Dynic GroupCSR Procurement Standards
Version 2.1

September 1, 2024

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Contents

I. Introduction

II. Dynic Group's Basic Policies

III. Position of these Standards

IV. CSR Procurement Guidelines
V. Annex

VI. Revision History

These Standards have been prepared to help our business partners to understand Dynic
Group's corporate social responsibility (CSR) initiatives and clarify the points for which theircooperation is requested.
To promote CSR activities more effectively in the supply chain, we ask business partners to
submit the cooperation agreement stating that they understand and support theprovisions of these Standards and will comply with their requirements.

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I. Introduction
Under our management philosophy "Technological superiority and harmony among people" and our basic
management policy "For The Customer," Dynic Group has established Basic CSR Policy in order to fulfill
our corporate social responsibility (CSR) that are essential for the realization of a sustainable society. We
carry out CSR activities based on this policy.
⚫

Basic CSR Policy
Under our management philosophy "Technological superiority and harmony among people" and ourbasic management policy "For The Customer," Dynic Group has established Basic CSR Policy inorder to fulfill our social responsibilities.
Based on the Seven Core Subjects of CSR*, we have identified the three items below as particularly
important priorities to make our CSR initiatives clear as we aim to realize a sustainable world together
with our supply chain and society.
* Seven Core Subjects of CSR: Organizational governance; Human rights; Labor practices; The
environment; Fair operating practices; Consumer issues; andCommunity involvement and development (Source: ISO 26000, Social
Responsibility Guidelines)(1) Promoting legal compliance and honing compliance sensitivity
We shall respect human rights, create a healthy workplace that gives consideration to
occupational safety and health, eliminate antisocial forces (organized crime), undertake planningand development that give consideration to intellectual property rights, and otherwise carry out
business activities fairly, as well as endeavor to dialogue with stakeholders.
(2) Carrying out business activities that give consideration to biodiversity conservation and climatechange, contributing to the construction of a recycling society
In compliance with Basic Environmental Policy, we are carrying out procurement and otherbusiness activities giving consideration to biodiversity in addition to our energy-saving andresource-saving initiatives.
Design concepts that give consideration to the environment, such as prioritizing use of easy-torecycle raw materials, are being incorporated into product planning.
(3) Responsibilities to clients and customers
We shall at all times adhere to Basic Quality Policy and supply safe, reliable products andservices that meet client and customer requirements.

As a result of the globalization of business activities and other factors in recent years, we have seen
dramatic changes to the increasingly diverse social conditions in which companies operate. The roles
and responsibilities required of companies in order to realize a sustainable society are growing
steadily and we have identified three particularly important priorities in Sustainability Initiatives Policy.
Satisfying the demands of society at home and abroad requires the efforts of not only Dynic Groupbut the entire supply chain, including our business partners.
For these reasons, to promote our CSR activities more effectively, we revised Compliance Action
Guidelines (our existing guidelines for business activities by employees) to establish CSR Action
Guidelines. Also, as an initiative for the entire supply chain, we have formulated CSR Procurement
Standards newly by revising the previous Green Procurement Standards.
We ask our business partners to gain a clear understanding of these Standards and to support themby carrying out initiatives that conform to these Guidelines. Furthermore, we request your cooperations in actively promoting CSR activities that include your own supply chains.
Dynic Group Sustainability Initiatives Policy: https://www.dynic.co.jp/en/company/sustainability.html-3-II. Dynic Group's Basic Policies⚫

Basic Compliance Policy
Considering compliance to be a fundamental policy of management, Dynic Group has a clear
recognition that thorough compliance is the foundation of business management. In addition tocomplying with various laws and regulations as required in business activities, we will carry out highly
transparent business activities with fairness and integrity by implementing CSR Action Guidelines.
Basic Approaches(1) We are committed to act in line with laws and good ethics.
(2) We are committed to strive to protect the environment and conserve resources.
(3) We are committed to contribute to society by providing products and services that clients cantrust.
(4) We are committed to ensure the transparency and soundness of management.
(5) We are committed to build a corporate culture characterized by respect for human rights.
(6) We are committed to eliminate permanently any involvement with antisocial forces.
CSR Action Guidelines (Former Compliance Action Guidelines):
https://www.dynic.co.jp/en/company/csr.html⚫

Basic Environmental Policy
Dynic Group recognizes that efforts to ensure environmental preservation are an important businesschallenge and believes that it is our responsibility as a manufacturer to observe all applicable
environmental laws and regulations at home and abroad and offer products with a lower
environmental load. To implement this concept in a specific manner, we are committed to thoroughly
promoting the following principles in each stage including development, material procurement,
manufacturing, sales, distribution and disposal;
(1)
(2)
(3)
(4)

(5)

We are committed to reducing environmental load and consideration of Biodiversity in all stagesof our business activities throughout the life cycle of our products.
We are committed to making proactive efforts to save energy and reduce waste, thereby
preventing environmental contamination.
We are committed to preventing the risk of harmful chemical substances damaging theenvironmental.
We are committed to disclosing information regarding our business activities related to theenvironmental and proactively promoting environmental preservation activities in concept withlocal communities; andWe are committed to implementing education and training related to environmental preservation
to improve awareness of the environment.

