@toshiba-tpsc.co.jp- 11 -

Procurement Division phone: +81-44-578-6011
Industrial Safety & Environment Control Division phone: +81-50-3180-4430- 12 -