Sustainability

Policies

Sustainability Policy (Adopted on July 1, 2022)

• We aspire to realize a “Sustainable Earth” and “Safe and Comfortable Life”.

• We will firmly maintain fairness and integrity in our activities to be a trustworthy company.

• Each of us will think and act proactively for a better future.

Based on our corporate philosophy of “contributing to the preservation of the Earth and the prosperity of the human race”, sustainability at Zeon means achieving sustainable growth together with society. To achieve this, we will provide products and services that are valuable for solving global and social issues, build trust with our stakeholders through fairness and integrity and have each one of us act proactively thinking how to create a better future for the society and ourselves.

Explanation of the schematic diagram
Zeon’s Sustainability Policy can be explained with reference to the schematic diagram shown above. Firstly, the inner arrows (① and ②) represent how, by helping to solve social issues and providing new value for society, Zeon itself can also obtain profits in return for providing this value. Arrows ③ and ④ show how continuing to implement a “virtuous circle” can lead to sustainable development for society and continued growth for Zeon. The image in the middle representing two people shaking hands denotes how, by realizing this kind of virtuous circle, the relationship of trust between society and Zeon can be further strengthened.

CSR Code of Conduct

As a member of the Zeon Group, I understand the Corporate Philosophy, the Zeon Sustainability Policy and other corporate policies, and will act consistently with the following code of conduct:

Chapter 1. Compliance (Moral Awareness and Laws and Regulations)
(1-1 Things which each person values)
I will value moral actions and comply with laws and regulations of a country where the company conducts its business activities and the company rules.
(1-2 Labor laws and regulations)
(i) I will comply with labor laws and regulations, work rules and agreement voluntarily established between the employer and workers.
(ii) I will sufficiently manage working hours, rests, holidays and acquisition of leaves to prevent excessive labor.
(iii) I will not commit discrimination based on birth, nationality, race, ethnic group, creed, religion or sex/gender.
(1-3 Trade laws and regulations)
(i) I will comply with treaties, laws and regulations concerning trade.
(ii) When exporting products, goods, services, product recipes, methods of production, manufacturing plant designs, I will fully examine the limitation on use such as weapons development.
(1-4 Competition laws and regulations)
I will comply with competition laws and regulations for fair and free competition.
(1-5 Prohibition on unjust act)
I will not engage in a transaction through which I receive or give unjust benefit or gain for fair and free competition.
(1-6 Market rules)
I will not engage in a securities trading based on the internal information obtained in the course of business (insider trading).

Zeon Group’s Policy on Prevention of Bribery

1. Prohibition of bribery
Officers and Employees of Zeon Group shall comply with the Laws and Regulations on the Prevention of Bribery for Public Officials and shall not give, or offer or promise to give, Public Officials any gift, entertainment, advantages, or other economic benefits with a corrupt intent. In addition, they shall not seek business convenience through such wrongful means.

Environmental Philosophy (Established August 2001)

1. Environmental protection is a mission of a socially responsible organization
2. Our basic belief is that environmental protection can be achieved with innovative technology
3. Environmental protection will be achieved when all employees work together with a sense of mission to overcome challenges

Safety Philosophy (Established March 1997)

1. Safety is the foundation of all business activities and the greatest priority
2. Our basic belief regarding safety is that we can prevent all accidents
3. Safety will be achieved by performing the 5Ss* and when everyone takes responsibility for their own actions

  • *5Ss: Seiri (sort), Seiton (straighten), Seisou (scrub), Seiketsu (systematize), and Shitsuke (sustain)

Responsible Care Policy (Established June 1998)

1. Prioritize the environment and safety
Protecting the environment and ensuring safety are preconditions for all business activities and are the most important priorities. We will work continuously to enact full accident prevention countermeasures, and provide education and training for all employees to prevent safety and environmental accidents.

2. Collect and distribute the latest information on chemical products
We will collect, store and manage the latest information required for the appropriate handling, use and disposal of chemical products, and distribute this information to employees and users.

3. Minimize the discharge of toxic chemicals and waste
We will work to reduce the discharge of hazardous chemical substances, minimize waste, and develop technology for recycling and reusing materials.

4. Promote activities for conserving resources and energy
We will aim to dramatically reduce the amount of energy we use and help alleviate global warming by developing innovative technology and actively promoting resource and energy conservation activities that involve all employees.

5. Take the environment and safety into account when developing new processes and products and performing quality assurance
We will perform thorough environmental and safety evaluations from the initial stages of research, develop technology and products that take the environment and safety into account, and work to maintain and improve the quality of technology and products.

6. Live together with society
We will strictly observe regulations related to the environment and safety, whether the regulations come from the local community, the national government, overseas, or organizations to which we belong. While cooperating in these activities, we will work to enhance our communication with the local community and society in order to convey a better understanding of Zeon’s activities and further strengthen the trust that society has in our company.

7. Perform continuous improvements
We will continuously improve our environment safety management and technology by operating a Responsible Care Audit, the Safety Management System, an Environment Management System based on ISO 14001, and an Occupational Health and Safety Management System.

Zeon Group Human Rights Policy (Established in 2019, revised in 2023)

We, the Zeon Group, are committed to fulfilling our corporate social responsibilities in respect of human rights and contributing to realizing a sustainable society, based on international codes of conduct on human rights, such as the Universal Declaration of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights in Labor, and the UN Global Compact.

Respect for Human Rights

We will not tolerate acts of discrimination or harassment based on age, gender, place of origin, ancestry, nationality, disability, religion, creed, marital status, employment status, union participation, political views and other differences. We also will not tolerate child labor, forced labor or/nor unjustly low wage labor.

