Supplier Sustainability Guidelines

Cataler Supplier Sustainability Guidelines

Through the provision of its products and services, Cataler hopes to contribute to the creation of a livable planet and an affluent society by ensuring environmental management on a global scale, and contributing to the realization of a sustainable society.
Therefore, we would like to ask all of our suppliers to make efforts to promote and spread the following initiatives within their companies.

1. Compliance

[Compliance with laws and regulations and their spirit]

• We will comply with each country's local laws and regulations, and their spirit.
• In order to ensure thorough compliance, we will develop policies, systems, action guidelines, reporting systems, training, etc.
• We will not engage in acts that violate competition laws, such as private monopolies, unfair restraint of trade (cartels, bid rigging, etc.), unfair trade practices, and abuse of a superior bargaining position.

[Management and protection of confidential information]

• Strictly control and properly use the Company's confidential information, including trade secrets.
• We shall obtain confidential information of other companies by legitimate methods from legitimate authorities, confirm the scope of use and other conditions, use the information only within the scope of such use, maintain confidentiality, and not infringe on the rights of other companies.
• All personal information about employees, customers, business partners, etc., will be obtained only by legitimate means, and the obtained information will be strictly managed, used within an appropriate scope, and protected.

[Protecting intellectual property rights]

• We will protect and take care to prevent intellectual property rights held by our company from being infringed upon by third parties.
• We will not engage in any unauthorized use of intellectual property such as patents, utility models, designs, trademarks, etc. of third parties, or any infringement of rights such as unauthorized copying of software and books.

[Complying with the competition laws]

• We will not engage in acts that violate the competition laws of each country, such as private monopolization, unfair trade restrictions (cartels, bid rigging, etc.), unfair trade methods, and abuse of a dominant position.

[Export trade management]

• In accordance with laws and regulations governing export trade management, we ensure that, before preparing and providing a parameter sheet, products, technologies and other items to be exported are controlled by checking whether they are restricted items.

[Anti-bribery]

• Political contributions and donations will be made in accordance with the laws of each country, and efforts will be made to build transparent and fair relationships with governments and administrations.
• We do not provide entertainment, gifts, or give money to or receive money from customers, suppliers, or other business partners for the purpose of obtaining or maintaining an unfair advantage or undue preferential treatment.
• We comply with domestic and international anti-bribery laws and maintain honest and fair relationships not only with the government and administrative organizations, but also with our business partners.
• We do not engage in off-the-books transactions, fictitious transactions, or other false or misleading transactions, and create and maintain accounting records (such as ledgers and books) that reflect all transactions and dispositions of assets in a reasonably detailed, accurate, and fair manner.

[Prohibition of conflicts of interest]

• We will not engage in acts that unfairly promote the interests of individuals, customers, business partners, or third parties (conflicts of interest), contrary to our own interests.

2. Human rights / labor

[Respect for human rights]

• We understand internationally recognized human rights, including the Universal Declaration of Human Rights, and respect the human rights of all people involved in our business activities.

[Immigrant labor / Forced labor]

• We do not condone any form of modern slavery, including forced labor and human trafficking, through violence, intimidation, debt, etc.
• We ensure that all work is voluntary, and that employees are free to leave their jobs.
• We do not require our employees to surrender their passports, official identification documents or work permits as a condition of employment.
• We do not make the person bear expenses that are deemed unreasonable under international norms, such as recruitment fees.

[Child labor and young workers]

• We do not condone child labor, which deprives children of educational opportunities and forces them to work at a young age, which hinders their development.
• The working age shall be 15 years old, the minimum working age according to the applicable laws and regulations of each country, or the age at which compulsory education is completed, whichever is highest.
• We protect our employees under the age of 18 from hazardous work and working conditions that are detrimental to their health, safety, morale, and development.
• Regarding vocational training and apprenticeships, employment will only be permitted to the extent permitted by the applicable laws and regulations of each country.

[Prohibition of discrimination, respect and acceptance of diversity]

• In all employment situations (application, hiring, promotion, remuneration, right to receive education, work assignments, wages, benefits, punishment, dismissal, retirement, etc.), we do not tolerate discrimination on any basis, including gender, age, nationality, country of origin, race, skin color, ethnicity, creed, religion, sexual orientation, gender identity, disability, marital status, parental status, etc.

