IDEC Corporate Governance Policy
General rule
1. Basic Views about Corporate Governance and the Objective of this Policy CG Code 2-1, 3-1(ⅰ), 31(ⅱ)
IDEC Group sees warranting management transparency and efficiency to stakeholders, including
shareholders, as the basis of corporate governance. Based on this belief, we actively appoint outside
directors, separate management supervision and execution, and always manage the group with a focus
on transparency and efficiency.
With

this

approach,wedesignate

IDEC

Corporate Governance Policy (hereafter “thisPolicy”) to improve corporate value in accordancewith “The IDEC Way,” the new philosophy set
forth in 2019 toward becoming a truly global
company,tofurtherenhance

corporate

governance.
2. Revision and termination
Any revision or termination of this Policy shall be determined based on the resolution of theBoard of Directors.
Section 1: Securing the Rights and Equal Treatment of Shareholders
1. Exercise of Shareholder Rights at General Shareholder Meetings(1) General Meeting of Shareholders CG Code 1-1, 1-2
The General Meeting of Shareholders will be positioned as the decision-making organizationof the highest order. It shall warrant shareholders sufficient duration of time and organize
environments to exercise their rights.
(2) Securing the Rights of Shareholders CG Code 1-1③, 1-2⑤
A structure will be organized to enable all shareholders to be treated equally in proportion
to their interest, and to take appropriate response to claims even from minor shareholders. It
shall also evaluate responses for parties such as institutional investors who own shares in thename of trust banks and other such organizations in case they wish to act on behalf of trustbanks and other such organizations at the General Meeting of Shareholders, such as
exercising voting rights.
(3) Initiatives concerning exercise of shareholder rights CG Code 1-2, 1-2①, 1-2②, 1-2③, 1-2④
The General Meeting of Shareholders shall be held on a day that does not overlap with too
many other companies’ shareholder meetings, to enable many shareholders to participate. The
invitation will be sent out to shareholders in an easy-to-understand manner, including byusing visual materials. The invitation will be sent out more than about three weeks before thedate of the General Meeting of Shareholders, and released on our webpage and stock exchange1webpages before being sent out to ensure sufficient time is set aside for exercise of shareholder
rights.
In addition to the above, exercise of shareholder rights shall be made easier throughintroduction of means to exercise shareholder rights electronically on the Internet, use of aplatform for exercise of shareholder rights, and through releasing the invitation in English.
(4) Analysis of noes CG Code 1-1①
If noes about a certain matter exceed a certain percentage at the General Meeting of
Shareholders, the Board of Directors shall analyze the cause, discuss measures to take, andevaluate appropriate disclosures, explanations, and dialogues with shareholders.
2. Direction for the Capital Policy CG Code 1-3, 1-6
IDEC shall promote efficient management with considerations to financial indicators suchas return on equity (ROE), to improve corporate value. It will also aim for continuous andsteady provision of dividends as part of maximizing shareholder interest, with considerations
to capital ratio.
Capital procurements that could result in the change or significant dilution of control shallbe carefully discussed and determined by the Board of Directors after thorough considerations
to the potential impact to shareholders. The matters agreed to shall be appropriately disclosed
and explained to shareholders.
3. Policy about Cross-Shareholdings CG Code 1-4, 1-4①, 1-4②
It is our policy to hold shares of other listed companies as cross-shareholdings based on the
resolution of the Board of Directors, when we believe that such shareholdings will enhance
the corporate value of the IDEC Group by utilizing each other’s technologies, sales channels,
and other comprehensive business promotion capabilities, improving the competitive
advantage of both companies in the market, and achieving synergy. In addition, whether the

purpose of the holding of these shares is appropriate shall be verified continuously at the Board of
Directors and if the appropriateness of the holding is not recognized, these shares will be reduced bysale of them and so forth, in consideration of influence on the Company and the market.
We will not continue or reduce inappropriate transactions or interfere with the sale of shares
due to shareholdings with companies which hold the Company’s shares as cross-shareholdings.
In addition, we will provide opportunities for dialogue with investors as necessary regarding
the verification details in the Board of Directors.
We exercise our voting rights by comprehensively judging whether the investee company
has established an appropriate governance system, is making decisions that will lead to theenhancement of the Group’s corporate value over the medium to long term, and is contributing
to the enhancement of our corporate value.
4. Anti-Takeover Measures CG Code 1-5, 1-5①
We will not take anti-takeover measures. In case of a takeover bid, the Board of Directors
will discuss the best approach to not compromise stakeholder interest including that ofshareholders and disclose the results immediately.
5. Related Party Transactions CG Code 1-72

