Commitment to Promoting Human Rights
To Fulfill Corporate Responsibility for Respecting Human Rights
Everyone has the right to assure their own safety, enjoy freedom, and lead a happy human life. However, it is unforgivable to sacrifice other people’s
happiness for the sake of one’s own happiness. We believe that this philosophy of respect for human rights is essential in our commitment tosolving social issues through our business activities. Therefore, we formulated the Sakai Chemical Group Basic Human Rights Policy on October1, 2022.
This basic policy has undergone an external review by Baker & McKenzie (Gaikokuho Joint Enterprise), our corporate attorney.

The Sakai Chemical Group Basic Human Rights Policy
The Sakai Chemical Group has been engaged in businesses that have contributed to people’s safe and healthy lifestyles since its
foundation. Sakai Chemical Industry Co., Ltd., the core company, expresses the aspiration of the Sakai Chemical Group towards people
through its management philosophy “Creating a Friendly Future through Chemicals.” To realize this philosophy, we believe it is importantto respect the human rights of relevant stakeholders in all countries and regions in which we conduct our activities.
This Human Rights Policy promises that the Sakai Chemical Group will fulfill its responsibility to respect human rights based on its
management philosophy and international norms.

1. Basic principle
The Sakai Chemical Group will comply with laws and regulations governing the human rights norms applicable in countries and regions
where we conduct our businesses, and support and respect the norms of the international human rights. These include the United
Nations’ International Bill of Human Rights, which contains the “Universal Declaration of Human Rights,” the “International Covenant on
Civil and Political Rights” and “International Covenant on Economic, Social and Cultural Rights,” as well as “ILO Declaration on
Fundamental Principles and Rights at Work,” etc., which provides for the freedom of association and the right to negotiate, the prohibitionof forced labor, the effective abolition of child labor and the elimination of discrimination in employment and occupation. Furthermore, wewill be engaged with respect in human rights based on the “United Nations’ Guiding Principles on Business and Human Rights” and theNational Action Program on Business and Human Rights (NAP).

2. Scope
This Human Rights Policy will apply to all officers and employees of the Sakai Chemical Group (including all full-time, fixed term, temporary,dispatched, part-time, and other employees). We also encourage all business partners of the Sakai Chemical Group to understand andcomply with this Human Rights Policy.

3. Human rights due diligence
The Sakai Chemical Group will establish human rights due diligence system to identify negative impact against human rights, make efforts
to prevent the occurrence of such impact or reduce the risk of its occurrence.

4. Establishment of a remedy system
The Sakai Chemical Group will establish system to allow relevant stakeholders to report any human rights concerns. If any negative impact
against human rights is identified or is likely to be identified, we will make efforts with relevant stakeholders to reduce negative impact.

Human Rights Promotion
SystemOn October 1, 2022, Sakai Chemical Industry
established a Human Rights Subcommittee as anorganization that implements initiatives to addresshuman rights issues. Positioned under theSustainability Committee, which is responsible forachieving ESG management, the Human Rights
Subcommittee also works with the Company’ssustainability promotion system.
The Human Rights Subcommittee scopes
human rights issues that Sakai Chemical Groupshould address by priority in the future (scoping)with the aim of promoting Group-wide initiatives
to solve human rights issues.

Chart of the human rights promotion system
Board of Directors
President
Sustainability Committee
Management Council

Human Rights
Subcommittee

Compliance and Risk
Management Committee
Quality Management Committee
Environmental Management Committee

Departments engaged in operational execution and Group companies

Human Rights Education
Executive training
In December 2022, we provided executive training for the directors andexecutive officers of all Sakai Chemical Group companies in Japan and abroadwith the aim of ensuring that corporate responsibility for respecting humanrights would be reflected in management plans in a more effective manner.
We invited Ms. Emi Omura, an attorney-at-law (Japan and NY) and ahuman rights expert who serves as a Steering Committee Officer of theBusiness and Human Rights Lawyers Network Japan, to give a lecture on thetheme “Responsibility for Respecting Human Rights as a Compliance Issue.”

Scene from an executive training session

Employee training
From November 2022 to February 2023, we provided employee training for all
employees of all Sakai Chemical Group companies in Japan and abroad sothat every employee engaged in business activities would be able to carry out
the Group’s Basic Human Rights Policy in their own work.
Focusing on providing training tailored to the Sakai Chemical Group’sbusinesses, we built a system whereby all employees could attend the training
by adopting such measures as making archived training videos available
online for later use.
Scene from an employee training session at an overseas subsidiary

5. Dialogue
The Sakai Chemical Group will recognize the importance of dialogue with relevant stakeholders to identify negative impact against humanrights, and make efforts to engage in timely dialogue to understand, reduce and resolve human rights issues.

Establishment of a Remedy System

6. Employee training

Joining JaCER, an organization that redresses
grievances about human rights infringement

The Sakai Chemical Group will provide the necessary training to ensure that this Human Rights Policy permeates throughout the Groupand that all officers and employees have proper understanding of human rights and can effectively reflect the understanding in theirbusiness activities.

7. Information disclosure
The Sakai Chemical Group will disclose information about its human rights efforts through its website and various reports, as appropriate.
This Human Rights Policy was approved by the Board of Directors of Sakai Chemical Industry Co., Ltd. on September 26, 2022.

10 2023 Environmental & Social Report

In November 2022, we gained a full membership in the Japan Center for
Engagement and Remedy on Business and Human Rights (JaCER) with theaim of establishing a remedy system as envisioned in the Sakai ChemicalGroup Basic Human Rights Policy.
JaCER is an organization that aims to build a non-judicial platform for
redressing grievances and to act in a professional capacity to support andpromote redress of grievances by member companies based on the United
Nations Guiding Principles on Business and Human Rights. We will devote
serious efforts to establishing an effective remedy system by adopting suchmeasures as utilizing a contact for grievance filing provided by JaCER.
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