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  5. FANCL Group Sustainable Procurement Policy

Sustainability

FANCL Group Sustainable Procurement Policy

Based on our founding philosophy of eliminating ‘negatives’ with a sense of justice, FANCL Group works with its trading partners to provide reliable, safe, and high quality products and services to customers.
In 2013, FANCL Group signed the United Nations Global Compact, whereby we conduct business with a focus on the issues facing the world.
In addition, to contribute to the achievement of the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015, we will continue to work together with our trading partners to build relationships of coexistence and coprosperity through procurement that takes the global environment, human rights, labor, and other issues into consideration.

1. Compliance with laws, regulations and social norms

FANCL Group operates in compliance with all relevant laws and regulations (including antitrust laws, commercial laws, occupational health and safety laws, subcontracting laws, foreign exchange laws, personal information protection laws, copyright laws, and portrait rights in each country and region).
We also operate in compliance with social norms (laws and regulations concerning child labor, forced labor, prohibition of discrimination, consideration for human rights, and working hours).

2. Consideration for the environment

FANCL Group strives to reduce climate change risk throughout the process of procuring raw materials, indirect materials, and services, and in our research and development, production, and sales activities. We actively promote initiatives to reduce environmental impact, including environmental conservation and the reduction of water consumption.
In our procurement activities, we recognize the importance of environmental conservation and procure raw materials, indirect materials, and services with low environmental impact, including reducing hazardous chemical substances.
In addition, we work to improve and strengthen the operation of our environmental management systems.

3. Sound business management continuity

To maintain trade continuity, it is important that business management conditions are sound. We disclose our management policies, business conditions (including financial conditions), and corporate philosophy, and report our activities with a high degree of transparency.

4. Setting fair prices

Under our policy of providing reliable, safe, and high quality, we strive to provide quality products to our customers at reasonable prices.

5. Securing safe and reliable delivery and establishing a stable supply system

In order to ensure a continuous supply of products to our customers and to respond to sudden changes in supply and demand, we strive to ensure reliable delivery and the establishment of a stable supply system for products.

6. Improving our technical capabilities

"Can Achieve More" is our corporate philosophy. We always put ourselves in our customers' shoes and and work to continuously improve our technical capabilities in order to provide superior products that will bring happiness to our customers.

7. Confirmation of compliance

FANCL Group asks trading partners to respond to questionnaires, and submit related materials, etc., in order to confirm that they are complying with the Code of Conduct. We appreciate the understanding and cooperation of our trading partners.

February 1, 2018
FANCL Corporation

Trading Partner (Supplier) Guidelines

The Trading Partner (Supplier) Guidelines are a set of seven guidelines based on the FANCL Group Sustainable Procurement Policy that we expect our suppliers to follow. We ask that suppliers understand the contents of these guidelines and act in compliance with the initiatives.
We also request that our suppliers require their own contractors and suppliers to comply with this guideline as well.

Basic policy Matters requiring compliance

1. Compliance with laws, regulations and social norms

1. Prevention of corruption

1. Prohibition of corruption and bribery
2. Elimination of relationships with antisocial forces

2. Information security

1. Prevention of leakage of confidential information of customers and third parties
2. Protection of personal data and privacy
3. Protection against computer network attacks

3. Respect for human rights and prohibition of discrimination

1. Prohibition of any form of discrimination
2. Prohibition of forced labor
3. Prohibition of child labor
4. Prohibition of harassment
5. Respect for indigenous rights

4. Improving the working environment and maintaining health

1. Responsible labor practices
2. Respect for freedom of association and the right to collective bargaining
3. Fair and proper application of working hour management, rest breaks and paid leave
4. Securing of minimum wage

2. Consideration for the environment

1. Environmental management initiatives

1. Establishing and maintaining systems for environmental management and improving operation

2. Sustainable use of biological resources

1. Proactive use of certified raw materials
2. Compliance with laws and regulations on biological resources that lead to environmental destruction
3. Efforts to reduce impact on and preserve biodiversity

3. Sustainable use of water resources

1. Reduction of water consumption
2. Proactive promotion of water-saving and waterless products

4. Sustainable use of resources

1. Promotion of energy and resource conservation initiatives
2. Ongoing efforts to reduce waste
3. Cooperation with de-plasticization of containers and materials

5. Response to climate change

1. Reduction of CO2 emissions

6. Pollution prevention and regulatory compliance

1. Prevention of pollution and health hazards
2. Thorough management of hazardous chemicals

3. Sound business management continuity

1. Confirmation of business management conditions

1. Fair and transparent corporate management and business continuity

4. Setting fair prices

1. Fair competition

1. Healthy competition under fair and equal conditions

2. Prohibition of acts restricting competition

1. Prohibition of cartels and fair price quotations

3. Safety, reliability and quality

1. Provision of safety and quality

4. Coexistence and coprosperity with trading partners

1. Building relationships of mutual growth and development

5. Reliable delivery and stable supply

1. Efforts to ensure a stable supply
2. Quality management initiatives

1. Establishment of a stable supply system for raw materials, indirect materials, and services
2. Development and operational enhancement of quality management systems

6. Improvement of technical capabilities

1. Confirmation of continuous improvement of technical capabilities

1. Superior technological innovation and advanced services
2. Understanding of our company's commitment to eliminating negatives with a sense of justice.

7. Confirmation of compliance

1. Implementation of questionnaire

1. Confirmation of compliance with guidelines

February 1, 2021
FANCL Corporation
President and CEO, Representative Director
Kazuyuki Shimada

Sustainability

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