Moriroku GroupCSR Procurement Guidelines Manual

Moriroku Holdings Company, Ltd.
Issued in April 2023

1

Table of Contents
1.

Compliance & Corporate Ethics ...................................................................................... 5
1.1

Compliance .......................................................................................................... 5

1.2

Prevention of Corruption ...................................................................................... 5

1.3

Ensure Fair Competition ...................................................................................... 6

1.4

Protection and Respect for Intellectual Property Rights ...................................... 7

1.5

Management and Protection of Personal and Confidential Information .............. 7

1.6

Prohibition of Insider Trading ............................................................................... 9

1.7

Responsible Mineral Procurement ....................................................................... 9

1.8

Establishment of Whistleblowing /Consultation System and Prohibition of Retaliation ......... 10

Human Rights and Workers’ Rights .......................................................................... 122.
2.1

Respect for Internationally-Recognized Human Rights and Labor Standards .. 12

2.2

Prohibition of Discrimination............................................................................... 12

2.3

Prohibition of Harassment .................................................................................. 13

2.4

Freedom of Association and Right to Collective Bargaining .............................. 14

2.5

Prohibition of Forced Labor ................................................................................ 15

2.6

Prohibition of Child Labor ................................................................................... 16

2.7

Responsible Hiring ............................................................................................. 17

2.8

Wages and Benefits ........................................................................................... 18

2.9

Prohibition of Long Working Hours .................................................................... 19

3.

Occupational Safety and Health ................................................................................ 21
3.1

Ensuring Workplace Safety ................................................................................ 21

3.2

Preparedness for Emergencies ......................................................................... 22

3.3

Prevention of Occupational Accidents and Illnesses ......................................... 23

3.4

Industrial Hygiene............................................................................................... 24

3.5

Physically Demanding Work .............................................................................. 25

3.6

Safety and Health Communication .................................................................... 25

3.7

Ensuring an Environment with Appropriate Sanitation, Food, and Housing...... 26

3.8

Promoting the Health of Workers ....................................................................... 27

4.

Environment............................................................................................................... 28
4.1

Compliance with Environmental Laws and Regulations .................................... 28

4.2

Construction of Environmental Management System ....................................... 29

4.3

Response to Climate Change ............................................................................ 29

4.4

Efficient and Cyclical Use of Resources ............................................................ 31
2

4.5

Prevention of Pollution ....................................................................................... 31

4.6

Chemical Substance Management .................................................................... 32

4.7

Appropriate Use of Water ................................................................................... 33

4.8

Conservation of Biodiversity............................................................................... 34

5.

Safe and Quality ........................................................................................................ 36
5.1

Construction of Quality Management System ................................................... 36

5.2

Ensuring the Safety of Products and Services .................................................. 36

5.3

Providing Accurate Information on Products and Services................................ 37

6.

Business Continuity Plan (BCP) ................................................................................ 39
6.1

7.

Formulating and Preparing a Business Continuity Plan (BCP) ......................... 39
Contribution to Regional Society ............................................................................... 41

7.1
8.

Contribution to Regional Society........................................................................ 41
Management System for Promotion of These Guidelines ........................................ 42

8.1

Construction of Management System for Promotion of These Guidelines ....... 423

Introduction
We created this manual to assist in voluntary CSR efforts by our business partners. We hopethat this manual will be useful for the Moriroku Group and its business partners in sharing
values related to social responsibility and working together to meet the expectations ofsociety.

<Structure of This Manual>This manual is structured as follows.

Requirements of Moriroku GroupCSR Procurement Guidelines
Items which must be implemented- Lists the basic items that we would like our business partners to implement as aminimum response.
- However, the items listed here do not completely cover all conditions for satisfying
the guideline requirements.
Items for which we request implementation- This section goes beyond basic items and lists activities that we would like ourbusiness partners to practice in order to enhance sustainability.

Explanation of guidelines/terminology

41. Compliance & Corporate Ethics
1.1 Compliance
Comply with the laws, rules and regulations of your country and the countries
and regions where you conduct business.

Items which must be implemented

Understand and comply with the relevant laws and regulations in your own
country and the countries and regions where you conduct business.

Periodically confirm the compliance status.

Keep all legally required permits, approvals, licenses, registration certificates,
inspection certificates, and related reports up-to-date without expiring. Conduct
all required in-house activities and reports to external parties.
Some laws and regulations apply not only to your own country and the countries
and regions in which you operate, but also to other countries (for example, theForeign Corrupt Practices Act of the United States).
Furthermore, in conjunction with globalization of supply chains and markets,compliance with laws and regulations may be required not only within yourcompany but also throughout your entire supply chain (Modern Slavery Act (UKand Australia); Article 1502 in the Dodd-Frank Wall Street Reform and Consumer
Protection Act, Uyghur Forced Labor Prevention Act (United States); Child Labor
Due Diligence Act (Netherlands); Supply Chain Act (Germany), etc.).
Additionally, from the perspective of maintaining international security and peace,in export transactions, in addition to complying with relevant laws, you arerequired to carefully determine that the exported products and technology will not
be used for the development and manufacture of weapons, and that there are no
relationships with countries, regions, organizations, or individuals subject tosanctions. You must also engage in appropriate procedures and management
related to the above.

1.2 Prevention of Corruption
Do not engage in any form of corruption such as bribery, embezzlement, or
money laundering. Furthermore, do not be complicit in such corrupt practices.

5

Items which must be implemented

Establish policies that prohibit all forms of corruption.

Conduct periodic education and training to ensure continuous compliance withthose policies.



Do not provide money, entertainment, gifts, or other benefits or conveniences topublic officials, etc., in hopes of obtaining some form of business reward such as
obtaining/maintaining permits and licenses or transactions, or acquiring nondisclosed information, regardless of whether such arrangements are direct orindirect.

Create proper and accurate accounting records and implement appropriate
internal controls to prevent bribery and other improper expenditures.

Eliminate transactions with anti-social forces and business partners which holdrelationships with anti-social forces. Specify provisions in contracts for the
purpose of eliminating such transactions.
Bribery is the giving or receiving of a gift, loan, gratuity, reward or otheradvantage from any party as an inducement to engage in fraudulent acts,
illegal acts, or breach of trust in the conduct of a business. Entertainment or
gift-giving that goes beyond social etiquette to politicians, domestic and foreign
public officials, or other equivalent parties (hereinafter, “Public Officials, Etc.”)
and political contributions which do not follow formal procedures are also
included in bribery, even if no business reward is sought.
You are also required to eliminate any relationship with anti-social forces. We
absolutely refuse the use of anti-social forces to purchase land or promotebusiness, as well as the act of anti-social forces making threats in order toobtain unfair economic benefits.

1.3 Ensure Fair Competition
Comply with competition laws and subcontracting laws, and promote free andfair competition without abusing superior bargaining positions in order toimpose unilateral terms and conditions on business partners or engaging in
anti-competitive agreements that limit competition (cartels, etc.).

