Supply Chain

Guided by the "Sumitomo Spirit"—which upholds the principles of "Banji-nissei," "Shinyo-kakujitsu," and "Fusu-furi" and based on its Corporate Philosophy, the Sumitomo Riko Group aims to enhance both corporate and social value through high ethical standards and autonomous, responsible conduct.
Furthermore, based on "Sumitomo Riko Group Corporate Action Charter"—which establishes this philosophy as concrete action guidelines—we ensure thorough legal compliance and promote business activities that are considerate of society and the environment, thereby contributing to the realization of a sustainable society in harmony with society and the planet.
We publicly declare to all stakeholders—both internal and external—our commitment to conducting business operations in accordance with these principles and our Corporate Action Charter. We place a high priority on compliance in our procurement activities, implementing sustainable practices that take human rights and the global environment into consideration. Furthermore, to respond swiftly to risks such as natural disasters and shifts in the international landscape, we are strengthening our risk response capabilities—centered on Business Continuity Planning (BCP)—and are working to build a resilient CSR procurement framework.
Based on the principle that we stand on equal footing with our business partners and work together collaboratively, we conduct transactions with fairness and high transparency, and faithfully fulfill our promises and contracts.

1. Promoting procurement activities that contribute to creative and global business operations
2. Promoting fair and impartial procurement activities
3. Promoting procurement activities based on compliance
4. Promoting procurement activities based on mutual trust and cooperation with business partners
5. Promoting procurement activities that take the global environment into consideration

We strive to ensure transparency by asking our business partners to cooperate with us—for example, by contacting our Compliance Hotline if they become aware of any inappropriate conduct in our procurement activities.

1. We select business partners in accordance with our internal procurement regulations. (We do not select or support specific suppliers based on the personal discretion or arbitrary decisions of our employees.)
2. We will act fairly when establishing transaction terms and providing information to business partners.
3. We exercise due care in managing the confidential information of our business partners and will not use it for any purpose other than procurement activities.
4. We will neither accept nor solicit the provision of benefits—such as gifts or entertainment—from business partners that exceed the bounds of social propriety.
5. Should any employee violate the above provisions, we will take strict disciplinary action in accordance with the Company’s employment regulations.

To promote CSR procurement in close cooperation with our business partners, Sumitomo Riko has issued the "Sumitomo Riko Group Supplier CSR Guidelines." Through these guidelines, we communicate our philosophy and specific code of conduct regarding CSR procurement, aiming to ensure its thorough implementation across the entire supply chain.
In addition, we have established a "CSR Sustainability Committee" to drive the strengthening of key CSR procurement initiatives throughout the Group.

(1) Supply chain strengthening
(2) Laws, regulations, and contracts
(3) Crisis management
(4) Education and awareness-raising

We will strengthen the foundation for implementing and managing CSR procurement by centrally managing information regarding our business relationships and enhancing two-way communication with our business partners—including through the use of CSR questionnaires.

In March 2022, we formulated and published a "Declaration of Partnership Building," an initiative promoted by the Cabinet Office, the Small and Medium Enterprise Agency, and others. In accordance with this declaration, we are committed to fostering collaboration and mutual prosperity with our supply chain partners and working to enhance the value-added of the entire supply chain.

To promote CSR procurement in partnership with our business partners, we have established "Supplier CSR Guidelines" that reflect the demands of the times and are actively communicating them to our partners. In parallel, we periodically conduct "CSR Questionnaire*" to encourage our partners to self-assess their compliance with social responsibilities and codes of conduct, allowing us to gauge the extent to which CSR procurement practices have been adopted.
Through these activities, we communicate our CSR procurement policy across the entire supply chain; for suppliers requiring improvements, we conduct inquiries—such as through meetings and site visits—and provide support in close collaboration with them.
By engaging in these activities, we deepen communication with our suppliers and work to strengthen the supply chain.

*CSR Questionnaire
Based on the "Supplier CSR Guidelines," we verify items such as quality and product safety, business continuity planning (BCP), and environmental considerations (greenhouse gas reduction, resource circulation, chemical substance management, etc.), as well as human rights and labor practices (prohibition of forced and child labor, working hours and wages, occupational health and safety, etc.), legal compliance, fair business practices, and information security.

