CSR Policy 3: Human rights and labor
We will respect human rights and diversity, work to improve the welfare of
employees, and realize a safe and comfortable workplace.

Basic approach
Basic Policy on Human Rights
The Company will support international human rights standards, such as the Universal
Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at
Work, and the United Nations Global Compact, and will act in accordance with the policy
below based on the United Nations’ Guiding Principles on Business and Human Rights.
1. We never engage in child labor or forced labor.
2. We comply with regulations on working hours, holidays, and minimum wages stipulatedby the law.
3. We do not discriminate people in terms of hiring, promotions, and careeradvancements.
4. We do not allow any harassment that harms workers or the work environment.
5. We endeavor to prevent accidents and disasters by prioritizing the health and safety of
the workplace and workers.
6. We have proper and faithful discussions with labor representatives.

We will check the status of compliance with items 1-6 of the above policy and work to builda system for identifying, preventing, and mitigating any negative impact on human rights
related to the Company’s business activities.
In the event that it becomes clear that the Company has caused or contributed to a negative
impact on human rights, we will work to remedy or correct the situation through proper
procedures.

Promotion system and governance
Human rights and the labor environment are the foundation of compliance as well as essential elements
for improved corporate value. As such, the Compliance Committee, which is chaired by the President &CEO and consists of directors in charge of Internal management control, officers in charge of therespective divisions, and others, collaborates across divisions to ascertain the issues related to humanrights and the labor environment and make improvements. The Committee also reports to the Board of
Directors as necessary.
Initiatives on respect for human rights
The Group has established the Compliance Regulations as well as the T. Hasegawa Corporate Code of
Conduct to be followed by all employees as they engage in business activities, and they include items
related to respect for human rights. We strive to make sure all of our employees are aware of the Codeof Conduct in order to spread awareness of respect for human rights and prevent issues related tohuman rights.
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Copyright© T. HASEGAWA CO., LTD. All rights reserved Response to human rights risks
The Group identifies human rights risks that should be dealt with in order to prevent or mitigate thenegative impact of business activities on human rights. We take measures for identified risks and regularly
monitor and disclose information to improve our efforts.
 Process for responding to human rights risks

 Identifying human rights risks
The risk survey of divisions conducted jointly every year by the Risk Management Committee and theCompliance Committee incorporates the viewpoint of human rights risks. Human rights risks extracted
by the survey are categorized, and businesses and divisions that are at risk are identified.
 Evaluation of human rights risks
Currently, the Group organizes and responds to the following main human rights risks.

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Copyright© T. HASEGAWA CO., LTD. All rights reserved Measures and monitoring of human rights risks
We have developed internal rules, and are analyzing, managing, and considering measures for risks,
mainly for relevant divisions. In addition, the relevant divisions and the Risk Management Committee
analyze, manage, and consider measures for risks that require a response from the company or theGroup based on the risk management rules.
 Establishment of a whistleblowing service
As part of our complaint handling mechanism, we have established the person responsible for generalaffairs, the person responsible for human resources, an outside lawyer, and a full-time auditor for eachsite as the whistleblowing/hotline service contact. The service can be accessed from multiple locations
inside and outside the Company from the dedicated banners on the intranet and direct e-mail address.
 Providing harassment prevention training
Harassment in the workplace not only damages the personality and dignity of the person who isharassed, but also results in a loss of desire to work or self-confidence or may even cause the mental
health to deteriorate. Based on the Company’s conviction that harassment shall not be allowed, we
provide a wide range of training intended to enlighten employees and prevent harassment. In addition
to the training intended for new managerial staff, which we provide every year, we also provided training
for senior management level in FY2022.
SDGs that we are targeting[Human resources development]
Risks, opportunities, and strategies
Risks If there are not enough human resources with appropriate skills, business operations will besuspended, and skills transfer will be difficult.
Opportunities
 Increased employee motivation
 Increased production efficiency as a result of improving the work environment
Strategies
In accordance with the management policy to create a safe and comfortable work environment for our
employees, we seek to create an energetic corporate culture in which human resources can grow andmaintain their motivation, and we are committed to providing employees with opportunities to advancetheir career fairly and without regard to race, nationality, gender, religion, disability, or other attributes.