We shall establish a monitoring system whereby we periodically confirm with our directors andwhether or not there have been any related party transactions including with the directors' families,
and when such transactions have occurred, the Board of Directors shall vote on them in accordancewith the Company’s Board of Directors Regulations, and the Audit and Supervisory Committee shallverify the details of such transactions.
Section 2: Appropriate Cooperation with Stakeholders Other Than Shareholders
1. Basic Views about relationships with stakeholders
The IDEC Group will respect the stance of all its stakeholders as it engages in its businessactivities. It will also maintain the integrity as a trusted company, aiming to live and thrive
together with stakeholders.
2. Code of conduct CG Code 2-2, 2-2①
We establish “IDEC Group Code of Conduct” stating the shared global code of conduct for
us to remain a company of good faith, ensuring that the basic stance and the spirit ofcompliance with law will be spread and entrenched among all IDEC board members andemployees, for our corporate activities.
Progress of initiatives for risk management and compliance will be periodically reported to
the Board of Directors, to be revised as necessary so that “IDEC Group Code of Conduct” willfurther be put to practice. Compliance training shall also be provided for each job and job level.
3. Response to sustainability CG code 3-1③
(1) Basic policy CG Code 2-3, 3-1③
Based on “The IDEC Way,” our new philosophy for becoming a truly global company, theIDEC Group has designated the IDEC Group Code of Conduct, the CSR Charter (see separate
sheet), and the Ten Principles of the UN Global Compact (see separate sheet) as important
guidelines, and shall work to achieve the “Sustainable Development Goals (SDGs)” by
resolving social issues through our business activities.
Led by the CSR Committee established in 2018, we shall promote sustainable CSR activities
by setting Environment (E), Social (S), Governance (G), and our strengths in Safety (Sa) andQuality (Q) as priority areas.
Based on our “Basic Policy on Sustainability (see separate sheet),” we shall promote various
efforts to resolve global issues through our business activities towards realization of asustainable society, e.g., pursuing “safety, health, and wellbeing” for all people inside andoutside the Company by endorsing and registering with Vision Zero, which is promoted by
ISSA (International Social Security Association), an affiliate of ILO, showing consideration toclimate change and other global environmental issues by endorsing TCFD (Task Force on
Climate-related Financial Disclosures), and envisioning future responses to risks andopportunities.

3(2) The Environment CG Code 2-3①
With acknowledgment that in the relationship between the global environment andcorporate management, thriving with the earth is a common wish of humankind, the IDECGroup designates the “Environmental Policy (see separate sheet)”, working with theawareness that the conservation of the environment is the most important issue in all aspectsof our corporate activities, aiming for sustainable growth.
(3) Society CG Code 2-3①
The IDEC Group will promote human rights and labor initiatives in accordance withinternational rules, and provide in the “IDEC Group Code of Conduct” and “IDEC Group CSR
Procurement Guidelines” that we will not allow discrimination, harassment, child labor, andforced labor, among others.
We will practice “Management with respect for humanity and designate “Human Resource
Policy” (see separate sheet)” to illustrate our basic approach to not just respect for humanrights but other aspects including skill development, personnel development, evaluations,
remuneration, and support for developing personnel of the next generation.
We will promote work-life balance toward career advancement of all employees and organize
a work environment in which employees in need of childcare and care for their family members
are able to work comfortably.
(4) Relationships with customers and business partners CG code 2-3①
We will work with customers and business partners earnestly and strive to provide
optimized products and solutions for market needs and social issues through fair andappropriate business transactions.
4. Diversity CG code 2-4, 2-4①, 4-11
The IDEC Group shall accept different individuality and character of each employee, andpromote diversity for its directors (including outside directors), executive officers, andemployees, toward an environment in which each person can exercise their talent to the full.
We will also designate a policy to illustrate our views for warranting diversity in employment
and promotion, our human resource development policy to warrant diversity, and a policy toorganize internal environments, disclosing their targets and progress.
5. Whistleblowing CG Code 2-5, 2-5①
We will install internal and external contact desks to accept consultations and reports on
violation of laws and internal rules, and other socially unacceptable behavior. Our rules fortreatment of Whistleblowing provide that the privacy of employees who make suchconsultations and reporting shall be protected, and that they will not be put to disadvantage.
The state of the contact desk operations will be reported to the Board of Directors as needed.
Whistleblowing shall be operated and managed by legal representatives and the Risk

