Basic Procurement Policy

At Meiko, we have established a Basic Procurement Policy as a guide to help our business partners understand our CSR and environmental policies, and we are working to promote CSR through a cooperative system among companies, including strengthening our efforts to protect and respond to the environment.

Basic Procurement Policy

Meiko continues to promote procurement activities based on the "Basic Procurement Policy" and "Purchasing Transaction Guidelines" below. As a fundamental concept, we believe that a consistent supply chain is required from suppliers, from parts procurement to production, logistics, and sales. At Meiko, we believe that the most important aspect of procurement activities is building mutual trust with our suppliers and establishing win-win relationships that foster mutual prosperity. We strongly promote the practice of CSR throughout our supply chain by selecting suppliers based on a comprehensive assessment of factors including: 1) understanding of the Basic Procurement Policy; 2) compliance with laws and social norms; 3) environmental protection; 4) exclusion of anti-social forces; and 5) quality, delivery time, price, management, and business continuity in the event of an accident or disaster, based on the RBA (formerly EICC) Code of Conduct.

Basic Procurement Policy

1. Optimal procurement activities in line with our global production system based on our purchasing transaction guidelines
2. Smooth, fair, and appropriate procurement activities through strengthened communication and cooperation with business partners
3. Strengthening environmental response (response to chemical substances/green procurement)
4. Promoting the elimination of conflict minerals and the employment of young workers based on the RBA

Purchasing Transaction Guidelines (Excerpt)

1. We recognize that purchasing is a profit-generating department and will always actively contribute to business management.
2. Always respect etiquette, maintain moderation with honesty as the goal, and strive to gain the respect and trust of our business partners as members of society.
3. Comply with relevant laws and regulations and conduct business fairly and honestly.
4. When selecting materials, etc., we will fully understand the purpose of green procurement and actively promote environmental conservation activities.
5. Not having any personal interests with business partners or prospective business partners.

Requests to business partners and partner companies

At Meiko, we are working with over 800 business partners and partner companies to ask for their understanding and cooperation in the following environmentally friendly initiatives, based on our basic procurement policy of "environmental responsiveness." In addition to reducing greenhouse gas emissions, reducing waste, and managing specific chemical substances in our internal production activities, we also ask our business partners and partner companies to promote and propose green procurement, and to also consider the global environment in their logistics and sales activities. Specifically, we have established purchasing risk management standards and are conducting purchasing audits to minimize procurement risks, conflict mineral surveys using the BRA standard format, youth worker employment surveys, and environmental response surveys in line with the latest revisions of REACH regulations.

1. Promoting green procurement, complying with green procurement standards, and providing information on "eco-products"
2. Cooperation in stopping idling
3. Waste reduction
4. Cooperation regarding emergency contact

Internal Control and Compliance

At Meiko, we comply with the following items in our purchasing and procurement activities to ensure smooth business operations with our business partners. In Japan, we comply with the Act against Delays in Payment of Subcontract Proceeds, etc. to Subcontractors, and in global procurement, we comply with customs laws, the laws and regulations of each country and region, and social norms. We also conduct in-house training and compliance checks to strengthen and promote fair and sustainable transactions with our business partners.

1. We comply with laws and regulations related to purchasing and procurement activities and conduct fair and impartial business with our business partners.
2. We will maintain the confidentiality of information about business partners obtained through purchasing and procurement activities, and strengthen our information security system to prevent the leakage of confidential information and personal information.
3. We will accept entertainment and gifts from business partners within the bounds of socially accepted standards, and prohibit the exchange of gifts or entertainment that constitutes personal gain.
4. We will eliminate anti-social forces, conflict mineral procurement, and juvenile labor.

Green Procurement

At Meiko, we promote environmentally friendly purchasing and procurement activities with our business partners based on our "Environmental Standards."

1. We strive to maintain and improve the environmental quality of our products by checking compliance with laws and regulations (RoHS Directive, ELV Directive, REACH Regulation) and the inclusion of environmentally hazardous substances, and by promoting the procurement of compliant products.
   1. RoHS Directive: EU restrictions on the use of certain hazardous substances in electronic and electrical equipment
   ② ELV Directive: A directive enacted in the EU to reduce the environmental impact of end-of-life vehicles.
   3. REACH Regulation: EU law for the protection of human health and the environment
   ④ JIG (1-R): Legally restricted substances in the guidelines for disclosure of information on chemical substances contained in electrical and electronic equipment products
   ⑤ Customer Standards
2. We are promoting the conclusion of "Memorandums on Environmental Protection" and "Guarantees for Non-Use of Environmentally Hazardous Chemical Substances" to promote environmental protection efforts with our business partners. We are working to conclude these agreements with our major business partners, including outsourced processing manufacturers.
3. We strive to reduce industrial waste emissions and work with our business partners to recycle resources and turn them into valuable resources.

RBA-based Procurement Policy

The RBA (Responsible Business Alliance, formerly the EICC Electronics Industry Code of Conduct) sets out standards to ensure that working conditions are safe, that workers are treated with respect and dignity, and that manufacturing processes are responsible for the environmental impact of the electronics industry supply chain. Meiko will continue to fulfill its social responsibilities while maintaining win-win relationships between both parties and its suppliers.

Conflict-Free Procurement Policy

In August 2012, the U.S. Securities and Exchange Commission (SEC) adopted implementing rules for the conflict minerals provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This led to the launch of a specific investigation into minerals (gold, tin, tungsten, and tantalum) produced in the Democratic Republic of the Congo and its adjoining countries whose distribution revenues are of concern as causing human rights violations and environmental destruction. Meiko promotes the elimination of conflict minerals from its supply chain. Our Conflict-Free Procurement Policy stipulates that we will eliminate the procurement of materials containing conflict minerals by conducting surveys based on the EICC/GeSI questionnaire, disclosing responses, and following up on those responses.