CSR Policy 4: Quality safety
We will become a leader in product safety.

Basic approach
In order to meet the customer requirement that products must be safe and reliable to use, the Group has
established a quality assurance system and prioritizes the supply of safe and reliable products.
Quality & Food Safety Policy
We will implement the following policies to provide customers with reliable products.

1. We value communication with our customers and we work to provide satisfying products that
embody their needs.

2. In all processes, from R&D to raw material procurement, manufacturing, distribution, sales, andadministration, we steadily fulfill our roles and duties and provide quality products and services
that our customers rely on.

3. We observe related laws and regulations, establish a quality assurance system that allows us toprovide safe, high-quality products, and work continuously to make improvements.

Relation with stakeholders
We are committed to providing products that customers can use with a sense of security and that are
valuable for customer success.
SDGs that we are targeting

Promotion system and governanceIn order to assure customers and consumers of the quality and safety of our flavor and fragrance
products, we have built a quality assurance system led by the Quality Assurance Division, which
communicates directly with the President & CEO. We value communication with customers and we
promote quality and safety activities. All raw materials that we use are registered under the system. Only
raw materials whose quality and safety have been verified are used to make sample pieces and products.
We focus on providing high-quality products and perform final inspection for all products for customers.

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Copyright© T. HASEGAWA CO., LTD. All rights reservedOur quality assurance system

President
R&D Center

Quality Assurance
Division

Quality Control
CenterFacility

Supplier

Purchasing
Division

Sales
Division

CustomerCommunication with customers
Customer
Product Specification
SDS
Test Reports

Required quality

Assessment

Product

Complaints
Inquiries
Requests

Production

Sales

Sample presentation

Feedback

Planning

Development /improvement

Marketing

Quality Assurance

T.Hasegawa

Quality control from raw materials to products

We use a traceability system based on barcodes for processes from raw material acceptance to productshipment to ensure product quality so that our customers will be able to use our products with a senseof security. All information is traceable under the system, from product lots to manufacturing records,
product inspection results, lot numbers of raw materials used in the products, and raw material
acceptance inspection results.

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Copyright© T. HASEGAWA CO., LTD. All rights reservedWe check the quality and safety information for the raw materials that we use, including standards,
allergies, and residual agrochemicals. We also confirm the compliance of compounds used in flavors andfragrances with related laws, including the Food Sanitation Act, the Fire Service Act, the Industrial Safety
and Health Act, and the Act on the Regulation of Manufacture and Evaluation of Chemical Substances,
etc. By always using raw materials with guaranteed quality and creating quality products, we provide
safe and reliable products and manufacture products while considering the environmental impact.
By enabling information to be traced using the traceability system, we aim to reduce the time it takes to
respond to customer inquiries so that we can provide information in a sustainable manner.
Laws related to chemical substances and our compliance
From the viewpoint that the components of flavors and fragrances we handle are chemical substances,
we actively and appropriately comply with related laws to protect the workers who are handling chemical
substances during manufacturing and transport, ensure the safety of users, and conserve the environment.
1. Application for registering new chemical compounds in accordance with Japanese laws
We perform the following in compliance with the Act on the Regulation of Manufacture and Evaluationof Chemical Substances:‑ Notification concerning “Low Production Volume of New Chemical Substances”‑ Request pertaining to “Small Production Volume of New Chemical Substances”
We perform the following in compliance with the Industrial Safety and Health Act:‑ Application and registration of “New Chemical Substances”‑ Application for “Small Production Volume of New Chemical Substances”
2. Publication of Safety Data Sheets (SDSs) supporting the Globally Harmonized System of Classificationand Labelling of Chemicals (GHS)
We disclose information on substances subject to law contained in flavor and fragrance products
through SDSs for all of our products so that customers will be able to use them safely. Applicable related
laws are as follows: Industrial Safety and Health Act
 Act on the Assessment of Releases of Specified Chemical Substances in the Environment and thePromotion of Management Improvement (Chemical Substances Management Law)
 Fire Service Act
 Ship Safety Act
 Act on Prevention of Marine Pollution and Maritime Disaster (Marine Pollution Prevention Law)
 Poisonous and Deleterious Substances Control Law
For products to be exported, we also issue SDSs corresponding to the GHS system of the export
destination country.
3. Information management and response to chemicals regulation trends in countries and law
amendment in Japan
We obtain information on chemicals-related regulation trends of countries and items listed in theregistered chemical substance list (inventory) through law search databases in and outside Japan, as wellas through industry organizations. We manage the chemical substances by registering information on
how they are obtained in our internal system, and we use this data to respond to inquiries from
customers.
As for amendment of laws in Japan, we work to obtain notifications from relevant government offices aswell as industry organizations. We collaborate with relevant divisions to respond to amendments to theIndustrial Safety and Health Act and the Chemical Substances Management Law, which are frequently
amended especially in recent years, when collecting raw material information and improving internal
systems. We do so while considering the fact that the frequency of counting the emissions of flavors andfragrances applicable to the pollutant release and transfer register (PRTR), updating SDSs, and changing
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label indication as well as the number of materials subject to risk assessment will further increase in the
future.
4. Response of overseas subsidiaries
Our overseas subsidiaries are also responsible for complying with chemicals-related laws applicable toeach site.
 China(1) Main chemicals management regulations applicable to our subsidiaries in China (Shanghai Facility
and Suzhou Facility):Safety production regulations: Work Safety Law of the People’s Republic of China; Fire Control
Law of the People’s Republic of China; Regulations on the Control over Safety of Hazardous
Chemicals; Measures for Administration of Hazardous Chemicals Registration; and Catalog ofHazardous Chemicals

