Toshiba Tec Group Companies shall:

1. comply with all applicable laws and regulations, and appropriate social practices, governing local and global business.
2. promote procurement, including the selection of suppliers (including prospective suppliers) and items to procure, in ways that reduce environmental impacts.
3. provide suppliers with equal opportunities for transactions with Toshiba Tec Group.
4. promote procurement activities based on mutual understanding and trust.

When selecting suppliers, or continuing transactions with suppliers, give priority to companies that satisfy the following criteria:

1. The company complies with laws and regulations, and respects human rights, and environmental awareness.
2. The company has sound business operations.
3. The company has the ability to supply Toshiba Tec Group with goods and/or services of appropriate quality, price and delivery lead-times.
4. The company is capable of providing a stable supply of goods and/or services, and has the flexibility needed to respond quickly to supply and demand fluctuations.
5. The company has technology that contributes positively to Toshiba Tec Group products.
6. The company is capable of providing a continuing supply of goods and/or services in unforeseen circumstances.

As a global business enterprise with a wide range of products, Toshiba Tec Group takes into consideration stakeholder expectations, and conducts procurement activities in accordance with the UN Global Compact and the RBA (Responsible Business Alliance) Code of Conduct. We therefore expect our suppliers to conduct themselves in accordance with the UN Global Compact and the RBA Code of Conduct, and also request them to ensure that their suppliers also adhere to both standards.

1. Compliance with Laws, Regulations and Social Customs
   Suppliers are required to ensure compliance with laws, regulations, and appropriate social customs of the countries and/or regions in which they operate, including in respect to the following matters.
   1. Compliance with the prevailing laws and regulations in the countries and/or regions in which they operate, including but not limited to, anti-trust laws, commercial codes, subcontractor regulations, foreign exchange laws, privacy protection laws, and copyright laws.
   2. Prohibition of bribery (any gift, payment, consideration, financial or non-financial advantage or benefit of any kind that constitutes a corrupt and illegal practice).
2. Respecting Human Rights and the Health and Safety of Workers
   Suppliers are required to respect basic human rights in their business activities, and to establish a safe and clean working environment. Also, suppliers are encouraged to understand "Toshiba Group Responsible Minerals Sourcing Policy" (more information can be found on Toshiba website) and to work cooperatively with Toshiba Tec Group. Suppliers are required to comply with the following:

   1. the following practices are prohibited:

      • (i) forced labor (including slave labor), (ii) human trafficking, (iii) inhumane treatment of workers, (iv) child labor, and (v) discrimination.

   2. All workers must be paid fair wages and working hours must be reasonable, and the rights of workers to form or join trade unions are respected.

   3. All workers must work in a safe and clean working environment.

   ＊ "Toshiba Group Responsible Minerals Sourcing Policy"

   ＊ "Toshiba Tec Responsible Minerals Sourcing Policy"

3. Environmental Considerations
   Suppliers are expected to embrace environmental conservation as a high priority issue, and to actively engage in creating environmentally friendly products. Also, suppliers are expected to understand the "Toshiba Tec Green Procurement Guidelines" (more information can be found on our website) and to work cooperatively with Toshiba Tec Group. As such, suppliers are encouraged to:
   1. adopt ISO 14001-based environmental management systems and promote third-party certification.
   2. procure parts and materials in such ways that have the smallest negative impact on the environment, such as reducing or eliminating use of potentially hazardous substances; and
   3. promote environmental protection activities, such as establishing policies, implementing systems, and providing education and training for protecting the environment.
4. Maintain Sound Business Operations
   Maintaining sound business operations over the long-term is important for strengthening business relationships. Accordingly, suppliers are requested to disclose their management policies and the status of their business operations (including financial statements).
5. Securing Excellent Product Quality
   Suppliers are expected to maintain and improve product quality by establishing a quality assurance system in accordance with ISO 9001, to cooperate with Toshiba Tec Group to obtain necessary third-party certifications, and to comply with laws and regulations. Suppliers are required to:
   1. comply with safety standards in all countries and regions where they operate or have related business dealings, such as CCC, JIS, Japan’s Electrical Appliance and Material Safety Law, UL, CE Marking, etc.
   2. furnish goods and services on a continuous basis that meet the specifications and quality required by Toshiba Tec Group.
   3. manage and keep documents, records and inspection data that guarantee conformance with important quality requirements, applicable laws and standards.
6. Offering Goods and Services at Appropriate Prices
   Suppliers are requested to provide goods and services at competitive prices and to strive to reduce prices on a continuous basis, so that Toshiba Tec Group is able to provide its own customers with products on financial terms that are satisfactory to them.
7. Firm Delivery Commitment and Delivery System
   Suppliers are required to establish a system for the stable and flexible supply of goods and services and to commit to keeping delivery schedules that are responsive to rapid fluctuations in supply and demand.
8. Advancing Technological Capabilities
   Suppliers are requested to continually improve their technological capabilities so as to enable Toshiba Tec Group to provide excellent and safe products to its own customers.
9. Continuing Supply in Times of Unexpected Circumstances
   In times of unexpected events that may affect supply chains (e.g., natural disasters, epidemics, fires, insurrections, terrorism, wars and civil commotions), suppliers are requested to share information on their supply chains and to cooperate with Toshiba Tec Group, so as not to cause any disturbance in Toshiba Tec’s supply chain. Suppliers are also requested to cooperate with Toshiba Tec Group in managing risks in normal circumstances.

(January 2022)