November 1, 2022
Management No.：IE4-GP-2201E-V01

Sustainable Procurement Guidelinesver. 1.0
1. Objective
The Ryoyo Group (Ryoyo Electro Corporation and its subsidiaries) has established the Ryoyo Group
Code of Conduct to ensure that everyone working at the Group does their part to address social
issues such as sustainable economic growth and global environmental issues, in accordance with our“VALUE and PRIDE” Action Policy.
At the same time, to allow our suppliers and outsource contractors (“trading partners”) upstream of oursupply chain to also understand and support our efforts toward sustainability issues, we haveformulated this set of Sustainable Procurement Guidelines to present our specific requirements ofthem.
The Ryoyo Group hopes to deal with trading partners that establish systems for sustainability
initiatives and appropriately manage and operate these systems, including meeting the requirementsof relevant laws and regulations as well as our customers. For trading partners that have yet toestablish such systems or are inadequate in their management or operation, we request them tosupport the purpose and details of these Guidelines and promote initiatives at their respectivecompanies.

2. Supporting Reference Document
Taking into consideration consistency in the supply chain, these Guidelines were formulated with theResponsible Business Alliance (RBA) Code of Conduct—which is in alignment with the United Nations
Guiding Principles on Business and Human Rights and based on major international human rights
standards, including the ILO Declaration on Fundamental Principles and Rights at Work and theUniversal Declaration of Human Rights—as the supporting reference document, and added with otherrecent requirements from society.
* Responsible Business Alliance Code of Conduct

The RBA Code of Conduct establishes standards to ensure that working conditions in theelectronics industry, or industries in which electronics are a key component, and its supply
chains are safe, that workers are treated with respect and dignity, and that business operations
are environmentally responsible and conducted ethically.
13. Scope of Application
These Guidelines shall apply to all trading partners who provide products or services to the Ryoyo
Group.
We also request trading partners who have already formulated and are practicing their own code ofconduct based on the RBA Code of Conduct to check the details of these Guidelines, maintain their
management and operation, and make continuous improvements as necessary.

4. Requirements
Companies are requested to formulate the following requirements A to I and appropriately manageand operate them.

A. The Human Rights of Workers(1) Prohibition of Forced Labor
Do not use forced labor, bonded labor, or exploitative prison labor, nor labor obtained by slavery
or human trafficking. Do not force people to work in any way, and protect workers’ right to leaveand terminate their jobs.
Explain the main terms and conditions of employment in writing and verbally to persons whowish to be employed for work, and conclude labor contracts governing that employment. Do notstore original identity documents such as workers’ passports or driver’s licenses. In addition, do
not restrict or limit the activities of workers outside of work hours.

(2) Prohibition of Child Labor, Consideration for Young Workers
Do not use the labor of children under the minimum working age. In addition, do not allow
young workers under the age of 18 to engage in work that may be detrimental to their health orsafety, such as night or overtime work. Interns are to be paid more than the legally requiredwage.

(3) Work Hours
Do not require workers to exceed local legal and regulatory limits on work hours and properly
manage work hours and holidays for workers, taking into account global standards.

(4) Wages and Benefits
Comply with all applicable laws and regulations on wages for workers (including minimum
wages, overtime payments and allowances and deductions required by law).
In addition, to ensure payment of wages sufficient to cover living necessities (a living wage), do
not use deductions from wages as a disciplinary measure. When paying wages, appropriate
withholding shall be performed, a salary certificate shall be issued, and the salary deductions
such as taxes and insurance shall be checked.

(5) Prohibition of Inhumane Treatment
Respect the human rights of workers and prohibit mental and physical abuse, forced labor,harassment, and other forms of inhumane treatment, as well as any conduct that could
potentially be considered such.

(6) Prohibition of Discrimination2

Prohibit discrimination related to recruitment, dismissal, employment practices, pregnancy tests,
health exams, etc., on the basis of race, color, age, gender, sexual orientation, gender identityand expression, ethnicity or nationality, disability, pregnancy, childbirth, childcare, religion,
political party, membership or union, military membership or lack thereof, protected genetic
information, or marriage history. In addition, give due consideration to the wishes of workers inrelation to religious practices.

(7) Freedom of Association / Collective Bargaining Rights
Respect the right of workers to associate collectively as a means of implementing
labor-management consultations, on matters such as the labor environment and wage
standards, in accordance with local laws and regulations, and, based on this respect, ensure
equal treatment to all workers.