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⚫

Basic Quality Policy
Under its basic policy of management, “For The Customer,” Dynic Group believes that it is our role tooffer products and services from the customer’s viewpoint at all times.
To implement these concepts, we are committed to thoroughly promoting the following principles ineach stage including development, materials procurement, manufacturing, purchasing, sales, anddistribution:(1) We are committed to complying with all applicable laws, regulations, and standards.
(2) We are committed to striving to offer quality that meets customer requirements throughmanufacturing, evaluation, technology, sales, and services, etc.
(3) We are committed to ensuring the Production Department complies with the requirements for
quality-related certifications, such as ISO and FSSC, and always strives to stabilize and improve
quality.
(4) We are committed to ensuring the Sales Department deals with customers, bearing in mind theprovision of quality, delivery time, cost, and technology that meet customer satisfaction.
(5) We are committed to continuing to implement education and training on quality and standards toraise awareness of quality control.
(6) We are committed to continuing to reform the quality system to gain customer satisfaction at all
times, without being content with our long-standing history.

-5-III. Position of these Standards⚫ Scope
These Standards apply to business partners supplying products and services (including
subcontracted processing, construction, maintenance, design, and software) in Dynic Group's
procurement activities.
⚫

Documents to submit
We ask our business partners to consent to the intent of these Standards and submit Document (a)below by email or by regular post. In the event of any major revisions to the details of the agreement
submitted, please submit updated information.
(a) Dynic Group CSR Procurement Standards Cooperation Agreement (V. Annex)
In addition, please submit Documents (b)-(f) below as necessary in accordance with the attached
Eco-designed Procurement Guidelines:
(b)
(c)
(d)
(e)
(f)

Supplier Environment/Quality Questionnaire
chemSHERPA-CI or chemSHERPA-AI
CMRT and EMRT (conflict minerals templates)
Specified Chemical Substance Inspection Request/Report of Results
Data related to climate change, biodiversity preservation, etc.

⚫

Handling of information
The materials you submit will not be used for any purposes other than those related to CSR
procurement at Dynic Group. Personal information will be handled in compliance with laws andregulations on appropriate handling of information and other applicable norms.

⚫

Revisions
The details of these Standards may be revised in response to changes in the circumstances andconditions of Dynic Group's CSR activities, such as changes to domestic and international laws andregulations.
In such cases, revisions will be posted on Dynic’s website (https://www.dynic.co.jp/en/index.html) andthe business partners concerned will be notified.

