Sustainability Management

Dexerials Group Sustainability Policy

At Dexerials Group, we define our raison d'être (purpose) in society is to provide essential materials, devices, and solutions that support the evolution of digital technologies, enhancing societal efficiency. By addressing social issues, we aim to expand our business and contribute to the realization of a sustainable society.
We believe that consistently achieving sustainable growth and enhancing corporate value toward this purpose while balancing economic and social value is the essence of the sustainability that Dexerials aspires for.

• 1．Value creation through businesses
  Rooted in our corporate vision “Value Matters,” we aim to contribute to the realization of a prosperous and efficient society by constantly providing unique and highly value-added products and solutions that are indispensable to the evolution of technology, balancing both economic and social value.
  For this, we will combine our business model, which is our strength, with various technologies that are the source of our value creation. In this way, we will strengthen technology for developing unprecedented products and solutions and human capital for creating new value.
• 2．Building the foundation for value creation
  We will sincerely address our ESG Key Issues to support value creation through business activities while reducing potential business risks. At the same time, we will seek to help realize a sustainable society and enhance our corporate value.

Environmental Policy

Dexerials Group is committed to conducting business and environmental conservation activities that create new value, with a focus on environmental responsibility and resource recycling to ensure the sustainability of all global ecosystems, societies, and Dexerials Group itself.
Guided by our Purpose, “Empower Evolution. Connect People and Technology.” and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  Dexerials Group strives to balance business activities with environmental conservation by practicing environmental responsibility and resource recycling, a goal which we strive to achieve by continuously improving our environmental management system.
  Through these efforts, we aim to conserve the global environment, coexist with society, and ensure sustainable growth.
• Scope of Application
  This policy applies to all officers and all workers engaged in the operations of Dexerials Group.
• Management and Supervision
  Dexerials Group pursues company-wide environmental initiatives under a governance structure approved by an environmental officer and overseen by an environmental management supervisor appointed by that officer.
  Each site establishes an Environmental Meeting to review activities and regularly reports progress to an environmental officer.
• Climate Change
  Dexerials Group has set targets for reducing greenhouse gas emissions by 2030 based on the Paris Agreement and international agreements reached at COP28.
  To achieve these targets, we enhance production efficiency and strengthen energy-saving measures, which include a shift toward smart factory operations. We actively seek to introduce renewable energy sources such as solar power generation and accelerate the transition to low-carbon fuels such as natural gas.
  To address the impact of global warming on people’s lives and ecosystems, we aim to contribute to achieving the international goal of carbon neutrality by 2050. We will do so through our technologies and products that support supply chain collaboration and drive technological advancement.
• Resource Recycling
  Dexerials Group works to ensure the efficient use of finite natural resources and the reduction of resource consumption through initiatives such as waste reduction, the use of renewable resources, and the recycling of plastics. These efforts help reduce our environmental impact and contribute to a sustainable society.
• Chemical Substances Management
  Dexerials Group ensures proper chemical substances management and compliance with laws and regulations to prevent or minimize negative impacts on the environment and human health. We also provide stakeholders with relevant and accurate information.
• Water Resource Conservation
  Dexerials Group recognizes the importance of water resources and works to ensure their efficient use, such as reducing water consumption and managing wastewater, to preserve these resources for future generations.
• Pollution Prevention
  Dexerials Group strives to reduce emissions of wastewater and air pollutants (such as SOx, NOx, and VOCs) generated by business activities through regular inspections and measurements.
  We strengthen our risk management systems, conduct equipment inspections, and provide education and training for all workers engaged in our operations to prevent environmental incidents. In the event of an incident, we respond promptly to minimize the impact.
  We also comply with environmental and chemical substance regulations in all countries and regions and work to ensure health, safety, and environmental protection throughout the product lifecycle.
• Biodiversity
  Dexerials Group prioritizes environmental and biodiversity conservation through initiatives addressing climate change, resource recycling, pollution prevention, and protection of the natural environment.

Human Rights Policy

Dexerials Group is committed to respecting human rights across its global operations and fostering an inclusive environment that empowers diverse talents. We expand opportunities for all workers engaged in our operations to grow and take on challenges.
We believe that building a corporate culture that respects all stakeholders and embraces diverse perspectives is essential in today’s world, where diversity and inclusion are increasingly expected. This principle serves as the foundation of Dexerials’ commitment to sustainability.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  
  Human rights are fundamental rights inherent to all individuals that cannot be violated and must be universally respected.
  As a global enterprise, Dexerials Group recognizes that respecting human rights is a critical responsibility.This Human Rights Policy has been established to foster a corporate culture in which all stakeholders are valued and diverse perspectives are embraced.
  
  Dexerials Group supports and respects the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises.
  We comply with applicable laws and regulations in all countries and regions where we operate.
  In cases of conflict between local laws and internationally recognized human rights, we seek ways to uphold international principles.
  
