SAKATA INX Group 
Procurement Guidelines

Introduction

SAKATA INX Group puts ESG (Environmental, Social and Governance) management into practice. We work toward to realize a sustainable society through our daily operations and CSR (Corporate Social Responsibility) activities. We would like to solve societal issues in our entire supply chain with our valuable business partners to provide better products, commodities and services directly linked to quality, cost and delivery time, and also be in compliance with laws and regulations, protect consumers, protect the environment and labor environment,
respect human rights, co-exist with our community, etc.
We kindly ask all of our suppliers to understand the purpose of SAKATA INX Group Basic Procurement Policy and Procurement Guidelines in order for continuous transaction and co-existence and co-prosperity with suppliers, and to fulfill social responsibility. Please work to permeate, consider, put into practice and share the information about these guidelines.

Items to be considered among our suppliers

Fair, Equitable, transparent and honest business activities

Fair business practice

Comply with related laws and regulations, and also conduct fair, equitable, transparent and honest business activities based on high ethics and social common sense. Furthermore, consider the accuracy and fairness thoroughly of the content of the advertisement and during the market competition.

Appropriate information disclosure

Disclose information, followed by applicable laws and regulations, on labor, safety and health, environmental activities, chemical substance control, business activities, organizational structure, financial condition and business results without altering records and providing false information.

Whistle-blower protection

When involved parties learn about risk information, allow him/her to be able to report and consult. The person who reported or consulted should not be subjected to any disadvantages, and the content must be confidential. The person who reported or consulted must be ensured of anonymity and be excluded from retaliation.

Respect for intellectual properties

Respect, manage and protect copyright, industrial property right (patent right, utility model right, design right and trademark right), etc. Do not infringe on the third party’s intellectual properties.

Inappropriate supply or acceptance of profit and anti-corruption

Do not condone and engage in any acts of malversation, bribery, extortion, embezzlement, corruption, etc. to gain unfair profits.

Complying with laws and regulations

Human rights-related laws and regulations

Refer to international human rights standards including the standards in the International Labour Organization (ILO) and core labour standards. Comply with related laws and regulations, and respect workers’ human rights.

Occupational Safety and Health regulations

Comply with the Occupational Safety and Health regulations based on the location address, and consider the Occupational Safety and Health guidelines from the International Labour Organization (ILO).

Environment-related laws and regulations

Comply with the laws and regulations based on the location address, and acquire necessary permits and authorization for business. Register and report it as well.

Consideration for human rights and labor

Ban on forced labor and child labor, and consideration for young workers

In all employment, protect the work’s turnover and the right to terminate his/him own employment. Do not use the labor obtained by forced, detained, inhuman prison labor, slavery and human Trafficking. Do not also use child labor under the minimum age of employment in the country and region that business is conducted. Furthermore, do not let young workers under the age of 18 to do tasks that pose possible health and safety risks such as night shifts, overtime, etc.

Consideration of working hours

Comply with the laws and regulations in the country and region that the worker is employed, and manage the worker’s working hours and holidays by considering international standards such as International Labour Organization (ILO).

Responsible mineral procurement

When using minerals such as tantalum, tin, tungsten, gold, cobalt, mica, etc. in the product, consider whether or not the procurement of this leads to or is complicit in the violation of human rights, conflict, corruption, environmental destruction and others in conflict areas and high risk regions.

Appropriate wage and allowance

Pay the legal minimum wage based on the laws and regulations in the country and region business is conducted.
Furthermore, consider the necessary level of wage for living (living expenses).

Ban on human rights violation, discrimination, inhuman treatment, and respect for individual and human rights

Refrain from any types of discrimination based on race, sex, religion, nationality, home country and region, family situation, disability, health condition, belief, other differences and reasons.
Furthermore, do not conduct inhuman treatment, regardless of physically or mentally, including all types of harassment, etc.

Freedom of association and collective bargaining

Comply with laws and regulations including basic labor law, etc., and respect freedom of association and collective bargaining in the country and region business is conducted.

Occupational Safety and Health, Health management

・Health & Safety at Work

Keep in mind of the Occupational Safety and Health guidelines in the International Labour Organization (ILO) and others. Consider safety risks at work, workers’ injuries, physical and mental health problems in the workplace. Ensure safe and sanitary working environment and facility (including dormitory, canteen, toilet, etc.).

Occupational injury and illness, and emergency preparedness

In case of emergency such as disasters, accidents and others resulting to danger to life and body, identify the possibility of occurrence and develop emergency procedures to minimize the damage to the asset including workers, equipment, etc. Install necessary equipment, etc., and conduct education and training so that necessary actions can be taken in case of a disaster.
Furthermore, report occupational injury and illness, and take appropriate measures and remedies.

Industrial hygiene and safety measures

Educate and train workers with understandable language and method on safety and health information, which concerns the workplace including hazardous biological, chemical and physical effects on workers exposed to danger, and conduct proper management of it.
Furthermore, take necessary safety measures to the equipment and machine used at the workplace.

Conduct appropriate health management to all employees. Consider and manage tasks that involve physical tension so that it will not lead to occupational injury and illness.

Responsibility to the environment

Responsibility to the environment Ensure quality and safety, and provide information

Take active part in protecting the global environment against climate change, resource depletion, environmental pollution, etc. Take into account of the health of our stakeholders and ensure safety.
Furthermore, consider the effects on the ecosystem through our business activities, and work to conserve biodiversity.

Energy consumption and emissions into the atmosphere

Seek to reduce energy consumption and improve efficiency, and take appropriate measures including continuous reduction activities such as reduction in emissions of hazardous substances into the atmosphere, target setting for greenhouse gas emissions, etc.

Management of water resource

Comply with laws and regulations. Monitor the water that is used and discharged, and save water.
The characteristics of all types of wastewater must be identified, monitored, controlled and treated when necessary before discharged or disposed.
Furthermore, identify the possible source of contamination that is causing water contamination, and conduct proper management of it.

Effective use of resources and waste management

For the effective use of resources and minimization of the amount of waste, promote activities to reduce, reuse and recycle.

Chemical substance control

Work to reduce the load on the people and environment resulting from hazardous chemical substances in the general business activities. Handle chemical substances safely, and manage, dispose or recycle it based on compliance with laws and regulations related to chemical substances.
Furthermore, all raw materials that are delivered must comply with our Environmental Management Standards for Chemical Substances, and restrict and ban the use when necessary.

Social responsibility

Ensure quality and safety, and provide information

Design, manufacture and sell products, commodities and services not only based on compliance with laws and regulations, but also ensure quality and safety.
Furthermore, provide accurate information regarding these products, commodities and services.

Consideration of information security

Take protection measures and other necessary measures against cyber attacks. Strengthen information security and properly manage, protect and prevent leakage of personal and confidential information.

Business continuity plan

Identify and take precautions against business continuity risks including natural disasters and others. Establish a Business Continuity Plan (BCP) to fulfill the responsibility to supply for early recovery in the production activities.

Activities for sustainable development

Recognize that it is an important social responsibility to contribute to society. Continue to conduct activities that meet the demands and expectations of the community where business is done in the country and region.

Enacted on February 21, 2022