Occupational health and protection regulations: Law of the People’s Republic of China on
Prevention and Control of Occupational Diseases; Regulations on the Management ofOccupational Health at Workplaces; and Warning Signs for Occupational Hazards in the
Workplace
Environmental protection regulations: Environmental Protection Law of the People’s Republic ofChina; National Inventory of Hazardous Wastes; and Measures on the Management of Transfer
of Hazardous Waste(2) T. HASEGAWA FLAVOURS AND FRAGRANCES (SHANGHAI) CO., LTD. applied for a simplified single
item registration in accordance with the “Measures for Environmental Management of New
Chemical Substances” (Order No. 7 of Ministry of Environmental Protection) in 2020. (Note that thecurrent law on new chemical substance management in China is the “Measures for theEnvironmental Management Registration of New Chemical Substances” (Order No. 12 of the
Ministry of Ecology and Environment; enforced in 2021).)(3) Submission of SDSs
We issue SDSs that are in compliance with GB 30000: Rules for Classification and Labeling ofChemicals, GB 12268: List of Dangerous Goods, and GB 6944-2012: Classification and Code ofDangerous Goods. By registering the information on raw materials provided by suppliers in ourinternal system, we maintain GHS law information and submit SDSs according to the customer
request.
 Malaysia(1) Main chemicals management regulations in our subsidiaries in Malaysia:
Occupational Safety and Health Act 1994 (OSHA 1994)

Subordinate legislation of OSHA 1994: Occupational Safety and Health (Use and Standard of
Exposure Chemical Hazardous to Health) Regulations 2000 (USECHH Regulations)
The Malaysia Facility only manufactures food flavors, so it does not have to register chemical
substances. However, we internally manage records of substance names listed in the inventory ofhazardous harmful chemical substances of CLASS Regulations 2013 (2013 Regulations onclassification, labelling, and safety datasheets for hazardous chemicals).
(2) Submission of SDSs
We issue SDSs that comply with the CLASS Regulations 2013. We obtain SDSs of chemical
substances used as raw materials of food flavors from suppliers and issue an SDS for samples andproducts according to the customer request.