4

Management Committee, warranting independence from the management through means
such as collaboration with external lawyers.
6. Roles as an asset owner CG code 2-6
With regard to the pension assets of the defined-benefit corporate pension plan, we shallreceive regular reports from investment institutions on the investment status and investment
policies, etc., and monitor them, taking into account the need to ensure the future payment ofbenefits to members, i.e., employees and beneficiaries, and the impact on the Company’s
financial position. In addition, we shall make efforts to assign and train personnel withappropriate qualities to ensure that such monitoring can be carried out properly.
We shall confirm that our investment institutions accept Japan’s Stewardship Code(Principles for Responsible Institutional Investors), and by entrusting the selection ofindividual financial instruments and the exercise of voting rights to these institutions, ensurethat there is no conflict of interest between the beneficiaries of the corporate pension plan and
the Company.
Section 3: Ensuring Appropriate Information Disclosure and Transparency
1. Full Disclosure GC code 3-1①, 3-1②, 3-1③
We shall disclose information appropriately and in a timely manner in accordance with theCompanies Act, the Financial Instruments and Exchange Act and stock exchange rules. On
non-legal matters, we will strive to fully disclose information on our ESG, other sustainability
initiatives and such, in accordance with the framework of the Task Force on Climate-related
Financial Disclosures (TCFD), actively disclosing financial and non-financial information to
our stakeholders including shareholders. We will also promote information disclosure in
English in documents on financial results, data books and IDEC Report, ensuring otherdisclosed details carry added value.
2. Accounting auditor(1) Roles GC code 3-2
Accounting auditor shall take on the important role of warranting the reliability of disclosed
information, having such responsibility to shareholders and investors.
(2) Independence and expertise GC code 3-2①ⅰⅱ
Accounting auditors must remain independent and must have expertise. The Audit andSupervisory Committee shall devise evaluation and nominating criteria to confirm accounting
auditors’ independence and expertise.
(3) Warranting appropriate audits GC code 3-2②ⅰⅱⅲⅳ
The Board of Directors and Audit and Supervisory Committee will secure hours needed toenable quality audits by accounting auditors and organize an opportunity for accounting
auditors to receive information from the management as needed. They will also organize astructure to enable accounting auditors to collaborate fully with directors who are members

5

of Audit and Supervisory Committee, Internal Auditing Department and independent outside
directors, as well as a structure to respond when accounting auditors identify unlawful
conduct.
(4) Dismissal or no re-appointment GC code 3-2①ⅰⅱ
If any accounting auditor is deemed unable to carry out appropriate audits due to mattersarising compromising the auditor’s eligibility and independence, the Audit and Supervisory
Committee shall submit an agenda to the General Meeting of Shareholders concerning thedismissal or no reappointment of the auditor. If any accounting auditor satisfies any of theitems in Article 340, Paragraph (1) of the Companies Act, the Audit and Supervisory
Committee shall dismiss the auditor upon approval by all directors who are members of the
Audit and Supervisory Committee.
Section 4: Responsibilities of the Board
1. Designing the organization
We will employ a Company with Audit and Supervisory Committee to advance separation ofsupervision and execution of our management, to ensure that the Board of Directors supervise
management effectively, delegating part of our important business decision making to the
executive directors for faster decision making. Various arbitrary committees will also beestablished to offer consultations to the Board of Directors to supplement the latter’s
independence and objectivity.
2. Board of Directors(1) Roles and Responsibilities of the Board GC code 4-1, 4-2, 4-3
The Board of Directors will monitor important management strategy and job execution
decisions, as well as directors’ job executions.
The Board of Directors will evaluate proposals from the management fully and from various
angles to warrant accountability, maintaining an independent and objective stance. In
executing the proposals, the Board of Directors shall support the management’s fast and bolddecision making.
(2) Scope of delegation GC code 1-1②, 4-1①
The Board of Directors shall designate Board of Directors Regulations, Management
Committee Regulations, and Administrative Authority Regulations to separate management
supervision and execution to always manage the company with a focus on transparency andefficiency, designating items to be resolved by the Board of Directors, by the Management
Committee, and by each job level.
If submitting some of the resolutions at the General Meeting of Shareholders to the Boardof Directors is deemed desirable to warrant the dynamism and expertise of management
decisions, the Board of Directors shall make such suggestions to the General Meeting of
Shareholders after confirming that a structure to fulfill corporate governance roles andresponsibilities fully has been organized.

