Basic Policies on Procurement

1. Legal Compliance

We will conduct our business transactions in compliance with all relevant laws and regulations of the country or region in which we are doing business.
We also require that our business partners comply with those laws and regulations.

2. Openness

We intend to purchase materials from a broad range of sources, be they in or outside of Japan, in order to purchase high-quality, economical and safe materials as per appropriate schedules of delivery.

3. Fairness, Impartiality, and Transparency

We select suppliers in a fair, impartial, and transparent fashion based on economic rationality and in all-around consideration of not only compliance with laws and regulations but also quality, price, delivery time, green procurement activities, management condition, etc.

4. Social Responsibilities

We strive for procurement of materials with consideration for human rights, labor, safety and health, the environment, ethics, and other matters.
We give priority to selection of suppliers who implement initiatives that promote these activities, and we support those initiatives in any way we can.

5. Partnerships

We aim to build relationships of mutual trust with our suppliers and realize mutual prosperity through fair transactions.

• ESPEC CORP. Standard Terms and Conditions of Purchase

ESPEC Sustainable Procurement Guidelines

To achieve the goal of sustainable procurement, We has adopted ESPEC Sustainable Procurement Guidelines.
We will work to observe these Guidelines throughout the supply chain in our production activities, and will endeavor to expand and improve understanding of these Guidelines in the supply chain.

ESPEC Sustainable Procurement Guidelines

Responsible Mineral Procurement Policy

At ESPEC, we are committed to ensuring transparency in our supply chain in order to provide reliable information to our customers. We strive to avoid the use of conflict minerals (tin, tantalum, tungsten, gold) and minerals considered high risk, such as cobalt, which may be used to finance armed groups involved in civil wars and conflicts resulting in serious human rights abuses. Should any such minerals be found in any of our parts or other components, we will take appropriate action.

We recognize the importance and significance of the US Financial Regulatory Reform Act (Dodd-Frank) Section 1502 and the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict and High-Risk Areas. These regulations aim to restrict or prevent trade of conflict minerals and other minerals originating from conflict and high-risk areas, and to cut off sources of funding for armed groups that commit human rights abuses and other violations. We take the impact of our business activities on society and the environment seriously and are committed to fulfilling our corporate social responsibility.

ESPEC does not directly source conflict minerals or minerals considered high risk from metal smelters or other sources in conflict zones. However, due to their nature, metals refined from these minerals are commonly used in manufacturing and may be present in parts and components used in our products. To mitigate this risk, we use internationally recognized tools such as the Conflict Minerals Reporting Template (CMRT) provided by the Responsible Minerals Initiative (RMI) to identify potential issues. We also ask that our suppliers procure minerals only from smelters compliant with the Responsible Minerals Assurance Process (RMAP).

(Developed January 26, 2024)