  We designate responsible officers to oversee the formulation and implementation of this policy and ensure its effective execution.
• Scope of Application
  
  This policy applies to all officers and all workers engaged in the operations of Dexerials Group.
  We also expect our business partners, suppliers, and stakeholders to understand and cooperate with this policy.
• Human Rights Initiatives in Business Operations
  
  Dexerials Group respects all human rights based on applicable laws and does not tolerate human trafficking, forced labor, or child labor.
  We prohibit discrimination based on race, religion, skin color, nationality/country of origin, age, gender, gender identity, sexual orientation, political opinions, ethnicity, social background, disabilities, marital status, pregnancy, or any other factor unrelated to legitimate business needs. We do not engage in conduct that undermines individual dignity, including sexual harassment or abuse of authority.
• Addressing Human Rights Issues
  
  Human Rights Due Diligence
  Dexerials Group has established a human rights due diligence framework to identify, prevent, and mitigate adverse human rights impacts through continuous assessment.
  
  Remediation and Corrective Action
  If our operations cause or contribute to negative human rights impacts, or if such impacts are linked to our business relationships, we will take appropriate steps to remedy and correct them.
  We maintain a secure and anonymous reporting system accessible to all workers engaged in the operation of Dexerials Group, ensuring confidentiality and fairness, and respond promptly to reported violations.
  Whistleblowers are protected from retaliation.
• Stakeholder Engagement and Education
  
  Information Disclosure and Dialogue
  We disclose the progress and outcomes of our human rights initiatives on our website and engage in dialogue with stakeholders.
  
  Education and Training
  Dexerials Group provides education and training to all officers and all workers engaged in our business operations to ensure this Policy is fully integrated into those operations. We also work with our business partners to foster understanding and encourage their active participation in human rights initiatives.

Occupational Health and Safety Policy

“Prioritize safety above all else” —Dexerials Group understands that safety is essential for creating new value and improving quality. We are committed to activities that ensure our business sites and manufacturing workplaces remain safe and hygienic.
We are also committed to promoting health and productivity management and to creating workplace environments where employees can realize their potential.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

Dexerials Group operates an occupational safety and health management system. We work across all business areas to strengthen our safety culture and prevent serious accidents and disasters. This reduces risks and incident frequency, helping ensure stable business operations.
We continuously engage in activities to understand domestic and international safety and health laws, ordinances, and regulations. We comply with all applicable requirements, ensuring safe and healthy business and manufacturing workplaces.

• 1.We conduct risk assessments and implement the following key activities:
  (1) Operational/equipment safety: We identify risks in on-site operations and equipment and ensure mitigation measures are implemented.
  (2) Work environment safety: We consistently execute countermeasures to mitigate hazardous substance risks and manage material flows to maintain and improve workplace environments.
  (3) Health management: We implement prevention and improvement activities, in accordance with the laws and regulations of the countries and regions where we operate, and the characteristics of our business operations, to address health issues related to remote work and excessive workloads, mental health, and measures for individuals with identified health concerns.
  (4) Traffic safety: We reduce traffic accidents through education and awareness raising initiatives.
  (5) Disaster prevention measures: We have established Business Continuity Management (BCM) that links the initial response with Business Continuity Plans (BCP) to protect lives, operations, and stakeholders.
• 2. We enhance safety and disaster prevention awareness and knowledge through practical operations, education, and training while developing human resources.
• 3. Regarding safety and disaster prevention, we actively cooperate with governments and local communities, facilitating participation and communication.
• 4. We have established an occupational safety and health management system under the oversight of responsible officers. We work to maintain and improve this system through information sharing, continuous improvement activities, as well as regular audits and reviews.
• 5. This Policy applies to all employees, temporary staff, and contractor personnel. We aim to achieve zero work related accidents and zero occupational illnesses.

