Suppliers for the FY2023 assessment were determined by assuming the scope of high-risk operations and then screening them based on scores from METI data. The rationality and legitimacy of this selection method was confirmed by a third-party organization.

• 62 suppliers (response rate 80.6%)
• As a result of the discussions, the target industries for this fiscal year were determined to be wood chips, wood fuel, starch/corn, wood products, PKS, and hemp.
• The target companies were selected based on the scores of "Human Rights Risk by Product" and "Human Rights Risk by Region" from the "Practical Reference Materials for Respecting Human Rights in Responsible Supply Chains, etc." by the Ministry of Economy, Trade and Industry of Japan.

• Prohibition of discrimination
• Respect for indigenous peoples and customs
• Prohibition of forced labor
• Prohibition of child labor
• Fair application of working hours and leave
• Wages
• Freedom of association and the right to collective bargaining
• Employee health and safety

• Human rights risk cases that have materialized: None
• Examples of potential human rights risks: 7 items
  (1) Dissemination of human rights policy (2) Clarification of human rights promotion system
  (3) Remedial measures (4) Prohibition of child labor and forced labor (5) Fair wages
  (6) Freedom of association (7) Workplace health and safety
• Corrective actions taken: Three suppliers that were found to be deficient in the above key human rights items were asked to make improvements, and "Implementation Confirmation" was conducted.The "Letter of Intent" was submitted.
• Potential risk identification ratio: 6.0% (3 companies/50 companies)
• Potential risk mitigation implementation ratio (implementation of improvement requests): 100% (3 companies/3 companies)

In order to understand the working environment of foreign workers in Japan, we checked the employment status of foreign employee workers (including technical interns and temporary employees) and compliance with related laws and regulations at the three⁽*⁾ newly consolidated companies in Japan in FY2023. As a result, no problems were found in terms of legal compliance or treatment.

• *Survey of 92 domestic consolidated companies was conducted in FY2022.

In the course of conducting human rights assessments, we exchanged opinions with local management companies regarding the implementation of human rights assessments for suppliers in conflict-affected areas in Southeast Asia. With reference to opinions from a third-party organization, we conducted assessments through Group companies in the region in FY2023 (3 companies in scope). We will continue to gather information and closely monitor developments in the region concerned.

Participated in the Human Rights Due Diligence Subcommittee and ESG Subcommittee of the Global Compact Network Japan (GCNJ) and exchanged information with experts from other companies and NPOs. In addition, one person in charge participated in and completed the first phase (October 2023-February 2024) of the "Program for the Development of In-house Experts for Respect for International Human Rights and Labor Standards," jointly sponsored by the ILO Office in Japan and GCNJ.