Green Procurement Guidelines (extract)

Evaluation Items

1. Corporate activity assessment (evaluation of sustainability initiatives)

• Environmental aspects
  • Formulate policies related to environmental symbiosis.
  • Set up departments to promote environmental symbiosis and appoint managers.
  • Raise awareness of policies related to environmental symbiosis among employees.
  • Confirm understanding of and compliance with environmental laws and regulations related to business operations.
  • Promote proper use of water resources and measure the amount of use.
  • Store, handle and process any hazardous chemical substances (including specified chemical substances, radioactive materials, and biological substances) used by the Group in accordance with a management manual, laws, and any other relevant regulations.
  • Properly manage and process waste in accordance with laws and regulations.
  • Promote proper use of energy and measure greenhouse gas emissions.
  • Formulate greenhouse gas reduction plans.
  • Make every effort to protect biodiversity and the ecosystem.
• Social aspects
  • Overall Corporate Social Responsibility (CSR)
  • Formulate policies and standards for Corporate Social Responsibility (CSR) initiatives.
  • Establish departments to promote Corporate Social Responsibility (CSR) initiatives and appoint managers.
  • Conduct employee education and training about Corporate Social Responsibility (CSR) policies and standards.
  • Human Rights
  • Formulate policies and standards related to human rights.
  • Establish departments to promote human rights initiatives and appoint managers.
  • Conduct employee education and training about human rights policies.
  • Prohibit all forms of harassment and raise internal awareness.
  • Prohibit forced labor and child labor and raise internal awareness.
  • Properly manage employee work hours regulated by law.
  • Pay adequate wages to employees according to the minimum wages established by law.
  • Establish a system for employees to report any harassment, physical punishment or other abuse anonymously.
  • Prohibit all discrimination whether based on race, age, religion, nationality or gender and fully raise internal awareness.
  • Ensure employees have freedom of association and collective bargaining rights in accordance with laws and regulations.
  • Provide human resource development opportunities fairly to all employees, such as occupational skill development and training.
  • Occupational health and safety
  • Formulate policies and standards related to occupational health and safety.
  • Establish departments to promote occupational health and safety initiatives and appoint managers.
  • Conduct employee education and training about occupational health and safety policies.
  • Strive to maintain a safe and healthy work environment.
  • Properly manage the physical and mental health of employees as well as occupational safety, such as reducing occupational accidents and diseases.
  • Put in place measures to ensure employee safety in anticipation of natural disasters and other emergency situations and fully raise internal awareness.
  • Ethic
  • Prohibit bribery, embezzlement and other acts of corruption and fully raise internal awareness.
  • Raise internal awareness to protect intellectual property in accordance with laws, regulations and international rules.
  • Put in place whistleblowing mechanisms for employees and suppliers to report any legal violations.
  • Formulate responsible procurement policies.
  • Prohibit abuse of superior bargaining positions, encourage fair and free competition, and fully raise internal awareness.
  • Never tolerate influence from anti-social forces with a resolute attitude.
  • Information security
  • Collect and use personal information only within the scope agreed upon in advance and properly manage said personal information to prevent any informational leaks or unauthorized use.
  • Use the utmost caution to properly manage the handling of confidential information received from third-parties.
  • Put in place information security measures on computers and networks.
  • Product safety
  • Strive to ensure and improve quality and safety when supplying products and services to markets.
  • Supply chain
  • Require procurement suppliers to emphasize initiatives related to human rights and other social aspects as well as environmental aspects./li>
  • Social contributions
  • Build good relationships with and promote activities to contribute to local communities.

2. Product assessment

• Common items
  • Requirements
  • Prohibit use of chemical substances restricted in Attachment 1, “Sumitomo Forestry Restricted Chemical Substance List.”
  • Never leach hazardous materials during construction or use.
  • Never produce chemical or other hazardous fine particles during construction or use.
  • Never produce sulfur oxide or other hazardous gases during incineration.
  • Initiatives
  • Prohibit use of vinyl chloride and styrene foam in packaging materials.
  • Limit use of packaging material to the bare minimum (strive to reduce packaging materials).
  • Incorporate measures to sort by material in any composite products for easy waste disposal.
  • Make component and material replacements easy to extend the lifespan of assembled products.
  • Clarify maintenance programs (procedures and periods for inspections, repairs and part replacements).
  • Make reuse or recycling after use possible.
  • Make reuse or recycling of package materials possible.
  • Use processes and materials to lengthen the lifespan of products.