SB C&S Corp. conducts Procurement activities based on the following policies.

1. 1．Provision of fair opportunities for competition
2. We will disclose information on purchasing transactions appropriately, and at the appropriate time, in order to provide fair competitive opportunities for all business partners and suppliers worldwide who wish to engage in these purchasing transactions, and we will avoid reciprocal dealings or excessive reliance on a specified supplier.
3. 2．Selection of business partners based on rational and clear criteria
4. As a rule, we will obtain proposals and quotations from multiple business partners and suppliers, and choose suppliers based on clear and logical standards, such as quality, price, delivery, stable supply, and reliability. Furthermore, decisions related to the selection of suppliers will be made by the Procurement Division, independently from other divisions.
5. 3．Compliance with laws
6. When engaging in procurement transactions, we will comply with all related laws and regulations, including antitrust laws and the Act Against Delay in ‘Payment, etc.’ to Subcontractors, and we will not undertake transactions that violate rights, such as third-party intellectual property rights.
7. 4．Management of confidential information provided by business partners
8. Based on an awareness of the value of confidential information provided by business partners and suppliers, we will handle such information in the same way as our own confidential information, and will not disclose it to any third party without prior approval.
9. 5．Mutual confidence-building with business partners
10. We place great value on communications with business partners and suppliers, and shall make every effort to build mutual trust relationships.
11. 6．Green procurement
12. We will be conscious of environmental protection, procuring products and services with minimal environmental impact.
13. 7．Prohibition of mixing private relations
14. We will not maintain private relationships with any business partners or suppliers, nor maintain personal interests in these entities.
15. 8．Positive evaluation of CSR efforts by business partners
16. As we carry out our business activities, we place great importance on fulfilling our social responsibilities throughout all aspects of the supply chain, including business partners and suppliers. With this in mind, we will actively and appropriately recognize cooperation with our own CSR activities, as well as CSR efforts undertaken by business partners and suppliers.

We have established our evaluation criteria for business partners and suppliers based on the Basic Policy on Procurement. Thank you for your understanding and dedicated efforts in advance.

1. 1．Consideration for the environment
2. ・Proactively strive to improve efficiency when using limited resources (for example, energy, water, and raw materials).
3. ・Establish the appropriate management, execution, and technical means of control to minimize the release of harmful waste products into the environment and strive to prevent environmental pollution.
4. ・Promote initiatives which consider climate change including reductions in greenhouse gas emissions (such as carbon dioxide, methane, dinitrogen oxide, chloro-fluorocarbon gas).
5. ・Conduct business activities with concern for impacts on biodiversity.
6. ・Contribute to the creation of a recycling-based society by proactively collecting waste materials and engaging in recycling activities. Moreover, comply with the relevant laws and regulations concerning all waste materials discharged by business activities and take responsibility for emitting waste.
7. ・Promote initiatives to develop and provide products and services that reduce environmental impacts.
8. 2．Information security
9. ・Strictly manage and protect private information within your own company as well as that of customers and third parties.
10. ・Strictly manage the confidential information of other parties acquired during the course of business while also preventing the leakage of such information to third parties without permission.
11. ・Safeguard against computer viruses and other network risks and threats as well as implement measures to prevent their impact from spreading.
12. 3．Fair competition
13. ・Do not engage in any form of bribery, including the inappropriate distribution of money to employees or from employees and organizations.
14. ・Comply with the laws and regulations relating to fair transactions including the Antimonopoly Act and the Subcontract Act to prevent late payments to subcontractors.
15. ・In the event that SB C&S Corp.’s executives, employees, or their family members are executives or major shareholders of a supplier or its own suppliers with respect to transactions with SB C&S Corp. such information shall be reported to SB C&S Corp.
16. 4．Ensure quality and safety
17. ・Supply products which meet the safety standards stipulated by laws and regulations, Build a quality assurance system and operate it in a strict manner.
18. ・Provide accurate information concerning products and services.
19. ・Understand the quality and features required by users and the general public and supply products that meet those expectations.
20. 5．Consideration for Human Rights
21. ・In accordance with international human rights principles^*1, do not be involved in discrimination or human rights violations in all services, products and business activities.
22. 6．Occupational safety and health
23. ・A healthy and safe working environment must be provided to employees according to international standards and laws and regulations.
24. ・A living environment which appropriately ensures safety and health must be provided to employees.
25. ・Provide the appropriate information and training concerning safety and health to employees while also providing suitable support when an occupational accident occurs.
26. 7．Prohibition of child labor
27. ・Do not employ persons who are below the working age permitted by law.
28. 8．Prohibition of forced labor
29. ・Employees must not do forced, binding, or subordinate labor, and shall be able to freely resign after giving a reasonable period of notice.
30. 9．Prohibition of discrimination and inhumane treatment
31. ・Eliminate all forms of discrimination. In addition, strive to achieve fairness.
32. ・Employees shall be treated with respect and dignity and shall not be subject to physical or verbal abuse, harassment, threats, or any form of intimidation.
33. 10．Working hours
34. ・Employee working hours shall comply with laws and regulations, and suppliers shall strive to reduce excessive working hours.
35. ・Consider the occupation, duties, and circumstances of the country in which the labor is performed with respect to reasonable working hours.
36. 11．Fair payment
37. ・Employees must understand their own employment conditions, and be provided with fair and reasonable wage and conditions.
38. ・Secure living funds that exceed the legal minimum wage requirements in the country where employees work shall be observed.
39. 12．Freedom of association
40. ・Employees have the legal right to freely associate or not associate, and the right to collective bargaining shall be respected.
41. 13．Responsible mineral procurement
42. ・The tantalum, tin, tungsten, and gold included in products must not be sourced from rebel forces that are infringing on human rights in the Democratic Republic of the Congo and surrounding countries.
43. 14．Coexistence with local communities
44. ・Promote efforts to contribute to society for coexistence with local communities.

[Note] 1.　 *1 Referring to the “Universal Declaration of Human Rights,” “UN Guiding Principles on Business and Human Rights,” “Children’s Rights and Business Principles,” and “The Core 8 Treaty Basic Principles of the ILO Declaration.”