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(3) Medium-term management plan GC code 4-1②, 5-2, 5-2①
In devising and disclosing a medium-term management plan, the Board of Directors will
establish concrete policies for business plans and so forth with considerations including to
product and business portfolios, disclosing such details, including on webpages and in
business reports. Factors such as the plan’s progress, results, and causes of it not being met,
will be fully analyzed internally and reported including in business reports and at the General
Meeting of Shareholders. The Board of Directors shall reflect the detail in the next year’s plan
onward.
(4) Succession plans GC code 4-1③
In the development of successors to executives, including representative directors, with theobjective to continually produce personnel who contribute to the sustainable and global
development of the IDEC Group, the Board of Directors will provide training to candidates insubjects of general management knowledge according to their job level, and provide them withthe opportunity to participate in important meetings, including the Management Committee
and the Executive Officers Committee. The Board of Directors will also establish Nominating
Committee responsible for developing candidates for executives and request reports on the
progress of their development.
(5) Determining remuneration system for directors GC code 3-1ⅲ, 4-2, 4-2①
The Board of Directors shall establish a remuneration system for directors (excluding
independent outside directors) so that the system will function as a healthy incentive for thecompany’s sustainable growth. Remuneration will be agreed to through resolution at theBoard of Directors, where the majority is independent outside directors, within the range
approved at the General Meeting of Shareholders.
Pursuant to the remuneration system above, remunerations for directors will consist of fixedsalary and performance-based pay. Outside directors and directors who are members of the
Audit and Supervisory Committee receive only fixed remuneration because they are
responsible for supervising the management of the Company from an independent perspective.
(6) Response to sustainability CG code 4-2②
Based on the state of the IDEC Group’s sustainability initiatives, the Board of Directors will
designate the Basic Policy on Sustainability to improve the Group’s corporate value over the
medium to long term, and effectively monitor that the group’s business activities willcontribute to the company’s sustainable growth in accordance with the policy.
(7) Nomination and dismissal of the management GC code 3-1ⅳ, 4-3①, 4-3②, 4-3③
Based on the fact that nomination and dismissal of the management, especially of executive
directors such as representative director, and of executive officers are important decisions forthe company, the Board of Directors will, following objective, timely, and transparent
procedures, and with advise from the Nominating Committee, make such decisions throughresolution at the Board of Directors, the majority of which are independent outside directors.
(8) Development of internal control system and monitoring of its operations GC code 4-3, 4-3④The Board of Directors shall organize an internal control system, including by developing

7

compliance and risk management systems, and collaborate with the Internal Auditing
Department to monitor that they are operated effectively.
3. Audit and Supervisory Committee GC code 4-4, 4-4①
(1) Roles
The Audit and Supervisory Committee will state its opinions in its capacity to actively andvoluntarily exercise its rights, such as auditing business execution by directors (excluding
directors who are members of Audit and Supervisory Committee) and by executive officers,
nomination and dismissal of accounting auditors, and exercising rights for audit remunerationand make appropriate decisions from an independent and objective standpoint. The committee
will also have directors and other officers report on items required for audits, as needed, andcollaborate with independent outside directors to share necessary information.
(2) Composition