B. Friendly, Safe and Hygienic Work Environment(1) Diversity & Inclusion, Work-Life Balance
Promote diversity & inclusion and work-life balance as two key drivers for fostering a corporate
culture in which diverse human resources can make the most of their capabilities.
Maintain a personnel system that enables workers to make the most their abilities, supports
career development and skill development, and respects the individuality of workers, anddevelop systems for offering flexible workstyles that enable workers to balance work withchild-rearing, nursing care, and treatment.

(2) Occupational Safety
Identify and assess risks regarding occupational safety and maintain safety by practicing
proper design, engineering, and administrative controls. In particular, offer reasonableconsiderations to women during the period of maternity and to mothers during the nursingperiod.

(3) Emergency Preparedness
Prepare for disasters, accidents, pandemics, and other emergencies that may impair physicaland personal safety by identifying the potential for such situations to occur. Accordingly,
prepare action procedures to follow in emergencies that will minimize harm to workers anddamage to property, set up the needed facilities, and conduct regular education/training andinspections of facilities to ensure that proper actions can be taken in the event of a disaster, etc.

(4) Occupational Injury and Illness
Take appropriate precautions and corrective actions, including identifying, assessing, recording,and reporting the status of occupational injuries and illnesses, and provide emergency supplieswith clear first aid protocols.

(5) Industrial Hygiene
Identify and assess the risks that workers may be exposed to hazardous biological, chemical,and physical impacts in their workplaces, and appropriately manage these risks by obtaining
the required licenses and approvals.

(6) Physically Demanding Work3

Identify and evaluate physically demanding tasks and appropriately manage them so that thiskind of work does not cause occupational injuries or worker illnesses.

(7) Machine Safeguarding
Evaluate whether there are any safety risks related to the machinery and equipment used byworkers in their operations, obtain the necessary licenses and approvals, and implement
appropriate safety measures.

(8) Health and Safety of Facilities
Ensure that the health and safety of facilities for living (dormitories, cafeterias, toilets, etc.)
provided to workers are adequate. In addition, ensure that these facilities have the capacity tostore personal property and valuable items, as well as an amply sized personal space that canbe entered and exited properly.

(9) Health and Safety Communication
Provide appropriate health and safety education and training, using languages and methods
that workers can understand, about the various occupational hazards that workers may face. Inaddition, maintain a system for receiving feedback and safety-related opinions from workers.

C. Environmental(1) Environmental Permits and ReportingIn accordance with the laws and regulations of the locations where the company has businesssites, obtain the necessary licenses and approvals for its business and register with and reportto the environmental authorities.

(2) Pollution Prevention and Resource Reduction
Minimize or remove pollutant emissions as needed. In addition, work to reduce the use ofnatural resources, such as water, fossil fuels, minerals, and virgin forest products, as needed.

(3) Hazardous Chemical Management
Comply with laws and regulations and identify, label, and manage chemicals and othersubstances that pose hazards to the human body or the environment. Manage them to ensurethat safe handling, movement, storage, use, recycling or reuse, and disposal are implemented.

(4) Effective Utilization of Resources and Waste Management
Promote reduce, reuse, and recycling by complying with laws and regulations and conducting
appropriate control, and strive to effectively utilize resources and minimize the generation ofwaste that requires disposal.

(5) Air Emissions and Noise Management
Comply with relevant laws and regulations and implement appropriate measures to reduce therelease of hazardous materials into the atmosphere and reduce noise.

(6) Management of the Chemical Substances Contained in Products
Comply with all applicable laws, regulations and customer requirements relating to theprohibition or limitation of use of certain substances in products and secondary supplies.
* Please refer to the Green Procurement Guidelines (for Products and Secondary Supplies)
separately formulated by Ryoyo Electro Corporation.
4(7) Water Management
Monitor the use and emission of water in compliance with laws and regulations and work tosave water. Similarly, identify the properties of waste water and monitor, control, and processwaste water prior to its discharge or disposal, as appropriate. In addition, identify the sources ofcontamination that may cause water contamination and manage them properly.

(8) Understanding and Reduction of Energy Consumption and Greenhouse Gas Emissions
Strive to improve energy efficiency, continuously reduce energy consumption and greenhousegas emissions, and contribute to the realization of a carbon-free society. Report greenhousegas emissions to the Ryoyo Group and customers as necessary.

(9) Preservation of Biodiversity
Recognize the need to address global environmental issues such as climate change, ozone
layer destruction, acid rain, deforestation, and desertification. Regarding the possible impact ofthese issues on ecosystem services, cooperate and work together with various
stakeholders—such as local communities, trading partners, and employees—to preserve
biodiversity.

D. Fair Trade and Ethics(1) Prevention of Corruption
Do not allow any form of bribery, corruption, extortion, or embezzlement.