Basic Procurement Policy

Dexerials Group is committed to fair, transparent, and sound procurement, building relationships of mutual trust with suppliers. Through these practices, we advance our business activities, contribute to the realization of a sustainable society, maximize customer value, and create shared prosperity.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Fair Business Practices, Transparency, and Equal Opportunities
  Dexerials Group conducts procurement based on fair business practices, transparency, and equal opportunity, founded on relationships of mutual trust with suppliers.
  “Fair business practices” mean conducting procurement in accordance with established policies and procedures.
  “Transparency” means avoiding arbitrary actions.
  “Equal opportunity” means providing suppliers with a level playing field, treating all suppliers fairly and equally.
• Compliance with Laws and Social Norms
  We comply with applicable laws, regulations, and social norms—including the Responsible Business Alliance (RBA) Code of Conduct—in all relevant countries, and we work with suppliers to contribute to society through responsible procurement.
• Partnership
  We value partnerships with suppliers to strengthen technological capabilities, ensure and improve quality, and achieve competitive pricing.
• Contributing to Global Environmental Conservation and a Sustainable Society
  In line with our Green Procurement Policy, we advance environmental management with suppliers to prevent climate change, conserve biodiversity, build a recycling oriented society, and prevent pollution, thereby contributing to global environmental conservation and the realization of a sustainable society.
• Respect for Human Rights and Consideration for Working Environments
  We respect international human rights standards and work to ensure that our procurement activities support our suppliers’ safe working environments.
• Prevention of Corruption
  We prevent corruption by prohibiting personnel engaged in procurement from accepting money, goods, or hospitality intended to influence—or that may influence—business decisions.
• Risk Management
  To ensure smooth transactions, the procurement department works to prevent and anticipate crises that could inhibit procurement operations.
  When situations occur—or may occur—that could have a serious impact on business operations (such as quality issues, supplier bankruptcy, disasters, or labor disputes), we share crisis management information with the procurement department, business unit, and other relevant departments, and promptly implement necessary risk avoidance measures.
• Handling Information
  We disclose appropriate information to suppliers and manage confidential information in accordance with our Code of Conduct and information-security policies and procedures to prevent information leakage.

Conflict Minerals Policy

Dexerials Group is committed to pursuing responsible mineral sourcing. We seek to avoid procuring minerals that may contribute to conflicts, human rights abuses, or environmental destruction in conflict affected and high risk areas (CAHRAs), and to implement sustainable and responsible procurement across our entire supply chain.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  Dexerials Group recognizes the risk that mineral extraction in the Democratic Republic of the Congo (DRC) and its neighboring countries may contribute to the financing of local armed groups, human rights abuses—including forced and child labor—and environmental destruction. We pursue responsible procurement by seeking to avoid the use of raw materials and components that may be linked to these risks.
• Compliance with Laws and Social Norms
  We work with all Dexerials Group officers and workers engaged in our operations, as well as our suppliers, to support compliance with applicable laws and social norms and contribute to society.
• Information Management and Partnerships
  For the raw materials and components we procure, we obtain reliable information at the selection stage. We verify the traceability of target minerals contained in our products and disclose appropriate information to our customers.
• Management System
  For target minerals, we maintain a management system designed to align with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from conflict affected and high risk areas. We also conduct mineral surveys with our raw material suppliers using the Conflict Minerals Reporting Template (CMRT) provided by the Responsible Minerals Initiative (RMI).

Anti-Corruption Policy

Under our corporate philosophy of “Integrity—Have Integrity and Sincerity,” Dexerials Group operates globally and complies with applicable laws and regulations in each country and region in which we operate. We conduct fair, impartial, and sound transactions. We work proactively to prevent corruption, including bribery and other acts that may constitute such behavior, and strive to maintain the trust of all stakeholders.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  Dexerials Group complies strictly with the laws and regulations of each country and region where we operate.
  We absolutely do not tolerate any direct or indirect involvement in corrupt practices or bribery.
  We comply with Japan’s Criminal Code and Unfair Competition Prevention Act, the United States Foreign Corrupt Practices Act (FCPA), the United Kingdom Bribery Act 2010, China’s Criminal Code and Anti-Unfair Competition Law, and other bribery-related laws and regulations in each country.
  Local social practices or customs do not justify corruption, bribery, or other violations of this Policy.
• Anti-Corruption Framework
  This Policy is overseen by the Board of Directors. We ensure all Dexerials Group officers, employees, and other relevant parties (including suppliers and agents) are fully informed of this Policy and that we establish the necessary frameworks to prevent corruption.
  Dexerials Group designates an officer responsible for implementing this Policy who is accountable for its effective execution.
• Scope of Application
  This Policy applies to all officers and all workers engaged in the operations of Dexerials Group.
• Definition
  "Corrupt acts" refer to any actions in which a person engaged in business abuses their own or a third party’s authority or position to distort sound business judgment or for the purpose of obtaining improper benefits. Examples include bribery, embezzlement, coercion to provide benefits, and bid rigging.
  “Bribery” refers to providing a benefit to another party for the purpose of obtaining favors in relation to their duties.
  Counterparties include public officials and government personnel—including former officials and quasi public officials, collectively “public officials”—as well as customers and suppliers.
  Benefits include money, goods, meals, travel, entertainment (such as attending sporting events or performances), and favors such as job placements or referrals.
• Anti-Corruption Commitment
  We do not provide money to public officials, government personnel, customers, or suppliers to obtain favorable business treatment.
  We neither offer nor accept hospitality or gifts that exceed reasonable limits or could call fairness into question.
• Response
  Should any situation contrary to anti-corruption principles arise in our business activities, we promptly and appropriately investigate the facts, impose disciplinary measures based on internal regulations, and take corrective action.
  To prevent corruption, we have established a Compliance Department to ensure fair and impartial operations.
  When providing hospitality or gifts, we clearly identify the recipient, purpose, and details, and obtain the necessary internal approvals in advance.
  When hospitality or gifts have been provided, we properly retain supporting documentation, prepare appropriate records, and process expenses accurately and completely under the correct expense categories.
  We decline any offers of hospitality or gifts from suppliers when there is a risk that they could distort fair business judgment.
• Education and Training
  We provide regular education and training for our officers and employees to enhance ethical awareness and to ensure the proper operation of our anti corruption framework. We continue these programs on an ongoing basis.