The Audit and Supervisory Committee is composed of up to five directors who are members of Audit
and Supervisory Committee, the majority of whom must be outside directors, pursuant to our Articles
of incorporation.
(3) Collaboration with accounting auditors
The Audit and Supervisory Committee and accounting auditors must maintain respective
independence and mutual trust, based on securing a structure in which they can cooperate toperform appropriate audits. At the same time, they shall periodically hold briefings and othermeetings based on the annual plan and organize a cooperative structure as needed so thatthey can mutually report to each other on matters related to accounting audits.
(4) Cooperation with Internal Auditing Department
To support the Audit and Supervisory Committee to perform smooth audits, the committee
will cooperate with Internal Auditing Department and shall retain direct command andinstruction rights.
(5) Stating opinions
The Audit and Supervisory Committee shall determine which views will be presented as thecommittee’s opinions on the nomination, remunerations, and so forth of directors (excluding
members of the Audit and Supervisory Committee), including matters to be explained at theGeneral Meeting of Shareholders.
(6) Attending important meetings
Directors who are members of Audit and Supervisory Committee are allowed to attend
important meetings such as Management Committee and must strive to understand andmonitor management situations in a timely manner.
4. Fiduciary duty CG code 1-1②, 4-5
Directors and executive officers shall acknowledge their fiduciary duty to shareholders andact to improve sustainable corporate value.

85. Independent Outside Directors(1) Roles and responsibilities GC code 4-6, 4-7ⅰⅱⅲⅳ, 4-8①, 4-8②
Independent outside director will give advice about management policy and improvement
based on their knowledge, and monitor management including monitoring trade with aconflict of interest, from a standpoint of improving corporate value in the medium and longterm for the company’s sustainable growth. They shall also strive to reflect to the Board of
Directors the views of stakeholders including minor shareholders.
Independent outside directors will periodically hold meetings to sophisticate knowledge andexchange opinions about various themes such as business activities, social affairs, market
trends and laws and regulations and share information and perceptions, so that they can
actively contribute to discussions at the Board of Directors meetings. Through theadministrative office of the Board of Directors, independent outside directors will correspondwith executive directors and executive officers, and cooperate with the Audit and Supervisory
Committee.
(2) Criteria for independence GC code 4-9
We shall designate “Our view on the independence of outside directors” and nominate
independent outside directors in accordance with the criteria.
6. Composition of the Board of Directors and the criteria for selecting the members(1) Composition of the Board of Directors GC code 4-8, 4-8③
The Board of Directors consists of up to seven directors (excluding members of the Audit
and Supervisory Committee) and up to five directors who are members of the Audit andSupervisory Committee, pursuant to our corporate rules. To keep management supervisionand execution separate, the number of independent outside directors on the Board of Directors
must be over one-third, and should aim to be over half, of the total number of the board
members.
(2) Nomination criteria GC Code 3-1ⅳ, 4-11, 4-11①*Directors (excluding members of the Audit and Supervisory Committee)
For directors overseeing business execution, candidates to contribute to the IDEC Group’s
sustainable growth will be selected based on their experience and past performance.
Independent outside director candidates must satisfy all criteria as provided in “Independenceof outside directors” (see separate sheet) and will be selected from persons with expert
knowledge, and with extensive experience and proficient insight about management andbusiness execution, to enhance the “separation of execution and supervision”.
*Directors who are members of the Audit and Supervisory Committee
Candidates will be persons who will be able to perform audits from a neutral and objective
perspective. For outside directors who are also members of the Audit and Supervisory
Committee, candidates must be persons with expert knowledge including about finance,9accounting, and law.
*Executive officers
To achieve the “separation of execution and supervision” as presented by the IDEC Group,
candidates with an ability to execute business competently will be nominated based on theirexperience and past performance.
(3) Disclosure of reasons of nominations GC Code 3-1ⅴ, 3-1①, 3-1②, 4-11①
The reasons for the election of individual directors of the Company shall be stated in the
convocation notice of the General Meeting of Shareholders. Notice of invitation to the General
Meeting of Shareholders will be released on our webpage. We will pay attention to disclose
the information not as a formality or in a way that lacks materiality, but as value-added
information, including by using a skill matrix for directors, disclosing the information in
English to the extent reasonable.
7. Committees GC Code 4-10, 4-10①(1) Nominating Committee
We will establish a Nominating Committee, the majority of which shall be independent
outside directors, as an institution for the Board of Directors to seek advice from, and toenhance the objectivity and independence in the development and recruitment process of
IDEC Group’s management candidates such as directors and executive officers, and toenhance corporate governance.
(2) Remuneration Committee
At present the majority of the Board of Directors consists of independent outside directors,
but we will promote the establishment of a Remuneration Committee in order to further
strengthen the objectivity and independence regarding the remuneration system for directors.
8. Concurrent positions GC Code 4-11②
In case a director in charge of business execution concurrently serves as an officer of anothercompany, the Board of Directors Regulations stipulate that the matter requires approval by
the Board of Directors from the perspective of conflict of interest. Concurrent positions andjobs of all directors will be checked every year not just to check for conflict of interest but tounderstand matters such as the time and effort they can invest to serve their roles. If any ofthe directors serves on the board of other listed companies, such information will be disclosed
in business reports.