(2) Prohibition of Inappropriate Provision of Improper Benefits
Bribes and other means of obtaining undue or improper advantage by promising, offering,permitting, providing or receiving improper benefits, whether directly or indirectly, are prohibited,and regularly monitor to ensure these do not occur.

(3) Disclosure of Information
In accordance with applicable laws and industry practices, actively disclose information onlabor, health and safety, environmental practices, business activities, organizational structure,
financial situation, and performance, and engage in dialogue with stakeholders such as
shareholders and trading partners. Falsification of records and disclosure of false information isprohibited.

(4) Respect for Intellectual Property
Respect intellectual property rights and ensure that transfers of technology and expertise are
performed in a manner that guarantees the protection of intellectual property. In addition,
protect the intellectual property of third parties such as customers and the company’s tradingpartners.

(5) Fair Business Practices, Appropriate Export Controls, Advertising and Competition
Conduct fair business practices and carry out appropriate export controls, advertising, andcompetition.

(6) Protection of Whistleblowers
Protect the confidentiality of information pertaining to reports of compliance violations or othersuch issues, as well as the anonymity of the whistleblower, and ensure there is no retaliation
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against persons making such reports.

(7) Responsible Sourcing of Minerals
Conduct due diligence to ensure that tantalum, tin, tungsten, gold, and other minerals
contained in the commodities it handles are not procured in a manner related to or responsible
for serious human rights violations, environmental destruction, corruption, or conflicts in conflictareas and high-risk areas.

(8) Prevention of Insider Trading
It is prohibited to trade securities—such as shares of the company or other companies—basedon insider information obtained in the course of work duties, prior to the public disclosure ofsuch information. In addition, it is prohibited to disclose such information to any third party
other than those deemed necessary for business purposes.

(9) Policy on Organized Criminal Groups and Other Anti-Social Forces
Take a firm stance against organized criminal groups and other antisocial forces thatthreaten the order and safety of civil society and hinder economic activities.
E. Quality and Safety(1) Product Safety
Fulfill the company’s responsibilities as a supplier by designing, manufacturing, and selling
products that meet the safety standards stipulated by the laws and regulations of each country,
that provide adequate product safety, and that contribute to sustainable economic growth and theresolution of global environmental issues.

(2) Quality Management
With respect to the quality of products, comply with all applicable laws and regulations as well asthe company’s own quality standards and requirements of the Ryoyo Group and customers.
Record and store the company’s quality standards and agreed requirements in documents suchas contracts and specifications stating requirements.

(3) Provision of Accurate Information about Products
Provide accurate information about the company’s products, and never provide misleading
information.

F. Information Security(1) Defense from Cyber-Attacks
Take defensive measures against threats from cyber-attacks, etc. to manage this risk so that suchattacks do not cause damage to the company or others.

(2) Protection of Personal Information
Manage and protect all personal information, including that of the company’s trading partners, theRyoyo Group, customers, consumers, shareholders, and employees, in compliance withapplicable laws and regulations and by practicing appropriate acquisition, transfer, use, storage,and disposal of such information.

(3) Prevention of Confidential Information Leaks
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Properly manage and protect not only the company’s confidential information but also thatreceived from third parties such as the company’s trading partners, the Ryoyo Group, andcustomers.
G. Business Continuity Planning
Identify and evaluate risks to business continuity, carry out business continuity planning (BCP)
that examines the potential impact of these risks on the company’s business, and summarize thepreliminary measures required over the medium-to-long term and the status of initiatives.

H. Supplier Management
Communicates requirements based on these Guidelines to the company’s trading partners, strive
to assess risks and communicate them, and manage the supply chain.

I. Management System
Maintain a management system with respect to the content of these Guidelines and facilitatecontinual improvement by ensuring that the provisions of the Guidelines are compliant withbusiness- and product-related laws and regulations as well as the requirements of the Ryoyo
Group and customers, and by identifying and mitigating operational risks related to theGuidelines.
The abovementioned management system includes the following items.
・Leadership, Commitment, Policy ・Organizational Roles, Responsibilities and Authority
・Legal and Customer Requirements ・Risk and Opportunity Initiatives
・Goals and Planning ・Skills
・Communication ・Audits and Assessments
・Corrective Action Process ・Documentation and Records

5. Contact Information for Inquiries
CSR Dept., Ryoyo Electro CorporationTEL : 03-3546-0802
FAX : 03-3545-5007
E-mail : ryoyo_csr@ryoyo.co.jp

6. Establishment and Revision History
Date

Ver.

Revised Contents

November 1, 2022

V01

Initial establishment

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