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Copyright© T. HASEGAWA CO., LTD. All rights reservedEducation system* Program to improve the knowledge and skills of employees who have been with their divisions foraround three years by providing training at a different R&D center.
Ensuring diversity in the appointment, etc., of core human resources Our approach to ensuring diversity
The Company respects the diversity of individual employees and has actively appointed excellent humanresources to management positions regardless of gender or nationality, or whether or not they are midcareer workers. After appointing such employees to management positions, we continue to provide
education, including management training, to improve their skills. The Company seeks to further
increase the percentage of women in management positions and will appoint women and mid-career
workers to move on to management positions in an attempt to address the ever-changing management
environment. We will also continue to appoint talented foreign nationals to expand our overseas
business based on the growth strategy.
[Voluntary and measurable targets and status of ensuring diversity]
Item
Current status
TargetTime of achievement
Percentage of women in
17.1%
18% or more
End of Sep. 2024
management positions
Percentage of mid-career workers
18.2%
Maintain 18% or
End of Sep. 2024
in management positions
more
Percentage of management
33.3%
30% or more
Maintain the current
positions filled by foreign nationals
status* The current status represents the result as of the end of September 2022.

Main FY2022 initiatives
Human resources system reform
We review the entire personnel system, including the job class system, evaluation system, compensation
system, and human resources development.
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Copyright© T. HASEGAWA CO., LTD. All rights reservedBy clarifying the roles required by the Company (job class system) and introducing a corresponding
evaluation system, we have established a human resources system where the compensation iscommensurate with the performance. In FY2022, we reformed the system (excluding the compensation
system) in advance.
Key Points of New Human
Resources System

Achievement of management targets
Employee training and career realization

New Human Resources System

Job class system• Establishment of classes according toduties, skills, and preferences

Evaluation system• Reduce of seniority criteria andclarification of company requirements

Compensation system• System for working on challenging goals
closely linked to company andorganizational policies• Reduce seniority criteria and set
compensation according torole/performance• System connected to human resources
development based on company
requirements• Increase compensation levels for younger
and mid-career employees and set
compensation high enough to ensure
hiring competitiveness

