「TOYO TIRE Group CSR Procurement Guidelines」（Vol. 3.2）
Enforcement: Sep. 2022

Introduction
TOYO TIRE Group (Group) are aware that solving the various and increasingly diverse social
issues through our business activities is a corporate responsibility of the Group as well as oursignificance in society.
Creating a sustainable supply chain is indispensable for continuing to ensure a stable supplyof natural rubber and other raw materials with the quality and volume essential for the growthof our business.
On a global business, sustainable procurement activities are expanding. Our Group promotesresponsible procurement supporting sustainable development by addressing social issues, e.g.
human rights, labor, and environmental issues, across our global supply chain.
In order to solve social issues, we share the Group’s thoughts on sustainable purchasing with
our suppliers and, with the cooperation of our suppliers, make solving global social problems
throughout the supply chain a priority.
To respond to current global social issues, we have reviewed our existing guidelines andsummarized the Group's view on sustainable procurement as "TOYO TIRE Group CSR
Procurement Guidelines" (Vol.3).
By sharing and collaborating on Corporate Social Responsibility (CSR) to aim for sustainableprocurement with our suppliers, the Group aims to strengthen partnerships and realize
further growth and evolution of our mutual businesses. We ask for your continued
understanding and cooperation in implementing these guidelines as well as your appreciationof the mission to which they are dedicated.

＊ Sustainable Procurement Policy for Natural rubber has been removed from the CSR
Procurement Guidelines because it was separately issued as the "Sustainable Natural
Rubber Procurement Policy ".
TOYO TIRE Group1

Philosophy
Company Philosophy:
We will endeavor to continuously improve our products, and create value for everyone who
we work with.
Our Mission:
To create excitement and surprise with our products that exceed customer expectations andenriches society.
Our Vision:
Our goal is to be a company that:- Stays one step ahead of the future through constant technological innovation;- Drives entrepreneurial and creative spirit through a progressive culture; and- Shares in the enjoyment felt by everyone involved in our activities.
Our Fundamental Values: “The TOYO WAY”:
Fairness
Be fair and selfless in one’s actions to benefit society.
PrideTake pride in one’s self, work and company, and to persevere.
InitiativeShow initiative in all matters, and take ownership of one’s actions.
Appreciation
Demonstrate sincere compassion and appreciation for people and society.
Solidarity
Continuously advance creativity and innovation by working together to mobilize ourcorporate knowledge and capabilities.

2CSR Policy
Basic Policy:
TOYO TIRE Group seeks to remain a company admired by individuals and society, eachmember keenly aware of their "connection" with society.
Priority Themes:Ideal status in 2020
1) Product and service reliability and innovation
Providing eco-friendly products and services founded on high quality and safety
2) Contribution to the global environment
Promoting environmental management on a Group-wide basis
3) Respect for human rights and diversity
Diverse employees actively working in an environment with a global sense of human rights
4) Collaboration with suppliers
Entire supply chain engaging in CSR activities
5) Harmony with local communities
Contributing to local community development while responding to stakeholders’ voices6) Creation of safe and healthy workplaces
With priority given to safety, promoting the creation of workplaces that ensure well-being andsecurity
7) Reinforcement of corporate governance and complianceEngaging in business activities with integrity while constantly improving managementtransparency

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Basic Purchasing Policy
Basic concept of purchasing activities:
To secure, in accordance with the Toyo Tire Group Charter of Corporate Behavior and CSR
Policy, a stable supply of goods at the right quality and price, while maintaining open and fairrelations with all suppliers in all parts of the world.
Based on the basic concept of purchasing activities, we will promote sustainable purchasing
activities that adhere to the following principles.
Compliance
Comply with applicable laws, regulations, and social norms.
Partnership
Build and maintain an honest, healthy, and cooperative relationship with suppliers.
Aim for mutual growth and development through enhanced communication and stronger
bonds of mutual trust.
Transparent and fair trade
When selecting suppliers, assess them from a comprehensive standpoint that takes into
account their willingness to share and collaborate on CSR initiatives as well as on quality,price, delivery, and sustainable supply capacity.
Environmental responsibility
Promote purchasing activities that also aim to reduce impact to the global environment.

4Initiatives in CSR Procurement
The Group shares this guidelines with our suppliers and will collaborate with them asdescribed.
We will periodically share information with our suppliers. We also will make suggestions andoffer support for any necessary improvements.
Compliance1) Adherence to applicable laws and regulationsa) Adhere to International Code of Conduct, International Convention, the all applicablenational and local laws in all areas of operations.
b) Comply with all internal rules and act with a high awareness of ethical issues.
c)Strive to promote compliance practice within the organization by creating andimplementing action guidelines, organizational functions, education and training
programs, a reporting system, and enforcement mechanisms.
2) Protection of intellectual propertya) Comply with all applicable national, state and local laws and regulations and internal
rules related to intellectual property, and strive to protect the intellectual property of theGroup. Respect and do not infringe on the intellectual property of other companies
and individuals.
3) Free competition and fair tradea) Comply with all applicable national, state and local laws and regulations and internalrules related to free competition and fair trade, and refrain from engaging in collusive
behavior, price discrimination, private monopolies, unreasonable restraints on trade andunfair practices.
4) International trade controlsa) Conduct appropriate export/import operations while complying with all applicablenational, state and local laws and regulations and internal rules related to export/importcontrol laws.
5) Anti-corruptiona) Comply with all applicable national, state and local laws and regulations and internalrules related to the prevention of corrupt practices.
b) Do not directly or indirectly, be involved in any form of corruption, bribery, extortion,embezzlement, etc.
c) Maintain business practices with suppliers, that do not violate any applicable national,
state or local laws and regulations, and do not give or receive gifts or entertainment inways that exceed acceptable business norms. Do not give or receive financial or other5

