"Basic Sustainable Procurement Policy"

Basic Principles

In its procurement and purchasing activities, the Hosokawa Micron Group maintains high ethical standards, thoroughly complies with relevant laws and regulations, and strives for sustainable business activities that give due consideration to environmental conservation, safety, human rights, and labor. Through fair and equitable transactions, we aim to achieve mutual prosperity with our suppliers.

Key Priorities

•  All suppliers are important partners in value creation, and we will build equal relationships based on mutual respect.
•  We will conduct procurement activities that respond to the demands of society as a whole, including legal compliance, respect for human rights, environmental conservation, and coexistence with local communities.
•  In conducting purchasing transactions, we will fairly evaluate suppliers based on rational criteria, including the quality, price, and delivery time of purchased goods, as well as the purchasing partner's business stability, supply capacity, and commitment to sustainability.
•  In conducting purchasing transactions, we will not engage in reciprocal transactions aimed at selling our own products or services.
•  "Entertainment and gifts" from suppliers shall be within the bounds of common social practice, and it is, in principle, prohibited for individual purchasing staff to receive entertainment or gifts from suppliers.
•  Regarding human rights, labor, occupational health and safety, supplier evaluation, etc., we will continuously conduct investigations, measurements, and improvements according to their level of importance.
•  We will strive to ensure the prohibition of child labor and forced labor, prohibition of discrimination and harassment, compliance with appropriate working hours and wages, respect for freedom of association and the right to collective bargaining, and the assurance of a safe and hygienic work environment throughout the entire supply chain.
•  To prevent and mitigate negative impacts on human rights throughout the entire supply chain, we will strive to identify and prevent risks of human rights violations.
•  We will establish a mechanism through which concerns about human rights violation risks can be consulted or reported, and prohibit retaliation against those who consult or report such concerns.
•  We will strive for responsible sourcing of raw materials throughout the entire supply chain, including avoiding the use of conflict minerals.
•  We will work to conserve the global environment throughout the entire supply chain, including reducing greenhouse gas emissions, introducing clean energy, and pursuing appropriate energy management and continuous improvement.
•  We will progressively promote awareness of this Policy and the Procurement Guidelines among our primary (Tier 1) suppliers.
•  We will also encourage the same principles to be communicated and extended to important secondary (Tier 2) suppliers and beyond, and will proceed with confirmations, according to the significance of the risk, particularly for raw materials, regions, and processes with high risks of human rights violations or environmental impact.

Corrective Action and Improvement

If a serious situation that violates this Policy occurs, or if concerns about such a situation become apparent, in the procurement activities of the Hosokawa Micron Group, we will work with relevant parties to implement appropriate and effective corrective actions and improvements. After confirming the facts, we will work together with suppliers to conduct cause analysis as necessary, formulate corrective action plans, confirm the progress of improvements, and implement measures to prevent recurrence, among other responses. In addition, when serious human rights violations, occupational health and safety risks, or violations of environmental laws and regulations are confirmed, we will strive to respond appropriately, including providing remedies to victims. If improvement does not progress sufficiently, or if serious violations continue, we will consider measures including reviewing transaction terms or suspending transactions.

Established on August 27, 2026
Representative Director and President Kohei HOSOKAWA

Related Link

Sustainable Procurement Guidelines