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Ⅳ．CSR Procurement Guideline
Section 1. Code of Conduct
1. Respecting the Laws and the Standards recognized internationallyWe, Dynic Corporation and business partners, need to respect the standards recognizedinternationally in addition to complying with the laws and regulations of their home country as
well as countries and regions where they conduct business.
2. Human Rights and Labor
We need to respect the rights of workers in line with international human rights standards
including the ILO core labor standards in addition to complying with relevant laws andregulations.
(2-1) Prohibiting Forced Labor
We must not use labor obtained by forced, bonded, exploitative prison labor, slavery andhuman trafficking. We also must not force to work and must keep the right of workers toterminate employment.
(2-2) Prohibiting Child labor and Respecting the Rights of Young Workers
We must not allow children who are under the minimum age for employment. Furthermore, wemust also not allow young workers under the age of 18 to perform hazardous work that is likely tojeopardize their health or safety, including night work or overtime.
(2-3) Decent Working Hours
We must not allow workers to work exceeding the maximum working hours set by local laws
and regulations and appropriately manage working hours and days off in consideration of thestandards recognized internationally.
(2-4) Adequate Wages and Allowances
We must comply with all applicable laws and regulations regarding payments of work
(including minimum wage, overtime payments and allowances and deductions required bylaw). Furthermore, we must pay wages at a level that allows workers to support their basic
needs (a living wage).
(2-5) Prohibiting Inhuman Treatment
We must respect the human rights of workers and must not treat workers in a manner that isor may be construed inhumane, including physical and psychological abuse, coercion andharassment.
(2-6) Prohibiting Discrimination
We must not engage in discrimination nor harassment. We must also consider requests fromworkers regarding religious practices where appropriate.
(2-7) Freedom of Association and Right to Collective Bargaining
In conformance with local laws and regulations, we shall respect the right to collective
bargaining of workers and openly communicate with workers for improving working
environments and wage conditions.
3. Health and Safety
In addition to complying with relevant laws and regulations, we need to take consideration ofstandards such as ILO health and safety guidelines to minimize injury and illness in theworkplace and maintain a safe and healthy working conditions.
(3-1) Occupational Safety
We must identify and assess risks regarding occupational safety and maintain safety throughproper design, engineering and administrative controls. Taking reasonable steps must also betaken to protect pregnant women and nursing mothers.
(3-2) Emergency Preparedness
We must identify the possibility of emergency situations by such as natural disasters or
accidents that may adversely affect human life or safety, establish procedures in case of
emergency to minimize harm to workers and property, install the required equipment andconduct training and drills so that the required responses can be taken in case of emergency.
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(3-3) Occupational Injury and Illness
We must identify, assess, record and report the status of occupational injury and illness andimplement appropriate countermeasures and corrective actions.
(3-4) Industrial Hygiene
We must identify, assess, and appropriately control the risk of workers being exposed tohazardous biological, chemical and physical agents in the workplace.
(3-5) Physically Demanding WorkWe must identify and assess worker exposure to the hazards of physically demanding tasks
and appropriately control such work so that it does not lead to occupational injury and illness.
(3-6) Machine Safeguarding
We must evaluate the machinery used by workers for safety hazards and provide appropriate
safeguarding.
(3-7) Health and Safety at Facilities
We must appropriately maintain the health and safety of facilities and accommodations
provided to workers (such as dormitories, cafeterias, and toilets).
Dormitories also require appropriate emergency egress to be provided.
(3-8) Health and Safety Communication
We must provide training on appropriate health and safety information regarding various
workplace hazards that workers are exposed to in the workplace in languages and methods
that the workers can understand. A system that enables workers to provide feedback onsafety is also required.
(3-9) Worker Health Management
We must conduct appropriate health management for all employees.
4. Environment
We need to actively address environmental issues such as resource depletion, climatechange and pollution, as well as address regional environmental issues considering thehealth and safety of the relevant local community.
Please check “Eco-designed Procurement Guideline” as well for this article.
(4-1) Environmental Permits and Reports
We must obtain the permits and approvals required for conducting business as well as
register and report according to local laws and regulations.
(4-2) Reducing Energy Consumption and Greenhouse Gas Emissions
We must address energy efficiency and make continuous efforts for reducing greenhouse gas
emissions and energy consumption.
(4-3) Emission to the atmosphereWe must comply with relevant laws and regulations and implement appropriate measures for
reducing the emission of hazardous substances to the atmosphere.
(4-4) Water Management
We must comply with laws and regulations and monitor the source, usage and discharge ofwater used and save water. All wastewater must be tested, monitored, controlled andprocessed as required before discharge or disposal. Sources of pollution that may cause
water pollution must also be identified and appropriately managed.
(4-5) Effective Utilization of Resources and Waste Management
We must comply with laws and regulations and implement appropriate management in orderto promote the 3Rs (reduce, reuse, and recycle), ensure the effective utilization of resources,
and minimize waste.
(4-6) Chemical Substance Management
We must comply with laws and regulations to identify, label, and manage chemical and othersubstances posing hazard to humans or the environment and conduct management to ensure
safe handling, transport, storage, use, recycling, reuse and disposal of such substances.

