Pigeon has identified “enhancement of stakeholder responsiveness” as one of the materialities (keyissues) in the Pigeon ESG/ SDGs Policy. Our basic approach to procurement activities is stipulated in
the CSR Procurement Policy and the CSR Procurement Guidelines.
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 the status ofenvironmental, sustainability and governance (ESG) activities among suppliers and to 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 describedabove, we believe we can contribute to solutions for a range of social issues in collaboration withsuppliers, building stronger relationships with our suppliers in the process.

Overview of the Assessment
Suppliers Assessed
All primary suppliers to Pigeon’s Japan Business Unit (except Group companies)
Main suppliers of raw materials to production subsidiaries in Japan and overseas
Number of suppliers contacted and response rate
Of 112 companies contacted, 108 companies responded. (Response rate of 96.4%)
Assessment period
April to June, 2021
Assessed items
The questionnaire used for the assessment was the Self-Assessment Questionnaire (SAQ) preparedby UN Global Compact Network Japan (GCNJ), the Japan chapter of the United Nations initiative oncorporate 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 subitems: Legal awareness, Policy,
System and responsibilities, Collective actions. Respondents are asked to rank their own performancein each subitem on a scale of 1 to 3.

Major items

Intermediate-level items

1. Corporate

1. Construction of a system for advancing CSRgovernance2. 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
3. Avoidance of complicity in (aggravation of) violations of human rights
4. Respect for the lifestyles of indigenous peoples and for regional
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 andregions in which the company operates
10. Recognition of and respect for the rights of freedom of associationand collective bargaining
11. Appropriate management of employees’ health, safety and hygiene

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 and reduction of
their generation
4. Sustainable and efficient use of resources (energy, water, rawmaterials, etc.)
5. Reduction of greenhouse-gas emissions
6. Identification, management and reduction of waste and responsible
disposal and/or recycling
7. Efforts on biodiversity5. 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 oroverseas
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 and organizations
6. Prevention of unauthorized use of intellectual property of thirdparties and illegal reproduction of copyrighted works
7. Contact points for complaints and requests for consultation fromoutside 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 inproducts 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 (measuresagainst conflict minerals)

9. Harmonious

1. Measures to reduce negative impacts on regional communities

coexistence with

2. Measures with regional communities toward sustainablelocal communities

development

Assessment results
The average score is 72.8%. Overall, respondents scored highest on Quality and safety and on Laborand lowest on Supply chains, Human rights and Harmonious coexistence with local communities.
With respect to items on which respondents scored relatively poorly, we will provide
feedback and support for improvement efforts, to assist suppliers improve their scores going forward.

Item
1. Corporate governanceregarding CSR
2. Human rights
3. Labor
4. Environment
5. Fair corporate practice
6. Quality and safety
7. Information security
8. Supply chains
9. Harmonious coexistencewith local communities
Total

Number of questions

Average score rate
2069.2%966.0%

2379.9%1571.1%2074.1%787.0%

978.3%

762.5%

466.5%

11472.8%

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

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

For items judged to be high-risk, we will distribute constructive comments along with feedback, toencourage suppliers to move their efforts forward for improvements.

Future Plans
We will continue to conduct assessments on an annual basis, supporting suppliers in improving theirefforts.
We also intend to redouble its commitment to measures for improvement, conductingaudits, interviews and offering advice on improvement based on the information obtained. Drawing
on the results from the SAQ assessment, we will take steps to improve efforts across the entire supply
chain, by providing support to suppliers considered to be at high risk or judged to need support inimproving their conditions.
Going forward, we will intensify our efforts to build strong relationships of trust with
suppliers and contribute to solutions to societal issues throughout its supply chain.