Suncall Supplier Sustainability Guidelines

1）Compliance

< Legal and Regulatory and the Spirit Compliance >

• We will comply with the laws regulations and social norms of each country and region.
• We will establish and implement a policy and systems for thorough compliance, as well as a code of conduct, reporting system, and education.

< Compliance with Contracts >

• We will accurately fulfill our responsibilities in accordance with contracts with customers and business partners.
• We will strive to build and maintain relationships of mutual trust through sufficient communication.

< Compliance with Competition Laws >

• We will not engage in any conduct that violates the competition laws of any country or region (antitrust laws, unfair competition prevention laws, subcontracting laws, etc.), including private monopolization, unfair restraint of trade (cartels, bid rigging, etc.), unfair trade practices, and abuse of a superior bargaining position.
• We will conduct our business in accordance with sound and fair business practices.

< Fair and Open-Door Policy >

• We will open our doors to suppliers and potential suppliers in an equal opportunity and fair manner, and select suppliers following established procedures with fair and equitable dealings.

< Export Trade Controls >

• In accordance with laws and regulations related to export trade control, we confirm whether products and technologies to be exported are restricted items before conducting transactions.

< Information Security Measures >

• We will take necessary measures for the safe management of information, including the prevention of leakage, loss, or damage of information, and maintain and manage its state appropriately.
• We will take necessary measures to ensure the safety and reliability of information systems and information communication networks, and properly maintain and manage their condition.

< Management and Protection of Confidential Information >

• Our confidential information is strictly managed, such as know-how and trade secrets, and we will use it appropriately.
• Confidential information of other companies is obtained by the appropriate person with authority and methods, we will confirm the utilization range and other conditions, use it only within the scope of that, maintain confidentiality, and do not infringe on the rights, etc. of other companies.
• All personal information concerning employees, customers, business partners, etc. shall be obtained only in a legitimate way, and the obtained information shall be strictly managed, used within the appropriate scope, and protected.
• Internal inspections of information security are conducted regularly, and management policies are revised as necessary.

< Protection of Intellectual Property >

• We will protect and pay attention to ensure that intellectual property rights, etc. owned by or belonging to our company are not infringed by third parties.
• We will not unlawfully acquire or misappropriate intellectual property such as patents, utility models, designs, trademarks, or copyrights of third parties and we will not infringe rights such as unauthorized acquisition or use of software or books.

< Anti-Corruption >

• Political contributions, donations, etc. will be implemented by the laws of each country and region and we will strive to build transparent and fair relationships with politics and government.
• We will not give or receive entertainment, gifts, or money to or from customers, suppliers, or other business partners for the purpose of unfair advantage or undue preferential treatment.
• We will not engage in off-balance sheet transactions, fictitious transactions, or other false or misleading transactions, and we will create and maintain accounting records (such as forms, books of accounts, etc.) that fairly reflect all transactions and the disposition of assets in a reasonable, accurate and detailed manner.

< Prohibition of Conflicts of Interest >

• To avoid activities that could lead to conflict with our interest against us or the suppliers and third parties.
• If a conflict of interest arises or is feared to arise, the situation shall be promptly reported and efforts shall be made to avoid the conflict of interest.

2) Human Rights and Labor

◆To understand, support, and endeavor to implement the Suncall Group Human Rights Policy.

< Prohibit Discrimination, Respect, and Acceptance of Diversity >

• We respect the human rights of executives and employees and do not permit any discrimination or disadvantageous treatment based on status or position, age, nationality or legal status, gender (LGBTQ+, etc.), unmarried or married, religion, or physical disability in any employment situation, including recruitment and treatment. We also do not permit any medical or physical examinations that would result in unfair discrimination.
• We regard D&I as one of our important management foundations and will promote its efforts.

< Prohibiting Harassment >

• We do not permit any harassment such as sexual harassment, power harassment, and so on, or any conduct that offends the dignity of the individual.
• Any act that causes discomfort or disadvantage to an individual's attributes, personality, etc., and causes mental or physical distress beyond the proper scope of work shall be considered harassment.
• Any complaint of harassment through the reporting system shall be immediately reported, investigated, and corrected, and no prejudicial treatment shall be given to the informants.

< Child Labor >

• We do not permit child labor that deprives children of educational opportunities and forces them to work from an early age which hinders their development.
• The minimum age at which a person may work is 15 years of age, or the minimum age for employment under the applicable laws and regulations of each country and region, or the age at which compulsory education ends, whichever is highest.
• Employees under 18 years of age (young workers) shall not be allowed to engage in hazardous work. Also, do not allow them to engage in work that may endanger their health or safety, including night shifts and overtime work.
• Job trainees and apprentices are able to work to the extent permitted by the applicable laws and regulations of each country and region.

< Forced Labor >

• We do not tolerate any forced or compulsory labor by violence, threats, debt, etc., or any sort of slavery, including human trafficking.
• We ensure that all work is voluntary and employees are free to resign from their jobs.
• As a condition of employment, employees are not required to provide a passport, official identity document, or work permit. Employees must be legally employed. Individuals must not take the burden of recruitment fees that would be deemed unreasonable in light of international norms.

< Wages >

• Minimum wages, overtime, wage deductions, piece-rate wages, and other benefits are paid to employees in compliance with applicable laws and regulations in each country and region.
• We provide legal benefits.
• Salaries and other benefits, welfare benefits, and deductions are clearly and timely detailed to employees in compliance with each applicable country and regional laws and regulations.