Collaboration with Stakeholders

We will encourage our customers and business partners to support this policy with us to pursue business activities sharing respect for human rights.

Prevention and Mitigation of Human Rights Violations

We will strive to perceive, avoid and reduce any negative impact on human rights that might result from our business activities.

Response to Human Rights Violations

We will work on the relief through appropriate procedures when it is found that we have caused or furthered a negative impact on human rights.

Efforts on Human Rights Issues

We will provide appropriate education and training to our executives and employees, so that this policy is understood and implemented.

Disclosure of Information

We will publicly disclose information on our human rights initiatives under this policy through communication channels such as our website and integrated report.

Multi-Stakeholder Policy (July 2023)

In line with our mission statement, "Contributing to the preservation of the Earth and the prosperity of the human race," we are committed to contributing to a sustainable earth and a safe and comfortable life for people through appropriate collaboration with our shareholders, employees, business partners, customers, local communities, and other multi-stakeholders.
Appropriate distribution of the value created by our corporate activities to multiple stakeholders will lead to the realization of our vision for 2030, "a company that lives up to societal expectations and the aspirations of employees," and we will actively promote initiatives that contribute to the return of profits to employees and consideration for our business partners.

Sustainable Procurement Policy (October 2023)

Zeon Group conducts responsible procurement activities based on our " Sustainability Policy" aiming to realize a sustainable society throughout the supply chain.

1. Compliance with laws and social norms
We comply with laws and social norms and conduct fair procurement activities based on corporate ethics.

2. Optimal procurement of raw materials, products, and services
We strive to ensure the optimal procurement of raw materials, products, and services in respect of safety, quality, price, delivery date, supply stability, and technical capabilities to provide better products.

3. Consideration for the global environment
We strive to procure raw materials, products, and services that have less negative impact on the global environment, giving consideration to conservation of environment, resources and biodiversity.

4. Consideration for human rights
We respect human rights in our supply chain and strive to procure raw materials, products, and services that are human rights friendly.

5. Promoting responsible mineral sourcing
We strive to responsibly procure minerals to avoid involvement in conflicts, environmental destruction, and human rights violations in conflict-affected and high-risk areas.

6. Appropriate management of information
We understand the importance of confidential information obtained through procurement activities, and striving to use, manage, and protect it appropriately.

7. Open purchasing attitude and partnership
We look for business partners from a global perspective, striving to ensure fair, impartial, and transparent business opportunities, and build partnerships with our suppliers through dialogue to realize mutual development and a sustainable society.

Sustainable Procurement Guidelines

Declaration for Health and Productivity Management (October 2021)

Our corporate philosophy is “Contributing to the preservation of the Earth and the prosperity of the human race”. This mission will be accomplished by each and every employee of Zeon Group fulfilling his or her potential and playing an active and vibrant role in the company and in society.
In order for us to continue contributing to a “Sustainable Earth" and “Safe and comfortable lives for people," we will create a work environment where employees can work cheerfully and vigorously and lead healthy lives, both physically and mentally, with their families and colleagues.

Code of Conduct for “Our Well-being”

1. Be responsible for and engage in working in a healthy, vigorous and fulfilling manner.
2. Utilize regular health checkups and occupational health services to maintain our healthy status.
3. Keep checking daily lifestyle such as good sleep and healthy diet. Be aware of changes in health condition early and take responsive self-care.
4. Be aware of and keep the safe and comfortable environment surrounding us.
5. Know what supportive resources are available when we need them.

Joint Declaration of Labor and Management for Corporate Development

1. Labor-management relations shall be based on mutual understanding and trust.
2. Labor and management shall steadily fulfill their respective roles toward building a company of which we can be proud and strengthening the corporate foundation.
3. Labor and management, as good partners, aim to reform and establish a corporate culture.

Basic Policy for Quality Assurance

1. We contribute to society by providing high-quality products, goods and services with excellent reliability and safety to the market.
2. We fully understand and predict user demands and provide products, goods and services that users can use with satisfaction.
3. In each quality assurance step, we establish an internal system that can assuredly evaluate highquality products, goods and services with excellent reliability and safety.
4. We establish technologies that can produce products, goods and services with the target quality in terms of reliability and safety.

Basic Policy on Corporate Governance (Japanese version only)

Our Stance on Animal Experiments

When developing new products, mainly for medical-related uses, we make every effort to conduct product evaluations without the use of animals. However, prior to clinical human testing, animal testing may sometimes be required, for example to ensure efficacy, safety, and compliance. Our internal guidelines for animal testing comply with the Act on Welfare and Management of Animals (Act No. 105 of 1973) and the Act to Partially Amend the Act on Welfare and Management of Animals (Act No. 68 of 2005) (hereinafter, the Animal Welfare Act).
Our policy with respect to animal experiments is to recognize that animals are living creatures, and that care must be taken not to kill, injure, or cause them suffering needlessly. We require that such experiments be conducted in compliance with the Animal Welfare Act, and whenever possible, through external entities with third-party certification, such as the Experimental Animal Breeding Facility Welfare Certification. We are a supporting member of the Japanese Society for Alternatives to Animal Experiments, and we apply the 3Rs (Replacement, Reduction, and Refinement) recommended by the Society.

・Replacement
The replacement of test methods that use animals with those that do not use animals or those that use animals of a lower phylogenetic order.

・Reduction
The modification or revision of test methods to obtain comparable levels of information using fewer animals.

・Refinement
The modification of test methods to alleviate or minimize potential pain, suffering, or distress as well as to enhance the welfare of the animals used.