Procurement Activities Fujikura Group Basic Procurement Policy The Group's business is supported by business partners who supply raw materials, parts and equipment. Through fair and fair and sincere procurement activities, the Group has formulated the "Fujikura Group Procurement Basic Policy" in order to establish a solid relationship of trust with its business partners. In addition, we have established the Fujikura Group Procurement Purchasing Division Code of Conduct to strictly control our own actions. In addition, each group company in Japan participates and regularly conducts subcontract law sessions, and we are continuing our compliance efforts. We also provide education such as e-learning and seminars on the Subcontracting Act, and conduct regular business audits for departments related to procurement and purchasing within the Group. In order to solve social issues, we are promoting sustainability, such as compliance and consideration of human rights such as responsible mineral procurement. Fujikura Group Basic Procurement Policy 1. Fair and Impartial Trade Fujikura Group Companies open doors worldwide for suppliers. We will provide equal opportunity with potential suppliers and encourage free competition. We evaluate them through fair and sound assessment process for price, quality, delivery, stable supply, technological competence and reliability. 2. Collaborative Relationship with Suppliers Based on Mutual Trust Fujikura Group Companies keep faith and honesty to suppliers. We always endeavor to develop collaborative, mutually-beneficial relationship with suppliers based on mutual trust. We do not disclose any information obtained through business with suppliers to third parties without prior consent. 3. Compliance with Laws, Regulations and Social Norms Fujikura Group Companies comply with not only relevant laws and regulations but also conduct transactions in accordance with business ethics and social norms in the countries and regions where we are doing business. 4. Environmental Preservation Fujikura Group companies strive for environmental management program designed to minimize the impact on the environment together with our suppliers in order to contribute to preservation of global environment and realization of sustainable society. Fujikura Group CSR Procurement Guidelines With corporate activities becoming more global in nature, a company’s corporate social responsibilities are being called into question not only for itself but its entire supply chain. We created the Fujikura Group CSR Procurement Guidelines in June 2016 to further understanding and implementation of CSR procurement by suppliers and revise the guidelines as society changes. The 5th version of these guidelines was revised in August 2021 to be compliant with RBA Guidelines. Fujikura Group CSR Procurement Guidelines (Japanese) Fujikura Group CSR Procurement Guidelines (English) Fujikura Group CSR Procurement Guidelines (Chinese) Responding to Issues of Great Interest in Society Health and safety: We have regulations in place on the promotion of healthy and safe workplaces and health management, and we implement with suppliers aimed at achieving a better work environment and improving safety. Collective bargaining rights: We have regulations on respect for workers rights, which clearly state respect for employees’ right to organize. Supporting workers’ rights including minimum wages: We have regulations on providing fair and equal compensation, we pay at the very least the legal minimum wage to employees, and regulations clearly state we will not reduce pay unjustly. The British Modern Slavery Act 2015 Statement The Fujikura group created the "Fujikura Group Statement on the Modern Slavery Act and Human Trafficking" in response the United Kingdom's Modern Slavery Act 2015. The Fujikura group understands that we must protect the human rights of all of the people effected by our business. To respect human dignity and internationally recognized human rights, we created a statement regarding efforts for the abolition of modern slavery and human trafficking. Fujikura Group Slavery and Human Trafficking Statement 1.Overview of the company, business and supply chain 2.Policies related to modern slavery and human trafficking 3.Due diligence 4.Risk assessment and risk management 5.Measurement by appropriate indicators and effectiveness 6.Training Fujikura Group CSR Procurement Promotion System With the globalization of companies speeding up today, the importance of social responsibilities in procurement activities continues to increase. Fujikura and the Fujikura Group regularly convenes internal meetings on CSR, which were held on two occasions in fiscal 2017. In addition, the theme of ESG has been increasing recently, such as the importance of human rights due diligence in the supply chain and information on climate change. These meetings lead to the strengthening of procurement staff. In addition, the Fujikura Group Partners Meeting is held annually as a venue for direct dialogue with all suppliers. Through direct communication, we make efforts toward CSR procurement across the supply chain, including fostering understanding in CSR procurement of the Fujikura Group. Risk Assessment of the Supply Chain The Fujikura Group carries out investigations of supply chain management at procurement divisions of each Group company in order to identify and minimize risk in the supply chain. In fiscal 2018, we provided feedback based on the survey results and promoted improvements in our efforts. At the same time, as an initiative in human rights due diligence, we hold a study meeting with experts, identify priority issues based on the prepared report, and commence initiatives. CSR Survey for the Supply Chain The Fujikura Group conducts a supply chain management survey regularly for major suppliers in order to understand the situation of their CSR activities in the supply chain. The results of the survey are shared with suppliers in the form of feedback. The survey covers the following matters. Implementation status of CSR procurement by suppliers Implementation of supplier assessments Response to conflict minerals in procurement Status of initiative to prevent the use of environmental load substances in products Implementation of the Fujikura Group CSR Procurement Guidelines Visibility of the UK’s anti-slavery law and response, among others Supplier Assessment System In order to achieve an appropriate supplier structure by fairly and equally evaluating suppliers from the standpoint of quality, cost, delivery, development, and management, the Fujikura Group introduced a supplier assessment system in fiscal 2016. We are currently expanding the scope of our implementation, and we are building deeper partnerships with highly rated business partners. Partners Meeting The promotion and penetration of CSR procurement requires direct dialogue with suppliers. The Fujikura Group hosts the Fujikura Group Partners Meeting in Tokyo, Shanghai every year to obtain the understanding and cooperation of suppliers and work toward CSR procurement across the entire supply chain. At the Partners Meeting, the Fujikura Group's management plan and procurement policy are explained to the business partners who participated, and through the distribution of CSR procurement guidelines, the business partners are encouraged to participate in the Fujikura Group's procurement activities. We ask for your understanding and cooperation. Responsible Mineral Sourcing Establishing Fujikura Group Policy for Responsible Mineral Sourcing Fujikura Group Policy for Responsible Mineral Sourcing Based on Fujikura Group Corporate Philosophy MVCV, Fujikura group promotes procurement of minerals which are free from inhuman acts including human right violations and labor issues in regard to mineral procurement in conflict-affected and high-risk areas/countries in order to establish responsible supply chain. The Fujikura Group established the "Fujikura Group Conflict Minerals Non-Use Policy" in August 2011 to increase transparency in the supply chain regarding the procurement of conflict minerals, and in response to recent changes in social trends regarding mineral procurement, the "Fujikura Group Responsible Mineral Procurement Policy" was In May 2019, we established the Fujikura Group Responsible Minerals Procurement Policy. With regard to mineral procurement in conflict zones and high-risk countries (CAHRAs*), we recognize all risks and injustices, such as local human rights violations and labor issues, as serious social issues and will promote responsible mineral procurement throughout our supply chain. In addition, we will continue to strengthen our response to responsible mineral procurement by providing information to our suppliers and within the Group. We ask that our suppliers understand this policy and cooperate with us in achieving responsible mineral procurement. *CAHRAs: Conflict Affected and High Risk Areas Our Activites Against Responsible Minerals Sourcing We participated in the study group of the Japan Electronics and Information Technology Industries Association (JEITA) on the socially responsible procurement of minerals to establish an industrial framework for the issue. And The Fujikura Group held a study meeting for those in charge of the issue of conflict minerals within the Group. Participants examined international trends on conflict minerals and measures implemented by the Group, shared information, including related problems, and discussed countermeasures to take against the identified problems. We also hold Fujikura Group Partners Meetings in Japan and China to request cooperation in CSR procurement and conflict mineral investigations with our suppliers.