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Copyright© T. HASEGAWA CO., LTD. All rights reserved U.S.
(1) Main chemicals management regulations applicable to our subsidiaries in the U.S. (3 sites in
California):
Our subsidiaries in the U.S. only manufacture food flavors and not new chemical substances, sothey are exempted from the law on the application for registration of new chemical substances.
However, Provision 65 (California state law) applies as a chemical substance management related
law. We provide a statement related to Provision 65 before the customer places the first order of a
product and/or upon request from the customer.
(2) Submission of SDSs
We issue an SDS in compliance with the GHS for samples and products according to the customer
request.
Product risk assessment (Risk assessment of chemical substances)
Factory employees regularly receive education on the danger, harm, and appropriate handling ofchemical substances and chemicals regulations in and outside Japan in order to appropriately manage
the chemical substances handled by the Company as raw materials. In addition, we conduct risk
assessments of chemical substances based on the SDSs of raw materials and intermediate products,
consider risk mitigation measures, and reflect the results in work procedures. We warn all workers who
handle chemical substances of the toxicity of chemicals and precautions for handling chemicals, andprovide exposure prevention measures (by installing local exhaust ventilation and wearing protective
equipment).
The R&D Center conducts risk assessments of all chemical substances used in the factories in accordancewith the Industrial Safety and Health Act, prepares a measure sheet according to the risk level, and put iton the intracompany website so that it will always be available to employees.
We will also respond to an increase in substances subject to risk assessments in the future due toamendments to the Industrial Safety and Health Act.
At our overseas subsidiaries, we also take action according to the actual situation there.
 China
The Shanghai Facility and the Suzhou Facility independently manage chemicals according to therespective local requirements. They formulate and manage the following management measures fromthe perspectives of safety production, occupational health and safety, environmental protection, andproduction risk management.
1) Obtain SDSs from raw material suppliers and register the information so that it can be searched oninternal systems.
2) Evaluate workshops in accordance with legal requirements to identify occupational hazards.
Regularly inspect workshops every year, publicly announce the results, and put occupational healthwarning marks at workshops.
3) Store flammable dangerous chemicals in specified warehouses.
4) Conduct a safety production risk assessment once a year to identify risks (such as the use, storage,
and transport of dangerous chemicals), and establish control measures and emergency
countermeasures to prevent safety production accidents from occurring.
 Malaysia
In order to confirm that a risk assessment has been conducted for all chemical substances and toascertain the impact of such substances on employees, our subsidiaries in Malaysia receive chemical
substance health risk assessments by external authorized reviewers registered with the Department ofOccupational Safety and Health (DOSH) of Malaysia in accordance with the Occupational Safety and45
Copyright© T. HASEGAWA CO., LTD. All rights reserved

Health (Use and Standard of Exposure Chemical Hazardous to Health) Regulations 2000 (USECHH
Regulations). We installed local exhaust ventilation devices (fume hoods) at research labs based on therisk assessment results and in accordance with relevant regulations, and take management measures toconfirm the permissible exposure limit of employees. In addition, we provide protective equipment
approved by the Standard and Industrial Research Institute of Malaysia-Department of Occupational
Safety and Health (SIRIM-DOSH) to employees.
 U.S.
At our subsidiaries in the U.S., risk assessments of raw materials are conducted based on the hazard risk
information for respiratory organs of the US Flavor Extract Manufacturers Association (FEMA) or otherinformation provided by suppliers. All employees receive hazard communication training. The facilities
are in compliance with the requirements of government agencies as well as the Division of Occupational
Safety and Health (Cal/OSHA). Regarding exposure to employees’ respiratory organs during flavor
manufacturing, we observe the priority chemical substance list for health and safety provided by the
FEMA. Precautions on safety are all reflected in manufacturing process sheets so that employees canobserve them.
Quality Assurance Division
We confirm legal compliance at the raw material purchase stage to provide customers with productsthat they can use with peace of mind. In addition to complying with laws and regulations in Japan, we
check laws and regulations of destination countries of export products for our overseas customers, andprovide products that comply with the laws and regulations of the respective countries and regions.
We also promote automatic creation (digitalization) of product specifications to quickly provide
customers with accurate information.
Quality Control Center
The Quality Control Centers of the Fukaya and Itakura facilities manage the plant quality system andconduct quality inspections of products manufactured at the facilities and purchased raw materials.
Quality inspections are performed for all products and raw materials handled at the factories to provide
customers with products of stable quality.
In quality inspections, we are promoting the introduction of inspection equipment necessary forensuring the quality of products and raw materials and have established a system that allows us to carryout all inspections internally. Inspection results are automatically transferred from the inspection
equipment to a computer system by an automatic transfer system. Measurement, pass/faildetermination, and inspection card issuance are fully automated (digitalized), which help to prevent data
tampering. As a company that handles fragrances, we are also working on training sensory inspectors.
Only those who have been trained to distinguish fragrances and have passed our internal certification
test are involved in sensory tests as sensory inspectors.
International standard certification
 ISO 9001
In 1998, we acquired an ISO 9002 certification for the quality management system at our facilities. In
2003, we changed the registration to an ISO 9001 certification. In 2007, we expanded the scope andacquired a certification covering the entire Company. With strong leadership exemplified by the
President & CEO as top management, all employees involved in business activities cooperate in quality
activities.
In 2012, we obtained a FSSC 22000 certification for our food safety management system and thereafter
began rolling out an integrated management system of ISO 9001 and FSSC 22000. However, we havechanged the scope of ISO 9001 to cover the head office, branches, sales offices, R&D Center, and46
Copyright© T. HASEGAWA CO., LTD. All rights reserved