Items which must be implemented

Establish internal procedures and other preventative measures to prevent
involvement in or complicity in anti-competitive behavior.
6

Hold education and training on relevant laws/regulations and the importance offair competition.

A cartel is an arrangement between companies in the same industry regarding
the price of products and services, and the allocation of quantities, regions,customers, etc. Abuse of superior bargaining position means taking advantageof the position as a purchaser or consignor to unilaterally determine or change
terms of transactions with suppliers, etc., or to impose unreasonable demands
or obligations on suppliers. Other anti-competitive agreements include bid
rigging in which bidders conspire to agree on a winning bidder and winning
price. Other behavior defined as unfair competition includes obtaining andusing trade secrets of other companies in an illegal way, making false
representations about other companies’ products, and making indications thatmislead customers about the origin, quality, etc., of your own products.

1.4 Protection and Respect for Intellectual Property Rights
Protect the intellectual property rights (patent rights, copyrights, design rights,etc.) belonging to your company from infringement by third parties, and do not
infringe on the intellectual property of third parties.

Items which must be implementedWhen developing, producing, selling, or providing products and services, conduct
thorough preliminary research on the intellectual property of third parties,
including customers and suppliers, and do not illegally obtain or use that
intellectual property.
In addition to intellectual property rights, intellectual property also includes trade
secrets and technical know-how. Intellectual property rights include patent rights,
copyrights, design rights, utility model rights, and trademark rights.
Obtaining and using the trade secrets of a third party by illegal means (forexample, illegal duplication of computer software or other copyrighted works) isalso an infringement of intellectual property.

1.5 Management and Protection of Personal and Confidential Information
Protect personal information, privacy information, confidential information, andother information handled in the course of business, and develop and operate7

an appropriate management system to prevent information leaks. Also, prevent
information leaks and the occurrence/spread of damage by taking appropriate
measures against cyber risks in computers and information networks.

Items which must be implemented

Establish policies related to information security and internal regulations
regarding the handling of information.



Hold education and training to ensure compliance with policies and regulations.



Formulate a plan for quick response (backing up important data, duplicating
servers and data centers, etc.) in the event of an information leak.
Personal information means information that can identify a specific individual by
name, date of birth, or other descriptive items. (This includes information that canbe easily collated with other information to identify a specific individual). You arerequired not to illegally or unfairly obtain, use, or disclose personal information, orto leak personal information.
Privacy information refers to information and secrets of each individual’s private
life that should not be subject to interference by others. Unlike personal
information, even information that cannot identify a specific individual may violate
the right to privacy.
Confidential information generally refers to information disclosed in documents,
etc., (including data information that is electromagnetically or optically recorded)that have been agreed to as being confidential, or information disclosed orally
after the issuance of notification defining that information as confidential.
Risks from cyberattacks include information leaks, falsification, and information
system outages. Attackers may use the obtained customer information andbusiness partner information to expand the scope of their attack targets, so thedamage is not limited to your own company. Furthermore, devices targeted bycyberattacks are not limited to conventional computers and servers, but also
include industrial systems and devices called Internet of Things (IoT). Therefore,
it is also necessary to formulate measures for these devices. Cyberattacks
include acts resulting in damage such as the leakage of trade secrets such as
personal information, customer information, business partner information, andconfidential information or the encryption of important files through methods suchas malware infection or redirecting users to malicious sites through targetedemails.

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1.6 Prohibition of Insider Trading
Do not buy or sell stocks, etc., of a corporation based on important undisclosed
information about customers or other business partners that you have learnedin the course of business. Also, do not provide undisclosed information orsolicit trading to third parties.

Items which must be implemented

Establish internal regulations regarding insider trading.



Educate and train executives and employees on corporate information that may
be the target of insider trading and prohibited acts.
Important undisclosed information means undisclosed information that could
influence a reasonable investor’s decision to trade in shares or other securities.
Examples of important undisclosed information are financial conditions such as
earnings and dividend plans, acquisitions, mergers, new products, and newtechnology.

1.7 Responsible Mineral Procurement
Confirm that mineral resources such as tantalum, tin, tungsten, and gold
contained in products do not have a negative impact on human rights or theenvironment in conflict areas.

Items which must be implemented

If your products contain minerals such as tantalum, tungsten, gold, etc., and if
you receive a request for cooperation from a customer/business report toinvestigate whether conflict minerals are included in those minerals, you mustcooperate with the investigation.

9

Conflict minerals generally refer to the four mineral resources of tantalum, tin,tungsten, and gold (3TG) that are supplied from conflict areas and areas with ahigh risk of conflict, including the Democratic Republic of the Congo and its
neighboring countries. In addition to these four mineral resources, NGO reports
and other sources have pointed out concerns similar to 3TG for other mineralssuch as cobalt, lithium, nickel, and mica.
Inhumane acts, human rights violations, environmental destruction, and otheracts by local armed groups have become major international issues. Trading
conflict minerals can provide a source of funding for local armed groups. The
Dodd-Frank Wall Street Reform and Consumer Protection Act (United States)
and the Conflict Minerals Regulation (EU) aim to cut off funding sources forarmed groups by requiring manufacturers that use conflict minerals to discloseand report on usage.

1.8 Establishment of Whistleblowing /Consultation System and Prohibition of
Retaliation
Establish a whistleblowing and consultation system that can be used bystakeholders (including workers and suppliers) in order to prevent misconduct
within your company and your supply chain, and to promptly respond if such
misconduct occurs. In addition to maintaining confidentiality for information ofindividuals who have submitted a whistleblowing report or consultation, takeappropriate measures to protect those individuals so that they do not suffer
retaliation or other disadvantages due to their report or consultation. Respondpromptly and appropriately to the contents of reports and consultations inaccordance with laws and regulations, as well as your company’s code of
conduct and conduct guidelines.

Items which must be implemented

Establish an appropriate consultation/whistleblowing contact point that can beeasily used by all related parties, and inform related parties of how to use thecontact point.

Establish mechanisms to protect whistleblowers.

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Establish independent whistleblowing/consultation contact points inside andoutside your company so that stakeholders can file complaints anonymously.
This will enable management to quickly identify and respond to problems. The
following efforts are important for effectively operating the whistleblowing andconsultation system.
To ensure that the whistleblowing/consultation contact point can be usedby stakeholders, increase access to the whistleblowing/consultation
contact point as much as possible (inform related parties of thewhistleblowing/consultation contact point, ensure availability in thelanguage of users, ensure availability without worrying about costs, ensure
availability from any location, etc.).



Maintain confidentiality for personal information of all whistleblowers andconsultees, and guarantee that they will not be subject to disadvantageousor retaliatory measures from the organization.



Maintain transparency regarding information on procedures when using
the whistleblowing/consultation contact point (flow of procedures after
receipt of whistleblowing/consultation, required time, progress ofprocessing of whistleblowing/consultation, etc.).



In addition to keeping a record of responses, work to prevent theoccurrence of future problems by periodically analyzing the frequency,
pattern, and factors of whistleblowing and consultation.

