Sumitomo Electric GroupCSR Procurement Guidelines

Sumitomo Electric Industries, Ltd.
Third edition

November, 2020

Requests to our Suppliers
The Sumitomo Electric Group aims to contribute to creating a better society and environment, with afirm awareness of our social responsibility. To this end, the suppliers that directly or indirectly
provide their products and services for us are also required to work on the activities together with us.
Therefore, we have summarized our requests to the suppliers of the Sumitomo Electric Group inthese guidelines, and the suppliers are requested to promote compliance with them. Our suppliers
are also asked to request their suppliers to comply with the guidelines.

1. Provision of Useful and Safe Products and Services
The Sumitomo Electric Group will aim to provide useful and safe products and services that will
satisfy customers in all aspects including quality and cost. Therefore, our suppliers are requested tostably provide the products and services that satisfy the quality, specifications and safety standards
that we require at competitive prices in the market according to the delivery schedule.

2. Enhancement of Technological Capabilities
We will aim to develop new and original businesses and products by using our unsurpassed creativity
in meeting customer’s demands. Therefore, the suppliers that provide us with products and services
are also requested to be constantly committed to continual improvement of their technicalcapabilities, the development of new technologies and materials and the promotion and proposal ofvalue analysis/value engineering (VA/VE).

3. Promotion of Sound Business Management
We will promote continuous business interaction with the suppliers carrying out sound business
operations and build mutual trust and cooperation with them. Accordingly, suppliers are requested
to disclose information on their management policies and the status of business operations(including financial conditions) in a proper manner.

4. Contribution to Preservation of the Global Environment
We think it is primarily important to establish a society that is sustainable and has lessenvironmental impact. Suppliers are requested to understand it, make continuous and steady efforts
to protect the environment from a global perspective and comply with the SEI Guidelines for Green
Quality Purchases (Note.1).
(Note.1) The guidelines have been distributed to most of suppliers from the relevant divisions.

5. Compliance with Laws and Social Norms and Fair and Proper Business Activities
Suppliers are requested to comply with not only relevant laws and regulations (i.e. anti-monopoly
laws, commercial laws, subcontract laws, foreign exchange laws, personal information protection
laws, copyright laws, etc.), but also social norms in the countries and regions where they are doingbusiness.

6. Social Contribution and Elimination of Antisocial Forces
To create a better society, suppliers are requested to respect the culture and customs of every region
where suppliers are doing business and actively contribute to the economic and social development ofthose regions.
We believe that we have to maintain a strong stand against any antisocial forces and groups thatthreaten public order and safety. Suppliers are also requested to understand it and act in the samemanner.

7. Respect to Human Rights and Considerations of Occupational Health and Safety
Suppliers are requested to respect fundamental human rights of all individuals and endeavor to
make their workplace safe, sound and energetic.
The use of forced labor or child labor, inhumane treatment or discrimination of workers or illegal
employment of foreign workers is not allowed. The employment conditions including wage and work
environment as well as occupational health and safety standard must be compliant with laws andregulations in the countries and regions where suppliers are doing business.
Suppliers are also requested to conduct their procurement activities while recognizing the risks listed in
Annex II of the Organization for Economic Co-operation and Development (OECD) such as the matter ofconflict minerals(Note 2) illegally traded by armed groups in the Democratic Republic of the Congo andits neighboring countries, cobalt mining, which is feared to be the worst form of child labor, and humanrights violations and labor issues in conflict areas and high-risk areas (CAHRAs).If any such materials
may be involved, necessary action must be taken to cease such trade.
(Note.2) the matter of conflict minerals : Issue in which the trade of tantalum, tungsten, tin, gold, or their derivatives
produced in the Democratic Republic of the Congo and surrounding countries is a source of funding for armed groups
carrying out serious human rights violations

8. Disclosure of Relevant Information and Promotion of Communication with Society
Suppliers are requested to disclose useful information on their management, financial condition,
environmental preservation and social contribution to their stakeholders in a proper and timely
manner, and to promote good communication with society.

9. Maintenance of Confidentiality and Information Security
Suppliers are requested to strictly control any information obtained through business transacitons
with the Sumitomo Electric Group and maintain confidentiality, and not to disclose any of suchinformation without our prior consent.
In addition, suppliers are requested to take protection against threats on computer network toprevent damage to themselves or others.