gifts for the purpose of personal benefits gain.
d) Do not provide entertainment, gifts or offer special treatment to politicians andgovernment officials on behalf of the company.
6) Information managementa) Comply with all applicable national, state and local laws and regulations and internal
rules related to information management, to ensure that internal and external
confidential information and personal information is obtained in a legal manner, that it
is adequately protected and managed, and that it is only used for appropriate businesspurposes.
b) When disclosing confidential or proprietary information to third parties, obtain allnecessary internal and external approvals, and make such disclosures only uponreceiving the third party’s execution of a non-disclosure agreement.
Products and Services
1) Safetya) Provide high-quality, environmentally conscious products and services with the highest
priority placed on safety.
b) Comply with all applicable national, state and local laws, regulations, and standards andinternal rules related to safety.
c) Appropriately display all safety information and educate customers about the correct useof products.
2) Qualitya) Comply with all applicable national, state and local laws, regulations, standards, andcertifications related to quality and internal rules on quality systems and other qualityrelated matters.
b) Maintain quality that fulfills product specifications and make continuous efforts toimprove quality.
c)Conduct quality audits according to product characteristics.
3)Supplya) Comply with all agreed upon supply terms, including specifications, delivery deadline,and quantity.
b) Do not ship products that fail to meet all specifications.
c) Build and operate a system to maintain a steady supply of product.
4) Price and cost reductiona) Provide products at a market-competitive price, viewing quality as a major prerequisite
for conducting business.
6b) Make continuous efforts to reduce price, such as through value engineering and value
analysis (VE/VA).
Employee Rights and Labor
1) Health and safetya) Comply with all applicable national, state and local laws and regulations and internal
rules related to health and safety. Make continuous efforts to create workplaces thatprioritize health, safety, the environment, and accident prevention.
b) Strive to maintain appropriate work hours to prevent employees from working toexcessively long hours.
2) Risk managementa) Strive to strengthen resilience by creating and operating a risk management system toensure business continuity, i.e. to facilitate a quick recovery from an accident or disaster.
3) Respect for diversitya) Respect each other and strive to create a dynamic workplace that is free of discrimination,harassment, and abuse.
b) Respect the thoughts and values of others and do not infringe on the privacy of others or
discriminate against a person in any way (nationality, race, gender, disability, illness,religion, marital status, age, etc.)
4) Respect for human rights and local communitiesa) Respect to the following international human rights standards:
International Bill of Human Rights including Universal Declaration of Human Rights(UN), Guiding Principles on Business and Human Rights (UNHRC), Tripartite
Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO),
International agreement on land ownership (FAO).
b) Recognize and promote the human rights, local cultures, and customs of people engaged
in our business activities.
c) Do not interfere in discussions between employees and employer.
d) Comply with all applicable national and local laws and regulations and internal rules
related to employment and labor matters, such as minimum wage, overtime
compensation and prohibition of child or slave labor.
e) Follow the principle of free, prior and informed consent (FPIC)* when acquiringproperty and respect the rights of indigenous people in land use.
*Principles for respecting human rights of indigenous people. The aim is to protect the livelihoods,
culture and means of living of indigenous people whose lives depend on the forest from being damaged
by deforestation and changes in land use.

7f) Recognize, promote, and protect the of indigenous peoples and local communities otherthan the above.
Society1) Environmenta) Conduct all business activities in consideration of the environment and in compliancewith all applicable environmental laws and regulations.
b) We will endeavor to;・Protect biodiversity
・Limit forest destruction to net zero・Protect and regenerate areas of High Conservation Value (HCV) and High Carbon
Stock (HCS)*HCV (High Conservation Value) area: Biological, ecological, social and cultural values are high.
These are regions with extremely significant influence at national, regional and global level, or
considered very important.
*HCS (High Carbon Stock) area: Areas with high carbon stock such as a rich-biodiverse forest.

・Protect wildlife
・Prohibit development of Peatlands**Peatland: Areas of land with naturally formed layers of peat. The peatland ecosystem is the mostefficient carbon sink on the planet.

・Protect water resources, i.e., surface water and groundwater conservation, etc.; respect
the water rights of local community.
・ Reduce the environmental burden, e.g., waste reduction, reduction of energy
consumption and greenhouse gas emissions, chemical substance management, etc.
2) Responsible raw materials procurementa) Procure raw materials in compliance with all applicable national, state and local
environmental guidelines.
b) With regard to minerals and raw materials mined or manufactured in conflict and highrisk areas, we will procure those that are not related to human rights abuses,environmental destruction, conflict, or corruption.
In the unlikely event that such risks are determined to be high, we will request corrective
measures through our suppliers.
3) Communication with Stakeholdersa) Provide appropriate information disclosure and two-way communication regarding
issues addressed by these policies and guidelines, thereby cultivating positive
relationships with stakeholders.
8b) Conduct business activities with integrity and with a high level of transparency.
c) Aim to secure a traceability system to track environmental and social risks.
d) If there is a problem in the supply chain, understand the situation, with the cooperationof stakeholders, take appropriate corrective action.
e) If there is an actual or suspected problem in the supply chain, stakeholders cananonymously notify the Group via a Grievance Mechanism.
4) Community Contributiona) Maintain an interest in community issues and strive to work with others toward solutions.

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