Daiwabo Group CSR Procurement Guidelines[Introduction]
The Daiwabo Group* has adopted the management philosophy of “creating a future that benefitssociety and the global environment.” The philosophy of putting the customer first is at the core of ourmanagement, and as a responsible member of the global supply chain, we recognize that efforts areneeded to resolve human rights and environmental issues not just in the Daiwabo Group but acrossthe supply chain. As such, we will endeavor to identify issues in relevant parts of the supply chain
through our business activities, and ensure a stable supply of sustainable products and raw materials.
Furthermore, in order to promote sustainable and responsible procurement activities, it is necessary
to obtain the understanding and cooperation of suppliers.
From this point of view, we have compiled and enacted these CSR Procurement Guidelines as items
that we would like everyone to work on together.
We kindly ask our suppliers to support the goals of these Guidelines and to implement measures tocomply with the standards of conduct contained in these Guidelines.
In order to recognize status of supplier efforts regarding each item, we will carry out checks using theCSR Procurement Self-Assessment Questionnaire. We thank you in advance for your cooperation.
* The “Daiwabo Group” refers collectively to Daiwabo Holdings Co., Ltd., and our consolidated
subsidiaries.

[CSR Procurement Standards]
1.

Corporate Governance

1-1 Respect for international norms
Comply with the laws and regulations of relevant countries and ensure fair trade and anticorruption measures in consideration of international rules and practices.
1-2 Establishment of a CSR promotion system
Establish a system for ESG (Environment, Social, Governance) risk management and executionof its PDCA cycle.

1-3

Establishment of internal controls
Analyze risks related to business activities (laws and regulations, environmental, quality, etc.) andestablish a company-wide management system.

1-4 Establishment of a Business Continuity Plan (BCP)
Establish a system for critical operations and business continuity/early recovery in the event of adisaster (natural disaster, major fire, terrorist attack, etc.).
1-5 Establishment of an internal reporting system
Establish a dedicated contact point that employees can report to and consult with directly when
they become aware of violations of laws and regulations or wrongful acts, etc. When that occurs,
secrecy should be strictly observed so that no disadvantageous treatment is received.
1-6 Dissemination of information both internally and externally
Respond to the need for transparency and accountability in corporate activities and appropriately
disseminate CSR-related information to society and stakeholders.

2.

Human Rights

2-1 Basic stance on human rights
Support and respect the protection of internationally declared human rights and do not participatein (or encourage) human rights violations.
2-2 Respect for human rights and prohibition of discrimination
Respect individual diversity and all fundamental human rights. In accordance with the laws andregulations of each country, do not participate in any human rights violations or discriminate basedon gender, age, nationality, race, physical characteristics, beliefs, religion, values, etc.
2-3 Avoid complicity and encouragement of human rights violations
Give due consideration to the purchase and use of raw materials suspected to be involved withhuman rights violations so that decisions, business activities, products, and services do notcontribute to (or promote) human rights violations by consumers, community members, or supply

chain members.
2-4 Respect for indigenous lives and communities
When operating in areas inhabited by indigenous peoples and minorities, respect their uniquecultures and histories, giving due consideration to the rights of indigenous peoples.

3.

Labor

3-1 Basic stance on labor
Recognize the labor principles expressed in international norms, etc., and apply them to thefundamental principles of the workplace as universal values.
3-2 Prohibition of discrimination in employment
When hiring, it shall be prohibited to discriminate on grounds other than reasonable factors, such as withregard to gender, age, nationality, race, physical characteristics, beliefs, religion, values, family, etc.

3-3 Provision of equal opportunities to employees regarding human resource development
Provide opportunities such as promotion and training equally without impairing fairness due tobirth, nationality, race, ethnicity, creed, religion, sex, sexual orientation, gender identity, age,various disabilities, hobbies, educational background, family, health status, etc.
3-4 Prohibition of inhumane treatment
Respect the human rights of employees and refrain from inhumane acts such as abuse, corporalpunishment, and harassment.
3-5 Payment of fair wages
Comply with the legal minimum wages of each country and region, enter into appropriate
collective labor agreements on overtime work, etc., and ensure fair compensation, payment
methods, etc.
3-6 Fair application of working hours
Comply with local laws and regulations regarding overtime work, strive to maintain a healthywork environment that is conducive to working, and appropriately manage the working hours ofemployees.
3-7 Prohibition of forced labor
Do not allow forced labor or any form of modern slavery, including bonded labor and humantrafficking.
3-8 Prohibition of child labor
Do not allow child labor and observe the legal minimum working age. Furthermore, do not allow
persons under 18 years of age to engage in dangerous or hazardous work.
3-9 Respect the religious traditions and customs of the countries and regions in which you operate
Respect the traditions and customs of each country and region, as well as the religious traditions
and customs of employees, and give due consideration to ensure that uniform work regulations do
not interfere with said traditions and customs.
3-10 Recognition and respect for freedom of association and the right to collective bargaining
Hold dialogues and consultations with employees or their representatives in good faith.
Furthermore, recognize the right of employees to freely associate or not associate in accordancewith the laws and regulations of each country and region.