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2. Human Rights and Workers’ Rights
2.1 Respect for Internationally-Recognized Human Rights and Labor Standards
Support and respect internationally-recognized human rights and labor
standards, including the International Bill of Human Rights and the ILO Core
Labor Standards.

Items which must be implemented

Understand and comply with applicable laws and regulations on human rights
and labor in each country and region.

Items for which we request implementation

Respect international standards and norms related to human rights and labor.
When there are differences in laws and regulations applicable in each country or
region, strive to respect the higher standards.



Respect international standards and norms related to human rights and labor.
When there are conflicts among applicable laws and regulations in each country
or region, pursue ways to respect internationally-recognized human rights while
complying with those laws and regulations.
The International Bill of Human Rights consists of the Universal Declaration of
Human Rights and its main treaties; specifically, the International Covenant on
Civil and Political Rights and the International Covenant on Economic, Social
and Cultural Rights. The ILO Core Labor Standards consist of “freedom of
association and the effective recognition of the right to collective bargaining,”“prohibition of all forms of forced or compulsory labor,” “effective abolition ofchild labor,” and “elimination of discrimination in respect of employment andoccupation."
Other international norms that corporations must comply with when respecting
human rights include the UN Guiding Principles on Business and Human
Rights, and the Ten Principles of the UN Global Compact.

2.2 Prohibition of Discrimination
Prohibit and eliminate discriminatory acts based on nationality, race, religion,
beliefs, gender, age, sexual orientation/gender identity, and existence of any
12disabilities. Also do not impair equal opportunity, etc., in hiring and employment.

Items which must be implemented

Establish policies and regulations that clearly state non-discrimination as criteria
for hiring, assignment, training, promotion, etc.



Hold training on the prohibition of discrimination.

Establish and raise awareness for whistleblowing/consultation contact points on
discrimination, and promptly and appropriately respond when discrimination is
identified (related guidelines: 1.6 Establishment of Whistleblowing/Consultation
System and Prohibition of Retaliation).
Discrimination refers to differences in opportunities and treatment in hiring, job
seeking, promotion, remuneration, educational opportunities, work assignments,
wages, benefits, punishment, dismissal, etc., due to factors that are not basedon a person’s qualifications, skills, experience, ability to perform work, etc. For
example, using pregnancy tests or birth control as a condition of hiring or
continued employment, using the results of medical examinations unlessnecessary for safety and health reasons, and asking female job applicants andworkers whether they are pregnant are also types of discrimination.
Sexual orientation is the concept of where a person’s love/sexuality is directed
toward (or not toward). Examples include lesbian, gay, bisexual, or asexual (nofeelings of love/sexuality toward any gender).
Gender identity is the concept of how an individual perceives their own gender(emotional gender), regardless of biological sex (physical gender). Transgender
is a state in which a person’s physical gender and emotional gender are
different. These concepts are sometimes abbreviated as “SOGI,” which is anacronym for “Sexual Orientation & Gender Identity.”

2.3 Prohibition of Harassment
We prohibit all forms of harassment for individuals in the workplace, including
sexual harassment and power harassment, and do not tolerate such remarks or
actions.

Items which must be implemented

Clearly define disciplinary policies and procedures related to harassment, andcommunicate those policies/procedures to employees.
13Conduct training for executives and employees to prevent damage fromharassment.



Establish a whistleblowing/consultation contact point to identify and help workers
who have suffered damage (related guidelines: 1.6 Establishment ofWhistleblowing/Consultation System and Prohibition of Retaliation).

When receiving a whistleblowing report or consultation, immediately report andinvestigate, and respond promptly and appropriately.
Harassment refers to remarks, actions, etc., that are directed at another person
and make that person feel uncomfortable, hurt their dignity, or put them at a
disadvantage, regardless of the intention of the person who made theremarks/actions. In addition to occurring between workers, harassment also
includes cases where workers are harassed by customers, etc., and cases
where workers harass stakeholders such as business partners.
Sexual harassment refers to sexual remarks or actions that make the otherparty feel uncomfortable. This includes remarks or actions that cause the victim
to suffer from mental distress, that result in disadvantage such as dismissal or
pay cuts due to refusing the sexual remarks/actions, or harm the workplaceenvironment.
Power harassment refers to remarks and actions that are based on workplacehierarchies (work position, relationships, etc.) and that go beyond theappropriate scope of work, thereby causing mental or physical pain or harming
the workplace environment.

2.4 Freedom of Association and Right to Collective Bargaining
Based on laws and regulations, respect the rights to freedom of association andcollective bargaining, and engage in sincere discussions and dialogue with
employees.

Items which must be implemented

Inform employees that they can freely choose to join (or withdraw from) labor
unions without suffering any disadvantage. Do not interfere with theestablishment, management, operation, or collective bargaining of labor unions.

Items for which we request implementation
Work to resolve issue between labor and management by providing employeeswith alternative means to negotiate individually and collectively, even when local
14

laws or conventional customs effectively restrict freedom of association. These
alternative means include establishing a system for raising opinions and concerns
through employee representatives, supervising employees who raise concerns
so that they do not suffer any adverse consequences, and informing employeesof these measures.
Freedom of association means the right of employees to form and join (ordecline to form or join) labor unions of their own choice, subject to applicablelaws and regulations.
The right to collective bargaining refers to the right to use labor unions andemployee representatives to ensure constructive dialogue with management on
working conditions and management practices.

2.5 Prohibition of Forced Labor
Eliminate and prevent all forms of forced labor.

Items which must be implemented

Establish a clear policy of not using, being complicit in, or profiting from forcedlabor.

As an effort to ensure the effectiveness of the policy, ensure that all relevant
executives and employees have a thorough understanding of what constitutes
forced labor.



Make all overtime work voluntary for workers. Inform workers that all workers
have the right to refuse to work overtime.

Items for which we request implementationFor situations in which it is insufficient simply to comply with provisions on forcedlabor in national legislation, consider international standards (ILO conventions,etc.).

15

Forced labor refers to any labor or service performed involuntarily and undercoercion due to the threat of some form of punishment. Punishment includes
confinement, violence, the threat of violence, and restrictions on the freedom of
workers to leave the workplace.
Forced labor takes many forms. Examples of those forms are listed below. The
provision of wages or other remuneration does not necessarily indicate thatforced labor is not occurring.


Slave labor as a result of human traffickingBonded labor under conditions in which debt restricts a worker’s freedom
to quit a job

Labor performed by having the employer take possession of a passport,
identity card, or work permitLabor that is done by falsifying labor conditions, etc.

2.6 Prohibition of Child Labor
Eliminate and prevent all forms of child labor.

Items which must be implemented

Establish a clear policy of not engaging in or using child labor.

When hiring employees, use official documents (government-issued photo ID) to
confirm and document the age of each employee.

If you use an intermediary to recruit employees, ensure that the intermediary
implements a similar process for age confirmation.

Items for which we request implementation

In countries/regions where there is a risk of official documents being forged,
directly confirm age with the related parties.

