CSR Procurement Guidelines

Revised: December 2022

Created:  July 2019

These CSR Procurement Guidelines have been prepared and are implemented based on Tokuyama’s Basic Purchasing Policy. Their purpose is to ensure that the Tokuyama Group fulfills its social responsibilities by practicing sustainable procurement throughout the supply chain with the cooperation of suppliers and all trading partners.

1. Corporate governance

• We ensure thorough compliance and meet the expectations of society by upholding social norms and ethics.
• We practice timely and appropriate information disclosure in order to ensure sustainable business activities.
• We continually improve our risk management system to avoid and reduce losses.
• We prepare for unexpected circumstances during normal times, by improving our capacity to maintain stable business operations based on a business continuity plan (BCP).
• We pursue CSR activities that contribute to the development of international and local communities.

2. Respecting human rights, including labor rights

• We respect basic human rights and do not tolerate any kind of inhumane treatment.
• We do not discriminate based on personal characteristics in recruiting and employment, and we strive to ensure fairness and provide equal treatment and opportunities for everyone.
• We prohibit all forms of forced or child labor.
• We pay fair wages.
• We protect freedom of association and labor rights.

3．Ensuring occupational health and safety

• We manage working hours and time off appropriately, and prevent overwork.
• We verify that workers' health and safety at workplaces is ensured.
• Having formulated emergency measures, we work to ensure everyone is thoroughly aware of them.

4. Environmental initiatives

• We establish and maintain environmental management systems.
• We implement appropriate measures to manage chemical substances designated by laws and regulations.
• We strive to reduce greenhouse gas emissions.
• We work to minimize our environmental impact.
• We properly dispose of the waste we generate and practice the 3Rs (reduce, reuse, and recycle).
• We take steps to protect biodiversity.

5．Promoting fair trade

• We do not provide/accept inappropriate benefits.
• We do not abuse our advantageous position or act to place business partners at a disadvantage.
• We provide suppliers with accurate information on products, services and transaction methods.
• We do not infringe on the intellectual property rights of others, including technologies relating to procured products.
• We practice proper trade management based on laws and regulations.
• We practice responsible mineral procurement.
• We prohibit any interactions with crime-related individuals or groups.

6．Quality and safety improvement

• We maintain an operational quality management system.
• We manage traceability to ensure product quality and act promptly to solve any issues that arise.
• We prohibit the use of substances in our supply chain whose manufacture or use is prohibited by law.
• We provide all information necessary to ensure safety and quality control for our products.

7. Managing information security

• We prevent any leakage of confidential information, while protecting personal information appropriately.
• We implement measures to protect against computer and network threats.

8．Deployment throughout supply chain

• We ask all participants in our supply chain to implement the same commitments outlined in these Guidelines.