9. Effectiveness evaluation GC Code 4-11, 4-11③
The Board of Directors will periodically evaluate the efficacy of the Board of Directors to
objectively inspect whether the Board has fully served its roles, and disclose the summary of
the findings and improvement measures.

1010. Active Board Deliberations
GC Code 4-2, 4-12, 4-12①ⅰⅱⅲⅳⅴ, 4-13, 4-13①, 4-13②, 4-13③
The Board of Directors shall strive to nurture a culture to respect free, open and constructive
discussions and exchange of opinions. As a means to vitalize deliberation, the Board of
Directors shall provide materials in advance (including materials not on the Board of
Directors), devise the board’s annual schedule, and secure sufficient time for deliberation. To
have discussions from an independent and objective standpoint at the Board of Directors,
independent outside directors will request the company to provide information and seek
advice from external specialists as needed, and will exchange information, share
understandings, and cooperate with the board. The company will also ensure cooperation
between directors and the Internal Auditing Department and organize an opportunity for theInternal Auditing Department to directly report to the Board of Directors as needed.
11. Training GC Code 4-14, 4-14①, 4-14②
When newly appointed executive officers take office, we will provide explanations of legal
obligations, responsibilities, etc., as necessary, and provide opportunities for outside directors
to deepen their understanding of the IDEC Group’s business. In addition, we will continue togather and provide various types of information necessary for directors to fulfill their roles
and functions, including information on the business environment and systems, promoteparticipation in and holding training sessions using outside experts, etc., as necessary, anddisclose the policy and state of such training as necessary.

Section 5: Dialogue with Shareholders
1. Policy for dialogue with shareholders and investors GC Code 5-1, 5-1①, 5-1②ⅰⅱⅲⅳⅴ, 5-1③
As for dialogue with shareholders and investors, including at company briefings, theexecutive officer who is an IR representative will be responsible and strive to understand thecompany’s shareholder structure. The executive officer will also organically collaborate not
only with executive directors such as representative director, executive officers and relevant
divisions, but with outside directors as needed to work on the dialogue. The views andconcerns identified through the dialogue will be reported to the Management Committee andthe Board of Directors as needed. To prevent insider trading, efforts will be made to prevent
leaks of insider information from the dialogue, pursuant to internal rules.

[Update history]
Established on February 3, 2016
Updated on June 1 5, 2018
Updated on November 2, 2021

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【別紙】

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●HRM Policy
The IDEC Group practices "management with respect for humanity," which at its foundation "values
people" and "nurtures people." We have established the HRM Policy, which indicates our basic concept
concerning not only respect for human rights but also ability development, human resources
development, personnel evaluation and treatment, support for fostering the next generation and so on.
Moreover, in the Codes of Conduct, we stipulate our concept concerning respect for human rights andoutline the Group's policies on this issue.
●Environmental Policy【Philosophy】
Recognizing the goal of a harmonious existence with the earth that we all share, the IDEC Groupmakes environmental safety and quality a top priority in all aspects of our business while pursuingsustainable business growth.
【Policy】
1. We shall further strengthen the concept of "SAVE ALL," and shall develop our organization andmanagement structure for promoting and practicing activities to conserve the global environment
throughout our business activities.
2. We shall monitor the impact of our business activities on the environment and set environmental
objectives within an economically and technologically possible range, hold reviews, and implement
continuous improvements for the conservation of the global environment, including the prevention ofpollution.
3. We shall obey all applicable laws, ordinances, agreements related to environmental aspects, andshall establish voluntary standards to achieve even further environmental conservation.
4. Our planning and development departments shall engage in conserving the global environment by
developing new environmentally-friendly products and improving our existing products.
Our production department shall strive to develop and improve environmentally-friendly
manufacturing technology, shall reduce and monitor production waste, and shall engage inconservation of the global environment.
Our sales and logistics departments shall engage in conservation of the global environment throughreducing the environmental burden involved with all aspects of distribution.
5. We shall strive to save resources and energy, promote recycling, reduce wastes in all of our businessactivities, and engage in conservation of the global environment.
6. We shall construct an environmental management system and implement internal audits, strive tomaintain and continually improve the system.

