CSR Procurement Guidelines | MITSUBISHI GAS CHEMICAL NEXT COMPANY,INC.

Basic Concepts Related to Raw Material Procurement Activities

In order to realize the MGC group’s mission “creating value to share with society” , we, Mitsubishi Gas Chemical NEXT, comply with laws and various regulations in accordance with our Corporate Behavior Principles, recognize social issues in our supply chain and strive for responsible procurement to support the development of a sustainable society. By making our basic approach to raw material procurement activities more concrete, we are deepening the understanding of our business partners.
The details of each item are summarized below.

Mitsubishi Gas Chemical Next CSR Procurement Guidelines

Ⅰ. Human rights/Labor
1. 1. Prohibition of discrimination We will endeavor to eliminate discrimination in job advertising and recruitment and to realize equal opportunities and fair treatment.
2. 2. Prohibition of inhumane treatment We will respect the human rights of employees and prohibit harsh and inhumane treatment, including abuse, sexual harassment, power harassment and other forms of harassment, and physical punishment.
3. 3. Prohibition of forced labor We will recruit all employees of their own free will and will not engage in forced labor. Also, we guarantee that employees can quit their jobs at their own discretion.
4. 4. Prohibition of child labor We will not recruit children under the statutory working age in the countries and regions where we conduct business activities. Also, we will not make young workers do jobs that impair their development.
5. 5. Appropriate wages We will abide by the statutory minimum wage in the countries and regions where we conduct business activities. Also, we will not unfairly reduce wages.
6. 6. Working hours We will abide by the statutory working hours in the countries and regions where we conduct business activities. Also, we will appropriately manage the working hours, holidays, and leave of employees.
7. 7. Right of workers to organize We respect the right of workers to organize as a means of realizing labor-management consultations on working conditions, the work environment, wage levels, etc.
Ⅱ. Occupational Health and Safety
1. 1. Safety measures for machinery and equipment We will adopt appropriate safety measures for the types of machinery and equipment that we use and carry out regular checks and maintenance of machinery and equipment.
2. 2. Workplace safety We will assess the risks relating to workplace safety, such as the possibility of accidents occurring during work and damage to health, and ensure safety by means of appropriate design, technologies, and management.
3. 3. Emergency response To protect lives and physical safety, assuming potential disasters, accidents, etc., we will prepare countermeasures for times of emergency, implement regular evacuation drills, and promote awareness in the workplace.
4. 4. Industrial accidents and illness We will grasp conditions relating to industrial accidents and illness by classifying and recording them and adopt appropriate countermeasures.
5. 5. Workplace hygiene We will grasp conditions relating to contact in the workplace with organisms, chemical substances, noise, bad smells, etc. that are harmful to the human body and adopt countermeasures,
  including the establishment and operation of management criteria, appropriate education for workers, and the supply of protective gear.
6. 6. Consideration for work involving a physical burden We will identify work involving a physical burden and conduct appropriate management so that it does not lead to accident or illness.
7. 7. Safety and hygiene of facilities We will ensure the appropriate safety and hygiene of facilities provided to workers for their daily living (dormitories, cafeterias, toilets, etc.).
8. 8. Health management of workers We will conduct the appropriate health management of all workers by implementing regular medical checks.
III. Environment
1. 1. Environmental management system We will establish and operate an environmental management system. An environmental management system is a comprehensive management setup for promoting environmental activities embracing the organizational structure, planning activities, responsibility sharing, practices, procedures, processes, and management resources. Environmental activities mean compiling an environmental policy, implementing measures in accordance with this policy, and making continuous improvements to achieve, revise, and maintain them by rotating the PDCA (plan, do, check, act) cycle. A representative environmental management system is the ISO 14001, which enables third-party certification.
2. 2. Management of chemical substances contained in products Our products will not contain any chemical substances prohibited by law, ordinance, etc. Also, we will abide by our duty to display necessary explanations and implement necessary test evaluations.
3. 3. Management of chemical substances used in the manufacturing process We will grasp emissions of chemical substances in the manufacturing process discharged into the external environment and submit appropriate reports to the administration. Also, we will endeavor to reduce emission of the said substances.
4. 4. Environmental permits/administrative certification In accordance with the laws, ordinances, etc. of the countries and regions where we conduct business activities, we will receive approval from the administration if necessary and submit required management reports to the administration.
5. 5. Minimization of environmental impact (wastewater, sludge, exhaust, etc.) We will abide by laws, ordinances, etc. relating to wastewater, sludge, exhaust, etc. in the countries and regions where we conduct business activities and endeavor to make further improvements by setting our own standards.
6. 6. Effective utilization of resources and energy We will set our own targets for the saving of energy and resources and continuously conduct the effective utilization of energy. Resource saving means reducing the amount of materials used in products and the amount of waste and promoting the reuse of materials and parts. Energy saving means rationalization of the use of heat and electricity.
