Nippon Seiki
Supplier Sustainability Guidelines

March 2024 (1st Edition)
Nippon Seiki Co., Ltd.

Nippon Seiki

Supplier Sustainability Guidelines (1st Edition)

Contents
Introduction ..................................................................................................................................... 2
Nippon Seiki Group Sustainability Policy .......................................................................................... 3
Nippon Seiki Supplier Sustainability Guidelines ................................................................................. 3
1.

Safety and Quality .................................................................................................................... 3

2.

Human Rights and Labour......................................................................................................... 3

3.

Environment ............................................................................................................................ 4

4.

Responsible mineral procurement .............................................................................................. 55.

Compliance .............................................................................................................................. 5

6.

Information Disclosure.............................................................................................................. 6Revision History .............................................................................................................................. 61Nippon Seiki

Supplier Sustainability Guidelines (1st Edition)

Introduction
Our company is promoting its business activities under the new management philosophy of "We contribute to thesustainable prosperity of society and our business, by adhering to and challenging the lean principles.". In orderto achieve this goal, we believe that the understanding and cooperation of our business partners (Listed below asPartner) is necessary, and we have issued these guidelines in order to build relationships with transparency andfairness.
We expect that our company and its partners will continue to contribute to the creation of a sustainable and effective
business environment. We appreciate your understanding and cooperation.
Our Expectation
1. Sharing Common Values
We ask our partners to share our common values with our company. These include respect for the environment,compliance with social responsibility, and the enforcement of ethical business practices.
2. Compliance with Guidelines
These Guidelines specify the basic principles that both our company and its partners must adhere to. We ask
that you understand these principles and share them with the supply chain from the second level onward toensure compliance.
3. Building Sustainable Cooperation
Our company aims to build long-term, sustainable cooperation. We ask our partners to play a role in growing
together, overcoming challenges and sharing success.
4. Promotion of Communication
Open and effective communication is key to sustainable business partnerships. We promote communicationfrom time to time to ensure smooth cooperation between our company and our partners. If you have anyquestions or concerns, please do not hesitate to let us know.
5. Continuous Improvement
Our company constantly strives to improve its business processes and initiatives. We ask our partners tocontribute to the development of the entire industry by proactively proposing improvements and sharing
innovations.
6. Prohibition of Gifting, Entertaining and Providing Benefits, etc.
We prohibit receiving gifts, entertaining and providing benefits from our partners in all domestic and foreigntransactions. In order to maintain fairness, we ask for your understanding.

Nippon Seiki Co., Ltd.
Chief of the Sourcing Headquarters
Operating Officer
Shinobu Sekiguchi

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Supplier Sustainability Guidelines (1st Edition)

Nippon Seiki Group Sustainability Policy
By conducting corporate activities that balance social and economic values based on our corporate philosophy andmanagement philosophy, we resolve social issues, emphasize dialogue with all stakeholders, and pursue therealization of a sustainable society.

Nippon Seiki Supplier Sustainability Guidelines
1.

Safety and Quality
1.1 Providing Products and Services that Meet Customer Needs
We understand customer needs from their perspective and provide high-value products and services.
1.2 Providing Appropriate Information on Products and Services
We provide accurate and appropriate information on products and services. We ensure that the information iseasy to understand and transparent.
1.3 Securing Products and Services
We ensure the safety of our products and services and minimize risks to users and society.
1.4 Ensuring Quality of Products and Services
We ensure the quality of our products and services, build a quality management system that works tocontinuously improve quality, and improve the reliability of our products and services.

2.

Human Rights and Labour
2.1 Prohibition of Forced Labor and Child Labor
We do not permit any labor that is forced by threat of punishment, such as labor of children under theminimum age for employment, human trafficking, or violence, as stipulated by the laws and regulations ofeach country.
2.2 Prohibition of Discrimination and Harassment
We do not tolerate discrimination on the basis of character, gender, age, physical characteristics, birth,nationality, educational background, creed, religion, race, ethnicity, intellectual or physical disability, medicalhistory, hobbies, social status, or anything else that forms the characteristics of an individual, nor do we treat
any individual unfavorably in hiring or providing working conditions. We do not tolerate any form ofharassment, whether mental or physical, including power harassment, sexual harassment, maternity