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7. We shall hold environmental education and training, inform all employees of the "Environment
Principle" and raise their awareness.
8. We will actively participate in and contribute to social activities related to the environment
conservation.
●The Ten Principles of the UN Global Compact【Human Rights】
１．Businesses should support and respect the protection of internationally proclaimed human rights;
and２．make sure that they are not complicit in human rights abuses.
【Labour】
３．Businesses should uphold the freedom of association and the effective recognition of the right tocollective bargaining;
４．the elimination of all forms of forced and compulsory labour;
５．the effective abolition of child labour; and６．the elimination of discrimination in respect of employment and occupation.
【Environment】
７．Businesses should support a precautionary approach to environmental challenges;
８．undertake initiatives to promote greater environmental responsibility; and９．encourage the development and diffusion of environmentally friendly technologies.
【Anti-Corruption】
１０．Businesses should work against corruption in all its forms, including extortion and bribery.
●IDEC Group CSR Charter【To Employees】
IDEC Group is committed to creating safe, friendly and motivatingworkplaces for employees whilebuilding Group companies where they feel proud to work.
【To Customers】
IDEC Group assures that customers receive safe and reliable products of high quality and highperformance backed by its development, production and sales capabilities. IDEC Group continues toincrease public trust by providing excellent services and appropriate information disclosures.

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【To Shareholders and Investors】
IDEC Group fulfills its global obligations by enforcing corporate accountability and having its records
available regularly to shareholders through extensive investor relations (IR) activities. The Group also
strives to maintain profits that meet shareholder expectation and to increase the value of the Group.
【To Business Associates】
IDEC Group is committed to building strong partnerships for mutual success, growth and trust withits business associates by establishing fair and rational trade standards.
【To Global and Local Communities】
IDEC Group aims to contribute to global and local communities by forging partnerships with deep
understanding and respect for the culture and history of each local communities. We also aim todevelop a green society and a green economy through environmental activities.
●Basic Sustainability Policy
We are engaged in business activities based on the “Vision: Pioneer the new norm for a safer andsustainable world” and “Mission: Create the optimum environment for humans and machines” asstated in our company philosophy “The IDEC Way”.
Our Principles of “The IDEC Way” and the IDEC Group Code of Conduct clearly state the actions to
be taken to realize our Vision and Mission. We will actually take the actions in order to help realize asustainable society and increase our corporate value.

●The policy regarding the independence of an Outside Director
The Company has positively elected Outside Directors for their high levels of professional knowledge,
extensive experience, and views on management and the execution of business. Furthermore, if an
outside officer falls under all of the following items, we consider that he or she is independent:(1) He or she is not an executive officer of our company (including group companies. The same shallapply hereinafter.).
(2) He or she is not an executive officer of a company that has material transactions with our company.
(3) He or she is not an executive officer of a major customer of our company.
(4) He or she is not a consultant or an accounting expert or a legal expert employed by the company
who receives a material sum of money or other assets, with the exception of executive compensation (ifit is a group or a party such as a corporation or a partnership, he or she is not a member of such agroup or a party).
(5) He or she does not receive material donations or subsidies from our company.
(6) He or she is not a major holder of our company’s shares or an (a major holder) executive officer ofthe company.
(7) He or she has not fallen under any of the above (1) – (6) for the five years prior to being nominatedas a Director.

15

(8)

He or she is not a spouse or a relative within the second degree of kinship of any person who

falls under any of the above (1) – (6).

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