Procurement Policy|Procurement|Sustainability|ULVAC, Inc.

Procurement Policy

The ULVAC Group has established the Basic Procurement Policy. We observe the policy and are promoting CSR procurement in cooperation with our business partners. Furthermore, "Requests to Our Business Partners" states our requests to business partners in areas such as the environment, human rights, labor and compliance as well as compliance with the RBA*¹ Code of Conduct. With regard to promoting CSR procurement, we had conducted a questionnaire survey with reference to the RBA Code of Conduct covering 610 suppliers by FY 2022. As a result, we confirmed that there were no incidences of child labor, forced labor, inhumane treatment, fraud or bribery, which are particularly emphasized in the RBA Code of Conduct, and the handling of conflict minerals. We plan to expand the scope of this CSR questionnaire survey to cover ULVAC Group companies in Japan in FY 2023 and overseas Group companies in FY 2025.
Furthermore, we revised the basic transaction agreement in April 2020 and explicitly mentioned understanding the content of "Requests to Our Business Partners" and its observance.

*1 Responsible Business Alliance. CSR promotion group focused on the electronics industry in global supply chains

Basic Procurement Policy

1. Compliance with laws and regulations

  • 1. The ULVAC Group conducts its corporate activities lawfully and in accordance with regulations, social norms, and public decency.
  • 2. We fully comply with the relevant laws and regulations.

2. Maintaining and promoting fair and free competition

  • 1. We maintain and promote fair, impartial, and free competition among our business partners regardless of the country in which they are located.
  • 2. We do not take advantage of our business partners by demanding unfair transactions.

3. Healthy and good relationships with business partners and affiliates

ULVAC enforces strict security measures with regard to individuals who share in or gain unfair enrichment in commercial transactions inside or beyond the Group. Our directors and employees carry out appropriate decision making and exercise moderation to avoid damaging the Group's reputation.

4. Promoting global procurement

  • 1. We optimize our components procurement from worldwide sources, while always keeping pace with our global business operation.
  • 2. Based on our international perspective, we cooperate with our business partners in different countries to procure superior components, technologies, and services.

5. Promoting green procurement

  • 1. ULVAC recognizes that protecting the global environment is one of the momentous challenges posed to all humankind. In all its business operations, we contribute the technologies that we have developed or will develop on behalf of environmental conservation for the development of an affluent society on a more livable Earth.
  • 2. We promote environmentally-conscious procurement by developing green procurement standards.

6. Promoting CSR procurement

  • 1. In our procurement process, we emphasize not only quality, technology, price, and delivery time, but also CSR throughout the entire supply chain.
  • 2. To encourage all of our business partners to pursue CSR-friendly procurement, we have formulated a message entitled "Requests to our business partners."

Executive General Manager
Production HQ

Purchasing Code of Conduct

  • We established the Purchasing Code of Conduct, a set of principles emphasizing compliance for employees engaged in procurement, in 2019 with an aim to maintain sound, good relationships with business partners. Inhouse education such as case studies on the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors is provided twice a year for employees engaged in ULVAC, Inc.'s procurement and that of Group companies in Japan.

  • Purchasing Code of Conduct

Responsible Minerals Procurement

Conflict minerals are minerals, such as 3TGs*2and cobalt, that are sourced from conflict-affected and high-risk areas(CAHRAs) and whose extraction and sale directly or indirectly serve as sources of funding for armed groups or are root causes of serious human rights abuses and poor working conditions. ULVAC, Inc. does not purchase 3TGs, cobalt, or other raw materials that are derived from these conflict minerals.
In particular, we manufacture and sell sputtering targets and various tantalum wrought products in the materials business. We conduct due diligence in accordance with the guidance of OECD and RMI*3through conflict minerals surveys covering raw materials suppliers in order to ensure transparency of transactions.

*2 Tantalum, tin, tungsten, and gold
*3 Responsible Minerals Initiative. An organization that inspects smelters and refiners handling 3TGs to certify that they are not using conflict minerals

Requests to our business partners

The ULVAC Group seeks understanding of our Group's basic stance on procurement activities for the fulfillment of our responsibilities from not only by our own Group alone, but also by our entire supply chain. In 2013, as a part of this effort, we posted a message entitled "Requests to our business partners" on our website, which lists specific requests we make to our business partners in areas including the environment, human rights, labor affairs, and compliance.

Green Procurement

ULVAC Group decided to develop its Green Procurement Standard and
promote environmentally conscious procurement activities.

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