Supplier Sustainability Guidelines
Aug 2023

Table of Contents
1. Introduction

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2. TS Tech Philosophy

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3. Purpose of These Guidelines

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4. Guidelines by Category: Expectations to suppliers for compliance7(1) Safety and Quality

7(2) Human Rights and Labor

8(3) The Environment

10(4) Responsible Mineral Sourcing

12(5) Compliance13(6) Information Disclosure

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5. Requests to Our Suppliers

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6. Issuing Department and Contact Information17

1. Introduction
The automotive industry to which the TS Tech Group belongs is connected to awide range of industries, and the impact the value chain can have across thoseindustries is immeasurable. Therefore, I believe that we have an important
responsibility as a manufacturer of automotive interior components to ensure astable and sustainable supply of safe, comfortable, and attractive products and tocontinue being a company trusted by society for our fair business practices.
Under the TS Tech Philosophy, TS Tech has worked to fulfill our social
responsibilities as they relate the environment, safety, and various other areas.
Thanks to the hard work and support of many different stakeholders, we haveearned society’s trust for our sourcing and procurement operations with oursupply base in accordance with our vision and principles for purchasing.
Through these guidelines, we aim to foster a common understanding with oursuppliers about sustainability and to carry out proactive sustainability initiatives inorder for TS Tech and our suppliers to continue growing and be companies whose
continued presence is appreciated by society. I therefore ask all of TS Tech’s
suppliers to please implement initiatives based on these guidelines and to ask their
suppliers to do the same as well.

Managing OfficerCorporate Sales and Purchasing Division
Executive General Manager

32. TS Tech Philosophy
The TS Tech Philosophy was established in order to set down in writing ourfounder’s business philosophy and our company’s vision and approach to business.
This philosophy is the foundation for all of the TS Tech Group’s business activities.
We believe that the spirit it represents should apply not just to members of the TS
Tech Group but also to the work that we do and to our relationships with thepeople and companies with whom we do business.
TS Tech is committed to earning society’s trust and fulfilling our corporate social
responsibilities in accordance with these values.

Vision Statement• A company dedicated to realizing people’s potential• A company sincerely appreciated by all

Mission Statement
We shall provide comfortable, high-quality products atcompetitive prices to our customers worldwide, always
pursuing the infinite possibilities in manufacturing.

Operational Directives• We should make our workplace a vibrant one, valuing consensus
and communication.
• Work should be done in accordance with the circumstances, withimportance placed on time and priorities.
• We must always challenge ourselves to create new value byleveraging our passion and know-how.
• Each of us should always persevere to make our individual vision areality.

43. Purpose of These Guidelines
Based on the TS Philosophy, TS Tech established the four principles of TS
procurement (fair trade, practical transaction, environment protection, legalcompliance & confidentiality) as the procurement philosophy.
These guidelines illustrate the belief that profit should not be our only pursuit;rather we strive to exist in harmony with society and become a company whose
presence is expected and sincerely appreciated by all. These guidelines outline
what sustainability means to TS Tech and define key expectations promoted withthe suppliers.
In selecting a supplier, TS Tech reviews the activities in the following categories todetermine the most appropriate supplier: Q (Quality), C (Cost), D (Delivery), D(Development), environment, human rights, labor, safety, compliance, risk,
information protection, etc.
TS Tech asks all suppliers to comply with these standards and to share them with
their supply chains.

5TS Tech’s Fundamental Stance for Each Category(1) Safety and Quality
TS Tech strives to make high-quality products to deliver to our customers
appealing products that are safe, comfortable, and environment friendly.
(2) Human Rights and LaborTo respect the human rights of all people involved in our business activities,
TS Tech promotes initiatives to respect human rights under the TS Tech
Human Rights Policy.
TS Tech also strives to prevent work-related accidents, monitor employee
health, and establish a comfortable workplace environment for occupationalsafety and health.
(3) The Environment
To realize the company philosophy of being a company sincerely
appreciated by all, in all aspects of corporate activities, TS Tech also
implements and utilizes measures in a wide range to reduce environmental
burden for global environment protection through proposals for CO2
reduction and resource circulation.
TS Tech also strives to protect biodiversity and ecosystems.
(4) Responsible Mineral Sourcing
TS Tech strives to avoid using minerals that could potentially finance anarmed group in a conflict area or lead to a human rights violation orenvironmental pollution.

(5) Compliance
To be a company with a strong culture of regulation compliance, TS endeavors
in good faith to comply with laws and regulations and to act
ethically as a member of society.
(6) Information Disclosure
We strive for swift, proper disclosure of information and a high degree oftransparency to strengthen society’s trust in and understanding of
our company.

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4. Guidelines by Category: Expectations to suppliers for compliance(1) Safety and Quality
1) Provide products and services that meet consumer and customer needs
Identify consumer and customer needs and develop and supply sociallyresponsible products*.
*Socially responsible products include products that are easy for anyone to use
regardless of their age, gender, or disability as well as environmentally-friendly
products that save energy and resources or help protect the environment.

