Supplementary Explanations

8.1 Respect for basic human rights
Referenced international human rights standards include the Universal Declaration of Human Rights and International Covenants on Human Rights of the United Nations and the Core Labor Standards of the ILO.
Substantively, the prohibition of discrimination and harassment, the elimination of abuse such as forced labor and child labor, offering a work environment that is safe, healthy, and free of harassment, and maintaining freedom of association and collective bargaining rights are examples of the fulfillment of our responsibility towards respecting human rights.
Please see the azbil Group’s aG Human Rights Basic Policy on our homepage for details.

8.2 Exclusion of antisocial forces
The term “antisocial force” refers to an organized crime group, its members or, associate members, company affiliated with it, corporate extortionists (sokaiya), miscreants advocating political activism, an intellectual crime group, or any similar party.
It is necessary to never have a relationship of any kind with an antisocial force. Specifically, this means:

• Not using or employing them.
• Not providing them with assets or favors.
• Not having a close association or any other relationship with them that could attract the condemnation of society.
• Not using fraud, violent behavior, or threatening language against another party or a party associated with another party, either by the business partner itself or through a third party.

8.3 Responsible mineral procurement
Due diligence for responsible mineral sourcing involves establishing policies from a sustainability perspective to address environmental, social, and government (ESG) issues such as human rights violations (e.g., labor, health, and safety), corruption (e.g., bribery), and environmental concerns. This process includes communicating expectations to suppliers (and incorporating these into contracts when possible), identifying and assessing risks within the supply chain, and developing and executing strategies to address identified risks.
Specifically, it involves investigating the sourcing routes of target minerals, revising our purchasing processes, conducting continuous audits and evaluations, and taking appropriate measures in the event improvements are necessary.  
Additionally, as social conditions evolve, it is anticipated that the scope of risks, including those related to target minerals and human rights, as well as fair commercial practices, will expand.
Relevant laws include the Dodd-Frank Wall Street Reform & Consumer Protection Act in the United States and the Conflict Minerals Regulation of the European Union that was based on the OECD Due Diligence Guidance for Responsible Business Conduct.