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Major Initiatives at Each Business OfficeCompany
Sysmex Corporation
Sysmex Asia PacificSysmex Malaysia
Sysmex Canada
Sysmex Brazil

Initiative
・Reduce waste by introducing food waste processors in its in-house canteen
・Replace aluminum foil used for weighing drums with reusable materials
・Recycle or donate to charities cardboard boxes and plastic materials
・Improve recyclable products

・Use chemical waste in clinker kilns instead of having sanitary landfills saturated(this contributes to the reuse of energy and improvement of recycling rate)▶ Status of Sustainability Targets▶ Environmental Consideration in Product Transportation

Managing Harmful Substances
Managing Chemical Substances
Sysmex uses chemical substances in its R&D and manufacturing processes. In addition to preventing losses orleaks, we strive to manage chemical substances appropriately to prevent damage to the health of our employees
working onsite.

Managing and Processing Harmful Substances
As a precaution against the danger of infection by biological substances, we strictly control the locations in whichsuch substances are stored and used. These substances are carefully segregated from general waste for proper

Governancedisposal. For other harmful substances, we work to prevent aerial drift, dispersion, and groundwater permeation throughcountermeasures that address both facilities and management methods. In these ways, we endeavor to keep emissions
below standard statutory levels.

Managing and Processing Atmospheric Emissions
In response to the Fluorocarbons Emission Control Law, a revised version of which went into effect in 2015, eachGroup company in Japan established a response manual, identifying and appropriately using fluorocarbon-containing
equipment owned or managed by it, conducting inspections, and monitoring calculated leakages.

※ In this report, “Sysmex” refers to the Sysmex Group as a whole. “Sysmex Corporation” refers to the Company on a stand-alone basis.

Compliance
Compliance Management

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Compliance Promotion Initiatives

83

Risk Management

86

Risk Management Structure86

Response to Risks Related to Business Continuity

87

Enhancing Information Security

88

Respect for Human Rights

89

Respect for Human Rights

79

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Employees seeking consultation or making a report can remain anonymous through any of these routes. Information
received through these routes is handled confidentially, and employees seeking consultation or making reports are▎ Compliance Management
Compliance

protected from any negative consequences caused by doing so.
Information about these systems is disseminated to all the Group employees through the intranet and training topromote the early detection of compliance violations. In addition, the Compliance Committee monitors the operational
status of the internal reporting system. In fiscal 2022, the number of internal reports received from Japan and overseas

Group Policy

was 21. We conducted investigations regarding these reports and dealt with each of them appropriately.

Pursuing Open and Aboveboard Business Activities
Based on our Group’s corporate philosophy, the Sysmex Way, and our Shared Values, we define compliance as “the※ Excluding the Japanese region

conduct of open and aboveboard business activities based on the observance of laws and regulations and high ethicalstandards”. In accordance with this definition, we have established a Global Compliance Code, in which conformancerules and behavioral guidelines for all Group executives and employees are detailed. This code, written in Japanese, wastranslated into many languages so all Group executives and employees would be able to understand and adhere to it.

▶ Full text of the Global Compliance CodeCompliance Promotion Structure
At Sysmex, compliance violations are considered the most serious risk that could damage our social trust. Under the Groupwide risk management structure, we have established a Compliance Committee as an umbrella organization to promote andenhance compliance.
The chairperson of the Compliance Committee promotes compliance throughout the Group as the Chief Compliance
Officer. Each Group company has appointed its own compliance officer. The Compliance Committee monitors the Group-wide
compliance promotion activities and their progress. The compliance promotion structure is checked by a third party from theperspective of internal control.
If there is a major compliance violation that has a significant impact on the Group or a Group company, or an event that
could cause a similar impact, it will be immediately reported by the compliance officer of the relevant company to the Chief
Compliance Officer. After receiving the report, the Chief Compliance Officer will report on the event to the Internal Control
Committee, chaired by the President, and members of the Managing Board and Audit & Supervisory Committee. We will also
disclose information regarding events for which disclosure is required in accordance with information disclosure regulations.
There were nine ethics incidents in FY2022, but none of them were deemed significant.
▶ Corporate Governance Structure

Compliance Education
Providing Education on Compliance
Sysmex views employee education and awareness activities as the foundation of promoting and ensuring
compliance, and regularly offers training. During new employee and rank-based training, we take the opportunity tofoster an understanding of the Global Compliance Code.
In fiscal 2022, we conducted multilingual global compliance training for all Group employees in accordance wit h
the compliance education policy shared within the Group. This ensures that employees thoroughly understand and▶ Corporate Governance Reportconsider the importance of compliance, the Global Compliance Code, appropriate reactions when becoming awareof compliance violations, and other necessary matters.

