Group Sustainable Procurement Policy

Procurement Philosophy

Bestex Kyoei Co., Ltd. and its affiliates (hereinafter "the Group") enforce fair and equitable transactions with all suppliers in procuring materials and components that excel in quality, technology, cost, and environmental performance. Respecting our suppliers as valued business partners with whom we continuously grow and prosper, we aim to be a corporate group trusted by society through rational procurement activities grounded in legal compliance and contractual fulfillment.

Scope of Application

This Policy applies to all procurement activities conducted by the Group. It covers all Group locations worldwide and encompasses suppliers involved in all products and services.

Implementation Framework

To ensure the effectiveness of this Policy, implementation and execution managers in each department—under the supervision of the Executive Committee—collaborate closely with procurement and other relevant divisions to drive this Policy forward.

Basic Principles

1. Compliance with Laws and Regulations

We comply with the laws, social norms, and international guidelines of each country related to purchasing transactions. Furthermore, we act with high ethical standards in accordance with internal corporate standards.

2. Fair and Equitable Transactions

The Group seeks business opportunities with suppliers broadly, both domestically and globally. In selecting business partners, we conduct fair transactions on an equal footing by comprehensively evaluating quality, technology, price, and delivery, alongside management stability, environmental and social considerations, and a commitment to continuous improvement.

3. Promotion of Eco-Friendly Procurement

To reduce environmental impact, we prioritize purchasing eco-friendly materials and components from suppliers who actively engage in environmental preservation.

4. Respect for Human Rights and Working Conditions

We promote procurement activities that respect human rights, aim to eliminate child labor and forced labor, prohibit discrimination and harassment, maintain proper working conditions, and ensure health and safety.

5. Proper Information Management

We strictly enforce confidentiality under a robust management system for all confidential information and personal data acquired through procurement activities.

6. Ensuring Quality and Safety

Together with our suppliers, we strengthen quality assurance systems through thorough education and continuous improvement initiatives, delivering valuable products and services that respond promptly to customer and societal needs.

7. Building Mutual Trust with Suppliers

We promote close communication with our suppliers and carry out procurement activities built on mutual trust.

8. Expectations for Suppliers

• 1) Maintain sound financial and operational health to ensure stable, long-term business relations.
• 2) Comply with the laws, social norms, and ethical standards of each country.
• 3) Establish clear policies on environmental issues, striving to reduce environmental impact and advance green technology.
• 4) Respect human rights, establish appropriate working environments, and foster talent development.
• 5) Build competitive pricing, superior quality, and reliable, on-time delivery systems.
• 6) Develop and maintain a Business Continuity Plan (BCP) to prepare for unforeseen disruptions.
• 7) Establish robust information security systems to uphold strict confidentiality.
• 8) Cooperate with information disclosure requests as necessary to verify compliance with this Policy.
• 9) Actively engage in social contribution activities as a good corporate citizen.