Supply Chain Management

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Supply Chain Management

The Group believes that conducting business activities with consideration for the environment, human rights, and other matters is essential to contributing to the sustainable growth of society. Based on this belief, we formulated the T-Gaia Group CSR Procurement Policy and the CSR Procurement Policy Guidelines, which promote sustainable procurement from the perspectives of global environmental conservation and respect for human rights.
We aim to achieve a sustainable society by communicating this policy and these guidelines to our business partners and gaining their understanding.
In addition, we have set our CSR procurement initiatives as a key performance indicator (KPI) for our TG Material Issues, with the Group working together as one.

Governance

The Group has evaluated and managed CSR procurement through our company-wide committee (Sustainability Committee). The Sustainability Committee is an advisory body to the Management Conference and formulates and deliberates on matters such as policies, strategies, and measures to enhance our sustainability in CSR procurement. The committee reports the details of discussions to the Management Conference and recommends important issues to be brought to the Board of Directors for discussion.

Policy

T-Gaia Group CSR Procurement Policy

1. Fair and Equitable Business Activities in Compliance with Laws and Regulations
2. Respect for Human Rights and Consideration for Occupational Health and Safety
3. Consideration for the Global Environment
4. Ensuring Product Quality and Safety
5. Information Security Measures
6. Developing a Business Continuity Plan

Indicators and Targets

We established "Sustainably developing through collaboration with business partners" as one of our TG Material Issues and set the CSR survey response rate as a KPI, with the aim of developing a sustainable supply chain. For the latest update, please refer to the "Status of Initiatives" section.

Status of Initiatives

CSR Procurement Survey

The Group conducts questionnaire surveys to understand the status of CSR procurement initiatives undertaken by our business partners. In FY2023, we conducted questionnaire surveys with our suppliers, and in FY2024, we expanded the surveys to include the business partners of our group companies and our agents' shops.
For the survey, we use the CSR Procurement Self-Assessment Questionnaire created by the Global Compact Network Japan, which covers nine themes: corporate governance related to CSR, human rights, labor, environment, fair business practices, quality and safety, information security, supply chain, and harmonious coexistence with local communities.
*The survey themes are adjusted as needed, depending on the survey target.

As a result of the questionnaire survey, we found no major issues based on the responses from our business partners. We will continue conducting the survey in the future to help improve our supply chain management. Additionally, we will keep promoting CSR procurement throughout the entire supply chain in cooperation with our business partners.

Initiatives for Agents' Shops

We conduct various initiatives for our agents' shops, our important business partners, aiming to create an environment where agents' shops and their employees can feel secure in conducting their business activities.

• Shop diagnosis
  We conduct a shop diagnosis once a year to ensure that the shops are operated correctly in accordance with laws, regulations, and rules.
• Compliance training
  We provide e-learning for staff involved in sales to raise their awareness of compliance.
• Compliance reports
  We disseminate information on compliance laws and regulations, along with the latest social trends and developments.