Internal reporting system
Sysmex has established a global system whereby all the employees of the Group can consult or report on complianceissues, including bribery and human rights abuses. Specifically, it has in place internal reporting desks operated byrespective regional headquarters to provide consultation to, and receive reports from, Group employees in each region.

▶ Education regarding Fair Marketing Activities▶ Education and Training on Understanding Respect for Human Rights▶ Diversity Education

We have also established a Group Compliance Hotline (GCH), where all Group employees can directly consult with orreport to the Sysmex Corporation. In fiscal 2022, Sysmex integrated platforms of regional internal reporting desks andthe GCH platform, which had been separately operated, to further strengthen governance.

In the Japanese region, we separately operate an internal reporting system called the “Campanula Line”, which isshared by domestic Group companies and complies with Japan’s Whistleblower Protection Act. The Campanula Line
offers three routes to seek consultation or make a report: in-house, external, and directly to Audit and Supervisory

Committee members. Going through the route of such members, employees can seek consultation about or makereports on compliance issues involving management.

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Research Ethics

Compliance Promotion Initiatives

Implementation of Appropriate Research and Development Activities
In the “Appropriate Research and Development Activities” Chapter of the Global Compliance Code, Sysmex stipulates

that it must be engaged in appropriate research and development activities while protecting the dignity and humanAnti-Corruption

rights of test subjects and complying with relevant laws, regulations, and ethical guidelines in the relevant countries andIn accordance with the spirit of the UN Global Compact, Sysmex undertakes thorough efforts to prevent bribery, inline with Principle 10, which states: “Businesses should work against corruption in all its forms, including extortion andbribery.”For risk assessments conducted periodically by the Internal Control Committee, compliance violations, including actsof corruption, are recognized as risks, and we are working to reduce them. Additionally, the “Corruption and Bribery”
Chapter of the Global Compliance Code clearly prohibits acts of corruption, and the global anti-bribery regulations

applicable to all Group companies cover topics such as banned activities, due diligence, the provision of education, andmanagement systems. In these ways, we promote initiatives for Group-wide compliance.
▶ Global Compliance Code▶ Anti-Bribery Regulations (Summary)regions. In accordance with these stipulations, Sysmex conducts R&D activities with high ethical standards. Sysmex has
established the “Group Ethics Regulations on Clinical Research and Development” and a Research Ethics Examination

Committee, which includes outside members, including legal and scientific experts, to review research content. The listof committee members and deliberation results are disclosed on our website to ensure transparency.
▶ Global Compliance Code▶ Group Ethics Regulations on Clinical Research and Development▶ Activities of the Research Ethics Examination Committee

Considerations for Animal Experiments
In accordance with the “Appropriate Research and Development Activities” Chapter of the Global Compliance Code,

Sysmex complies with applicable laws and regulations concerning animal welfare in each country and region, minimizes

Transparency in Relationships with Medical Institutions

the use of animal experiments by using of alternative methods when available, and takes care to alleviate pain when

Sysmex has increased opportunities for collaboration with medical institutions and professionals at every stage of its

conducting animal experiments. We conduct animal experiments in line with internal regulations that conform to public

operations through research and development, production, sales, and services and support. Transactions with them must

guidelines. Our Testing Control Committee rigorously considers testing plans to ensure regulatory conformance.

Institutions” Chapter of the Global Compliance Code stipulates that appropriate relationships with medical professionals

Standards Relating to the Care and Management of Laboratory Animals and Relief of Pain (Ministry of the Environment),

be conducted with high ethical standards. The “Transparency in Relationships with Medical Professionals and Medicaland medical institutions must be established and maintained and transparency in these relationships must be ensured.
In Japan, Sysmex Corporation, a member of the Japan Association of Clinical Reagents Industries, concurs with thephilosophy outlined in the association’s “Guidelines on Transparency of Relationships between Corporate Activities andMedical Institutions” and discloses information regarding funding to medical institutions.