Policy on the human resources system
This policy awards people who work hard and creates a corporate culture that encourages people to takeon challenges in response to changes.
Evaluation system
 Our approach to the evaluation system
The evaluation system is not only a system for evaluating employees’ performance, but also used as atool to promote the achievement of company-wide and organizational targets, as well as the growth ofindividuals. Therefore, the actions expected of employees are clarified and the degree of fulfillment of
required actions, roles, and specialty and the level of actual achievements are evaluated. Since theresults of evaluating employees’ performance encourage individuals to grow, we utilize the evaluation
system as the foundation for developing human resources.
 Important points of the evaluation system
Evaluation of achievements
Employees should work on challenging goals that are closely linked to the policy of the Company or
their organizations, and they are expected to obtain measurable achievements that are linked to thecompany-wide target. In addition to results, the relevant process is evaluated and the results arereflected mainly in their bonuses.
Evaluation of actions
The evaluation should be a system that leads to human resource development based on elements
required by the Company. The Company also evaluates whether expected actions corresponding to
the job class and course were taken. The results are reflected in the job class (promotion) and salaryof the relevant employee.
In any evaluation, an interview with the superior of the employee is required and human resources aredeveloped by providing appropriate feedback.
Having a proper interview for the performance evaluation and development of employees
We have introduced a cloud-based human resources evaluation system service in line with our new
human resources system reform.
The system allows the Human Resources Division to easily check target setting and records of eachinterview held as part of the evaluation, as well as to check the interview status of the people to beevaluated.
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Promotion of career development
Understand the roles at each tier and acquire the required skills
 Tier-specific training
We conduct training for new employees, mid-career employees, and new managerial staff. The
purpose of the training is for employees to understand the roles at each tier and acquire skills. We
implement a PDCA cycle and work to make improvements in the planning and management oftraining.
Support employees’ self-learning and growth Online study support system
We organize courses to meet a wide range of needs and promote self-enlightenment. Starting fromFY2020, we raised the percentage of subsidy for course fees for people who have completed thecourse with a good grade in an attempt to further encourage them to improve their skills.
 Support system for acquiring qualifications
When acquiring qualifications approved by the Company, such as those for certified public tax
accountants and labor and social security attorneys, the Company pays up to half of the course fees. In
addition, employees who have met certain requirements, such as those who have acquired a TOEIC
score designated by the Company, are provided with an incentive.
 Internal seminars
Employees from each division of the Company serve as lecturers on the operations of their respective
divisions and other current information. This allows participants to not only gain an understanding of
the entirety of T. Hasegawa, but also the connection and relationship between their own divisions andthe division of the lecturer, which can be of help to their own business. By teaching others, thelecturers themselves can also deepen their understanding of the operations of their own divisions.
 Life planning seminars
The Company pays the full amount of fees to employees and their spouses who wish to attend
external seminars on living a fulfilling second life after retirement.
 Re-employment support for those who are resigning from the Company upon reaching the retirementage
We offer a “Re-employment Support Program,” which provides re-employment know-how to thoseseeking re-employment, and a “Second Life Program,” which is for those seeking to start their own
businesses or relocate to overseas, etc., to help those who wish to set out on a new path after
reaching the retirement age.
Foster management awareness among younger employees Junior board
We provide selective training to cultivate the ability to have a medium- to long-term vision, acquirebusiness management skills, and raise the awareness of participating in management.
Support the development of global human resources Language training
The Company covers the full costs of language lessons by native speakers for employees who need
English or Chinese language skills.

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Copyright© T. HASEGAWA CO., LTD. All rights reserved Training before overseas assignment
The Company invites outside lecturers to provide lectures to employees assigned to overseas
subsidiaries on the cultures, laws, and business practices of the countries where they have been
assigned.

Support management that encourages growth and autonomy
 Management training
The purpose of this training is to help managers to understand and practice management thatencourages the growth and autonomy of their subordinates. To ensure that everyone has the same
perspective and mindset, the course is open to employees who are in management positions for acertain period of time.

Train senior management
 Senior management training
Sixteen members of senior management took a business school course.

Plan for the future
Promotion and management of the human resources system reform
Using the evaluation system introduced in FY2022, we started to operate a new compensation system in
April 2023.
Compensation system
 Our approach to the compensation system
In order to encourage employees to achieve the actions and results expected from them, we will
focus on treating the desired actions and results to appropriately guide employees in developing aninterest and making efforts.
 Important points of the compensation system
Seniority-based wages are discontinued and the weight of the seniority criteria is reduced. In
addition, a managerial position allowance is established to reward the relevant role. Bonus
payments to employees are balanced by distributing payments according to the performance
evaluation of each individual, and high performance will be rewarded accordingly. In order to hire
excellent human resources as mid-career hires, we have revised the compensation levels, in which
the mid-career employees are treated well.
Providing training to those who evaluate employees’ performance in line with the human resources
system reform
We will continue to provide training to those who evaluate employees’ performance so that they
understand the intent of the new human resources system reform and perform proper evaluation anddevelopment.
 Related data (Reference: ESG Databook 2023)