7. 7. Reduction of greenhouse-gas emissions Greenhouse gases refer to six types of substance: CO2, methane, nitrous oxide, hydrofluorocarbons (HFCs), perfluoro compounds (PFCs), and sulfur hexafluoride (SF6). To reduce the emissions of these substances, we will set our own targets and endeavor to make continuous reductions.
8. 8. Reduction of final waste Final waste means waste that requires landfill or incineration. To reduce such waste, we will set our own targets and endeavor to make continuous reductions.
9. 9. Initiatives for biodiversity and environmental protection We will use materials that contribute to the protection of biodiversity and disclose and make efforts to improve the state of progress achieved in measures implemented for the sake of environmental preservation, including the reduction of emissions into the air, wastewater, soil, etc., reduction of the amount of resources used, and reduction of the amount of wastewater produced.
IV. Fair Trade and Ethics
1. 1. Prohibition of corruption, bribery, etc. We will maintain sound and normal relations with politics and the administration in the countries and regions where we conduct business activities and will not engage in any kind of bribery or illegal political donations.
2. 2. Prohibition of abuse of superior position We will not abuse our superior position as purchaser or consignor and will not engage in any kind of act that is disadvantageous to the supplier or consignee.
3. 3. Prohibition of supply or receipt of inappropriate benefits In our relations with stakeholders, we will not engage in the supply or receipt of inappropriate benefits of any kind. The supply or receipt of inappropriate benefits means acts involving the supply or receipt of money and goods beyond the scope stipulated by law and ordinance or beyond the scope of social norms; acts involving the supply of inappropriate benefits to antisocial forces; and acts involving insider trading of the shares, etc. of a client, etc. on the basis of important undisclosed information relating to the business of that company.
4. 4. Prohibition of acts restricting competition We will not engage in acts of any kind that obstruct fair, transparent, and free competition, such as cartels and bid rigging.
5. 5. Provision of accurate product and service information We will provide accurate information relating to products and services to consumers and clients, without any falsehoods. Specifically, information will include the use, quality, and method of handling products and services and substances contained in materials and parts used in the product.
6. 6. Respect for intellectual property We will not infringe on the intellectual property rights of others, including patent rights, utility model rights, design rights, trademark rights, copyrights, and confidential business matters.
7. 7. Appropriate export management Regarding the export of technologies or goods restricted by law, ordinance, etc., we will investigate international agreements and laws and comply accordingly. We will engage in appropriate export procedures based on a clear management setup.
8. 8. Information disclosure We will supply and disclose such information as the content of our business activities, our financial condition, our business performance, and risk information (damage due to a largescale disaster, occurrence of a harmful impact on the environment or society, discovery of a serious violation of a law or ordinance, etc.), regardless of whether disclosure is obligatory by law.
9. 9. Prevention and early detection of illegal acts We will endeavor to prevent illegal acts through education and enlightenment for our employees, and we will establish a whistleblowing contact to facilitate the early detection of illegal acts.
V. Quality and Safety
1. 1. Quality management system We will establish and operate a quality management system. A quality management system is a comprehensive management setup for promoting quality assurance activities embracing the organizational structure, planning activities, responsibility sharing, practices, procedures, processes, and management resources. Quality assurance activities mean compiling a quality policy, implementing measures in accordance with this policy, and making continuous improvements to achieve, revise, and maintain them by rotating the PDCA (plan, do, check, act) cycle. A representative quality management system is the ISO 9001, which enables thirdparty certification.
2. 2. Ensuring of product safety We will conduct design ensuring adequate product safety so that our products meet the safety standards stipulated in the laws, etc. of each country. Also, we will implement preventive measures so that quality problems do not arise.
VI. Information Security
1. 1. Protection against computer network threats If personal computers connected to the Internet are infected by a computer virus, etc., there is a danger that client information and confidential information will be leaked. Therefore, we will adopt measures to protect ourselves against threats on computer networks and conduct management so that we and others do not suffer damage.
2. 2. Prevention of personal information and confidential information leakage We will manage and protect the personal information of clients, third parties, and our employees and the confidential information received from clients and third parties in an appropriate manner.
VII. Contribution to Society
1. 1. Contributions to society and local communities We will positively engage in activities contributing to the development of the international society and local communities toward the realization of a sustainable society.
VIII. Responsible Procurement of Raw Materia
1. 1. Prohibition of the procurement of conflict minerals We will not procure materials, parts, or products that use minerals (tin, tantalum, tungsten, and gold) mined in conflict regions and high-risk areas, including the Democratic Republic of the Congo and neighboring countries.