Supply chain management

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Supply chain management

Governance & compliance

Supply chain management

Basic Procurement Policy

Optimal procurement at our bases across the globe
We contribute to the countries where our bases are located by procuring local raw materials and components. At the same time, we also aim to build(1) Promotion of global procurement activities
We strive to enhance our global procurement utilizing ourdomestic and overseas locations and strengthen relationships
with our valued suppliers.

(2) Compliance with laws, social codes and internalregulations
We comply with laws, social codes and internal regulations, andpromote healthy and open procurement activities.

(3) Promotion of fair, just and sincere procurement
activities

good relations with our valued suppliers taking long-term business relationships and the optimal quality and cost into consideration. Furthermore, we
conduct procurement with a higher level of strategy to accommodate our global production operations.

Strengthening partnerships with our valued suppliers
Together with approximately 80 valued suppliers we formed the INOAC Cooperative
Assembly, where we engage in various activities. We invite representative speakers from ourvalued suppliers to give presentations for our entire group of companies about their activities
to raise awareness about compliance and risk management at speaking engagements, andabout the work that goes on in their subcommittees. In this way, we strive to mutually raise
the levels of all participating companies.

We provide our valued suppliers with fair and just competitive
opportunities and act in good faith in our procurement
activities.

(4) Consideration for the environment and humanrights in procurement
We conduct procurement with consideration for the earth’senvironment in accordance with INOAC’s environmental
policies. Our procurement activities seek to achieve carbon
neutrality and a carbon-free society above all. In addition, wegive due consideration when dealing with the procurement ofraw materials that may cause human rights issues or social
problems such as the use of conflict minerals.

(5) Building partnerships based on trust with ourvalued suppliers
We construct firm, trusting relationships with our valued
suppliers and cooperate with them to maintain and improveeach other’s technological capability and quality.

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CSR REPORT 2021

Green procurement

Conflict minerals

In order to keep up with environmental regulations that become

The Democratic Republic of Congo has one of the world’s richest total

stricter every year, we revise the INOAC Green Procurement Criteria on

deposits of mineral resources. However, it is also a region—along witha yearly basis and engage in procurement activities that areneighboring countries—embroiled in ceaseless warfare. Minerals

environmentally conscious. In addition, we are also working to reduce

produced in this region become a source of funding for organizations

our environmental impact, such as by looking for ways to enhance

involved in human rights violations, environmental destruction,loading efficiency as a means to improve procurement logistics.

corruption and illegal activities. Our policy is to not use such conflictminerals, and we are working with each of our business partners toAchieve carbon neutrality and a carbon-free society
As measures to combat global warming which grows worse each year,
we engage in procurement activities seek to achieve carbon neutrality
and a carbon-free society, and strive to reduce our CO2 emissions.

disclose relevant information.