[Harassment]

• We do not tolerate any form of harassment such as power harassment, sexual harassment, peer pressure, etc., or any behavior that undermines the dignity of individuals.
• Harassment is any verbal, visual, or physical conduct directed toward an employee that impedes performance, undermines dignity, or creates an intimidating, hostile, or offensive work environment.
• We promptly report and investigate any complaints of harassment.
• We also allow our employees to report any instances of harassment without fear of retaliation, intimidation or harassment.

[Wages and benefits]

• Pay employees in compliance with applicable laws and regulations on minimum wages, overtime, wage deductions, piece-rate wages and other benefits.
• Provide legally mandated benefits.
• Salaries and other benefits, welfare benefits, and deductions shall be clearly detailed to employees in a timely manner in compliance with applicable laws and regulations.

[Working hours]

• Comply with applicable laws and regulations governing employee working hours (including overtime).

[Freedom of association and collective bargaining]

• We recognize the right of employees to freely associate or not to associate based on the applicable laws and regulations of the countries in which we operate.
• We guarantee our employees' right to communicate openly and directly with management without fear of reprisal, intimidation, or harassment.

3. Safety and health

[Occupational safety and health]

• We will comply with the Industrial Safety and Health Act and the Fire Service Act, give top priority to ensuring occupational safety and health, and strive to prevent accidents and disasters so that everyone can work with peace of mind.
• Healthy living and working environment.
• We support the health of our employees through workplace health promotion activities and guidance on disease prevention.

4. Environment

[Environmental management system]

• Aiming for growth in harmony with the environment, we will take up the challenge to achieve zero emissions through all areas of our business activities.
• We will establish an environmental management system for continuous improvement, comply with the environmental laws and regulations of each country and region, and strive to maximize our environmental performance.

[Reducing greenhouse gas emissions]

• We will develop products and services that reduce greenhouse gas emissions and work to reduce greenhouse gas emissions throughout the life cycle, including at business locations.
• Aiming to become carbon neutral, we work together with our suppliers to plan and promote all kinds of reduction measures, including energy conservation, equipment improvements, material replacement, and the introduction of renewable energy.

[Water and atmospheric environment]

• We comply with the laws and regulations of each country and region regarding the prevention of pollution of water, air, etc.
• Taking into account the water environment of each country and region, we will work to thoroughly reduce usage and manage wastewater while continuously evaluating impacts.

[Contributing to building a recycling-based society and system]

• When designing and developing products, we will work to reduce the amount of exhaustible resources used and utilize recycled materials, and we will also consider proper disposal and recyclability at the time of disposal.
• We strive to effectively utilize resources through reducing waste and recycling at business locations and logistics.

[Managing chemical substances]

• We comply with the relevant laws and regulations of each country and region, manage chemical substances (elimination, reduction, etc.), and do not use prohibited substances in products or manufacturing processes. We will also report appropriately to the government based on laws and regulations.

[Responsible procurement of resources and raw materials]

• We will conduct procurement activities that take into account the impact on local communities caused by the use of raw materials that may cause social problems related to human rights and the environment (e.g. conflict minerals, etc.), and if there are concerns, we will take measures to avoid their use.

5. Risk management

• In preparation for diversifying risks such as terrorism, cyber attacks, and natural disasters that threaten citizens' lives and corporate activities, we will constantly monitor risks and manage risks from the perspectives of minimizing damage and business continuity.

6. Local / Global society

[Contribution to the community]

• Aiming for the prosperity of local communities and their development, we will pay attention to the social problems that each region faces, and carry out social contribution activities that lead to solutions while cooperating with local communities.

[Disclosure of information to stakeholders]

• We will disclose useful information to stakeholders in an accurate and timely manner, including information related to management, finance, environmental conservation, society, and social contributions, and strive to maintain and develop sound relationships with stakeholders through open and fair communication.

7. Deployment to your suppliers

• We ask that your suppliers also disseminate their own sustainability policies and guidelines based on the above objectives, ensure that they are fully aware of them, and work to permeate and disseminate their sustainability initiatives.
• Please be aware of the entire supply chain when permeating and disseminating the policies and guidelines, and follow up and take corrective action as necessary.

8. Compliance with sustainability guidelines

• Cataler will strive to comply with these guidelines throughout the supply chain that supports our manufacturing. We would like our suppliers to carefully read and understand these guidelines, and work to instill them in their supply chains.
• We may visit your factories or other sites of yours as necessary to confirm compliance with these guidelines and to communicate with each other.
• If you encounter any problems that violate these guidelines, please report them immediately and take steps to improve them. In the unlikely event that appropriate improvement efforts are not made, we may stop placing orders.