Status of CSR Questionnaire Implementation (Cumulative)

	Results (Cumulative): 2017–2025
Scope and Number of Business Partners	Domestic (Non-consolidated): 465 companies (90% of procurement value) Domestic Group: 230 companies (same as above) Overseas Group: 359 companies (same as above)

We conduct business activities that meet customer requirements while responding to globalization, complying with the laws of each country and region, and respecting international norms, including those regarding human rights.

We are committed to procurement practices that adapt to changing environmental regulations worldwide; this includes issuing "Green Procurement Guidelines" that clearly define "prohibited substances" and "monitored substances" based on customer requirements as well as the laws and regulations of various countries, and holding regular briefings for relevant business partners.

Our Group uses over a dozen types of raw rubber globally; natural rubber accounts for more than 40% of this total, and we source it primarily from Southeast Asia.
Recognizing the impact that natural rubber harvesting and logging have on human rights and the environment, and aiming to ensure traceability and sustainable procurement while maintaining a stable supply of high-quality products for the future, we joined the Global Platform for Sustainable Natural Rubber (GPSNR) in July 2022.
Subsequently, in 2023, we formulated a "Sustainable Natural Rubber Sourcing Policy" that incorporates the elements of the policy framework approved at the GPSNR Annual General Meeting in September 2020. Reports on our activities aligned with GPSNR policies are available on the organization's official website.
We also conducted audits of three suppliers—located in Indonesia, India, and Thailand—in 2023, and of one supplier in Thailand in both 2024 and 2025, confirming the absence of issues regarding labor practices, human rights, health and safety, and environmental conservation.
We will continue to conduct ongoing audits in collaboration with our overseas sourcing partners.

In the Democratic Republic of the Congo (DRC) and neighboring countries, section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act came into force with the aim of stopping armed groups engaged in abuse of human rights from funding through the sale of certain minerals in 2012. This would impose reporting requirements to the U.S. Securities and Exchange Commission (SEC) on U.S.-listed companies that use the 3TG (gold, tantalum, tin, and tungsten), which are designated as conflict minerals. We conducted a survey to ascertain usage of such minerals by our Group companies and our suppliers. The survey indicated that a number of tin, tantalum, and tungsten compounds are used in our production processes, but that production and trade of none of them have contributed to conflict financing.
Furthermore, we have expanded the scope of our investigation to include minerals other than the 3TG (cobalt and mica) and high-risk areas (CAHRAs) outside the DRC and neighboring countries, and we will continue to investigate and, with the cooperation of our business partners, respond to customer reporting in good faith.

We will work to expand our supplier data to further strengthen our global risk management framework.

Sumitomo Riko maintains a database of basic information on its global suppliers and is continuously building the infrastructure needed to rapidly gather and disseminate information in the event of disasters, such as earthquakes. We have established a system to manage information on suppliers of key raw materials and facilitate timely communication during disasters; this system enables us to share information and request status updates regarding potential supply disruptions, allowing us to implement measures ranging from rapid initial responses to subsequent recovery actions. We are also working to expand our database to include information on secondary and further-tier suppliers.
Furthermore, we are strengthening supply chain crisis management by sharing information with our business partners regarding cyberattacks involving ransomware—the risk of which has risen in recent years—as well as fire prevention measures and geopolitical risks.
Moving forward, we will continue to strengthen our response capabilities by advancing the establishment of a global Business Continuity Plan (BCP) framework in cooperation with our business partners.

Regarding procurement compliance, we continuously conduct education and awareness-raising activities across the Group—utilizing training sessions and e-learning—to enhance understanding and foster greater awareness.

The Sumitomo Riko Group has established procurement regulations in Japanese, English, and Chinese; we ensure strict adherence to these regulations, particularly at overseas bases, through regular meetings with those bases and conferences involving procurement managers. Domestically, to ensure compliance with the Act on the Promotion of Fair Subcontracting to Small and Medium-Sized Enterprises, the procurement division conducts training and awareness programs tailored to specific departments and organizational levels.
In addition, we implement periodic e-learning for all employees to further improve understanding and raise awareness.