Toshiba Group Procurement Policy
Basic Procurement Policy(1) Toshiba Group Companies comply with all applicable laws and regulations, and appropriatesocial practices, governing local and global business;(2) Toshiba Group Companies promote procurement, including the selection of suppliers(including prospective suppliers) and items to procure, in ways that reduce environmentalimpacts;(3) Toshiba Group Companies provide suppliers with equal opportunities for transactions with
Toshiba Group; and(4) Toshiba Group Companies promote procurement activities based on mutual understanding
and trust.

Policy for Selecting Suppliers
When selecting suppliers, or continuing transactions with suppliers, give priority to companies that satisfy thefollowing criteria:(1) The company complies with laws and regulations, and respects human rights, andenvironmental awareness.
(2) The company has sound business operations.
(3) The company has the ability to supply Toshiba Group with goods and/or services ofappropriate quality, price and delivery lead-times.
(4) The company is capable of providing a stable supply of goods and/or services, and has theflexibility needed to respond quickly to supply and demand fluctuations.
(5) The company has technology that contributes positively to Toshiba Group products.
(6) The company is capable of providing a continuing supply of goods and/or services inunforeseen circumstances.

Supplier Expectations
As a global business enterprise with a wide range of products, Toshiba Group takes into consideration stakeholder
expectations, and conducts procurement activities in accordance with the UN Global Compact and the RBA(Responsible Business Alliance) Code of Conduct. We therefore expect our suppliers to conduct themselves inaccordance with the UN Global Compact and the RBA Code of Conduct, and also request them to ensure that theirsuppliers also adhere to both standards.

(A) Compliance with Laws, Regulations and Social Customs
Suppliers are required to ensure compliance with laws, regulations, and appropriate social customs of thecountries and/or regions in which they operate, including in respect to the following matters.
1) Compliance with the prevailing laws and regulations in the countries and/or regions in which they operate,
including but not limited to, anti-trust laws, commercial codes, subcontractor regulations, foreignexchange laws, privacy protection laws, and copyright laws.
2) Prohibition of bribery (any gift, payment, consideration, financial or non-financial advantage or benefit of
any kind that constitutes a corrupt and illegal practice).

(B) Respecting Human Rights and the Health and Safety of Workers
Suppliers are required to respect basic human rights in their business activities, and to establish a safe andclean working environment. Also, suppliers are encouraged to understand “Toshiba Group Responsible
Minerals Sourcing Policy” (more information can be found on our website) and to work cooperatively withToshiba Group. Suppliers are required to comply with the following:1) The following practices are prohibited:(i) forced labor (including slave labor), (ii) human trafficking, (iii) inhumane treatment of workers,(iv) child labor, and (v) discrimination.
2) All workers must be paid fair wages and working hours must be reasonable, and the rights of workers toform or join trade unions are respected.
3) All workers must work in a safe and clean working environment.
＊“Toshiba Group Responsible Minerals Sourcing Policy”
https://www.toshiba.co.jp/sustainability/en/performance/social/procure.htm#responsible_minerals(C) Environmental Considerations
Suppliers are expected to embrace environmental conservation as a high priority issue, and to actively engage
in creating environmentally friendly products. Also, suppliers are expected to understand the “Toshiba Green
Procurement Guidelines” (more information can be found on our website) and to work cooperatively with
Toshiba Group. As such, suppliers are encouraged to:1) adopt ISO 14001-based environmental management systems, and promote third-party certification;2) procure parts and materials in such ways that have the smallest negative impact on the environment,such as reducing or eliminating use of potentially hazardous substances; and3) promote environmental protection activities, such as establishing policies, implementing systems, andproviding education and training for protecting the environment.
＊”Toshiba Green Procurement Guidelines”
http://www.toshiba.co.jp/env/en/products/chemical.htm#green

(D) Maintain Sound Business Operations
Maintaining sound business operations over the long-term is important for strengthening business
relationships. Accordingly, suppliers are requested to disclose their management policies and the status of
their business operations (including financial statements).

(E) Securing Excellent Product Quality
Suppliers are expected to maintain and improve product quality by establishing a quality assurance system
in accordance with ISO 9001, to cooperate with Toshiba Group to obtain necessary third-party certifications,and to comply with laws and regulations. Suppliers are required to:1) comply with safety standards in all countries and regions where they operate or have related businessdealings, such as CCC, JIS, Japan’s Electrical Appliance and Material Safety Law, UL, CE Marking, etc.
2) furnish goods and services on a continuous basis that meet the specifications and quality required byToshiba Group.
3) manage and keep documents, records and inspection data that guarantee conformance with importantquality requirements, applicable laws and standards.
In addition, suppliers are expected to understand and observe “Toshiba Quality Assurance Guidelines forSuppliers” and “Toshiba Software Quality Assurance Guidelines for Suppliers,“ which summarize Toshiba
Group’s expectations of suppliers’ quality assurance activities, and “Toshiba Product Security Quality
Assurance Guidelines for Suppliers (Software Edition),” which summarizes software vulnerability
countermeasures.

(F) Offering Goods and Services at Appropriate Prices
Suppliers are requested to provide goods and services at competitive prices and to strive to reduce prices on
a continuous basis, so that Toshiba Group is able to provide its own customers with products on financial
terms that are satisfactory to them.

(G) Firm Delivery Commitment and Delivery System
Suppliers are required to establish a system for the stable and flexible supply of goods and services and tocommit to keeping delivery schedules that are responsive to rapid fluctuations in supply and demand.

(H) Advancing Technological Capabilities
Suppliers are requested to continually improve their technological capabilities so as to enable Toshiba Groupto provide excellent and safe products to its own customers.

(I) Continuing Supply in Times of Unexpected Circumstances
In times of unexpected events that may affect supply chains (e.g., natural disasters, epidemics, fires,insurrections, terrorism, wars and civil commotions), suppliers are requested to share information on their
supply chains and to cooperate with Toshiba Group, so as not to cause any disturbance in Toshiba’s supply
chain. Suppliers are also requested to cooperate with Toshiba Group in managing risks in normal
circumstances.
(Feb. 2021)