16Child labor generally refers to the employment of children under the age of 15,
under the legal employment age per the laws and regulations of thatcountry/region, or under the age at which compulsory education is completed inthat country/region, whichever of these ages is highest. It also refers to persons
under the age of 18 (young workers) engaged in dangerous and harmful workthat may impair the health, safety, or ethics of those persons. However, as atransitional period, developing countries with insufficiently developed
economies and educational institutions may establish a minimum working ageof 14 years old. In some cases, the working age may differ depending on thetype of work.
Child labor does not include “reasonable on-the-job training programs foreducational purposes” consistent with Article 6 of the ILO Minimum Age
Convention No. 138 or “providing light labor” consistent with Article 7 of thesame Convention.

2.7 Responsible Hiring
Comply with relevant laws and regulations, and conduct hiring based on ethicalpractices. When using a recruitment agency, use an agency that is appropriately
licensed and complies with workers' rights.

Items which must be implemented

Hiring fees and other costs related to employment will not be solicited fromcandidates in a manner considered unfair under international norms.

Provide all employees with an employment contract containing the terms andconditions of employment, including the freedom to resign and resignation
procedures.

When hiring foreign migrant workers, present the employment contract andworking conditions in a language that the employee can understand, and ensurethat the employee receives the employment contract before leaving their homecountry. Do not substitute or change the employment contract at the time ofarriving in the host country, unless providing conditions which satisfy local law
and are at least equivalent to the original contract.



Except as required by law, employers, recruitment agencies and their contractors
must not retain, destroy, conceal, or confiscate government-issued identification,
identification such as passports or work permits, or immigration documents. Even17

in cases where retention is required by law, ensure that employees have accessto these documents at all times.
Recruitment agencies refer to both public employment agencies and private
employment agencies, and all other intermediaries or agents that provide
recruitment, placement, and referral services.
When dealing with hiring fees and other costs related to employment, refer tothe ILO “general principles and operational guidelines for fair recruitment andthe definition of recruitment fees and related costs.”

2.8 Wages and Benefits
Comply with relevant laws and regulations, pay employees at least the minimum
wage, and avoid unfair wage deductions.

Items which must be implemented


Check the statutory minimum wage in each country/region and ensure paymentof a wage above the minimum wage.



Do not require employees to work in excess of normal legal working hours(whether calculated on an hourly, daily, weekly or monthly basis) in order to earn
the minimum wage.

For work in excess of the legal working hours, pay the higher of overtime pay
according to laws/regulations or overtime pay according to the labor agreement.



Do not deduct from wages or statutory benefits as a disciplinary action. Only
deduct from employees’ wages as permitted by laws and regulations or thecollective bargaining agreement.

Items for which we request implementation


Pay employees at a level that considers the living wage. Living wage refers to awage level that is sufficient to meet the needs of employees and their families andto ensure an adequate standard of living. Elements of an adequate standard ofliving include food, water, housing, education, health care, transportation, clothing,provisions for contingencies, and other essential needs. Minimum wages are
expected to guarantee the minimum salary necessary for employees and theirfamilies to meet their basic needs. Since the minimum wage may be lower thanthe living wage, it is socially expected that consideration should be given to theliving wage when paying wages.
18

Minimum wage means the minimum amount of wages to be paid as stipulatedby the laws and regulations of a country or region. This section (2.8) also
includes overtime pay and statutory benefits.
Unfair wage deductions refer to wage deductions that violate labor-relatedlaws, regulations, etc. Examples of unfair wage deductions are deductions foruniform costs not agreed upon in labor-management agreements, costs for
personal protective equipment necessary for work, and cleaning costs foruniforms. However, non-payment corresponding to hours not worked due tobeing late or absent from work is not included in unfair wage deductions.

2.9 Prohibition of Long Working Hours
Comply with laws, regulations, and any applicable labor-managementagreements, properly manage working hours so as not to exceed legal limits,and prevent illegal long working hours.

Items which must be implementedComply with the legal working hours of the country where you conduct business,manage working hours so as not to exceed the upper limit on hours (including
overtime), and strive to shorten working hours. Provide workers with holidays inaccordance with laws and regulations, and give all workers the right to annual
paid leave as stipulated by laws and regulations.



Accurately record and store the working hours of all workers, including those ofworkers whose wages are paid on a fee-for-service basis. Ensure that workers
have access to their own records of working hours.

Items for which we request implementation
When possible, strive to comply with the following labor standards required byinternational labor standards:


Prescribed working hours, excluding overtime, shall be stipulated in theemployment contract and shall not exceed 48 hours per week or the legal limit,
whichever is stricter.

Overtime work by workers shall be voluntary and shall not exceed 12 hours per
week. Each worker’s actual working hours shall not exceed 60 hours per week,
except in emergency or extraordinary circumstances.



Workers shall be able to take at least one day off (24 hours) once every seven
days.
19

In order to prevent long working hours, it is necessary to comply with laws,
regulations, and labor-management agreements. On the other hand, incountries/regions where legal systems are not sufficiently developed, it isnecessary to manage working hours based on ILO international standards.
Emergencies or extraordinary circumstances refer to situations where overtime
work is required due to unforeseen events. For example, equipment failures,
power outages, or other emergencies that stop the production line for an extended
period of time; or unexpected shortages of raw materials/parts or quality issues
that stop production. On the other hand, holidays, production demand during busy
periods, new product launches, etc. are predictable and require proper planning tominimize the need for overtime work.

203. Occupational Safety and Health
3.1 Ensuring Workplace Safety
Identify and assess risks related to occupational safety in the workplace.
Ensure safety through appropriate design, technology, and control measures.
Evaluate the safety risks of machinery and equipment used in operations, andtake appropriate safety measures.

Items which must be implemented

Establish policies and regulations on occupational safety.



Evaluate risks related to occupational safety, consider countermeasures against
risks, and formulate and implement plans to ensure occupational safety.

Comply with policies and regulations, and appoint a responsible person and staff
in charge of managing the plan.

In accordance with laws and regulations, keep permits, inspection certificates,
and licenses for machinery and equipment up-to-date without expiring.

Prepare manuals and procedures for the safe use of machinery and equipment
in languages that workers can understand.



Make reasonable accommodations for pregnant women and nursing mothers. An
example of reasonable accommodation is relocation from hazardous work
environments. Hazards include lifting/moving heavy objects, exposure to
infectious diseases, exposure to lead, exposure to toxic chemicals, working in
postures that cause strain or discomfort, exposure to radioactive materials, long
working hours, excessive heat, excessive noise, etc.

Items for which we request implementation
Periodically check the structure of buildings and their safety in the event of a fire.



Establish a health and safety committee to periodically evaluate the effectivenessof operations.



If it becomes necessary for a worker to breastfeed a child being raised under theage of 1, take measures such as establishing an appropriate rest period forchildcare such as breastfeeding or breast pumping, as well as providing a safe
and clean place that cannot be accessed by colleagues/the general public and isblocked from view.

