CSR Procurement Self-Assessment Aggregate Results

We would like to report on the details of the FY2021 CSR Procurement Self-Assessment, which has been conducted in stages since FY2016.

Outline of the Survey

Targets
Raw material vendors & promotional vendors

Number of targets
110 companies (92 raw material vendors and 18 promotional vendors)

Survey period
December 10, 2021 (Friday) 〜 January 11, 2022 (Tuesday)

Survey items (9 in total)
Ⅰ. Corporate governance related to CSR Ⅱ. Human rights Ⅲ. Labor Ⅳ. Environment Ⅴ. Fair business practices
Ⅵ. Quality and safety Ⅶ. Information security Ⅷ. Supply chain Ⅸ. Local communities

Response Results

Response rate
100.0% We received responses from all 110 companies.

Breakdown of attributes by GCNJ classification of suppliers

The following is a breakdown of the 110 companies, and the manufacturing, wholesale, and retail industries accounted forare around 90% of the total.

Survey results

Compared to the results of the previous survey, average points increased in all nine items.
Based on the results of the FY2021 survey, no risks were found for suppliers. We believe that these
results reflect the ongoing efforts between the Mandom Group and its suppliers.

Theme	Topic	Average score(out of 5)
Theme	Topic	Last time FY2017,FY2018	This time FY2021
Ⅰ. Corporate governance related to CSR	Establishment of a CSR promotion system Establishment of internal controls Establishment of a business continuity planning (BCP) system Establishment of a whistle-blower system Dispatch of CSR-related information inside and outside the company	3.55	3.87
Ⅱ. Human rights	Basic attitude toward human rights Respect for human rights and prohibition of discrimination Avoidance of complicity in (or contribution to) human rights abuses Respect for indigenous peoples and local communities	3.24	3.64
Ⅲ. Labor	Basic attitude toward labor practices Prohibition of discrimination in the workplace Provision of equal opportunities to employees regarding human resources development and career advancement, etc. Prohibition of inhumane treatment Payment of fair wages Fair application of working hours, time off, and paid time off, etc. Prohibition of forced labor Prohibition of child labor Respect for the religious traditions and customs of the country of operation Recognition of and respect for freedom of association and the right to collective bargaining Proper management of employee safety and health	4.02	4.34
Ⅳ. Environment	Basic attitude toward environmental initiatives Management of chemical substances indicated in laws and regulations, etc., in Production processes, products, and services Control and reduction of waste water, sludge and air emissions Sustainable and efficient utilization of resources (energy, water, raw materials, etc.) Reduction of GHG (greenhouse gases) Identification, management, reduction, and responsible disposal or recycling of waste Initiatives related to biodiversity	3.83	4.08
Ⅴ. Fair business practices	Basic attitude toward fair business practices Establishment of appropriate relationships with local governments and public officials in and outside countries where business activities are conducted Prevention of the giving and receiving of improper advantages with customers and trade partners, etc., in sales and purchasing activities, etc. Prevention of competition law violations in sales activities, etc. Rejection of relationships with antisocial forces/organizations Prevention of unauthorized use of a third party's intellectual property and of illegal reproduction of copyrighted works Services for responding to complaints from outside the company and for Consultations Prohibition of insider trading Prohibition of acts with conflicting interests	3.81	4.10
Ⅵ. Quality and safety	Basic attitude toward product and service quality and safety Ensuring product and service quality and safety Appropriate response to product and service accidents and the circulation ofdefective goods	4.21	4.50
Ⅶ. Information security	Basic attitude toward information security Defense against attacks on computer networks Protection of personal data and privacy Prevention of misuse of confidential information	4.15	4.36
Ⅷ. Supply chain	Basic attitude toward the supply chain Use of raw materials not involved in conflict or crime (initiatives against conflictminerals)	3.14	3.73
Ⅸ. Local communities	Initiatives to reduce negative effects on local communities Initiatives with local communities towards sustainable development	3.53	3.93

* Calculated excluding responses that answered "not applicable"

Future initiatives

By implementing regular self-assessments, we will continue holding discussions with our suppliers while acquiring the understanding and cooperation of our suppliers, as well as working to make the supply chain more transparent in stages.