Nippon Chemical Industrial Procurement Policy

1.Basic philosophy

Under the purchasing department as the responsible person that takes charge of procurement activities, and with the understanding of our business partners, Nippon Chemical Industrial Co., Ltd., will work on procurement aimed at building a robust supply chain as stated in the Basic Policy of Sustainability, which includes“compliance with laws and regulations,”“fairness and equality,”“building partnerships,”and“consideration for the environment and safety.”This Policy applies only to Nippon Chemical Industrial.

2.Basic policy

1. Compliance with laws and regulations
   We will comply with all laws and regulations, and social norms related to purchasing activities.
2. Fairness and equality
   We will strive to conduct fair and equitable transactions based on various factors, such as quality, supply stability, and economic rationality.
3. Building partnerships
   We will strive to deepen mutual understanding with our business partners and to build and develop relationships of trust.
4. Consideration for the environment and safety
   We will conduct material procurement activities under the Environmental Policy by considering the reduction of environmental impact through energy and resource saving or waste reduction as well as for safety.
5. Consideration for human rights
   We will conduct procurement activities by respecting international standards for human rights and giving attention to the working environment, safety, and health.

This Policy will be reviewed every year from the date of establishment.
Established on July 1, 2025

CSR Procurement Guidelines

1. Compliance with laws and regulations
   We will comply with all relevant laws and regulations and social norms and will promote appropriate and equitable corporate activities.
2. Promotion of equitable and appropriate operations
   We will realize fair and equitable transactions based on various factors, such as quality, supply stability, and economic rationality, to maintain healthy competition.
3. Ensuring trust
   To deliver satisfaction and assurance, we will give enough attention to the safety and protection of personal and secret information and will further improve the quality standards in efforts to ensure trust.
4. Maintenance of good relationships with stakeholders
   We will disclose information equitably and transparently and will strive to build and maintain good relationships with stakeholders through constructive dialogue.
5. Maintenance of sound relationships with politics and government
   We will maintain sound and normal relationships with politicians and administrative organs.
6. Respect for human rights
   We will fulfill our responsibility to respect human rights and accept diverse people regardless of age, gender, disability, nationality, race, and sense of values, while eliminating discrimination and harassment.
7. Work style, workplace environment
   We will work to promote a fulfilling work-life balance and train capable persons to enable them to demonstrate their individual abilities, and we will ensure the health and safety of all involved parties and prevent disasters and accidents.
8. Reduction of environmental risks
   In promoting business activities, we will evaluate their impact on the environment and strive to reduce environmental risks. We will proactively implement planning and design proposals that are environmentally conscious, reduce environmental impact through energy and resource saving or waste reduction, prevent water, air, and other environmental pollution, and contribute to biodiversity.
9. Responsible mineral procurement
   We will strive not to use minerals as raw materials that are clearly involved in conflicts or human rights violations.
10. Respect for intellectual property
    We will not use the intellectual property of third parties without permission. We will prevent illegal reproduction of works and respect patent rights, copyrights, trademark rights, and other intellectual property rights.
11. Elimination of antisocial forces
    We will deal with antisocial forces in a dauntless attitude, which threaten the order and safety of civil society, and will have no relationship whatsoever with them, firmly rejecting any unreasonable demands from them.
12. Sustainable economic growth and resolution of social issues
    We will develop and provide useful and safe products and services to society and will create new values to achieve sustainable economic growth and resolve social issues.

Established on July 1, 2025

CSR Survey for Suppliers and Survey Results

Starting in fiscal 2023, we have begun conducting a CSR survey of our business partners to investigate the current situation. We plan to send this survey to major suppliers once every two years, and ask new suppliers to fill it out when we start doing business with them.

The CSR survey monitors and investigates the status of each supplier's efforts regarding the environment, society, and governance. We will utilize the results we obtain to improve risk management in our business operations. If any issues are discovered through the survey, we plan to work with our suppliers to implement corrective measures.

We would like to continue to increase supplier engagement through activities like this, while promoting good communication with our business partners and checking the extent to which our procurement policy has been implemented.

2023～2024 CSR survey results

• ・Implementation period : October 2023～November 2024
• ・Survey subjects : Top purchasing suppliers (worldwide) 34 companies
• ・Response rate : 82% (28/34 companies)
• ・CSR survey items (9 areas) :
  　Compliance with laws and regulations, respect for international standards, human rights and labor, health and safety, environment, fair trade and ethics, quality and safety, information security, business continuity planning, and establishment of a management system
• ・Reporting survey results :
  　The average score by theme of the business partners who responded is as shown in the graph below.
  　Score : An average score of 70% or above is considered to be a good response.
  　Results : All nine areas achieved scores of 70% or higher, which were generally good results.