Supply Chain Management

SMS Sustainable Procurement Policy

SMS Group believes that it is essential to work toward a sustainable society across our entire supply chain in order to realize our Mission to "improve people's quality of life by providing information infrastructure for an aging society."
To achieve this, SMS Group conducts its purchasing activities in accordance with the principles set out below.

1. Compliance with laws and regulations

We comply with applicable laws and regulations and with social norms, in Japan and overseas, and conduct business fairly and to a high ethical standard. This includes prohibiting all forms of corruption, such as bribery.

2. Fair selection of business partners

We select suppliers rationally and appropriately, and exclude decisions based on arbitrary personal preference. As a general principle, we do business with suppliers that are financially sound, well regarded, and committed to high ethical standards.

3. Respect for human rights

Based on the "SMS Human Rights Policy," we respect human rights across our entire supply chain and ensure our purchasing is free from any human rights violations, including forced labor, child labor, discrimination, and harassment.

4. Environmental conservation

Based on the "SMS Environmental Policy," we work to reduce environmental impact across our entire supply chain to help build a circular economy, and we prioritize environmentally responsible products and services in our procurement.

5. Information security

We strive to appropriately protect and manage confidential information and personal information related to our purchasing activities.

SMS Group reviews and updates this Policy on an ongoing basis, in line with changes in society and in our business environment.

*If any Group company has established its own policy tailored to the characteristics of its country or region, that policy shall take precedence. Where no such local policy exists, activities shall be conducted in accordance with this Policy.

Established in March 2026

SMS Supplier Code of Conduct

SMS Group has established the "SMS Supplier Code of Conduct," which defines the standards we ask our business partners (suppliers) to meet, in order to help build a sustainable society across our entire supply chain. We ask all suppliers to understand this Code and apply it in their business activities, and we will work alongside them toward a sustainable society.

1. Compliance with laws and regulations

Suppliers shall comply with the laws and social norms of the countries and regions in which business activities are conducted.

2. Fair transactions and ethics

Suppliers shall conduct business fairly, maintaining a good reputation, sound judgment, and high ethical standards.
Suppliers shall not engage in corruption in any form, including bribery, embezzlement, or extortion, nor offer or accept inappropriate benefits.
Suppliers shall comply with competition laws, such as antitrust laws, and engage in fair and free competition.
Suppliers shall respect the intellectual property rights of others and do not infringe upon them.
Suppliers shall have no relationship of any kind with organized crime groups or other antisocial forces that threaten the order and safety of civil society.

3. Human rights and labor

Suppliers shall respect internationally recognized human rights standards, and do not engage in any form of forced labor, child labor, or human trafficking.
Suppliers shall not discriminate in hiring or in terms and conditions of employment on the basis of nationality, race, gender, religion, disability, age, sexual orientation, or any similar attribute.
Suppliers shall prohibit power harassment (workplace bullying), sexual harassment, and all other forms of harassment, whether mental or physical.
Suppliers shall comply with statutory minimum wages, manage working hours appropriately, and provide a workplace that safeguards employees' occupational health and safety.
Suppliers shall respect employees' freedom of association and right to collective bargaining, as well as their right not to participate in these activities, in accordance with the laws of each country.

4. Environment

Suppliers shall comply with the environmental laws and regulations of the countries and regions in which business activities are conducted.
Suppliers shall proactively work to reduce their environmental footprint and help build a circular economy — for example, by cutting greenhouse gas emissions, reducing waste, and using water resources efficiently.
Suppliers shall make efforts to measure and track their own greenhouse gas emissions, and to cooperate with data requests from SMS.

5. Quality, safety, and stable supply

Suppliers shall supply the goods and services SMS requires in a cost-effective, stable, and continuous manner, and without delay.
Suppliers shall ensure the quality and safety of the products and services provided, and meet the standards required by SMS.
In the event of a significant incident or problem, suppliers shall disclose information promptly and appropriately, and act in good faith to resolve it.

6. Information security

Suppliers shall appropriately manage and protect confidential information and personal information obtained through business activities, and put in place measures to prevent data breaches and unauthorized use.

7. Supply chain initiatives

Suppliers shall make efforts to encourage their own suppliers to understand and uphold the intent of this Code.

*If any Group company has established its own code tailored to the characteristics of its country or region, that code shall take precedence. Where no such local code exists, activities shall be conducted in accordance with this Code.

Established in March 2026