fragrance facilities with the certification and to cover flavor facilities with only the FSSC 22000
certification since 2019, in order to narrow down the activities at each division and focus on the mostsuitable standards.
In China, we acquired an ISO 9001 certification in Shanghai in 2004 and in Suzhou in 2010. Thesecertifications guide our quality activities.
 FSSC 22000
All divisions associated with flavors obtained an FSSC 22000 certification for their food safety
management systems in 2012. We acquired an international standard certification approved by the
Global Food Safety Initiative (GFSI), which allowed us to reduce risks related to food safety and provide
safe and reliable products that are recognized by our customers overseas as well as in Japan.
Since the FSSC 22000 standard specializes in food safety, we changed the scope covered by thecertification and has been obtaining the certification only at our flavor facilities since 2019.
We have also acquired certifications under international standards related to food safety at our overseas
subsidiaries.
 Overseas subsidiaries - Status of international food safety standards certification

Audit
 Internal audit
We conduct annual internal quality and food safety audit at all divisions. We provide specialized training
to some employees to serve as internal auditors, and those approved as internal auditors conduct
audits. By having employees audit one another, we can make detailed improvements to areas that we do
not usually notice and eliminate operational inefficiencies. Findings are shared with other divisions tomake ongoing improvements in every division.
 5S audit
Members from the Quality Control Center of the Fukaya and Itakura facilities enter the manufacturing
area to conduct hygiene audits based on the 5S, which stands for Seiri (Sort), Seiton (Systemize), Seiso(Shine), Seiketsu (Standardize), and Shitsuke (Sustain), by using a method equivalent to that used inexternal audits according to ISO 9001 or FSSC 22000. The hygiene control of a factory forms the basis offood safety and helps prevent contamination by foreign matter or microorganisms.
In China (Shanghai and Suzhou), regular patrols and audits are conducted by the 5S Management
Committee.
Management review
Reports are provided to management as a review of activities related to quality and food safety
performed during the year. We conduct ongoing improvement activities by reflecting on the year’s
activities and receiving approval and assignments from management.

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Copyright© T. HASEGAWA CO., LTD. All rights reservedCompliance initiatives
We believe employee awareness is important to provide customers with high-quality products and weare engaged in activities to raise awareness of compliance. We repeatedly provide quality management
training at various occasions, including when employees join the company and when they are promoted.
In particular, legal information changes on a daily basis, so we constantly collect information fromindustry organizations and various media and work to promptly communicate legal information toemployees through intracompany websites, regular workshops, and various study sessions. Suchinformation is posted on intracompany websites and can be checked by employees at any time. Regularstudy sessions on food safety are held at the Fukaya and Itakura facilities to raise compliance awarenessamong employees.
Internal Halal Committee
In order to respond to requests from Islamic customers, our export products to Southeast Asian
countries are Halal certified to supply safe and reliable products. We established an Internal Halal
Committee by selecting members from related divisions, including Sales, R&D, and Production. The
Committee shares Halal-related information with our locations in China and Southeast Asian countries
and maintains the Halal certification. We have also entered into an agreement with the Nippon Asia
Halal Association as an advisor and we are working to solve various problems.
Response to complaints and the Quality Control Committee
When a complaint arises, quality-related divisions coordinate with each other to clarify the cause andcountermeasures and quickly respond to the customer. Serious complaints are promptly reported to
management, and proper measures are taken from the customer’s perspective. Complaint information isshared at Quality Control Committee meetings and with related divisions to help prevent recurrence.
When a manufacturing problem occurs, the cause and countermeasures are clarified in the same way as
when dealing with complaints, and information is shared at Quality Control Committee meetings to help
prevent recurrence.