Tax Policy

Dexerials Group upholds the corporate philosophy of “Integrity—Have Integrity and Sincerity.” This philosophy serves as the foundation for all our corporate activities.
Practicing compliance is a key social responsibility and a core element of our management philosophy, and it is essential to the enhancement of corporate value.
Under our corporate philosophy, we strengthen tax governance based on applicable laws, social norms, and internal regulations (including this Policy). By fulfilling our tax obligations, we contribute to the development of the communities in which we operate and act with integrity as a responsible company.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  Dexerials Group recognizes that complying with applicable tax laws in all countries and regions in which we operate and paying appropriate taxes are core social responsibilities as a corporation.
• Scope of Application
  This Policy applies to all officers and employees of Dexerials Group.
• Compliance with Laws and Regulations
  Dexerials Group complies with applicable tax laws in each country in which we operate, as well as international tax rules. Taking into account the spirit and intent of these laws, we pay appropriate taxes in the appropriate jurisdictions based on the value generated through our business activities.
• Addressing Tax Risks
  Dexerials Group appropriately identifies, evaluates, and manages tax risks, while taking into account materiality and reasonableness.
  In instances where tax laws are unclear, subject to multiple interpretations, or involve significant uncertainty, we consult external experts and seek advance rulings from tax authorities as necessary to ensure appropriate control of tax risks.
• Governance
  Responsibility for Dexerials Group’s tax governance rests with the Finance Director.
  Under the oversight of the Finance Director, our finance and accounting division establishes and operates a framework for proper tax processes.
• Tax Planning
  Dexerials Group utilizes applicable tax incentives within the scope of its business activities that align with operational objectives and/or commercial rationale.
  We do not engage in tax planning that lacks a bona fide business purpose and is undertaken solely to reduce tax liabilities.
  We also do not misuse tax havens for tax avoidance or engage in improper use of tax structuring.
• Transfer Pricing
  For cross-border, intra-group transactions, we set appropriate prices calculated in accordance with the arm’s length principle, based on the OECD Transfer Pricing Guidelines and the tax laws and regulations of each country.
• Relationship with Tax Authorities
  Dexerials Group maintains an open and transparent relationship with tax authorities.
  We cooperate as much as possible in disclosing information and explaining our tax policies and the rationale for our transactions in response to requests from tax authorities.

Information Security Policy

Dexerials Group regards information security as a key social responsibility and an essential element of its Purpose and Corporate Philosophy. It is critical for sustainable growth and the enhancement of corporate value.
We uphold high standards of corporate ethics in information security and ensure that our information assets are protected from all threats. These assets include confidential and personal information entrusted to us by customers and suppliers and those safekept by Dexerials Group, as well as systems used to manage and protect such information and to control our facilities and products.
Guided by our Purpose, "Empower Evolution. Connect People and Technology." and our Sustainability Policy, we address key medium- to long-term issues from an Environmental, Social, and Governance (ESG) perspective.

• Basic Approach
  As a corporate group that creates new and unique value to support customer manufacturing operations, Dexerials Group is committed to maximizing customer value and to becoming a trusted partner.
  Recognizing that ensuring information security is a key management priority, we have established this Information Security Policy to maintain and continually improve our Information Security Management System (ISMS).
• Scope of Application
  This Policy applies to all information assets owned and managed by Dexerials Group.
• Management and Supervision
  We appoint a Chief Information Security Officer (CISO) and establish the Information Security Management Secretariat (ISM Secretariat) as our central governing organization for information security. This structure defines clear roles and responsibilities for operating our Information Security Management System (ISMS) and implementing appropriate security measures.
• Response
  We develop and maintain internal regulations in accordance with this Policy and the Global Information Security Policy, which clearly define rules for the handling of personal information and all information assets. We communicate our strict stance against information leaks both internally and externally.
  We provide regular education and training for all officers and all workers engaged in our operations to ensure the thorough implementation and continual improvement of information security efforts.
  In the event of an information security incident or early warning signs, we respond promptly, resolve the issue, investigate the cause, implement corrective actions to prevent recurrence, and disclose information accurately without delay.