21

Occupational safety risks in the workplace include potential risks such asaccidents and health problems occurring during work due to chemical
substances, electricity and other energy sources, fire, vehicles/moving objects,
slippery/uneven floors, falling objects, etc.
Appropriate design, technology, and control measures refer to the elimination or
reduction of hazards through step-by-step controls such as the following:① Elimination of risk factors or substitution of safe ones
② Engineering controls (for example, monitoring of hazardous areas withsensors, blocking by locking power sources supplied to machines anddevices (lock-out))③ Management during operation (for example, installation of a tag clearlystating that operation of the energy blocking device is prohibited while thepower source being blocked (tag-out))④ Provision of personal protective equipment (safety glasses, safety helmets,
gloves, etc.)
Appropriate safety measures for machinery and equipment refer to management
to prevent accidents and health problems that occur during work. Examples
include the adoption of safety mechanisms such as fail-safe, fool-proof, interlock,and tag-out, the installation of safety devices and protective barriers, and theimplementation of periodic inspection and maintenance for machinery andequipment.
Fail-safe refers to always controlling operations in a safe manner in the event ofa malfunction or failure, under the premise that machinery, equipment, andsystems will inevitably fail.
Fool-proof means equipping machinery, equipment, or systems with a structure
or mechanism that prevents dangerous operation in the event of a malfunction orincorrect operation, or that prevents malfunction or incorrect operation in the firstplace.
An interlock is a mechanism that prevents machinery, equipment, or systems
from operating unless certain conditions are met.

3.2 Preparedness for Emergencies
In preparation for fires, earthquakes, tornadoes, and other emergencies thatthreaten the safety of human life and physical safety, create action procedures
22

and implement safety measures necessary to avoid or minimize damage, andthoroughly raise workplace awareness for those procedures/measures.

Items which must be implemented


Evaluate/identify emergencies and abnormal situations in advance and formulate
countermeasures.

Periodically conduct evacuation drills for all workers, including night shift workers.

Ensure that all workers know the location of emergency exits for use inemergencies, and keep evacuation routes clear from obstructions.



Based on laws and regulations, install appropriate fire extinguishing equipment
and instruct workers on how to use that equipment.

Document and retain records of evacuation drills, inspection of fire extinguishingequipment, etc.
Action procedures and safety measures in the event of an emergency include
emergency reporting procedures, worker notification, clarification of evacuation
procedures, provision of evacuation facilities, clear and unobstructed exits,
appropriate exit facilities, emergency medical supplies, installation of fire
detection systems, installation of fire extinguishers, fire doors, and sprinklers,securing means of external communication, development of recovery plans, andstorage of stockpiles (medicine, first aid supplies, preserved food, etc.).
Raising workplace awareness includes educating workers on emergency
response (including evacuation drills), and storing and posting emergency
response procedures, etc., in places within easy reach in the workplace.

3.3 Prevention of Occupational Accidents and Illnesses
In order to prevent the occurrence of occupational accidents and occupational
illness, if an accident, trouble, etc., occurs, identify, evaluate, record, and reporton the situation of occurrence, and take appropriate countermeasures andcorrective actions.

Items which must be implementedIn the event of an accident or trouble related to occupational safety, formulate andimplement a plan to prevent recurrence.



Have workers engaged in work that may adversely affect their health (workinvolving high-pressure, radiation, specific chemical substances, organic solvents,23etc.) undergo a special medical examination.


Maintain records of occupational accidents and illnesses (including records ofreports to labor inspection agencies) and records of education/training held forfirst aid responders.

Prepare first aid kits at designated locations. Inform workers of the contents of
the kits and the designated locations.

Items for which we request implementation
 Periodically conduct trend analysis of data on occupational accidents andillnesses (number, type, etc., of occupational accidents and illnesses) in order toprevent the occurrence of occupational accidents and illnesses.

Prepare equipment and tools (AEDs, etc.) at designated locations for initial
response in the event of an accident or disaster. Inform workers of the designatedlocations.
Identification, evaluation, recording, reporting, appropriate countermeasures, andcorrective actions in the event of an accident specifically include encouraging
workers to report; conducting surveys/analysis to identify direct causes/root
causes and inadequacies in the management system leading to accidents andillnesses; classifying and recording accidents and illnesses; providing medical
treatment as necessary; implementing corrective measures to eliminate causes;
establishing systems and measures which make it possible to support worker’s
return to the job, etc.; enrolling in occupational accident insurance, etc.

3.4 Industrial Hygiene
Identify and appropriately manage situations involving contact with chemical
substances, living organisms, noise, odors, etc., that may have a harmful effecton the human body.

Items which must be implemented
Provide workers with personal protective equipment (e.g. safety glasses, safety
helmets, gloves, etc.) free of charge as needed. Hold education and training on
how to correctly use that equipment.



Maintain SDS (Safety Data Sheets) for all chemical substances in languages thatworkers can understand. Notify workers of the contents and storage locations of
those chemical substances.



Ensure that the age of workers who handle chemical substances is 18 years or24

older. Establish mechanisms to avoid handling by workers under the age of 18
and by pregnant women.
Chemical substances that can have harmful effects on the human body include
soot, steam, mist, dust, poisonous substances, radiation, and substances thatcause chronic diseases (lead, asbestos, etc.). This classification also applies tolarge amounts of noise, odors, air pollution, and vibration.
Examples of appropriate management are establishing and implementing
management standards, holding education and training for workers, andproviding appropriate personal protective clothing and equipment (related
guidelines: 4.6 Chemical Substance Management).

3.5 Physically Demanding Work
Identify physically demanding work and work that may damage health, andimplement appropriate management to prevent occupational accidents andillnesses.

Items which must be implemented

Identify physically demanding work, evaluate risks, and take action to reduce risks.
Physically demanding work includes heavy labor such as manual transportationof heavy objects, as well as repetitive and continuous work over a long period oftime (for example, assembly procedures and data entry).
Appropriate management includes periodic short breaks, the introduction of work
aids, and sharing of burden and cooperation by multiple workers.

3.6 Safety and Health Communication
Provide opportunities for education and training in languages that workers canunderstand to enable learning about occupational hazards that may affect thesafety and health of workers, as well as related protective measures. Also,establish mechanisms for workers to express their concerns and opinions
regarding workplace safety.

Items which must be implemented

Clearly post health and safety information in facilities in languages that workers
25can understand, or place such information in locations that are identifiable andaccessible by workers.
Provide education and training to all workers before starting work and periodicallythereafter, and to all relevant workers when new facilities or machinery is
introduced.



Keep a record of holding education and training.

Encourage workers to raise safety concerns without fear of reprisal, harassment,or other repercussions.
Education and training includes proper use of personal protective clothing andequipment, emergency response, safe operating procedures for machinery, andpreparation before entering hazardous environments.

3.7 Ensuring an Environment with Appropriate Sanitation, Food, and Housing
Provide workers with clean restrooms and drinking water. Maintain a safe andhealthy environment when providing food and housing.

Items which must be implemented
Install an appropriate number of restrooms according to laws/regulations or thenumber of workers.