Risks, opportunities, and strategies
Risks
 Loss of trust due to poor product quality
Opportunities
 Improved trust owing to improved product quality
Strategies
 Investing in aging equipment
 Improving the skill level of inspectors
 Reviewing manufacturing methods and conditions
 Improving the manufacturing skill level through education and training Enhancing the production system (supply system) Reducing the lead time by promoting fully automated issuance of inspection cards (digitaltransformation)
 Developing the sensory skill of manufacturing personnel to differentiate taste and scent throughsensory test division training48
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Continued enhancement of the promotion system
 Strengthening the development of the flavor and fragrance industry and responding to theenvironment surrounding the industry
We actively dispatch employees to serve as members of industry organizations of other countries in an
attempt to respond to constantly changing legal information and develop the flavor and fragrance
industry as a whole. We also joined organizations in Japan, including the Japan Flavor & Fragrance
Materials Association (JFFMA) and the Japan Food Additives Association, as well as international
industry organizations, such as the IFRA and IOFI, as a special member from the JFFMA. We take quick
and appropriate action for the entire industry regarding various regulations related to the industry, andconduct activities that will help develop the entire flavor and fragrance industry.
In addition, we have joined the China Association of Fragrance Flavor and Cosmetic Industries (CAFFCI) in
China and the Flavor and Extract Manufacturers Association (FEMA) in the United States, and we dispatch
employees as committee members to participate in the activities of industry organizations.
 Enhancement of response to quality requirements in R&D
Various legal regulations are constantly changing, not only in Japan but overseas as well. In order topromptly respond to such changes, reflect them in products, and communicate the information tocustomers, it is necessary to actively participate in activities of industry organizations to collectinformation. The collected information is registered in an internal database and quickly reflected in
product information. Updated information can always be referenced by researchers, which allows themto always develop products based on the latest information, and is also used to provide information tocustomers.
 Enhancement of response to quality requirements in manufacturing processes
In the manufacturing process, we are always required to produce products with consistent quality. We
assign codes to every raw material and product. By managing them using barcodes, we prevent wrong
raw materials from being input and products from getting mixed up. In our blended flavor and fragrance
facilities and powder facilities, measurement data from scales used to measure raw materials and fillproducts is recorded in the system. The data is used in combination with barcode management to help
manage manufacturing and ensure traceability. By installing IT technologies in our facilities, we are
striving to always provide products with the specified quality.

Main FY2022 initiatives
Regular audits for ISO 9001 and FSSC 22000 were conducted, and we received approval for maintaining
the certifications with no serious findings. An audit was also conducted for the Halal certification and its
renewal was approved.
As an initiative for food safety, we pruned trees within the premises of the factories and strengthened
rat-proof measures by installing rat-proof devices. The raw materials that we use are delivered fromaround the world. As such, we strengthened the acceptance and inspection work in cooperation with
the Purchasing Division. We worked to improve our services by promoting the direct delivery of samples
from factories to customers with whom we have close relationship in business, thereby increasing our
response speed.
Employees engaged in the manufacturing of flavors and fragrances for foods take courses on HACCP andwork to gain knowledge on and raise awareness of food safety. (Number of employees who took HACCP
courses at the Fukaya Production Center in FY2022: 12)
We also work to increase awareness on quality and food safety system requirements and improve theoperations of standards by the employees of each division by providing courses on ISO 9001 and FSSC

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22000. (FSSC 22000 course: Held once for 25 participants; ISO 9001 internal auditor seminar: Held oncefor 20 participants)

Plan for the future
Customers will always require safety and security. We will work to enhance our quality assurance system
and aim to achieve a level of quality that customers will continue to rely on. The Quality Assurance
Division, which communicates directly with the President & CEO, will lead our efforts to ensure close
collaboration with the Quality Control Center of the Production Division and the Quality Assurance
Divisions of our overseas locations so as to provide quality products that satisfy all customers both inJapan and abroad. At our factories, we will review the manufacturing methods and work to improve
operations in order to reduce the number of complaints and further reduce the rejection of goods in thefactories. We will also expand the introduction of the entrance and exit monitoring system for foodfactories. We will continue to obtain the ISO 9001 and FSSC 22000 certifications to improve quality andmaintain food safety.
Furthermore, the Production Division will proactively provide training for skill improvement at the R&D
Center in order to develop highly skilled workers who can take on the responsibility of flavor andfragrance production. At the Quality Control Center, we will work to improve the skills of inspectors andenhance the inspection system with the aim of providing customers with high-quality products.
In our overseas locations, we will also continue to train employees involved in production, introduce anoperational improvement suggestion program, and engage in process control in the Production Divisions
in the same manner as the Company.
We also realize that properly managing chemical substances to maintain health and the environment is
an important issue in building a sustainable society. Going forward, we will continue to monitor trends
on regulating related chemicals, including amendments to the Industrial Safety and Health Act, tocontinue to conduct risk assessments of applicable chemical substances and to reflect changes to SDSs.

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