Supply Chain | Social | Sustainability | GUNZE LIMITED

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Supply Chain

Policy and Basic Approach We promote sustainable practices not only at our own company but across our entire supply chain to embody our core principles throughout all corporate activities. Considering the rapid changes in our business environment, we have recognized the necessity to present this commitment to our suppliers and business partners in a more concrete manner.
To support our suppliers and business partners’ understanding of the Gunze Group’s Sustainable procurement activities, and to ask cooperation in our policies, we established the Gunze Group Sustainable Procurement Guidelines in January 2019.
We at the Gunze Group are determined to continue working together with our suppliers and business partners to help build a sustainable society. Your continued cooperation would be greatly appreciated.

Gunze Group Supplier Code of Conduct (Established: March 2010, Revised: January 2019)

As specified in the Gunze Activity Guidelines, the Gunze Group’s basic policy is to comply with fair and internationally accepted rules as we conduct business activities. The Gunze Group Supplier Code of Conduct declares that Gunze expects suppliers and business partners that make up our supply chain to accept and uphold the Group’s policies concerning legal and regulatory compliance, development and supply of safe, beneficial products and services, environmental preservation, and respect for human rights, personality, and individuality, as follows:

Article 1. Legal and Regulatory Compliance

Promote corporate activities through fair and free competition by strictly observing social rules.
Adhere to applicable laws and regulations. Maintain sound ethics, avoiding any unethical behavior.
Observe international rules, while respecting the culture and conventions of each country of operation, in order to promote corporate activities that earn a high reputation.

Article 2. Supply of Quality Products

Maintain a commitment to develop and supply socially beneficial and safe products and services throughout our corporate activities.

Article 3. Environmental Preservation

Actively address environmental issues in corporate activities and strive to promote harmonious coexistence with the global environment.

Article 4. Human Rights

Respect human rights and individual character, never engage in discrimination based on ethnic group, nationality, gender, or other nonperformance-related attributes in hiring practices and work.
Never use child, forced, or compulsory labor, nor engage in unjust and inhumane labor practices, including harsh punishment.
Recognize and respect the rights of employees to freedom of association and collective bargaining, unless prohibited by law.

Article 5. Labor Practices

Provide a safe and healthy working environment, by giving due consideration to employee health.
2. Comply with all applicable laws in the country of operation concerning hours of work, wages, and employee benefits.
Comply with all applicable laws and regulations when hiring foreign workers or migrant workers (including technical interns) and avoid unfair labor practices that could infringe upon the human rights of these workers.

Article 6. Confidential Information and Intellectual Property

We shall continue to take appropriate measures to prevent disclosure of confidential or personal information, including technological or trade information obtained or accessed through business transactions, and respect intellectual property rights.

Article 7. Gifts and Entertainment

We shall not offer money, gifts, or entertainment for the purpose of receiving unjustified benefits.

Goals and Achievements

Assessment Survey of Major Suppliers

	Number of suppliers surveyed^※
	From FY2022 to FY2024
Plastics field	14
Engineering plastics field	9
Medical business	5
Gunze Medical Limited	4
Apparel business	75
Textile materials field	12

In FY2022, the scope of surveyed suppliers was broad.
However, to standardize practices across business divisions, the scope of the survey was revised in FY2023 to include major suppliers that account for approximately 80% of the total amount of transactions. From FY2023, we received responses from almost all of the suppliers we asked to participate in the survey.

System We have established a Sustainability Committee and a Risk Management Committee, and are committed to realizing a sustainable society and maximizing corporate value through our business activities.

Sustainability Promotion System

Green Purchasing and Procurement We will conduct purchasing and procurement activities that contribute to global environmental conservation and reducing environmental impact.
We will promote green procurement that contributes to reducing environmental impact by adopting materials that do not contain harmful chemicals.

Gunze Group Sustainable Procurement Policy

The Gunze Group is committed to fulfilling its social responsibilities by complying with all applicable laws and regulations, while also globally promoting comprehensive Sustainable procurement practices integral to its environmentally conscious activities.
In collaboration with our suppliers and business partners, we seek to strengthen our Sustainable commitment across our entire supply chain, by meeting the requirements in the areas of the environment, labor conditions, and human rights, along with quality, pricing, and delivery schedule.
To this end, we will conduct surveys, inspections, and monitoring of our suppliers and business partners to assess their current status of Sustainable procurement across the supply chain as necessary. Should any nonconformance with our Sustainable procurement policy be discovered, and no corrective action taken, we will take the appropriate measures.

Our Sustainable Procurement Policy is as follows:
1. We provide all suppliers with fair and equal trade opportunities based on the principle of free competition, disregarding nationality, scale, or past trading performance.
2. When purchasing parts, materials, and/or services, we select suppliers based on criteria including quality, pricing, delivery schedule, environmental preservation, technological capabilities, business management system, and other factors, in a fair and ethical manner, and pursuant to related laws, regulations, and social norms both in and out of Japan.
3. We procure parts, materials, and services from suppliers in the most appropriate locations, selected from among those worldwide by maintaining a global perspective.
4. We conduct purchase and procurement activities that help preserve the global environment and lessen environmental impact. We also employ parts and materials that do not use any hazardous chemical substances in order to promote green procurement that contributes to the reduction of environmental harm.
5. While maintaining a high sense of ethics, we comply with all laws, regulations, and social norms related to procurement and purchase activities, as we seek to build a strong partnership with our suppliers.
6. We appropriately control and strictly protect any information we have obtained or accessed during purchasing transactions.

Established: January 2019
Revised: April 2021

Initiatives

For Fair and Equitable Transactions

At the Gunze Group, each business division makes arrangements to ensure that all of its business activities are conducted based on fair and free competition by observing laws and social rules and maintaining high standards of corporate ethics.

Attitude toward Antisocial Forces

The Gunze Group takes a firm stand against antisocial organizations and groups that threaten the public order and security.
We will refuse any of their demands, and will not have any interaction whatsoever with them.
In particular, we will hold firm on our policy of refusing any demands for money or gifts that infringe upon the Commercial Code, or donations, membership fees, purchase of books or other materials, or provision of information that may result in unjustified benefits.
In our relationships with suppliers as well, we have reviewed the Gunze Group Supplier Code of Conduct and updated it to include the provision regarding the elimination of antisocial forces in business contracts with suppliers.