Sustainable Procurement Policy
At Hokkan Holdings Group, we endeavor to ensure that our procurement activities give due
consideration to the environment, society, and safety and are carried out with high ethicalstandards, allowing us to deliver safe and high-quality products and services. We haveestablished the Sustainable Procurement Guidelines, as a way of helping us to fulfill our social
responsibilities in partnership with our suppliers and business partners throughout the supply
chain and to contribute to bringing about a sustainable society.

Basic Policy
1. Ensuring quality and safety
We will comply with all laws and regulations relating to quality and safety in all the countries
and regions in which we do business, and we will carry out procurement activities to ensurelevels of reliability and safety that meet the Group's requirements and to guarantee quality.
2. Stable supply of products and services
We will carry out procurement activities to ensure a stable supply of products and services andwill operate a crisis management system to enable us to respond to emergency situations.
3. Consideration for human rights, labor, and health and safety
We will work together with suppliers and business partners to ensure that due consideration isgiven to issues of human rights, working environment, and health and safety throughout ourprocurement activities.
4. Compliance
In order to ensure that we are a company that is trusted by society, we will comply with thelaws and regulations of all the countries and regions in which we do business, and will act
ethically and in good faith to ensure fair and equitable competition and appropriate
management of imports and exports. We will work to eliminate the influence of anti-social
elements, to prevent corruption, and to guard against infringement of intellectual property
rights.
5. Consideration for the environment
We will promote procurement practices that give due consideration to the environment,
through response to climate change, sustainable use of resources, pollution prevention andenvironmental protection.
6. Information management and ensuring information security
We are committed to the strict protection of the confidentiality of all business secrets andpersonal information provided to us by business partners.

Hokkan Holdings Group
Sustainable Procurement Guidelines
The Hokkan Holdings Group’s Sustainable Procurement Policy sets out our aim of working
together with our business partners and suppliers to fulfil our social responsibilities throughout
the supply chain and contribute to bringing about a sustainable society.
We ask our suppliers to take the same approach based on these guidelines. We also ask
suppliers to extend the guidelines to other suppliers and business partners within your own
supply chains.
1. Ensuring quality and safety
1) Ensuring quality
We ask you to produce and supply products and services that comply with all the relevantlaws and standards in force in the countries where they are produced, and to ensure levelsof reliability and safety that meet the Group’s requirements, and to guarantee the quality ofall products.
2) Operation of quality control systems
We ask suppliers to establish and operate an optimized quality control system to maintainand improve the quality of products and services.
3) Appropriate information disclosure and incident response
We ask you to provide all appropriate information relevant to the quality and safety ofproducts and services and to take appropriate action in response to any accident involvinga product4) Traceability
We ask you to keep records at every stage, from the procurement of raw materials andsupplies to processing, assembly, distribution, and sales, in order to ensure and maintainthe traceability of products.

2. Stable supply of products and services
1) Stable supply
We ask you to help promote optimization of the supply chain by putting in place aproduction system and crisis management system that will help to ensure a stable supplyof materials and enable you to meet strict deadlines.
2) Establishment of a Business Continuity PlanWe ask that you have plans and systems in place to minimize damage and ensure thecontinuation and recovery of your business in the event of a natural disaster, epidemic
of infectious disease, or other emergency.
3. Consideration for human rights, labor, and health and safety
1) Respect for human rights
We ask you to respect the basic human rights of all people and to observe and adhere tointernational codes of conduct relating to human rights.
2) Prohibition of discrimination and harassment
We ask our business partners to ensure that their business activities are free from allforms of discrimination on the grounds of race, skin color, religion, gender, sexualorientation, gender identity, nationality, age, place of origin, physical or mental
disability, illness, or any other reason, and to eradicate all types of harassment.
3) Prohibition of forced labor, child labor, and other unethical practices
Do not require or force anyone to work against their will, and do not employ children
under the legal age for employment according to the law of the land, and avoid all
involvement in other unethical labor practices.
4) Working hours and wages
Comply with the laws and regulations of the countries and regions in which you operate,
manage working hours appropriately, and pay an appropriate level of wages.
5) Strict observance of health and safety guidelines
We ask you to provide a safe and healthy working environment, to take all possible
measures to prevent accidents, and to take proper steps to manage the health of all
officers and employees.
6) Freedom of association and collective bargaining
We ask you to respect the right to freedom of association and collective bargaining inaccordance with relevant laws and regulations.
7) Ban on use of conflict minerals
We ask you to avoid all use of conflict minerals or other materials that are mined inenvironments likely to involve human rights abuses or that might be used to financearmed groups and criminal organizations, or to be implicated in conflict or crime.

4. Compliance1) Legal compliance and adherence to international codes of conduct
You must comply with all relevant laws and promote fair and equitable procurement that
respects international codes of conduct.
2) Ensuring fair and equitable competition
Do not take any action that restricts or impedes fair and equitable competition andcomply with all relevant anti-trust laws and regulations.
3) Appropriate management of imports and exports
Establish an appropriate system to manage imports and exports and comply with thelaws and regulations of all the countries and regions in which you operate.
4) Exclusion of antisocial forces and criminal organizations
Do not have any relationship with antisocial forces (criminal organizations) or withgroups or individuals who are associated with them in any way, and do not makeunreasonable demands using violence, force, threats, or fraud.
5) Prohibition of corruption
Maintain normal relationships with political, governmental and industry organizations,as well as with other companies and individuals. Do not offer or accept bribes or makeillegal donations and comply strictly with all relevant laws and regulations.
6) Prohibition on infringement of intellectual property rights
Do not engage in any inappropriate use or infringement of the intellectual property
rights or technical information of third parties.
7) Disclosing information to stakeholders
In addition to information that must be disclosed by law, we ask you to disclose in aprompt and appropriate manner any information that may have an impact on thecontinuation of business dealings with us.
8) Establishment of an internal reporting system
We urge you to establish an internal reporting system that guarantees the confidentiality
and protection of anyone who reports inappropriate behavior, and to ensure that officers
and employees are aware that no adverse consequences will result from such a report.

5. Consideration for the environment1) Strict compliance with environmental laws and regulations
Comply strictly with all environmental laws, ordinances, and regulations in the areas
where you operate.
2) Establishment of an environmental management system
Please establish and operate an optimal management system to promote and support
your environmental activities.
3) Climate change
Please take steps to reduce greenhouse gas emissions.
4) Sustainable use of resources
Take steps toward the sustainable use of all resources, including depletable resources
and water resources, and implement steps to use resources efficiently, including the 3Rs:
reduce, reuse, and recycle.
5) Preventing pollution
We ask you to protect the regional environment by taking measures to prevent pollutionof the air, water, and soil, to guard against noise, vibrations, land subsidence, andunpleasant odors, and to appropriately manage all chemical substances that may have animpact on the environment.
6) Consideration for biodiversity
We urge you to consider biodiversity and ecosystems in your business activities.
6. Information security
1) Strict management of confidential information
You must implement strict controls to protect any technical information, information
about products and pricing, as well as the personal data of customers, third parties,
officers and employees acquired through your business dealings with us.
2) Defense against threats on computers and networks
Please take appropriate steps to guard against threats on your computers and networks,
and manage these systems appropriately to avoid damage to your own company and toother companies.