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[Creating safe and rewarding workplaces]
Risks, opportunities, and strategies
Risks Occurrence of occupational accidents
 Receiving administrative punishment, facing a lawsuit or ruined reputation as a result of an
occupational accident
 Loss of talented human resources due to deterioration of the work environment
 Resignation from work for nursing care and childcare Increased difficulties in hiring due to reputational damage
Opportunities
 Increased job application rate and employee retention rate Increased production efficiency as a result of improving the work environment
Strategies
In accordance with the management policy to create a safe and comfortable work environment for our
employees, we seek to create an energetic corporate culture in which human resources can grow andmaintain their motivation.
Programs for a comfortable work environment
ProgramDescription
Self-assessment system
The system allows employees to inform the company
not only of their work but also of their personal
circumstances for the purposes of revitalizing theworkplace, ensuring appropriate and effective allocationof personnel, and utilizing human resources effectively.
No Overtime Day
Every Wednesday is designated as No Overtime Day,
which is intended to review the way we work andincrease operational efficiency. At the same time, byreducing overtime work, we encourage employees toenhance their private lives and lead healthy lives.
Leave and reduced working hour system
Leave: Employees who have applicable family members
for child or nursing carecan take 5 days (or 10 days if they have two or morefamily members requiring care) of paid leave per year.
Reduced working hours: Employees who have applicablefamily members can reduce their working hours to fiveor six hours per day.
Hour-based paid leave system for child or
The system allows employees to take family care or
nursing carenursing care leave on an hourly basis.
Job search registration system for
The system provides information on relevant job
employees who left their jobs for child or
openings to employees who resigned for reasons suchnursing careas child or nursing care and wish to receive mid-career
recruitment information.
Commendation for long service
Employees who have reached their 15th, 25th, and 35th
work anniversaries are granted special incentive leaveand presented with an award.
Cultural and sporting events
We hold company-wide events such as sports
competitions, workplace events such as going totheatres, and various club activities as voluntary
participation events for employees to promote

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Program

Description
friendships with other employees outside of work andmotivate them for work.

Fair treatment and evaluation of non-full-time employees
 Payment of the same family allowances, housing allowances, and congratulatory or condolence moneyas those for full-time employees Enhancement of long-term absence and leave systems
 Introduction of an evaluation system to have follow-up interviews
 Reflection of evaluation results in salary and bonuses to increase employee motivation
Note that the Company pays at least the minimum wage in any employment category required by theprefecture where each of our sites is located.
Obtaining the “Kurumin” certification logo
In 2022, the Company was certified for the third time for conforming to standards
based on the Act on Advancement of Measures to Support Raising Next Generation.
Occupational health and safety initiatives
We work to improve the workplace sanitation by placing top priority on ensuring occupational safetyand disaster prevention. The company-wide Environmental Safety Committee formulates company-wide
policies and activity plans, and each site works on workplace environment safety and security anddisaster prevention activities in compliance with the Fire Service Act and other laws and regulations
related to safety and disaster. At a workplace that handles chemical substances at the Fukaya Production
Center, the Environmental Safety Committee serves as the main body to regularly patrol the workplaceand check and improve hazardous locations.
System for hazard identification, risk assessment, and incident investigation
A monthly Occupational Safety and Health Committee meeting is held at each site. They deliberate andshare information on safety and health activities while looking at the cause analysis of and measures for
accidents and occupational accidents and the status of those who are absent due to illness.
Furthermore, the division head of each workplace identifies the hazard in work and assesses risks in theworkplace, and then takes action appropriately. They communicate the danger of handling chemical
substances and their toxicity, in particular, to all employees, and regularly measure the organic solvent
concentration in the work environment to assess its effect on the health of employees. We takemeasures to reduce occupational accidents and to prevent health issues at the Fukaya Production Centeras a whole.
In the event of a serious accident or an occupational accident, a company-wide Accident Investigation
Committee is established. We have established a framework of reporting the accident to the Committee
quickly, investigating causes, developing recurrence prevention measures, and implementing themeasures.
On September 15, 2022, there was a serious accident resulting in the death of one employee and injury
of two employees. Accordingly, an Accident Investigation Committee was established to investigate thecauses of the accident and develop recurrence prevention measures. The details on the investigation of
causes of the accident and proposals on recurrence prevention measures by the Accident Investigation
Committee were announced on November 11 of the same year. We take this accident, which resulted ina fatality and injuries, seriously. In order to prevent such an accident from occurring again, we will38
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ensure that the following recurrence prevention measures are steadily implemented, as well as build aproper and effective management system.
 Changing the manufacturing processes
 Improving the work area (air supply, local ventilation, etc.)
 Permanently installing a carbon monoxide concentration measurement instrument, installing an
alarm system, etc.
 Providing safety education and training
In FY2022, six occupational accidents (including one fatal accident) occurred at Fukaya Production
Center. We took measures to prevent occupational accidents from occurring again, including making
improvements to hazardous locations based on special safety patrol and making sure that all employees
are trained. Going forward, we will thoroughly investigate and take corrective action for potential risks
and root causes of occupational accidents to eliminate them.
System to improve a series of processes
Based on audits of factories by the company-wide Environmental Safety Committee regarding
environmental safety and work safety, we quickly improve matters requiring improvement andsummarize such activities in Corrective Action Reports.
System for employees to report on danger
At the Fukaya Production Center, employees provide information on near misses and improvement
requests during morning meetings and safety roundtables at each workplace so that an understandingon the potential danger at the workplace can be shared among all members. The Occupational Safety
and Health Committee has also built a system to report on near misses and applied it to otherworkplaces. We take measures to reduce risks for reported near misses.
Providing training on safety and health to employees
The Fukaya Production Center regularly holds occupational safety workshops for all employees in aneffort to raise employee awareness with respect to safe work. Our employees also actively participate inoutside lectures to obtain the qualifications necessary for work.