2) Provide appropriate information about products and services
Provide appropriate information about your products and services toconsumers and customers.
3) Enforce governance over safety and quality of products and services
Manufacture and provide products and services in compliance with safetyand quality laws and regulations and such stipulated by the respective
country and region.
4) Guarantee safety and quality of products and services
Establish and manage a company-wide system to ensure safety and quality.

74. Guidelines by Category: Expectations to suppliers for compliance(2) Human Rights and Labor
1) No discrimination and respect and acceptance toward diversity
Based on the principle that all people are born free and equal, in every
aspect of employment (*1) TS Tech respects diversity and inclusion (*2) andprohibits discriminations against race, ethnic origin, birthplace, nationality,religion, sex, gender identify and sexual orientation, age, disabilities, etc.
*1 Recruiting, employment, promotion, wages, termination, job assignment,disciplines, etc.
*2 An approach to embrace diversity and turning it into corporate vitality (i.e.
An approach to provide opportunities to people with various backgrounds insex, age, nationality, etc. according to the personality or the skill of theindividual)
2) Respect of human rights and no harassment
No form of harassment is allowed at workplace based on race, ethnic origin,birthplace, nationality, religion, sex, gender identity and sexual orientation,age, disabilities, etc.
3) No child laborChild labor is prohibited. Abide by the minimum age requirement for laboras stipulated in the statutes (not limited to domestic laws but includinginternational laws like treaties)
4) No forced labor
Forced labor is prohibited. All modes of modern-day slavery including
bonded labor and human trafficking are prohibited.
5) Wages
Comply with the laws and regulations of the country and region in question
concerning minimum wages, overtime, payroll deductions, payment basedon output, and other wage-related issues.
6) Work hours
Comply with the laws and regulations of the country and region in question
concerning decisions on employee work hours (including overtime), thegranting of holidays and annual paid leave, and other such issues.
7) Respect to freedom of association and collective bargaining rights
Respect the rights of employees such as freedom of association andcollective bargaining according to the laws, regulations, and customary
practices of the respective country and region where business activities takeplace.

88) Adherence to occupational health and safety
Comply with applicable laws and regulations and provide a workplaceenvironment that continues to ensure safety, health, and peace of mind foreveryone.
9) Respect to the rights of local residents and indigenous people
Respect the rights of local residents and indigenous people to own, use, andmanage lands, forests, water, and other natural resources in the region wherebusiness activities take place.

94. Guidelines by Category: Expectations to suppliers for compliance(3) The Environment1) Environmental management
In order to facilitate the execution of a wide range of environmental
initiatives, follow the laws and regulations in each country and region andtake action to comply with future changes to laws and regulations.
Implement company-wide management systems, and maintain and improvethem on a continued basis.
(i) Establish a system at each corporation and facility
Establish environmental management system in compliance with ISO14001
or other certification system with a third-party certification body and obtaina certification from them.
2) Reduce greenhouse gas (GHG) emissions
Follow the laws and regulations in each country and region and take action
to comply with future changes to laws and regulations in order to help
prevent global warming.
To achieve carbon neutrality, along with the GHG emission management inbusiness activities, work toward GHG reduction by improving production
efficiency, working on energy-saving activities, shifting to low-carbon
energies, utilizing renewable energies, etc.
(i) Understand and reduce the amount of GHG emission
Promote activities to reduce the amount of GHG emission throughunderstanding the GHG emission amount for an entire lifecycle, effectively
using energies, etc.
(ii) Reduce chlorofluorocarbon (CFC) emission
If a production site or a product uses CFC, take actions to change to non-CFCor low-GWP alternatives.
*GWP stands for Global Warming Potential
3) Environmental preservation of air, water, and soil, etc.
In addition to complying with the laws and regulations of the respective
country and region for environmental preservation of air, water, and soil, etc.,
strive to take actions for future changes in laws and regulations and continue
to monitor and reduce environmental pollutants for environmental
preservation including water conservation.

104) Efficient use of resources
Comply with the laws and regulations of the respective country and region
regarding proper waste disposal, recycling, etc.
Effectively utilize resources to promote reduction of the final waste disposal
volume and use of sustainable materials (reuses, recycles, biomass).
5) Chemical substance management
Follow the laws and regulations in each country and region, and take action
to comply with future changes to these laws and regulations. Exercise carefulmanagement of any chemical substances that could pollute the environment.
Do not use chemical substances in your products that are prohibited under
the laws and regulations of the countries and regions where those products
are used or sold. Likewise, do not use prohibited chemical substances in yourproduction processes, and identify and report to the authorities the amountsof any chemical discharges or emissions in accordance with the laws andregulations of the country and region in question.
6) Conservation of biodiversity
Stive to conserve biodiversity in business activities as well as manufacturingof parts including procurement of raw materials.

