S&B Foods Group Basic Sustainable Procurement Policy

Introduction

To put into practice the Group’s Corporate Philosophy, “Bring natural life and happiness to every household,” we fulfill our social responsibility toward realizing a sustainable society by working with our trading partners throughout the supply chain and striving to procure safe and reliable ingredients, materials, and products with due consideration for environmental and social impacts.

1. Legal Compliance and Ethical Procurement

• We comply with relevant domestic and international laws and regulations and faithfully fulfill contracts with our trading partners.
• Procurement personnel neither provide, accept, nor solicit any improper benefits that could undermine fair and transparent business transactions with our trading partners.
• In our relationships with our trading partners, we strive to ensure fair, timely, and appropriate disclosure of information and to promote constructive dialogue.
• We ensure that intellectual property is appropriately protected and respected and strive to protect personal information through its proper collection, use, and management.
• We ensure fair competition, eliminate all forms of corruption, and conduct procurement activities with a high degree of transparency.

2. Respect for Human Rights

• In accordance with the Group’s “Human Rights Policy,” we prohibit any discrimination, forced labor, or child labor in the supply chain, and respect the human rights of all people.
• We ensure appropriate management of working conditions and the payment of appropriate wages and provision of employee benefits in compliance with the laws and regulations of each country and region.
• We respect workers’ rights to collective bargaining and freedom of association.
• We respect the rights of Indigenous peoples and local communities that may be affected by our business activities and strive to give them appropriate consideration..

3. Occupational Health and Safety

• We strive to improve the work environment and ensure occupational health and safety, while maintaining and enhancing a workplace in which employees can work safely and with peace of mind.
• We regard maintaining and improving the physical and mental health of employees as an important management priority and promote health and productivity management.

4. Product Safety

• To thoroughly ensure quality and safety, we actively collect basic raw material information, build our traceability systems, and conduct procurement activities that provide our customers with peace of mind and satisfaction.
• We promote ethical public relations activities by communicating accurate information with integrity.
• We strive to establish business continuity systems in preparation for unforeseen circumstances.
• In the event of a problem, we take prompt and appropriate corrective action and establish systems for properly receiving and addressing complaints.

5. Consideration for the Environment

• In accordance with the Group’s “Basic Environmental Policy,” we work with our trading partners to comply with applicable laws, regulations, and standards and promote procurement activities that appropriately manage environmental risks, including greenhouse gas emissions, resource use, waste, and water quality.
• We strive to conduct procurement activities with full consideration for environmental impacts and safety.
• In our procurement activities, we promote feasible management measures and improvement initiatives in priority areas. These include reducing greenhouse gas emissions through energy and resource conservation, improving resource efficiency, and conserving biodiversity.
• We actively work to protect the global environment by promoting reductions in greenhouse gas emissions and respecting biodiversity.
• We appropriately manage emissions to the air, water, and soil associated with our business activities in accordance with applicable laws, regulations, and standards, and implement improvement measures as necessary to prevent pollution. We also promote the reduction of food waste through the effective use and appropriate management of raw materials.
• We aim to achieve sustainable resource use by considering, wherever feasible, approaches that contribute to resource circularity, such as the use of renewable resources and recycled materials, and appropriately integrating them into our procurement processes.

6. Fair Transactions

• We select trading partners through the careful examination of factors such as quality (Q), cost (C), delivery time (D), stable supply, and reliability, and by comparing and evaluating potential trading partners based on fair and rational criteria.
• As a rule, we keep the door wide open for potential new trading partners and allow those who meet the selection criteria to participate fairly in negotiations aimed at establishing a business relationship.

7. Coexistence and Mutual Prosperity

• We promote sustainable procurement throughout the supply chain by collaborating and cooperating with our trading partners to understand and achieve the purpose of this policy.
• By building long-term relationships of trust with our trading partners, we aim to achieve stable procurement activities while ensuring mutual prosperity and continuity. We also foster good relationships with a wide range of stakeholders, including local communities and society (consumers, shareholders, government agencies, and others).