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Nippon Seiki

Supplier Sustainability Guidelines (1st Edition)(paternity) harassment, and nursing care harassment.
2.3 Respect and Acceptance of Diversity
We promote diversity and inclusion initiatives so that each and every one of our employees can express hisor her individuality and maximize his or her abilities.
2.4 Prohibition of Underpayment and Nonpayment of Wages
We pay wages to all employees in accordance with the procedures stipulated in labor contracts and regulations.
2.5 Prohibition of Excessive Labor
We prohibit all employees from working in excess of the maximum working hours stipulated by the laws andagreements of each country, and promote the appropriate use of rest breaks and vacations, so that each andevery employee can achieve a work-life balance and become an organization that realizes a work style in linewith the times.
2.6 Compliance with Occupational Health and Safety
Based on our safety philosophy of "Respect for People," we aim to eliminate occupational accidents bycontinuously and proactively improving and promoting initiatives to address occupational health and safety
risks and opportunities that may arise through our global and diverse business activities, including productand component development, design, material procurement, manufacturing, sales, and quality assurance.
2.7 Rights of Migrant and Foreign Workers
We do not treat migrant and foreign workers unfavorably in terms of wages and working hours because of
their nationality or place of origin.
2.8 Rights of Indigenous and Local Residents
We shall not infringe on the human rights of indigenous and local residents in any way in the course of ourbusiness activities. In addition, we do not engage in any acts of dispossession of land or resources, pollutionof forests or water resources, forced displacement, or infringement on the livelihood or culture in the courseof our business activities.
2.9 Freedom of Association
We do not interfere with employees' decision to join or associate with labor unions, nor do we treat employees
unfavorably because of their membership in labor unions.
2.10 Right to Privacy
We do not acquire, store, disclose, or provide to third parties personal information such as family, residence,beliefs, and private life without the consent of our employees. We do not engage in any defamation or invasionof privacy that may occur with the spread of the Internet.
2.11 Freedom of Expression
We respect the opinions of all employees and all of our stakeholders. We do not tolerate any interference withthe holding of such opinions.
3.

Environment
3.1 Environmental Management
In order to promote our environmental activities, we establish and maintain an environmental management
system, comply with local laws and regulations, and minimize the environmental impact of our businessactivities.
3.2 Reducing Greenhouse Gas Emissions
We manage greenhouse gas emissions that cause global warming and promote efforts to reduce thoseemissions. We also promote the effective use of energy and the use of renewable energy.
3.3 Prevention of Environmental Pollution such as Air, Water and Soil
We comply with the laws and regulations of each country concerning environmental pollution such as air,water and soil, and continuously monitor and monitor the same.

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Supplier Sustainability Guidelines (1st Edition)

3.4 Resource Conservation and Waste Reduction
We comply with the laws and regulations of each country regarding the disposal of waste, promote theefficient use of resources, recycling and recycling, and work to reduce the amount of final waste disposal.
3.5 Management of Chemical Substances
We comply with the laws and regulations of each country regarding chemical substances, minimize the useof hazardous substances, examine substitutable materials, and safely manage chemical substances in order tominimize their impact on the environment.
3.6 Conservation of Biodiversity
We understand the importance of biodiversity in our overall business activities, including the procurement ofraw materials, and strive to protect ecosystems and biodiversity.
For more information on environmental sustainability, please refer to the "Nippon Seiki Green Procurement
Guidelines (https://www.nippon-seiki.co.jp/sustaina_en/#contents03)" on our company website.
4.

Responsible Mineral Procurement
4.1 Non-use of Conflict Minerals that cause Human Rights Violations
We aim to avoid the use of conflict minerals that cause human rights violations, and we assess the situation
and respond appropriately.
For details on the conflict minerals survey, please refer to the "Nippon Seiki Green Procurement Guidelines(https://www.nippon-seiki.co.jp/sustaina_en/#contents03)" on our company website.

5.

Compliance
5.1 Compliance with Laws
We comply with domestic and international laws and regulations, operate in accordance with regulations andlaws, and develop policies, systems, action guidelines, reporting systems, education and other mechanisms.
5.2 Compliance with Competition Law
We comply with each country's competition laws, such as the Antimonopoly Law and the Unfair Competition
Law, and conduct fair and transparent transactions.
5.3 Prohibition of Bribery and Illegal Profit-Sharing
We do not engage in any bribery or illegal profit-sharing in violation of laws and regulations in any domestic
or foreign transactions.
5.4 Prohibition of Conflict of Interest
We do not conduct transactions that benefit ourselves or our business partners or third parties at the expenseof the company's interests.
5.5 Management and Protection of Confidential Information
We strive to appropriately manage and protect the personal and confidential information of our business
partners, customers, employees and third parties, prevent leaks and unauthorized access, and ensure
information security.
5.6 Protection of Callers
We ensure that the whistleblower is not retaliated against for reporting misconduct or violations of law,strictly observe the privacy of the whistleblower, and handle the content of the report carefully and fairly.
5.7 Export and Import Transaction Control
In international business transactions, we comply with the export regulations and trade restrictions of eachcountry and conduct appropriate export and import transactions and controls with those countries.
5.8 Protecting Intellectual Property
We protect the intellectual property rights that we own or belong to ourselves, respect the intellectual property
5Nippon Seiki

Supplier Sustainability Guidelines (1st Edition)rights of others, and strive not to infringe others' copyrights, patents, trademarks, etc.
6.

Information Disclosure
6.1 Information Disclosure to Stakeholders
We emphasize transparency and accountability in providing information on our business conditions, businessactivities, and impact on society. We disclose information appropriately to stakeholders and build andmaintain trusting relationships.

Revision History
March 2024

issue of the first edition

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Nippon Seiki

Supplier Sustainability Guidelines (1st Edition)

Nippon Seiki Co., Ltd.
Sourcing Headquarters
First Published in March 2024