Main FY2022 initiatives
Support for new and mid-career hire employees
 In order to eliminate the anxieties associated with doing their first full-time job, we have introduced amentor system for new employees, in which young employees who are close in age regularlyinterview them and provide mental support and other support for developing their careers.
 We have one-on-one interviews with individual mid-career hires to address any anxiety that they may
feel about the new environment, so that they can exercise their ability as soon as possible.

Initiatives for developing a comfortable work environment Adoption of staggered work hours
 Addition of short work shift patterns for child and nursing care
Encouragement to take paid leave We encourage division heads to let their employees take paid leave.
Understanding employees’ requests through labor union meetings
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Copyright© T. HASEGAWA CO., LTD. All rights reserved In order to understand employees’ requests properly, a meeting with the labor union is held every
month.
Occupational health and safety initiatives
 Prevention of overwork and interviews with industrial physicians: We ask employees who haveworked overtime exceeding the level set out in the internal regulations if they would like to have aninterview with an industrial physician. We also encourage them to be aware of their physical health.
 Health checkups: Employees who are 35 years of age and older can receive a full medical examination
at the Company’s expense, and we encourage them to actively undergo health checkups.
 Stress checks: Conducted once a year, and the group analysis results are used in mental health care.
We recommend employees who were determined to have elevated stress levels to talk with anindustrial physician.
 Provision of health-related information: We distribute a monthly insurance newsletter. We have anindustrial physician go over the health checkup results and encourage applicable employees toundergo an examination. Information on health issues and work environment from industrial
physicians is posted on the bulletin boards in the Company.
 Related data (Reference: ESG Databook 2023)

Plan for the future
In order to further promote the creation of a safe and rewarding workplace in accordance with the Basic
Policy on Human Rights, we will undertake the following initiatives.
 We will develop and create a system for human rights due diligence.
 We will continue the human resources system reform so that employees will be motivated to engage inwork.
 We will continue to consider an environment and system for the elderly to work comfortably.
 We will continue to consider an environment and system for handicapped people to work comfortably.

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