Procurement Policy

Mitsui DM Sugar Holdings has established a Basic Sustainability Policy reflecting the day-to-day operations of Group companies through its five supporting initiatives. Based on this, we recognize that we have a fundamental responsibility to conduct our business in a safe, fair, ethical, and transparent manner.
Guided by this basic policy and recognition, we have created this Procurement Policy in consideration of the important role of not just our own company but also our suppliers and business partners (collectively, “suppliers”) in conducting our business, and we aim to share this basic policy and recognition with everyone. We appreciate your understanding of our commitment to realizing a sustainable society based on product safety and quality as well as business ethics, and we ask for your cooperation in implementing this Procurement Policy to the maximum possible extent.

Scope

This Procurement Policy applies to all suppliers and their employees as well as partner companies who provide products, raw materials, expertise, and/or related services to Mitsui DM Sugar Holdings and its Group companies (see the list below). In addition to ensuring that all suppliers understand the applicable laws as well as contractual terms and conditions, those terms and conditions to which we have particularly high expectations that suppliers adhere to are listed in this Procurement Policy.

Ensuring Quality and Product Safety

Suppliers shall ensure that all products, raw materials, expertise, and related services provided to Mitsui DM Sugar Holdings and its Group companies strictly conform to the agreed requirements and specifications and that all applicable laws and regulations are complied with.

Suppliers shall immediately make a report to the Mitsui DM Group company with which they have a direct business relationship whenever they become aware of an issue related to regulations, quality, safety, or product labeling that affects or may affect products or similar provided by the supplier or products of Mitsui DM Sugar Holdings and its Group companies.

Preventing Bribery and Corruption

Suppliers shall conduct business in compliance with applicable laws and regulations related to bribery, corruption, and money laundering.

Ensuring Fair Competition

Suppliers shall conduct business in compliance with domestic and foreign laws and regulations that require fair business operations and promote sound economic activities (including Japan’s Unfair Competition Prevention Act, which regulates infringement of trade secrets and similar of Mitsui DM Sugar Holdings and its Group companies) and domestic and foreign laws and regulations that prohibit unfair trade restrictions, price fixing, and market monopolies (including Japan’s Antimonopoly Law) that are applicable to them.

Protecting and Respecting Intellectual Property Rights

Suppliers shall protect and respect the intellectual property rights of Mitsui DM Sugar Holdings and its Group companies. Suppliers shall use intellectual property for which they have been granted the right to use only for the purposes agreed or specified.

Respecting International Labor Standards

Suppliers shall respect the international labor standards defined in the core conventions of the International Labour Organization (ILO) and the UN Guiding Principles on Business and Human Rights.

Prohibiting Forced Labor and Slave Labor

Suppliers shall not restrict workers’ freedom of movement in any way and shall ensure that workers are free to leave their places of work. All work shall be done voluntarily, and workers shall be able to freely quit their jobs after a reasonable notice period.

Prohibiting Child Labor

Suppliers shall not recruit or use child labor and shall respect and realize the principles of ILO Convention No. 138 regarding the minimum age of employment and engagement in work and No. 182 on the worst forms of child labor.

Protecting Freedom of Association

Suppliers shall respect the legal rights of workers and allow workers to decide whether to join labor organizations, including labor unions that allow for collective bargaining, of their own free will.

Complying with Laws and Regulations on Working Hours and Ensuring Proper Compensation

Suppliers shall operate in full compliance with relevant laws and regulations pertaining to wages, working hours and work days (including those related to overtime and holiday work), social security and binding employment contracts, etc., including overtime hours and the terms and conditions of payment of overtime and other benefits. Suppliers shall compensate their employees, at a minimum, in accordance with industry and local labor market standards.

Considering Health and Safety

Suppliers shall provide their employees with safe and healthy work environments in accordance with applicable laws and regulations. Suppliers shall take appropriate measures to prevent accidents and health hazards that may occur during work by minimizing potential sources of hazards in work environments.

Eliminating Discrimination

Suppliers shall not discriminate against workers on the basis of race, gender, age, nationality, marital status, ethnic origin, religion, sexual orientation, affiliation with labor unions or other labor organizations, disability, or political affiliation.

Eliminating Harassment

Suppliers shall treat all employees with respect and not employ physical discipline; threats of violence; or verbal, physical, mental, sexual, or any other forms of abuse or harassment.

Complying with Environmental Laws and Regulations

Suppliers shall satisfy all environmental requirements based on environmental laws and regulations, etc. In addition, suppliers shall obtain, maintain, and renew all permits and registrations required by such environmental laws and regulations, etc.

Consideration and Respect for the Climate, Ecological Diversity, and Natural Capital

Suppliers shall take measures to minimize negative impacts on the environment, especially the climate and ecological diversity, and to protect soil and water. Suppliers shall use natural resources in a sustainable manner.
Agricultural suppliers shall strive not to make excessive use of pesticides (e.g., insecticides), chemicals, or chemical fertilizers in production processes.

Managing and Reducing Emissions and Waste

Suppliers shall proactively manage emissions of greenhouse gases, especially CO2, and waste generation. Suppliers shall measure their own emissions and strive to reduce them.

Preventing Deforestation

Suppliers shall ensure that their businesses have no direct impacts on deforestation. Suppliers shall work to eliminate purchased products and raw materials that may be linked to deforestation in their upstream supply chains.

Respecting the Rights of Indigenous Peoples

Suppliers shall respect the rights of indigenous communities and local peoples in the areas where the company and upstream supply chain partners operate.

Establishing an Internal Reporting System

Suppliers shall establish and provide a means by which employees can voice their concerns anonymously, such as a comment box or internal reporting hotline. Suppliers shall create a system for appropriately handling objections and complaints from employees and protect whistleblowers from retaliation and unfair treatment, etc.

Efforts to Communicate This Policy to the Supply Chain

Suppliers shall proactively communicate to their own suppliers the matters listed in this Procurement Policy and strive to initiate and maintain a continuous improvement process to achieve sustainable performance throughout the upstream supply chain in accordance with the matters listed in this Procurement Policy.

Implementation Efforts

In implementing the items described in this Procurement Policy, suppliers shall endeavor to take the following actions.

• Establish their own responsible procurement policies and implementation procedures.
• Communicate their own responsible procurement policies to employees and related third parties.
• Provide sufficient training to employees and partner companies.
• Monitor the compliance of their own responsible procurement policies and implementation procedures.