Logistics Procurement Policy

We, the Nitori Group, uphold the mission (aspiration) of "Enrich the everyday lives of people all over the world."
The "Nitori Group Code of Conduct," our guiding principles for realizing this mission, clarifies our fundamental stance, including "providing product safety and security through comprehensive quality control," "promoting environmentally conscious business," and "ensuring fair and honest trade and respect for human rights in the supply chain." These principles also apply to our procurement approach throughout the entire supply chain.
In addition, to achieve a sustainable society, we endorse the "White Logistics" Promotion Movement advocated by the Ministry of Land, Infrastructure, Transport and Tourism; the Ministry of Economy, Trade and Industry; and the Ministry of Agriculture, Forestry and Fisheries. We aim to improve the productivity of truck transportation, enhance logistics efficiency, and realize a worker-friendly labor environment.

1．Scope of Application

This policy, based on the "Nitori Group Code of Conduct" and the "White Logistics" Promotion Movement, specifically outlines our approach to sustainable procurement, taking into consideration both environmental and social issues. With the aim of co-existence and co-prosperity with our suppliers, we promote procurement activities that comply with the laws and social norms of each country. By doing so, we aim to contribute to the realization of a sustainable society, and thus establish this policy.

2．Basic Logistics Procurement Policy

  1. Through active dialogue with suppliers, we strive to build sustainable partnerships for mutual growth based on mutual understanding. In particular, we will discuss and promote the sharing of logistics improvement proposals, such as reviewing business processes, promptly adopting feasible proposals, and considering digital technologies.
  2. We will promote information sharing and visualization throughout the supply chain to improve operational efficiency with related suppliers. This includes sharing information on operations during abnormal weather conditions and conveying information regarding the consolidation of delivery dates.
  3. Supplier selection will be based on service quality, delivery, price, supply stability, technical capabilities, etc., and will also evaluate whether the supplier fulfills social responsibilities such as legal compliance, respect for human rights, and environmental protection, through fair procedures.
  4. When determining transaction considerations, we will hold discussions at least once a year and decide after thorough consultation. We will introduce separate contracts for freight and charges to enhance the transparency of contract details. Furthermore, when contracting, including the determination of transaction consideration, we will clearly state and deliver the contract terms in writing or similar means.
  5. In preparation for emergencies such as natural disasters, we will strive to strengthen organizational responsiveness in cooperation with suppliers. We will formulate criteria for suspending or interrupting operations during abnormal weather conditions, etc., and enhance safety management and risk countermeasures.

3．Compliance with Laws and Respect for International Norms

  1. The Nitori Group will conduct appropriate transactions, comply with not only to the laws and ordinances of the countries where it provides products and services but also to the laws and ordinances of relevant countries and regions.
  2. Utilizing international rules and framework guidelines such as the United Nations' "Universal Declaration of Human Rights," "Guiding Principles on Business and Human Rights," "Global Compact," and the International Labour Organization's (ILO) "Declaration on Fundamental Principles and Rights at Work," we promote procurement activities that respect the human rights of all individuals in the supply chain and work to ensure labor, safety, and health.
  3. We strictly adhere to norms and treaties related to environmental destruction, human rights violations, anti-corruption, and trade, and respect these norms and treaties in our procurement activities. We also consider a wide range of norms and treaties related to world peace, economic stability, human health, education, and culture, and act in accordance with international social standards.

4．Consideration for Human Rights, Labor Environment, and Safety and Health

  1. Based on the "Nitori Group Human Rights Policy," we promote procurement that respects human rights and aims to maintain an appropriate labor environment and ensure safety and health.
  2. We promote procurement that considers respect for diversity, prohibition of discrimination, harassment, child labor, and forced labor, promotion of workplace safety and health, assurance of appropriate working hours and wages, freedom of association, and the right to collective bargaining.

5．Response to Environmental Issues

  1. Recognizing the importance of responding to climate change, we strive to reduce greenhouse gas emissions. Specifically, we aim to reduce CO2 emissions by introducing fuel-efficient vehicles and promoting joint deliveries.
  2. Recognizing the limited nature of resources, we strive for their effective use and the promotion of recycling, aiming to reduce resource use and waste emissions. We will promote the use of logistics equipment to improve loading efficiency and reduce the number of transport operations, thereby effectively utilizing resources.
  3. We endeavor to procure raw materials with assured traceability to their origin.
  4. We consider biodiversity and strive for conservation and sustainable procurement.
  5. We work to prevent and reduce pollution of the air and water in the procurement and logistics processes and engage in environmental protection through thorough management of chemical substances.
  6. We recognize the finiteness of water resources and the risks posed by water shortages and strive to reduce water usage.
  7. In the above items 1 to 6, we will build a cooperative system with suppliers to address these issues throughout the supply chain and regularly grasp the status of our efforts and achievements.

6．Fair Trade and Respect for Ethics

  1. At the Nitori Group, we establish a "true partnership" with suppliers through our "Anti-Corruption Policy," " Anti-Competition Law Compliance Policy," and "Business Partner Charter & Fair Trade Declaration," and always strive for fair, equitable, and clean transactions.
  2. In procuring products and services, we do not infringe on third-party intellectual property and protect our own intellectual property, while also respecting the intellectual property of customers, suppliers, contractors, and other third parties.

7．Assurance of Quality and Safety

  1. In procuring products and services, we conduct quality management that takes into account manufacturing technology, equipment, sanitation, labor safety, etc., to meet the needs and requirements of customers and users. We also conduct quality assurance activities in cooperation with suppliers.
  2. When procuring products and raw materials, we thoroughly manage quality not only to ensure that they do not contain chemical substances that could adversely affect ecosystems or the global environment, but also substances that could harm the health of producers or customers (users). Specifically, we work to ensure safe operations by adopting appropriate packaging and loading methods to prevent damage to products and accidents during transportation, thoroughly educating drivers on safety, and introducing operation management systems. Through these initiatives, we aim to provide logistics services that are not only environmentally friendly but also safe and secure.

8．Appropriate Information Management

We take measures to prevent the leakage of information assets, including information related to design and development in the supply chain and personal information, and to protect them from internal and external intentional or accidental threats.

9．Risk Management

  1. We will establish a system to receive requests and complaints from stakeholders with whom we conduct business, and to report and respond promptly and appropriately.
  2. We will promote a highly effective BCP (Business Continuity Plan) to quickly resume operations and fulfill our supply responsibilities to customers even in crisis situations such as large-scale disasters or a pandemic.

Established March 11, 2025

**Toward Sustainable Procurement**

We, the Nitori Group, ask our suppliers, who are partners in realizing our mission, not only to comply with laws and regulations but also to build a true partnership as envisioned by the Nitori Group, so that we can achieve sustainable growth together throughout the supply chain. This includes addressing social issues such as reducing environmental impact, improving logistics efficiency, and enhancing the labor environment.