Countries other than Japan have implemented laws that require companies to ensure transparency in their relations

with medical institutions (“Sunshine Acts”) and regulations for the medical device industry. In compliance with these laws

Laws and guidelines observed by Sysmex: Act on Welfare and Management of Animals (Ministry of the Environment),
Basic Policies for the Conduct of Animal Experiments in Institutions Regulated by the Ministry of Health, Labour andWelfare (Ministry of Health, Labour and Welfare), and Guidelines for Proper Conduct of Animal Experiments (ScienceCouncil of Japan)▶ Global Compliance Code▶ Biodiversity Consideration in the Production of Raw Materials

and regulations, the Sysmex Group reports to government authorities on funding to medical institutions and industry
organizations in relevant countries and regions, as follows:

Fair Marketing Activities
In order to regulate our global promotional activities, we have included an ethics code for marketing in the “Anti-▶ Japan▶ U.S.

monopoly and Anti-competitive Behavior” Chapter of the Global Compliance Code. We have also established Global▶ Belgiumcompliance training.

▶ Portugal

based online training sessions for employees of sales divisions, which included a study of specific cases of misconduct.

▶ FranceRegulations for Compliance with Competition Laws. Additionally, we provide guidance on competition laws in our global▶ Netherlands

We have formulated the Sysmex Promotion Code for activities in Japan, and in fiscal 2022, we held promotion codeWe also implemented training for managers and e-learning for general employees.

▶ Europe▶ UAE▶ Japan Association of Clinical Reagents Industries “ Guidelines on Transparency of Relationships between Corporate

Activities and Medical Institutions” (Japanese)▶ Global Compliance Code▶ Sysmex Promotion CodeTax Strategy
Sysmex has established a “Tax Strategy” in the Global Compliance Code with the aim of increasing tax-relatedtransparency. In the text setting forth the strategy, Sysmex stipulates that it will comply with the OECD Transfer Pricing

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Guideline and all tax laws in the countries and regions in which it conducts business. It will not transfer created value tolower tax jurisdictions only to gain a tax advantage.
In addition, we disclose Group payments of taxes in our securities reports and other documents, as well as the reasonsfor any discrepancies from relevant statutory tax rates.
▶ Global Compliance Code▶ Sysmex Report (Operating Results and Financial Analysis)▶ Securities Report

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Governance▎ Risk Management Structure
Risk Management

Risk Management Structure

Promoting Risk Management by Establishing a Dedicated Committee
Sysmex established the Internal Control Committee to supervise risk management of the Group as a whole, andpromotes all risk management activities, including those regarding strategic risks. The Committee is chaired by theTax Strategy in the United Kingdom

President and its members include relevant executive officers and Audit and Supervisory Committee members (excluding▶ UK Tax Strategy（97KB）

outside members of the Managing Board, who act as observers).
By regularly assessing risks involved in such areas as fair trade, compliance (including corruption and business ethics),
human resources, occupational health and safety, the environment, and accounting and finance (including tax payments),

Respect for Intellectual Property

the Committee identifies risks significantly affecting the Group’s operations and takes necessary countermeasures. InIn the “Intellectual Property” Chapter of the Global Compliance Code, Sysmex stipulates that all the officers andaddition, it monitors the status of risk management by relevant committees, including the Compliance Committee, asproperty, and handle such intellectual property appropriately. We ensure that all the officers and employees are wellsignificant impact on the Group’s business arises, the Internal Control Committee also reports to the Managing Board toemployees of the Group must respect the intellectual property of third parties as much as the Group’s intellectual

well as individual divisions and subsidiaries, and periodically reports to the Managing Board. When a major risk that has ainformed of this rule and strictly comply with it. When developing new products, Intellectual Property, R&D, and Businessdiscuss how to respond, following the PDCA cycle.

Development Department members conduct and discuss global patent reviews for each new project.
▶ Global Compliance Code▶ Intellectual Property (Japanese)

Promotion of Security Trade Control
In the “Security Trade” Chapter of the Global Compliance Code, Sysmex stipulates that it will comply with the export

laws and regulations of individual countries and regions and will not be engaged in transactions likely to impede themaintenance of international peace and safety. Sysmex has established the Security Trade Control Committee, whichis under the direct control of the president, to prevent illegal exports. It has also assigned people at overseas regional
headquarters to oversee security trade control, bolstering our global operational structure. In addition, it provides annual
basic e-learning for all employees, as well as lectures on the latest world affairs and laws and regulations, as well as avariety of other types of training, to raise awareness of security trade control.
▶ Global Compliance Code▶ Corporate Governance▶ Sysmex Report (Risk Management)

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