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4. Guidelines by Category: Expectations to suppliers for compliance(4) Responsible Mineral Sourcing
1) Conflict Minerals
Avoid conflict minerals* and strive to do business with conflict-free refiners.
Investigate the supply chain for usage of conflict minerals. If use of aconcerned mineral is found, take actions to avoid the use.
*Minerals that potentially become a financial source for an armed group in a
conflict area or lead to a human rights violation or environmental pollution.

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4. Guidelines by Category: Expectations to suppliers for compliance(5) Compliance1) Compliance with laws and regulations
Follow the laws and regulations of each country and region. Implement andmaintain policies, systems, conduct guidelines, whistle-blower systems, andtraining to ensure compliance.
2) Compliance with competition laws
Follow the competition laws of each country and region and do not engage
in private monopolization, illegal or unfair restraint of trade (e.g. cartels or
bid rigging), unfair business practices, or abuse of a dominant bargaining
position.
3) Preventing corruption
Adhere to the laws and regulations of the country or region in question
when making any political contributions and donations. Maintain clean andtransparent relationships with politicians and government authorities. Do notprovide or accept entertainment, gifts, or money to or from business
partners for the purpose of obtaining or maintaining unfair advantages orspecial treatment.
4) Prohibiting conflict of interest
Do not engage in any act that works against the interests of your company
and seeks the interests of an individual, a business partner, or a third party.
5) Confidential information controls and safeguards
Use only proper and legitimate means to obtain confidential information andpersonal information from customers, employees, and third parties.
Safeguard that information by managing it with the utmost security andusing it only where it is pertinent and justified.
6) Whistleblower protection
Protect employees and business associates from becoming a target of an
adverse action such as dismissal, threat, or harassment due to a complaint.
7) Export trade
Follow proper export procedures and management processes for exportrestricted technology and goods according to the laws and regulations ineach country and region.

138) Intellectual property protection
Protect the intellectual property that you own or possess. Do not infringe on,illegitimately use, or wrongfully acquire intellectual property belonging to athird party.
9) Exclusion of anti-social forces
All associates, from executives to employees, must firmly reject any
relationship with anti-social forces (i.e. individual and groups that use meansof violence, power, or fraud to pursue their financial interests).
Please share this unequivocal commitment with your stakeholders andbusiness partners.

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4. Guidelines by Category: Expectations to suppliers for compliance(6) Information Disclosure1) Disclosure of information to stakeholders
Disclose appropriate information about your financial health, businessperformance, and business activities to your stakeholders at the appropriatetime. Work to maintain and advance mutual understanding and trust withyour stakeholders through fair and open communication.

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5. Requests to Our Suppliers
Through these guidelines, TS Tech aims not only to create a shared understanding
with our suppliers but also to enact a proactive approach to sustainability in orderfor both us and our suppliers to exist in harmony with society, maintain continued
growth, and be companies “sincerely appreciated by all” whose presence is valued
by society.
(1) Compliance with these guidelines
We ask that our suppliers follow these guidelines in addition to our master
purchase and sales agreement that we sign with each of you.

(2) Reinforcement of internal systems
We ask that our suppliers develop, implement, and maintain internal systems
to comply with any applicable laws, regulations, and norms. We also ask that
our suppliers strengthen internal governance and internal audits to establish a
corporate culture where laws, regulations, or norms do not get broken.
(3) Dissemination throughout the supply chain
Suppliers are asked to promote thorough dissemination of these sustainability
guidelines, especially enforcement of compliance, not only to their suppliersand contractors but also throughout the supply chain.
(4) Verification of complianceIf necessary, we may request the submission of relevant records and data or
on-site reviews (at manufacturing plants) to confirm that our suppliers are incompliance with these guidelines. We appreciate your understanding andcooperation with such requests.
(5) Action when a compliance violation is foundIf a compliance violation is discovered in the supplier’s business operations,
immediately notify TS Tech, investigate the cause, report the investigation
result, and submit a recurrence prevention measure.

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6. Issuing Department and Contact Information
Please contact the following department with any inquiries concerning theseguidelines.

Issuing Department
Purchasing Department 2
Corporate Sales and Purchasing Division
TS Tech Co., Ltd.

Contact Information
Purchasing Section 1
Purchasing Department 2
Corporate Sales and Purchasing Division
TS Tech Co., Ltd.
TEL: +81-28-676-1292

Revision HistoryMay 2019

New―Aug 2023

Revised

Add items and clarify wording17

Confirmation of Compliance to Supplier Sustainability Guidelines
TS Tech requests all suppliers, who received theses guidelines, to respond to the Compliance Survey
and an authorized company representative to sign and submit the Confirmation of Compliance toSupplier Sustainability Guidelines.
The signature on this Confirmation of Compliance verifies that the parts and materials provided to TS
Tech are as indicated in the Compliance Survey.
Please note that submission of the Compliance Survey results and the Confirmation of Compliance aswell as receipt of a signature will be referenced to for the future supplier selection.
*Signatory: An authorized representative or personnel in charge of sustainability activities (e.g.
Designated Corporate Officer)

Company Name:

Supplier Code:

Date:

Title:

Signature (Handwritten or type and sign)

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