HORIBA Procurement Policy

We consider the global environment and local communities, valuing cooperation and relationships of trust with our suppliers based on fair transactions. To strengthen ties with domestic and international suppliers, we aim to grow together with our business partners by actively managing our supply chain and maintaining open communication.

1. Partnerships
   We build long-term confidential relationship based on mutual cooperation, co-existence, and co-prosperity.
2. Open and fair transactions
   We enhance domestic and international relationships, making appropriate and independent selections that focus on quality, delivery, cost, environmental response, and promoting open and fair transactions.
3. Environmental concerns
   We establish the “Green Procurement Guideline” and promote the procurement of environmentally friendly components and materials.
4. Confidentiality of information
   We will never release confidential information obtained 　in the course of transactions without the consent of our suppliers and/or customers.

In order for the HORIBA Group to fulfill its social responsibilities in business activities, carried out through the supply chain, we request that our suppliers abide by the following rules.
In the event of a serious violation, we will consider our business relationship and respond appropriately.

1. Advance of procurement activities with consideration for sustainability
   1. Compliance with relevant laws and regulations
      Suppliers must comply with laws, regulations, and social norms applicable in the countries and regions where they engage in business.
   2. Human rights and labor
      - Prohibit forced labor, child labor, discrimination, and inhumane treatment.
      - Respect life and safety, individual freedom and freedom of association.
      - Recognize the right to collective bargaining.
      - Provide appropriate wages, working hours and holidays.
      - Procure mineral resources in accordance with the "Responsible Procurement of Mineral Resources".
   3. Health and Safety
      - Ensure the health and safety of workplaces, facilities, and employees.
      - Respond appropriately to emergencies such as disasters or accidents.
      - Prevent occupational accidents and illnesses.
      - Consider the impact of physically demanding tasks.
      - Implement safety measures for machinery and equipment.
   4. Environmental considerations
      - Manage hazardous substances and solid waste appropriately.
      - Treat atmospheric pollutants before emission and prevent water pollution associated with water use and discharge.
      - Reduce and disclose energy consumption and greenhouse gas emissions.
      - Follow the HORIBA Group’s Green Procurement Guidelines to provide parts and materials with minimal environmental impact.
   5. Fair trade ethics
      - Prohibit the abuse of dominant positions, corruption, and bribery, the improper provision and receipt of benefits, and anti-competitive practices such as cartels and collusion.
      - Protect the anonymity of internal reporting and prohibit retaliation.
      - Respect intellectual property.
      - Enforce appropriate export controls.
      - Provide accurate products and services.
      - Disclose information appropriately.
   6. Information security
      Protect confidential information obtained through transactions.
   7. Exclusion of anti-social groups
      Do not do business with companies that have relationships with anti-social groups.
2. Stable supply of good-quality products by deadlines
   Provide a stable supply of products of the specified quality by the deadline, and follow appropriate change control procedures, including the suspension of production and changes in specifications.
3. Promotion of cost reduction (VA/VE activities)
   Reduce costs through ongoing cost reduction activities.
4. Promotion of reduced lead times
   Reduce lead time quickly and flexibly in response to market changes.
5. Stable management
   Maintain healthy and stable business management for long-term transactions and disclose business policies and management status.
6. Technical skills
   Make steady efforts to improve skills and to create innovative technologies.
7. Promotion of the use of IT
   Prepare IT environments and promote the use of IT.
8. Management systems
   To ensure proper operation, introduce, and establish management systems, notify the supply chain of these requirements, and encourage compliance with the aforementioned items.

Reference
In formulating these requirements, the following standards have been referenced:

Responsible Business Alliance (RBA) Code of Conduct