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(4-7) Managing the Chemical Substances Contained in Products
We must comply with all laws, regulations and customer requests applicable to the prohibition
and restriction of specific substances contained in products.
(4-8) Biodiversity Conservation
We must strive to avoid or minimize the negative impacts from the operations on biodiversity
and to use land and natural resources by a sustainable method / Nature Base Solution.
5. Fair Trading and Ethics
We need to conduct business activities based on high ethical standards in addition tocompliance with the law.
(5-1) Preventing Corruption
We must not be involved in bribery, corruption, blackmail and embezzlement in any form.
(5-2) Prohibiting Inappropriate Provision and Improper Benefit
We must not provide nor accept any promises, propositions and approvals as a means ofobtaining bribes or any other illicit or inappropriate benefit.
(5-3) Fair Information Disclosure
We must disclose information regarding labor, health and safety, environmental activities,business activities, organizational structure, financial situation and performance according toapplicable laws and regulations and industry practices. Falsification of records or thedisclosure of false information is not allowed.
(5-4) Respecting Intellectual Property
We must respect intellectual property rights and the transfer of technology and expertise mustbe performed in a manner where intellectual property is protected.
We must also protect the intellectual property of third parties such as customers andsuppliers.
(5-5) Conducting Fair BusinessWe must engage in fair business, competition and advertising.
(5-6) Protecting Whistle-blowers
We must protect the confidentiality of information regarding whistleblowing and the anonymityof whistle-blowers and avoid retaliations towards whistle-blowers.
(5-7) Responsible Minerals Procurement
We must exercise due diligence to ensure that the minerals such as tantalum, tin, tungsten,gold and other minerals contained in the products manufactured do not cause or contribute toserious human rights abuses, environmental destruction, corruption and disputes in ConflictAffected and High-Risk Areas.
6. Quality and Safety
We need to ensure the safety and quality and provide correct and accurate information on
provided products and services.
(6-1) Ensuring Product Safety
We must fulfil the responsibility as a supplier by ensuring that products meet safety standards stipulated
by national laws and conduct design, manufacturing, and sales to ensure adequate product safety.
(6-2) Quality Management
We must comply with own quality standards and customer requirements in addition to all laws
and regulations applicable to the quality of products and services.
(6-3) Providing Accurate Information on Products and Services
We must provide correct and accurate information on products and services that will notcause misunderstandings.
7. Information Security
We need to prevent leaks of confidential information and personal information and enhance
information security.
(7-1) Defense from Cyber Attacks
We must implement protective measures against threats such as cyber-attacks and conduct-9-

management to prevent damage to the company and others.
(7-2) Protecting Personal Information
We must comply with relevant laws and regulations and appropriately manage and protect all
personal information of suppliers, customers, consumers and employees.
(7-3) Preventing Leak of Confidential Information
We must appropriately manage and protect the confidential information not only of own but
also received including from customers and third parties.
8. Business Continuity Planning
We need to make preparations to ensure that they can quickly resume business activities inorder to fulfil the responsibility of supply in the event that we or a business partners become avictim of such as a large-scale natural disaster.
(8-1) Developing and Preparing a Business Continuity Plan
We must identify and assess risks to business continuity, examine the impact on the businessand establish preparatory measures required in the medium to long term and a business
continuity plan (BCP) that indicates the status of those initiatives.
Section 2. Establishing a Management System
A. Establishing a Management System
We need to establish a management system in order to comply with the code of conduct in
Section 1.
B. Supplier Management
We need to establish a process for communicating the requirements of the code of conduct in
Section 1 to suppliers and monitoring supplier compliance.
C. Proper Import/Export Control
We need to maintain a clear management system and conduct appropriate procedures for theimport and export of technologies and goods regulated by law.
D. Establishing a Grievance Mechanism
We need to establish a grievance mechanism that can be used by stakeholders including
workers and suppliers in order to prevent illicit behavior in their inside as well as throughout the
supply chain.
E. Disclosing the Activities
We need to disclose information regarding their actions according to these guidelines and relevantlaws and regulations.

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V. Annex

SampleTo: Dynic Group

Dynic GroupCSR Procurement Standards Cooperation Agreement
Date:
Company:

Title:Name of person responsible:

Contact point regarding this response:
Section:
Person in charge:
Tel.:
Email:

We support the intent of CSR Procurement Standards established by Dynic Group andagree to cooperate in the following matters to promote behavior in transactions with your firmthat falls under these standards:⚫ Submission of documents and other materials related to CSR procurement asrequested by Dynic Group⚫ Cooperating with requests to make improvements as necessary in response to theoccurrence of issues or similar matters
Handling of personal information
Personal information of business partners entered on this form will be used solely for legitimate
purposes such as checking the details of matters related to CSR procurement.

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VI. Revision History
Date of revision

Version

August 2023

1.0

July 2024

2.0

September 2024

2.1

Main revisions
New CSR Procurement Standards established through integration
with the previous Green Procurement Standards, in connection
with the establishment of the CSR Procurement Guidelines.
The wordings reviewed and revised, in connection with expanding
CSR procurement activity across all the domestic groupcompanies.
Eco-designed Procurement Guideline revised to Version 2.0 withthe addition of prohibited substances and biodiversity
investigation.

● Issued by:
Dynic Corporation CSR Steering OfficeEnvironment Steering Office
Quality Assurance Division● Contact
Please submit any questions or other inquiries concerning these Standards through the "CONTACT"
form on Dynic Corporation website (https://www.dynic.co.jp/en/contact/index.asp ).

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