CSR Procurement Assessment Report 2023
(Singapore Business)

Pigeon Corporation
September 28, 2023

Pigeon has established the CSR Procurement Policy and CSR Procurement Guidelines asour basic approach to procurement activities in order to continue contributing to the"development of a sustainable society" as stated in the Pigeon ESG/SDGs Basic Policy. To
advance procurement based on this Policy and these Guidelines, we conducted anassessment survey of all of our suppliers. The purpose of this assessment is to grasp thestatus of environmental, sustainability and governance (ESG) activities among suppliers andto recognize issues occurring in our supply chain.
We look forward to working with suppliers to correct the issues revealed by the assessment.
By conducting this assessment and following it with improvement efforts as described above,
we believe we can contribute to solutions for a range of social issues in collaboration withsuppliers, building stronger relationships with them in the process.

Overview of the Assessment
Assessed Suppliers
All primary external suppliers of Pigeon Singapore Pte. Ltd.
Major suppliers in Singapore Business Unit's production subsidiaries
Number of suppliers contacted and response rate
Of 230 companies contacted, 138 companies responded. (Response rate of 60.0%)
Assessment period
April to August, 2023
Assessed items
The questionnaire used for the assessment was the Self-Assessment Questionnaire (SAQ)
prepared by UN Global Compact Network Japan (GCNJ), the Japan chapter of the United
Nations initiative on corporate sustainability.
A detailed description of the items queried in the questionnaire is provided in the tablebelow. Each intermediate-level item is broken down into five sub items: Legal awareness,Policy, System and responsibilities, Collective actions and Correction.
Respondents are asked to rank their own performance in each sub item on a scale of 1 to 3.
Major items
1. Corporate

Intermediate-level items
1. Construction of a system for advancing CSR

governance2. Construction of internal control systems

regarding CSR

3. Business continuity plan (BCP)
4. Construction of internal reporting systems
5. Internal and external disclosure of CSR information

2. Human rights

1. Basic stance on human rights
2. Respect for human rights and prohibition of discrimination

13. Avoidance of complicity in (aggravation of) violations ofhuman rights
4. Respect for the lifestyles of indigenous peoples and forregional communities
3. Labor

1. Basic stance on labor practices
2. Prohibition of discrimination in hiring
3. Providing impartial opportunities to employees for personnel
training, career advancement, etc.
4. Prohibition of inhumane treatment
5. Payment of appropriate wages
6. Fair application of work hours, days off, paid leave, etc.
7. Prohibition of forced labor
8. Prohibition of child labor
9. Respect for the religious traditions and customs of countries
and regions in which the company operates
10. Recognition of and respect for the rights of freedom ofassociation and collective bargaining
11. Appropriate management of employees’ health, safety andhygiene

4. Environment

1. Basic stance on environmental efforts
2. Management of legally specified chemical substances inmanufacturing processes, products and services
3. Management of wastewater, sludge and emissions andreduction of their generation
4. Sustainable and efficient use of resources(energy, water, raw materials, etc.)
5. Reduction of greenhouse-gas emissions
6. Identification, management and reduction of waste andresponsible disposal and/or recycling
7. Efforts on biodiversity

5. Fair corporate practice

1. Basic stance on fair business activities
2. Building appropriate relationships with local governments
and government employees where the company does
business, in Japan or overseas
3. Prevention of dealing in inappropriate benefits from
customers, business partners, etc. in sales, purchasing
and other activities
4. Prevention of violations of competition law in sales activities,etc.
5. Elimination of relations with antisocial forces and2

organizations
6. Prevention of unauthorized use of intellectual property ofthird parties and illegal reproduction of copyrighted works
7. Contact points for complaints and requests for consultationfrom outside the company
8. Prohibition of insider trading
9. Prohibition of activities that create conflicts of interest
6. Quality and safety

1. Basic stance on quality and safety of products and services
2. Securing of quality and safety of products and services
3. Appropriate response to accidents and circulation of defects
in products and services

7. Information security

1. Basic stance on information security
2. Defenses against attacks on computer networks
3. Protection of personal data and privacy
4. Prevention of unlawful use of confidential information

8. Supply chains

1. Basic stance on supply chains
2. Non-use of raw materials involved in conflict or crime(measures against conflict minerals)

9. Harmonious
coexistence withlocal communities

1. Measures to reduce negative impacts on regional
communities
2. Measures with regional communities toward sustainable
development

Assessment results
This year, the scope of the survey was expanded to include major suppliers in production
subsidiaries, and the overall average score was 83.1%. While progress was being made in"Labor", "Corporate governance related to CSR", "Supply chain" and "Harmonious
coexistence with local communities" were found to be issues

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Item

Number ofquestions

Average score rate
FY 2022

FY 2023

Diff.

20

72.6

74.0

1.4 pt.

2. Human rights

979.3

83.6

4.3 pt.

3. Labor

23

84.6

89.8

5.2 pt.

4. Environment

15

82.3

82.2

-0.1 pt.

5. Fair corporate practice2073.482.9

9.5 pt.

6. Quality and safety

792.8

92.9

0.1 pt.

7. Information security

978.2

84.4

6.2 pt.

8. Supply chains

775.9

79.1

3.2 pt.

479.0

77.5

-1.5 pt.

114

77.5

83.1

5.6 pt.

1. Corporate governance regarding
CSR

9. Harmonious coexistence with local
communities
Total

Note: Questions answered with “Not applicable” are deducted from the denominator whencalculating the supplier’s score rate.

4Efforts Toward Improvement
We will provide suppliers who responded to the questionnaire with feedback on the following
topics:

Their own tabulation resultsAverage score rates

At the same time, we will encourage efforts to improve items that are determined to be highrisk.

Future Plans
We will continue to conduct SAQ assessments and redouble our commitment to measures
for improvement by providing support, such as conducting audits, interviews and offering
advice on improvement, to suppliers considered to be at high risk or judged to need support
in improving their conditions.
Going forward, we will intensify our efforts to build strong relationships of trust with suppliersand contribute to solutions to societal issues throughout its supply chain.

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