3-11 Appropriate management of employee health and safety
Assess the risk of accidents that may occur during work, harmful chemical substances, noise, foulodors, etc., and take appropriate safety measures. Furthermore, take measures to ensure the mental
health of employees.
4.
Environment
4-1 Basic stance on the environment
Develop a system for solving environmental issues internationally. Also, identify and control factorsthat affect the environment.
4-2 Management of chemical substances
Promote products that do not contain chemical substances which are prohibited by local laws andregulations.
4-3 Management and reduction of waste water, sludge, and exhaust emissions
In addition to complying with the laws and regulations of each country and region concerning theprevention of pollution of water, soil, air, etc., set voluntary environmental impact reduction targets,and continuously undertake efforts to monitor and reduce pollutants.
4-4 Sustainable and efficient use of resources (energy, water, raw materials, etc.)
Set voluntary targets for implementing resource and energy conservation, and strive for effective
utilization of sustainable resources and energy.
4-5 Reduction of GHG (greenhouse gases) emissions
As a response to global warming, set and disclose voluntary reduction targets for GHGs such ascarbon dioxide and work to reduce them.
4-6 Identification, management, and reduction of waste
Comply with the laws and regulations of each country and region concerning the proper disposal
and recycling of waste, and set voluntary reduction targets to reduce waste.
4-7 Initiatives regarding biodiversity
Study the direct and indirect impacts of business activities on ecosystems, and work toward
conservation and sustainable use regarding biodiversity.

5.

Fair Corporate Activities

5-1 Basic stance on fair corporate activities
Conduct fair business activities, such as preventing corruption, responsible political engagement,
fair competition, and eliminating relations with anti-social forces and organizations.
5-2 Maintaining an appropriate relationship with politics and governments
Comply with the laws and regulations of each country and region concerning political contributions,
donations, etc., and maintain a sound and transparent relationship with politics and governments.
5-3 Maintaining appropriate relationships with customers, business partners, etc.
Avoid inappropriate exchange of profits with customers, business partners, etc., with regard tosales and procurement activities.
5-4 Prevention of competition law violations
Comply with competition laws for each country and region, and do not engage in unfair tradepractices such as private monopolization, unfair trade restrictions, or abuse of superior status.
5-5 Elimination of relations with anti-social forces/organizations
Eliminate ties with organized crime groups, corporate racketeers, etc.
5-6 Protection of intellectual property
In addition to complying with the laws and regulations of each country and region concerning
intellectual property, make appropriate use of the intellectual property rights owned by orbelonging to the company, endeavor to preserve such rights, and do not engage in unauthorizedacquisition, unauthorized use, or infringement of the rights of third parties.
5-7 Complaints and consultations from outside parties
If there is a direct report or consultation by a business partner or customer who has learned
important risk information in relation to a transaction with the company, confidentiality will bestrictly maintained and the business partner or customer will not be subjected to any adverse
treatment.
5-8 Prohibition of insider trading
Do not buy or sell shares, etc., of the company using internal information obtained in the course ofconducting business, including with regard to the company itself, affiliated companies, or business
partners.
5-9 Prohibition of conflicts of interest
In situations where the interests of an employee conflict with those of the company, it is prohibitedto harm the interests the company for personal gain.

6.

Quality and Safety

6-1 Basic stance on quality and safety
Ensure the quality and safety of products and services provided through business activities, andrespond appropriately to customers and consumers when an accident occurs.
6-2 Ensuring quality and safety
Ensure quality and safety when providing products and services to the market.
6-3 Appropriate measures in the event of an accident or distribution of a defective product
Establish systems for disclosing information, contacting the competent authorities, recovering
products, implementing safety measures for suppliers, etc., in the event an accident or thedistribution of a defect regarding a product or service.

7.

Information Security

7-1 Basic stance on information security
Properly manage and protect information obtained through business activities and take protective
measures against threats on computer networks.
7-2 Protecting against threats to computer networks
Defend against threats on your computer network and manage them so they don’t harm you orothers.
7-3 Manage and protect personal and sensitive information
Comply with the laws and regulations for each country and region concerning personal andconfidential information, obtaining such information in a legitimate manner and managing it
appropriately. In addition, do not disclose or leak said information outside the company without
permission, nor use it for any reason other than its intended purpose.

8.

Supply Chain

8-1 Basic stance on the supply chain
In order to practice CSR procurement not only within the company itself but also throughout thesupply chain, endeavor to establish CSR procurement guidelines and disseminate them bothinternally and externally.
8-2 Purchase and use of raw materials not involved in conflict or crime (efforts against
conflict minerals)
Prevent the purchase and use of minerals such as tin, tantalum, tungsten, gold, and cobalt related toconflicts and human rights violations or produced in conflict-afflicted and high-risk areas,investigating and confirming with business partners.

9.

Coexistence with Local Communities

9-1 Efforts to reduce negative impacts on local communities
Make efforts to eliminate damage to local communities and residents due to in-house products andproduction processes.
9-2 Initiatives with local communities toward sustainable development
Contribute to the development of a sustainable society through social contribution activities suchas cooperation with local communities.
- Reference Materials • These CSR procurement standards are based on the CSR procurement Self-Assessment Questionnaire
compiled by GCNJ* based on international guidelines such as the UNGC 10 Principles and ISO 26000.
*Global Compact Network Japan

Supplementary Provisions• These guidelines were established on June 22, 2023.
• While these Guidelines apply to our Group as a whole, each Group company may have its own
guidelines and policies in accordance with the specific circumstances of the industry and field inwhich it operates, and to the extent that they do not violate the basic concept of these Guidelines.