In regard to the use of restrooms, consider gender, individual privacy,
convenience, and hygiene, and do not interfere with the right to freely use
restrooms.

Ensure that housing provided to workers complies with laws and regulations
related to safety, health, and security, including fire safety, hygiene management,
electricity, and structural safety. Obtain all necessary permits and licenses.



Keep restrooms and showers in housing clean. Equip all rooms with adequate
ventilation and general air conditioning where necessary.

When providing food to workers, ensure that health standards of the cafeteria
comply with laws and regulations, and obtain all necessary permits and licenses.
A safe and healthy environment means an environment that is clean andhygienic, and has safe drinking water, fire control measures, ventilation,
temperature control, emergency evacuation routes (exits), safe storage of
personal belongings, etc.

26

3.8 Promoting the Health of Workers
Perform appropriate management to ensure the physical/mental health ofworkers and to prevent health disorders.

Items which must be implemented

Ensure that all employees have the opportunity to undergo periodic healthcheckups.

Items for which we request implementation
Ensure that all employees have the opportunity to undergo periodic stress checks.



Based on the results of health checkups and stress checks, if necessary, provide
support for treatment and counseling by specialists such as medical institutions
and counselors.

Provide workers with support programs to address health risks not directly related
to their work. Examples of support programs include programs for quitting
smoking, dietary advice, and gym and fitness programs.
Appropriate management refers to the implementation of health checkups, etc.,
at the level stipulated by laws and regulations, and the prevention and early
detection of illnesses among workers. It is also necessary to give sufficientconsideration to preventing health problems caused by overwork, providing
mental health care, etc.

27

4. Environment
4.1 Compliance with Environmental Laws and Regulations
Comply with environmental laws and regulations, obtain and maintainnecessary permits and licenses related to environmental conservation, andcomply with requests regarding related operation and reporting.

Items which must be implemented
Also keep all permits and licenses up-to-date without expiring. Conduct all
required in-house activities and reports to external parties.
The following are examples of permits, etc., mainly in Japan.
[Environmental Permits] Business licenses based on the Waste Management
and Public Cleansing Act, permits for manufacturing and importingchemical substances under the Act on the Regulation of
Manufacture and Evaluation of Chemical Substances[Inspection Certificates] Inspection based on Article 11 of the Purification Tank
Act, inspection of underground tank leakage[Registration Certificates] Environmental management system registration
certificates issued by third-party certification bodies such as
ISO14001 and EMAS
[External Reporting] Response to requests from the national government, local
governments, customers, and other stakeholders. This includes
notifications related to the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment andPromotion of Improvements to the Management Thereof (PRTR
Act), laws regarding conserving the amount of energy consumption,and other environmental laws and regulations.
In Japan, there are cases in which it is necessary to appoint a manager or
responsible person who has acquired the qualifications stipulated by laws andregulations (manager of specially controlled industrial waste, qualified person forenergy management, pollution control manager, manager of poison/deleterious
substances, manager of specified chemical substances, manager of hazardous
items, etc.).
Furthermore, depending on factors such as the nature of operations or the location of
the factory, there are cases which require administrative approval and licenses forenvironmental impact assessments, hazardous material handling facilities, etc.

28

4.2 Construction of Environmental Management System
Construct and operate a company-wide management system for environmental
conservation, and continuously reduce environmental impact.

Items which must be implemented

Establish policies and regulations on environmental conservation.

Comply with policies and regulations related to environmental conservation, andappoint a responsible person and staff in charge of managing activity plans forenvironmental conservation.



As efforts for environmental conservation, identify the negative impact of yourcompany on the global environment, and formulate and implement activity plans
to avoid or reduce that impact.

Items for which we request implementation
 Construct an appropriate management system and management system
according to the scale and industry of your company.
The construction and operation of an environmental management system (EMS)
is one method for minimizing environmental impact.
In operation, continuous improvement is achieved by the PDCA cycle, which isan acronym for Plan, Do, Check, and Act.
Representative EMS: ISO14001, Eco-Action 21 (Japan), etc.

4.3 Response to Climate Change
In order to contribute to the resolution of climate change issues, in addition to
your business activities, minimize the amount of energy consumed and theamount of GHG emissions by promoting the efficient use of energy and the
expanded use of renewable energy throughout the life cycle of your products
and services.

Items which must be implemented

Ascertain the amount of energy consumed and the amount of GHG emissions(Scope 1 and 2).



Set reduction targets for the amount of GHG emissions (Scope 1 and 2) and work
to reduce emissions.
29

Items for which we request implementation

Ascertain the amount of GHG emissions for Scope 3.

The life cycle of products and services refers to a series of processes from theplanning/design stage to resource extraction, raw material production,
product/service production, distribution, consumption, disposal, and recycling.
Renewable energy is energy that exists abundantly in the natural environment,does not deplete resources, and does not emit CO2. Examples include solar
power, wind power, water power, wave power/tidal power, terrestrial heat,geothermal heat utilization, biomass, etc.
Although there are various types of GHG, they refer particularly to the group ofsix substance specified by the Kyoto Protocol: carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride.
To minimize greenhouse gas emissions, it is necessary to measure emissions,
set emission reduction targets, and promote reduction efforts. When calculating
emissions, refer to the internationally-recognized Greenhouse Gas Protocol.
English:https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf
Japanese translation
https://ghgprotocol.org/sites/default/files/standards/corporaterevised-editionjapanese.pdf
The GHG Protocol defines the following three management categories.
- Scope 1: Direct GHG emissions occur from sources such as combustion offuel by the company(direct emissions: combustion of fuel, industrial processes, etc.)- Scope 2: GHG emissions emitted when electricity, heat, and steam
purchased from other companies are produced by othercompanies (indirect emissions)- Scope 3: Indirect emissions other than Scope 1 and Scope 230

4.4 Efficient and Cyclical Use of Resources
In addition to complying with laws and regulations related to the appropriate
processing, recycling, etc., of waste, reduce the amount of waste generated inyour business activities and promote the efficient and cyclical use of resources.

Items which must be implemented
Appropriately process industrial waste in accordance with laws and regulations.



Understand the source and amount of waste generated in business activities, andwork to reduce waste.

Items for which we request implementationAt the product planning and design stage, strive to use environmentally-friendly
raw materials, including recycled products and recycled materials.



Strive to design and develop products that are easy to reuse and recycle throughmeasures such as adopting structures that facilitate secondary use, separation,and disassembly of used products.
According to laws and regulations, classification of waste into industrial wastethat has a direct adverse impact on people and the environment, and othergeneral waste. For the processing of industrial waste, utilization of licensed
contractors, preparation of the necessary written records and manifests(management documents confirming appropriate processing of waste) in
accordance with laws and regulations, and submission of these written
documents to governmental agencies, regulatory agencies, and relevant third
parties (carriers and recipients) as necessary.

4.5 Prevention of Pollution
In accordance with laws and regulations, appropriately manage emissions into
the air, water, and soil, prevent or reduce the emission of pollutants, and reduce
raw materials that cause emission of pollutants.

