Material Procurement Policy

Aakel Inc. has established a "Material Procurement Policy", and procures raw materials and supplies based on this policy.

Basic Policy

1. We will comply with laws, regulations, social norms, and other rules, and will engage in procurement activities with high ethical standards.

2. Fair dealing with suppliers.

3. Fulfill our corporate social and environmental responsibilities together with our suppliers and engage in socially and environmentally responsible procurement activities.

4. At least 50% of procurement will come from small, culturally-connected areas (approximately within 80 km of the office), with a positive economic impact.

Supplier Selection Policy

1. Compliance with Laws, Regulations, and Social Norms

   (1) Compliance with local laws and regulations (e.g., antitrust law, commercial law, subcontract law, foreign exchange law, personal information protection law, copyright law, environmental protection law, labor law) to which suppliers belong

   (2) Prohibition of bribery with any interested parties

   (3) Prohibition of transactions with antisocial forces

2. Consideration for human rights and occupational health and safety
   (1) Prohibition of discrimination based on race, sex, religion, etc.

   (2) Prohibition of inhumane treatment such as forced labor and child labor

   (3) Elimination of all forms of harassment

   (4) Payment of wages that exceed the legal minimum wage in the region to which the supplier belongs

   (5) Appropriate management of working hours

   (6) Respect for freedom of association and the right to collective bargaining

   (7) Safe and clean facilities provided for employees

3. Environmental Considerations
   (1)Consideration of climate change impact of services offered

   (2)Consideration of biodiversity impact of services offered

   (3)Establishment of management system for environmental conservation and employee education