PurchasingDaicel Group Procurement Guidelines

The Group promotes responsible procurement that addresses not only quality, pricing, and delivery dates but also social aspects such as human rights and labor as well as environmental aspects such as biodiversity conservation and the use of renewable energy. Moreover, we have outlined our approach to procurement in Daicel Group Basic Purchasing Policy and the Daicel Group Procurement Guidelines. We cooperate with our suppliers to ensure compliance with these initiatives throughout the supply chain in order to contribute to the emergence of a sustainable society.

1.Compliance with laws, regulations, and social norms

  • In the course of business activities, we shall comply with laws, regulations, and social norms with regard to such matters as business transactions, labor management, environmental preservation, safe operations, and intellectual property, thereby living up to higher standards of corporate ethics and fair business conduct.
  • In addition to complying with the laws and regulations of the countries and regions in which we operate, we shall also respect the local culture and customs.
  • We shall not provide or receive entertainment or gifts that could be deemed to exceed the scope of sound commercial practice and social norms.
  • We shall comply with the competition laws of each country and region in which we operate and shall not in any way impede fair, transparent, and free competition.
  • In order to prevent fraudulent activities and detect them at an early stage, we shall institute effective internal and external whistleblowing systems.

2.Respect for human rights and the working environment

  • We shall comply with the standards of the International Labour Organization, hire employees who apply of their own free will, and never engage in forced labor, child labor, or other inhumane labor practices, such as payment of wages that do not meet statutory minimums and unfair wage reductions.
  • We shall comply with the standards of the International Labour Organization and all applicable laws and regulations in the countries in which we operate, manage working hours as required, and never subject employees to excessively long working hours.
  • We shall respect the diversity of all employees in recruitment and employment, eliminate discrimination, and strive to provide equal opportunity and fair treatment.
  • We shall eliminate all harassment and violence in the workplace.
  • In accordance with the laws and regulations of the countries and regions in which we operate, we shall support and respect freedom of association, the right to collective bargaining, and all other employee rights.
  • We shall practice appropriate human rights due diligence throughout the supply chain in consideration of the risk of adverse human rights impact.
  • We shall eliminate the use of conflict minerals (tin, tantalum, tungsten, and gold) produced as raw materials in the Democratic Republic of the Congo and neighboring countries. In addition, when using raw materials containing cobalt and mica, we shall perform thorough investigations to confirm that the mining site does not engage in child labor or maintain dangerous working environments.

3.Occupational health and safety and health management

  • We shall assess workplace risks and promote safety through appropriate design, technology, and management measures.
  • We shall identify work that places an undue physical burden on employees, manage work in a manner that avoids accidents and illnesses, and continue to introduce improvements intended to reduce employee workloads.
  • We shall adopt safety measures to prevent accidents and health problems that could occur as a result of work with the machinery and equipment adopted by our company.
  • We shall identify work situations involving risks to workers from potentially harmful organisms and chemical substances as well as noise and foul odors in the workplace and implement the necessary countermeasures.
  • We shall take steps to improve or maintain the physical and mental health of all employees working in our Group while instituting all necessary health and safety measures for the dormitories, cafeterias, toilets and other facilities provided for the daily use of our employees. We shall respect the privacy of all individual employees and encourage their pursuit of an appropriate balance between their personal and professional lives.
  • We shall monitor the occurrence of occupational accidents and illnesses and institute necessary countermeasures when indicated.
  • In anticipation of earthquakes, typhoons, fires, accidents and other disasters, we shall establish and maintain a disaster response system that includes emergency evacuation; we shall also strengthen the system through regular training and education.
  • We shall provide employees with training and education with respect to workplace health, safety, and maintenance in a language they can understand.

4.Environmental considerations

  • In addition to complying with the pollution control laws and regulations of each country and region in which we operate with respect to the air, water, and soil, we shall conserve resources in manufacturing, packaging, and logistics; promote energy efficiency and the use of renewable energy; reduce waste and GHG emissions; conserve water resources by using water efficiently, reducing water consumption, and preventing water pollution; and manage rainwater by preventing contaminated runoff from entering storm sewers and public water supplies. We shall take steps to reduce our environmental impact by controlling emissions of pollutants and practicing environment-friendly green procurement.
  • In order to protect the environment and conserve biodiversity, which encompasses the management of forests and water resources, we shall focus on production innovations offering the benefits of energy efficiency and lower environmental impact while contributing to the emergence of a circular economy.
  • In compliance with the laws and regulations of the countries and regions in which we operate, we shall seek government approval when necessary and shall submit management reports to the government as required.
  • We shall identify all industrial waste that is harmful to human health and the environment and shall classify, label, store, manage, move, and dispose of this waste in compliance with the laws and regulations of the countries and regions in which we operate.

5.Sound business management

  • We shall strive to engage in sound and transparent business management and appropriately disclose corporate information to stakeholders with the aim of establishing sincere relationships based on a spirit of mutual interest, respect, and trust.
  • We shall not engage in behavior that benefits anti-social forces, engage in insider trading, abuse a position of power, or engage in behavior that disadvantages our stakeholders. Moreover, we shall continuously and fairly disclose information to our stakeholders.
  • We shall maintain appropriate and transparent relationships with political entities in compliance with the laws and regulations of the countries and regions in which we operate and shall not engage in bribery or illegal political donations.

6.Product quality, product safety, and value co-creation

  • We shall strive to meet customer requirements with regard to product quality and safety in addition to disclosing accurate information about our products and services.
  • Regarding product safety, we shall ensure product safety from the design stage to meet the safety standards stipulated by the laws and regulations of the countries and regions in which we operate.
  • Regarding prohibitions and restrictions on the use of chemical substances in our products, we shall comply with the laws and regulations of the countries and regions in which we operate and shall meet the delivery requirements of our customers. In addition, we shall disclose all required information about the raw materials, parts, and substances contained in the products produced by our manufacturing processes.
  • We shall work to improve quality, promote the development of innovative products and technologies, and focus on creating value.
  • We shall ensure traceability of raw materials and parts from their arrival to the shipment of the products incorporating them, which provides useful data for rapid problem-solving.

7.Maintaining stable supplies and the flexibility to remain responsive to changes

  • We shall deliver our products on time and strive to maintain stable supplies.
  • In anticipation of events such as natural disasters and operational accidents, we shall establish a business continuity plan (BCP) that supports purchasing from multiple sources and strives to maintain stability of supplies.

8.Information security

  • We shall put in place security measures to combat network threats with the aim of ensuring that none of our systems or those of others are damaged by such threats.
  • We shall safeguard all personal information we handle whether it pertains to our customers, employees, or other third parties.
  • We shall safeguard all confidential information we receive from our customers or other third parties and shall strive to prevent the unauthorized release of such information.

9.Contribution to communities and society

  • We shall respect local cultures and customs, maintain good relationships with local residents through dialogue and appropriate information disclosure, and contribute to the development of communities and society.

10.Promotion of CSR initiatives in which all supply chain constituents play their roles

  • We shall proactively push ahead with CSR initiatives while also disclosing the status of such initiatives.
  • In order to promote CSR initiatives throughout the supply chain, we shall encourage our suppliers to adhere to our guidelines in their procurement activities.

Revised February 29, 2024

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