Items which must be implemented

Ascertain the amount of pollutants emitted into the external environment andreport those amounts to the government in accordance with laws and regulations.



Immediately report to the relevant authorities in the unlikely event ofcontamination or accident.

Strive to reduce emissions of pollutants.
31

Items for which we request implementation
Promote the switch to alternative substances and manufacturing processes that
do not emit pollutants or that emit less pollutants.
Pollutants are substances for which continuous exposure or ingestion may harm
the health of humans or other living organisms, and which cause pollution in air,soil, or water.

4.6 Chemical Substance Management
Based on laws and regulations, identify and appropriately manage chemical
substances and other hazardous substances that adversely affect the human
body, other living organisms, and the environment. Clearly indicate any such
substances that are contained in your product, and safely handle thesubstances throughout the entire life cycle, including manufacturing, transport,
storage, use, recycling, reuse, and disposal.

Items which must be implemented

Identify and appropriately manage chemical substances that should not be
contained in products and raw materials at the manufacturing stage.



Ascertain the amount of hazardous chemical substances emitted into the external
environment and work to reduce the amount of such emitted substances.



Report the amount of emitted hazardous chemical substances to the governmentin accordance with local laws and regulations.



Identify and evaluate potential adverse effects on the human body and thesurrounding environment during the manufacturing stage and the subsequent
stages of transport, storage, use, and disposal. Document and organize therelated management procedures.



Educate and train all workers who handle chemical substances or who may beaffected by chemical substances. Education and training includes standard work
procedures to be obeyed in the work area, methods for introducing or changing
to new chemical substances or processing procedures, procedures forresponding to emergencies, etc.

In accordance with the manufacturer’s instructions, store chemicals in containersthat are free from damage and leaks and that are made of suitable materials.
Store the containers in locations which avoid the possibility of being impacted byweather or other external environmental influences.
32

Items for which we request implementationIn accordance with product stewardship, in order to minimize the negative impact
of products on human health/safety and on the natural environment, giveconsideration to safe handling throughout the entire life cycle (development,
procurement, production, distribution, sales, use, disposal/recycling) for products
containing chemical substances which were manufactured or sold by yourcompany.
Failure to properly manage chemical substances during manufacture, use,
storage, disposal or transport creates the risk of hazardous chemical spills, fire,
health hazards and environmental pollution. Appropriate management includes
risk assessment of the chemical substance assumed at the stages ofmanufacturing, transport, storage, use, and disposal, countermeasures to reducesuch risks, and, as necessary, identification of third parties/individuals with thenecessary professional qualifications for handling such chemical substances.
Product stewardship refers to responsible care activities that protect the healthand safety of people and the environment throughout the value chain bydisclosing risk information related to product safety, and by sharing andcollaborating with stakeholders.

4.7 Appropriate Use of Water
Conserve water resources used in your business activities and the productionof raw materials through appropriate management and efficient use of water
resources.

Items which must be implementedComply with laws and regulations regarding water use and drainage. In particular,
prevent illegal discharge of wastewater by obtaining permits, licenses,
registrations, and regulatory approval related to wastewater, and by maintaining
and managing those permits, etc., in a valid or up-to-date status.



Ascertain the water source and amount of water resources used by your company,
and work to reduce the amount of water used.

Items for which we request implementation
Confirm water stress at your company’s business sites and upstream in the
supply chain, assess and identify water-related risks in the case of high water
stress, and take countermeasures against risks.
33

Efficient use of water includes working to reuse wastewater and using various
technologies to collect rainwater, reduce water intake, conserve water, and recycle
water.
Water is a finite resource. You are expected to manage the amount of water usedand discharged in your business activities. You are also expected to confirm
whether your company’s business site is located in an area with high water stress,
what kind of water risks exist, and how to deal with those risks.
Water-related risks include increased water stress and water pollution in local
communities due to your company’s use of water, as well as the resulting
increased costs of using water resources, deterioration of relations with local
communities over access to water resources, and loss of operating permits.
Generally speaking, as an index to express the degree of tightness in the supply
and demand of water, water stress often uses “maximum usable water resources
per capita.” There are tools such as Aqueduct (created by the World Resources
Institute (WRI)) used to identify areas with high water stress.

4.8 Conservation of Biodiversity
Understand the impact of business activities on biodiversity and reduce thenegative impact of those activities. Also, work to create positive impact whenpossible.

Items for which we request implementationIn the value chain, understand how your company’s business activities impact
biodiversity and how those activities are dependent on the ecosystem services
generated by biodiversity.

Consider approaches that avoid/reduce negative impacts and create positive
impact when possible.

34

Biodiversity refers to the variety of differences in life forms on the Earth. It is aterm that expresses the abundance of nature that exists on the Earth.
The majority of our daily lives and socioeconomic activities depend on thevarious benefits that are produced by biodiversity (this is called “ecosystemservices”). Examples of ecosystem services include supply services that supply
food and raw materials, regulatory services that purify water and air and mitigate
damage from disasters, and cultural services such as beautiful landscapes andtourism.
There has been significant loss of biodiversity and ecosystem services over the
past 50 years. In the long term, it is possible that business activities themselves
will be affected. Therefore, it is important to understand how each business
depends on and impacts nature in the value chain.
In the production and processing business, it is necessary to take measures toreduce the adverse impact on biodiversity based on the impact on thesurrounding environment due to the amount of water intake/discharge, water
quality management, discharge of chemical substances/waste, etc. (related
guidelines: 4.4 to 4.8).
Furthermore, there are reports of negative impacts on biodiversity due todeforestation during the extraction and cultivation of raw materials (for example:
wood, palm oil, natural rubber, etc.). In order to identify potential risks of damage
to biodiversity or positive impacts on biodiversity conservation, companies are
expected to collect a wide range of information on top upstream supply chainsand producers, and to utilize expert knowledge to evaluate the impact of yourcompany.
※ Value chain: As defined in ISO26000, this term refers to a series of activitiesor the entirety of parties that provide or receive value in the form of products
or services. In addition to upstream suppliers, it also includes downstream
parties such as customers and consumers.

35

5. Safe and Quality
5.1 Construction of Quality Management System
Construct and continuously operate/improve company-wide management
mechanisms for securing and improving quality.

Items which must be implemented

Establish policies related to quality control and quality assurance.

Appoint a responsible person/person in charge of complying with policies.



Identify issues for improving the quality of products and services, and formulate
and implement necessary activity plans.

Items for which we request implementation
 Construct an appropriate management system and management system
according to the scale and industry of your company.
Especially in industries (manufacturing industry, etc.) where quality control isemphasized, the construction and operation of a quality management system(QMS) is expected as a means of complying with your company's own quality
standards and customer requirements. In operation, achieve continuous
improvement by the PDCA cycle, which is an acronym for Plan, Do, Check, andAct. Representative QMS include the set of ISO9000 standards and
ISO/TS16949.
Moriroku Technology has also created a Quality Assurance Guide for Business
Partners which lists requirements for quality assurance. We also request related
efforts in our basic transaction contracts.

