Supply Chain Management
KOITO believes that it is important to fulﬁll its social responsibility throughout the entire supply chain to practice“Eco-friendly Manufacturing for People and the Earth” through all business activities. Therefore, we have established theProcurement Policy to respond to social demands and expectations and deliver high quality service to our customers
while cooperating with suppliers.
KOITO is also presenting expectations on the cost, quality and the elimination of industrial accidents to each supplier toachieve goals together.
For Procurement Policy, please refer to our Supply Chain
We are aiming to materialize a sustainable societyManagement website.
throughout the entire supply chain while cherishing theclose relationship with our suppliers.
URL: https://www.koito.co.jp/english/csr/social/supplychain.html

Initiatives to Strengthen Cooperation with Business Partners and Promote Co-existence and Co-prosperity
In March 2022, KOITO formulated and announced its Declaration of Partnership Building
to strengthen collaboration with our business partners and promote mutual prosperity, as
well as to contribute to sustainable growth of the society throughout the supply chain.
The following individual items are clearly indicated as KOITOʼs initiatives in the declaration.

●We will Strengthen collaboration with other companies to accelerate open
innovation in order to respond to the transformation of automobiles and mobility.
●We will promote information sharing and digitization using IT to improve operational efﬁciency with related
business partners.

Reinforcement of CSR in the Supply Chain
KOITO holds annual Procurement Policy Brieﬁng Session
and monthly Supplier Information Liaison Meetings andother opportunities to help our suppliers understand our CSR
initiatives. We are also providing consultation as necessary.
At the Procurement Policy Brieﬁng Session, we share policies
on sales, technology, production, quality and other matters,
and also ask our suppliers to thoroughly comply with laws
and regulations. We have established a system for suppliers
so that they can inform us and promote compliance in theevent of their violating the law.
In addition, we encourage our suppliers to actively acquire
environmental certiﬁcation, and check the status ofcertiﬁcation every year. In FY 2022, approximately 430
suppliers were eligible for the survey. During ﬁre and disasterprevention inspections to our suppliers, KOITO also conﬁrms［KOITOʼs CSR activities］①Measures based on the “Guideline for the Right Transactionof Automobile Industry”②Continuous investigation on the inclusion of environmental
impact substances③Continuous annual investigation on conﬂict minerals④Thorough compliance with laws and regulations
concerning human rights and labor⑤Thorough implementation of compliance issues in general(Concluding contracts to eliminate anti-social forces, etc.)

the management system or the amount of organic solventsused by suppliers. In the event that there is a problem withsuppliersʼ management system or others, we request them tosubmit an improvement plan and supporting their measures.
As for suppliers who conduct business with the KOITO
Group, we ask them to implement environmental and social
measures to materialize a sustainable supply chain.
In addition, we are conﬁrming some of our suppliersʼ
implementation status of overall CSR activities, including
quality, human rights, environment, compliance and others.

［ Environmental requests ］

・Acquire external environmental certiﬁcations such as ISO
14001 and Eco-Action 21・Ban the use of certain materials under RoHS Directive
・Ensure transparency on substances under REACH Regulation
・Ensure traceability of nanomaterials contained in products
・Formulate environmental policies covering the automobileindustryʼs key challenges［ Social requests ］

・Abolish child labor, forced labor and discrimination
・Promote occupational safety and health・Secure decent wages and working hours
・Prevent other inhuman behaviors
・Conduct responsible procurement of minerals

Measures on Conﬂict Minerals
It has become an international concern that some minerals mined in the Democratic Republic of the Congo and nearbynations have been the source of ﬁnancing for armed forces engaging in human rights violations. The United Statesdeﬁned four types of minerals of tin, tantalum, tungsten and gold produced in these regions as “conﬂict minerals” in the
Dodd-Frank Wall Street Reform and Consumer Protection Act and mandated annual investigations of the use of theseminerals and disclose the information.
KOITO avoids the use of conﬂict minerals along with its suppliers by conducting annual investigations on conﬂict
minerals not to assist human rights violations and environmental destruction and to fulﬁll its social responsibility
throughout the supply chain. When starting business with a new supplier, we carefully examine the results of conﬂict
minerals investigations and consider the feasibility of conducting such transactions.

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KOITO INTEGRATED REPORT 2022