< Working Hours >

• We determine our employees' working hours (including overtime) and we give holidays, annual paid leave, and others by applicable country and regional laws.

< Freedom of Association >

• We recognize the right of freedom of association or not to associate with employees by the applicable laws and regulations of the countries and regions in which we operate.
• We ensure that employees have the right to communicate openly and directly with management without fear of reprisal, intimidation, or harassment.

< Safe and Healthy Working Environment >

• To ensure that everyone can work with peace of mind, we place the highest priority on ensuring safety and health on the job and strive to prevent accidents and disasters.
• We support the health of employees through health promotion activities and guidance on disease prevention in the workplace.
• We develop an accident and disaster response manual and conduct regular drills.

3) Environment

< Environmental Management System >

• We promote "manufacturing" that is friendly to people and the environment through the establishment and operation of an environmental management system conformable to ISO 14001 and the "Green Procurement Guidelines".
• In addition to complying with the environmental laws and regulations of each country and region, we strive to develop and manufacture products with excellent environmental performance in terms of prevention of global warming, resource-saving, and recyclability.

< Reduction of Greenhouse Gas Emissions >

• We develop products and services that reduce greenhouse gas emissions and work to reduce them in the whole lifecycle, commencing with our operating sites.
• Aiming to be carbon neutral, we will not only comprehend emissions, but also strive to understand the actual situation in detail, including problematic processes and materials, and work together with your suppliers to formulate and promote all reduction policies such as energy conservation, equipment improvement, material replacement and introduction of renewable energy.

< Reduction of Water Environmental Impact >

• We work to reduce consumption and manage wastewater thoroughly, taking into account the water environment in each country and region, and continuously evaluating the impact.

< Environmental Pollution Control of Air, Soil, and others >

• We comply with the laws and regulations of each country and region concerning the prevention of pollution of air, soil, etc., and prevent environmental pollution through continuous monitoring and reduction of polluting substances.

< Management of Chemical Substances >

• We comply with the relevant laws and regulations of each country and region, manage (abolish, reduce, etc.) chemical substances, and do not use banned substances in products or manufacturing processes, etc. In addition, we manage the chemical substances specified in the "Green Procurement Guidelines" and report appropriately to government authorities following laws and regulations.

< Establishment of a Recycling-Oriented Society and a Society in Harmony with Nature >

• We commit to resource recycling and environmentally friendly manufacturing, and to solving problems through the development and application of technology.
• We work to reduce the usage of exhaustible resources and utilize recycled materials, give consideration to proper disposal and recyclability at the time of disposal. In addition, we work to reduce and recycle waste at business sites and in logistics.
• Based on the recognition that biological diversity is a prerequisite for the survival of business activities, we will work to create a sustainable society in which people and nature coexist in harmony.

4) Safety and Quality

• We understand the needs of consumers and customers, develop and provide socially useful products.
• We produce and provide products and services that meet the safety laws and regulations, etc., stipulated in each country and region.
• We establish and operate a company-wide system to ensure quality.

5) Responsible Procurement of Resources and Raw Materials

• We procure considering the impact on local communities using raw materials, Congolese conflict minerals (conflict minerals [3TG: tin, tantalum, tungsten + gold] and cobalt, etc.) and natural rubber which can cause social problems such as violation of human rights and environmental destruction, and if there are concerns, we avoid to use.

6) Risk Management

• We set up basic policies and action guidelines for emergencies, consider methods for dealing with various emergencies in advance, and clarify responsibility and authority for contingencies (formulation of BCPs).
• A reporting flow in the state of an emergency should be clearly defined, information should be communicated in a timely and appropriate manner, we examine and decide countermeasures promptly and based on those, and establish a system to ensure that important operations are not interrupted or even if interrupted, are resumed in the shortest possible time (establishment of BCM).
• After the emergency is resolved, we carry out the evaluation and the analysis of the results of activities, accumulate know-how and establish a mechanism to develop the PDCA.

7) Local and Global Society

< Contribution to Local Communities >

• Coexisting with local communities, we keep in mind to develop our business that respects its history, culture and customs. For the development of local communities, we focus on the social challenges faced by each region and we aim to social contribution activities to solve these challenges while cooperating with them.

< Disclosure of Information to Stakeholders >

• We strive to disclose useful information to stakeholders in a correct and timely manner, including information related to management, finance, the environment, society, and social contribution, fully listen to the views of society and reflect them in our business activities through open and fair communication.

8) To Inform your Suppliers

• Make sure that your suppliers are also informed of the sustainability policy and guidelines based on the above objectives and make them aware of it through awareness-raising activities.
• In disseminating and promoting this to your suppliers, you should be attentive to the entire supply chain and ensure that your suppliers are informed, also follow up and take corrective action as necessary.

9) Compliance with Supplier Sustainability Guidelines

• Suncall and the entire supply chain that supports our manufacturing work to comply with the Guidelines. Our suppliers are asked to read and understand the Guidelines carefully, furthermore, we suggest you work on disseminating them to your supply chain.
• We may visit your factories and other sites for interviews as necessary to check compliance with the Guidelines and for mutual communication. We would appreciate your cooperation in such cases.
• If any violation of the Guidelines occurs, we ask you to report it promptly and work on improving the situation.