5.2 Ensuring the Safety of Products and Services
Comply with laws and regulations related to the safety of products and services,and ensure the safety and health of users.

Items which must be implementedIn addition to complying with statutory quality standards related to product safety,
develop and supply products that meet the quality requirements of the Moriroku
Group.
36

When developing products and services, conduct design to ensure sufficient
safety. In product sales and after-sales service, comply with the Product Liability
Act.
In Japan, laws and regulations related to the safety of products and services
include the Act on the Regulation of Manufacture and Evaluation of Chemical
Substances, the Act on the Assessment of Releases of Specified Chemical
Substances in the Environment and the Promotion of Management Improvement,
the Product Liability Act, and the Safety Standards of the Road Transportation
Vehicles. Safety standards include detailed enforcement rules for laws andregulations, JIS, etc. Laws and regulations outside Japan include the RoHS
Directive, the EU REACH regulation, the US Federal Motor Vehicle Safety
Standards (FMVSS), the Toxic Substances Control Act (TSCA), the ECE
standards of the United Nations Economic Commission for Europe (UNECE),
and the Australian Design Rules (ADR). Safety standards include UL, BSI, andCSA.
To ensure product safety throughout the supply chain, it is important to establish
internal and external traceability (history of materials, parts, processes, etc.).

5.3 Providing Accurate Information on Products and Services
When providing information on products and services, in order to contribute to
the rational selection of final consumers and users, comply with relevant laws
and regulations, do not omit or misrepresent information that is important to
final consumers and users, and provide factual, unbiased, and comparable
information.

Items which must be implemented

If the information on products and services contains important information for final
consumers and users, establish and comply with internal rules and proceduresfor confirming that information does not cause any disadvantage to final
consumers and users when providing the information on products and services.

37

Factual, unbiased, and comparable information refers to complete, accurate,non-misleading, and comparable information on product and service
specifications, quality, and handling methods, materials contained in components
and parts used in products, social and environmental considerations, etc. In thedisplay and advertising of catalogs, etc., related to products and services,perform management to prevent the use of misleading categorical expressions,false or exaggerated explanations of products and services (misleading
representations, etc.), and content that slanders, discriminates, or infringes on
the rights of other corporations or individuals.

38

6. Business Continuity Plan (BCP)
6.1 Formulating and Preparing a Business Continuity Plan (BCP)
In preparation for emergencies such as disasters, establish measures forbusiness continuity and a business continuity plan (BCP).

Items which must be implemented

Identify core businesses that should be prioritized for continuation and restoration.



Identify and evaluate emergencies that impact the business continuity of corebusinesses.

Take measures to avoid or minimize damage to business activities in the event ofan emergency (storage of data and documents that should not be lost or
destroyed, preparation of lists for documents to be removed in an emergency,etc.).

Prepare alternative measures for business sites, production facilities, andprocurement of purchased goods.

Communicate with all workers about business continuity.

Items for which we request implementation

Set a target recovery time for core businesses in an emergency.

Hold advance consultation with customers regarding the level of products andservices that can be provided in an emergency.

Obtain opinions from experts about the measures and plans for the business planthat your company has considered.

39

If there is the possibility of an emergency situation impacting the business of yourcompany or your business partners, it is necessary to prepare to continue
business activities or resume production activities as soon as possible in order tofulfill your supply responsibility. For that purpose, identify and evaluate inadvance the risks that interfere with business continuity, carefully examine theimpact on business, and formulate a BCP that summarizes necessary preventive
measures over the medium- to long-term.
An emergency refers to a situation that may cause serious damage or impact oncore businesses due to large-scale natural disasters, disease epidemics,
terrorism, riots, accidents, or other man-made disasters.
Core businesses refer to the most important (or urgent) businesses from theperspective of a company’s survival and its responsibility to supply to society.
A business continuity plan (BCP) refers to predetermined plans orcountermeasures for activities that should be performed during normal times andfor methods, means, etc., to ensure business continuity in an emergency, withthe aim of continuing the operation of core businesses or restoring that operation
as soon as possible in the event of an emergency, while also minimizing damage
to business assets.

40

7. Contribution to Regional Society
7.1 Contribution to Regional Society
While broadly contributing to society through our business activities, we will
respect local traditions, cultures, customs, etc., and implement activities thatmeet the demands and expectations of local communities.

Items for which we request implementation


If it is possible to utilize your company’s resources to contribute to thebetter development of local communities, consider and implement related
activities (participation in activities promoted by local governments andlocal communities, contribution to solving local issues, etc.)In regions, etc., which lack the public investment necessary for thedevelopment of local communities, there are cases in which corporations
can utilize their own resources to invest in public infrastructure, etc. (calledsocial investment), thereby contributing to the development of local
communities. When making such social investments, promote them after
thorough consultation with stakeholders such as representatives of thelocal community.
Contributions to society through business activities include the stable supply ofsafe, high-quality products and services that lead to the creation of social value,
and the creation of employment through business activities.
All organizations are members of society. Therefore, building good relationships
with the local communities in which your company operates and contributing to
the development of local communities are vital to the sustainability of yourcompany. Doing so will improve the social reputation of your company, facilitate
the acquisition and retention of excellent human resources, and stabilize
employment at your business sites.
Concrete activities that utilize corporate management resources include
contributing to solving local issues by leveraging corporate strengths,
collaborating with communities in the event of a disaster, volunteering using
facilities and human resources, supporting activities by NPOs/NGOs, anddonation. Each corporation is expected to determine the scope of activities thatcan be executed and to actively engage in social contribution.

41

8. Management System for Promotion of These Guidelines
8.1 Construction of Management System for Promotion of These Guidelines
When making efforts to address the requests described in sections 1. to 7. of theseguidelines, construct and operate systems and mechanisms to identify issues andsteadily implement responses.

Items which must be implemented
Appoint a responsible person/person in charge who possesses the necessary
authority and knowledge to proceed with these efforts.

Construct a management system to steadily promote these efforts.

Items for which we request implementation
 Identify issues from the gap between the expectations/demands of society andstakeholders and the current situation of the company. Through repeated use of
a PDCA cycle to Plan, Do, Check, and Act for addressing these issues, constructand operate a management system which is a mechanism for management
aimed at continuous improvement (regardless of certified or non-certified
standards).
It is important that the management system is a system/mechanism that enables
continuous improvement according to the scale and industry category of yourcompany. Elements commonly included in management systems and mechanisms
are listed below.

Policies and commitments approved by managementResponsible person/person in charge of managing efforts in accordance with
policies and commitments
Internal processes for ascertaining and understanding requests andexpectations from laws/regulations and stakeholders such as customers
Internal processes for identifying issues by grasping your company's current
situation and conducting risk assessments in relation to requests andexpectations

Goals to drive continuous improvement
Internal education and training
Documentation and maintenance of records on efforts and procedures foractions(End)
Issued in April 2023
42