Nippon Chemical Industry Co., Ltd. Procurement Policy

With the understanding of our business partners, Nippon Chemical Industrial Co., Ltd. will engage in procurement represented "compliance with laws and regulations", such as "fairness and justice", "building partnerships" and "consideration for the environment and safety" aimed at "building a robust supply chain" as outlined in our Sustainability Policy.

1. Compliance with laws and regulations
   We comply with relevant laws and social norms regarding purchasing activities.
2. Fairness and Impartiality
   We strive to conduct fair and equitable transactions based on quality, supply stability, economic rationality, etc.
3. Building partnerships
   We strive to deepen mutual understanding with our business partners and build and develop relationships of trust.
4. Consideration of the environment and safety
   We consider reducing environmental impact, resource conservation, safety, human rights, etc.

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.