JSGT Procurement Guidelines

JSGT has established these JSGT Procurement Guidelines in accordance with the JFE Group Standards of Conduct and the JFE Group Basic Policy on Human Rights, aiming to enhance sustainability across its entire supply chain.

 

We share these guidelines with our business partners and promote sustainability initiatives throughout our supply chain. In addition to asking all business partners to implement the guidelines, we also ask that partners' own suppliers be encouraged to do the same.

 

JSGT is committed to maintaining and improving mutual understanding and trust with its business partners as part of pursuing mutual development as a true business partner.

 

1. Compliance

 

Compliance with Applicable Laws and Regulations

• We comply with all relevant laws, regulations, and social norms in countries and regions where we operate our business. We also respect treaties, agreements and other international rules in our international transactions.

• We develop and implement policies, systems, codes of conduct, education, and other frameworks to ensure thorough compliance.

 

Management of personal and confidential information

We properly manage and protect all personal information of all parties involved in our business, including suppliers, customers and employees, as well as confidential information obtained through transactions and other business.

 

Cyber security

We implement cyber security measures and manage our systems to prevent damage to our company and other parties.

 

Anti-Corruption

We do not participate in bribery of government officials, other public servants, or business partners, and we strive to prevent corruption and maintain fair business practices.

 

Avoidance of Organized crime

We refuse to have any relationship with criminals or groups that threaten civil order and safety, and we do not respond to illegal or unreasonable demands.

 

Fair competition

• We comply with all laws and regulations of countries and regions where we operate our business, and we do not engage in practices such as private monopoly, unfair restrictions on trade (cartels, bid rigging, etc.), unfair trade practices, or abuse of superior bargaining positions.

•When selecting suppliers, we base our decisions on economic rationality as well as suppliers’ thorough implementation of appropriate quality-control and quality assurance covering not only quality but also technology, price, delivery time, supply stability, reliability, business stability and commitment to CSR (corporate social responsibility)

 

Intellectual property (IP) policy

We take all necessary steps to protect our own IP rights. In addition, we respect the IP rights owned by other parties and do not unlawfully obtain, use nor infringe such rights.

 

Quality assurance

• We comply with all applicable laws and regulations regarding the quality of our products and services as well as observe our own quality standards and the requirements of customers.

• We establish and operate quality-management systems that ensure high and stable quality.

 

2. Respect for Human Rights

JSGT is committed to implementing JFE Group’s Human Rights Basic policy, as outlined hereafter.

 

Prohibition of Child labor

To avoid hindering children’s development and educational opportunities, we do not employ children under the minimum working age stipulated by the laws and regulations of counties and regions where we operate our business.

 

Prohibition of Forced labor

• We do not use labor obtained through inhumane means, such as forced labor, human trafficking, or "modern slavery." Also, we do not engage in any dealings that promote such inhumane acts.

• We do not force anyone to perform labor against their will. We do not retain employees’ passports, official identification, or work permits as a condition of employment. We also do not require employees to pay recruitment fees or any other costs considered unreasonable under international norms.

 

Prohibition of Discrimination and harassment

We respect each person as an individual in all aspects of corporate activity and do not discriminate on the basis of race, nationality, ethnicity, creed, religion, social status, family origin, age, gender, sexual orientation, gender identity, disability or for any other reason. We also do not engage in any other form of harassment, including language or behavior that offends a person's dignity or causes them discomfort.

 

Rights of indigenous and local peoples

We respect and give due consideration to local people's land rights, water access, safety, and health as well as the rights of indigenous peoples in areas where we operate.

 

Occupational health and safety

Based on our policy of prioritizing safety above all else, we strive to prevent work-related accidents and illnesses as well as consistently maintain safe and healthy working environments.

 

Working hours and leave

We manage working hours appropriately, including by providing work breaks and time off in accordance with the labor laws and regulations of countries where we operate.

 

Wages

We pay at least the minimum wage, overtime pay and other allowances, including legally mandated benefits, as stipulated by the labor laws and regulations of countries and regions where we operate, and we do not reduce wages in violation of such legal mandates.

 

Freedom of Association and Collective Bargaining

We respect the rights of employees, including freedom of association and the right to collective bargaining, in accordance with international norms and the laws and regulations of countries and regions where we operate.

 

Remedy and Grievance Mechanism

We establish contact points for receiving complaints and reports from employees or business partners regarding any misconduct or concerns about human rights, the environment, and other issues, and we maintain systems that ensure whistleblowers are not subjected to disadvantageous treatment.

 

3. Environment

 

Harmony with the environment

• We continuously promote our business activity with due consideration for resource conservation, environmental protection, and biodiversity, aiming to remain consistently in harmony with the environment.

• We comply with the environmental laws and regulations of countries and regions where we operate our business.

 

Environmental management system

We maintain environmental management systems for continuous improvements in order to reduce our environmental impact.

 

Response to climate change

We strive to reduce our own company’s CO2 emissions as well as contribute to the reduction of CO2 emissions across society to support the pursuit of carbon neutrality.

 

Preventing environmental pollution

We give due consideration to environmental protection by complying with laws and regulations regarding air, water, soil, and marine pollution as well as waste disposal, noise, and vibrations in countries and regions where we operate our business.

 

Resource recycling and Waste management

We comply with all applicable laws and regulations of the countries and regions where we operate regarding the proper disposal and recycling of waste, and we also promote resource recycling.

 

Chemical substance management

• We manage chemical substances in accordance with all relevant regulations and laws.

• We comply with all applicable laws, regulations, and customer requirements relating to prohibitions or restrictions regarding the use of certain substances in our products.

 

4. Responsible Procurement

 

Approach to Conflict minerals

We buy tin, tantalum, tungsten, gold, and cobalt only after confirming that these minerals were not extracted in conflict-affected or high-risk areas.

 

5. Business Continuity Plans

 

Formulation of BCPs

To ensure that we can stably supply products and services even during a crisis, such as a natural disaster or pandemic, we maintain business continuity plans (BCPs) for thorough organization-widecrisis management.

 

6. Relationships with Stakeholders

 

Information disclosure

We disclose corporate information in a timely and appropriate manner to maintain and developmutual understanding and trust with our diverse stakeholders through open and fair communication.

 

JSGT may conduct questionnaires, on-site surveys, etc. to confirm the status of partners’ effortsto comply with these JSGT Procurement Guidelines. If significant deviation from these guidelines is identified, JSGT will follow up in an effort to encourage improvements. If no improvement is made and significant deviations continue, JSGT may review its business dealings with that partner. If any misconduct occurs with respect to these guidelines in the course of business dealings with JSGT, the partner is sincerely requested to report such matters toJSGT.

 

 

 

 

…………………………………………………………….

Mr.Jun  Uryu

President