Compliance

The `` artience group Code of Ethics and Conduct'' (hereinafter referred to as ``the Code'') applies to the executives, advisors, employees, contract employees, part-timers, temporary employees, and other employees of artience group (hereinafter referred to as ``the Company Group''), as well as the operations of the Group. It indicates the basic way of thinking and behavior that all employees (hereinafter collectively referred to as "executives, employees, etc.") must adhere to in order to be worthy members of society, as required by our group. Based on our compliance with this Code in all of our business activities, our group will contribute to improving the sustainability of society and adhere to our group's philosophy of ` Create value that resonates with the senses, build a future where all people can live enriched lives'' We will strive to make this a reality.

1. Comply with laws and internal regulations, and respect international norms
   • We will comply with the laws and regulations applicable in the countries or regions where we conduct business activities, as well as various internal regulations, including this Code, and respect the International Code of Conduct ^*.
   • We will make decisions based on a high level of reason, conscience, and ethics, and will act with integrity and earn the trust of society.
   • If laws and regulations applicable in a particular country or region conflict with this Code or various internal regulations, we will take measures to maximize respect for the International Code of Conduct within the scope of local laws and regulations. I will pursue it.
   • International Code of Conduct: Expectations for socially responsible corporate behavior derived from customary international law, generally accepted principles of international law, or intergovernmental agreements, including universally recognized treaties and agreements. refers to For example, the United Nations' Universal Declaration of Human Rights, the Ten Principles of the Global Compact, the Guiding Principles on Business and Human Rights, the Sustainable Development Goals (SDGs), and the International Labor Organization's International Labor Standards. , the ``Multinational Enterprise Declaration'', and the OECD ``Guidelines for Multinational Enterprises''.
   Reference: [Risk Management Regulations], [Antitrust Law Compliance Regulations]
   Reference: [Basic policy regarding risk management], [Basic policy regarding development of internal control system]
   Reference: [Sustainable Supply Chain Guidelines] 1. Comply with laws and regulations and respect international norms
2. Respect for Human Rights
   • We respect the human rights of all people based on our group's Corporate Philosophy of "People-oriented management." We will not only not violate human rights or be complicit in human rights violations, but also strive to avoid creating situations that encourage human rights violations.
   • We do not tolerate child labor or forced labor throughout our group's supply chain. We also do not tolerate any form of modern slavery, inhumane treatment, or unfair labor practices, including bonded labor and human trafficking.
   • We respect the dignity and diversity of individuals and will not engage in discrimination for any reason ^* that attempts to deny it, conduct that may lead to discrimination, and conduct that is legally or socially defined as harassment. not.
   • We understand the culture, customs, and religious customs of the countries and regions in which we operate, and act with respect for these.
   • In order to eliminate the possibility of being complicit in human rights violations, we do not procure or use so-called conflict minerals, agricultural products that are concerned about human rights violations, or raw materials derived from them.
   • Any reason that seeks to deny the dignity and diversity of individuals: race, color, ethnicity, nationality, regional origin, social origin, age, gender, sexual orientation, gender identity and expression, ideology, beliefs, Examples include, but are not limited to, religion, political party affiliation and political views, disability status, military experience, labor union membership, employment status, educational background, marital history, family status, health status, and genetic information. It will not be.
   Reference: [Basic Policy on Respect for Human Rights], [Basic Policy on Procurement]
   Reference: [Sustainable Supply Chain Guidelines] 2-1. Prohibition of forced labor, free choice of employment / 2-2. Prohibition of child labor, consideration for young workers / 2-5. Prohibition of inhumane treatment / 2-6. Prohibition of discrimination/5-9. Responsible mineral procurement
3. Prohibition of corrupt acts ^*​
   • We will not offer, request, promise or provide bribes, directly or indirectly, to public officials, agents acting on behalf of public officials, or employees of public interest or duties equivalent to public duties.・We will not accept any receipts.
   • We will not provide excessive gifts or entertainment to customers, business partners, etc. that exceeds the socially acceptable range, even if it does not constitute bribery.
   • We do not make illegal or inappropriate political contributions. In particular, in order to maintain political neutrality as a group, we do not use company assets as political contributions to any political party, political organization, or candidate for public office.
   • In situations where personal interests and company interests conflict, we will not engage in conflict-of-interest acts ^* that would harm the company's interests and benefit from personal benefits.
   • We do not engage in insider trading based on non-public information about customers or business partners obtained through our group or business operations. We will not provide non-public information or solicit insider trading to family members or third parties.
   • Corrupt acts: Bribery, excessive gifts and entertainment, conflicts of interest, improper receipt of kickbacks and kickbacks, facilitation payments to obtain illegal profits, illegal or inappropriate political contributions, anti-competitive acts such as collusion and collusion. This includes, but is not limited to, abuse of a dominant position to the detriment of business partners, extortion, blackmail, embezzlement, breach of trust, fraud, obstruction of justice, insider trading, money laundering, etc.
   • Acts of conflict of interest: For example, labor activities for competitors, sales of competing products and services for the benefit of oneself or a third party, business activities unrelated to the company during working hours (excluding exercise of civil rights, etc.) Examples include transactions between executives and employees, etc., and the company.
   Reference: [Bribery Prohibition Regulations], [Insider Trading Prevention Management Regulations]
   Reference: [Policy on anti-corruption]
   Reference: [Sustainable Supply Chain Guidelines] 5-1. Anti-Corruption / 5-2. Prohibition of Providing and Receiving Improper Benefits
4. Fair and sound business activities
   • We will engage in fair, transparent, and free competition in accordance with the laws and regulations applicable to the countries or regions where we operate, international codes of conduct, and business practices, and we will not engage in any acts that impede these activities.
   • We will not engage in unfair trade practices such as cartels, bid rigging, discriminatory pricing, unfair low prices, unfair high-priced purchases, or any other acts that inhibit competition.
   • We will not use expressions that are incorrect, mislead customers or consumers, or that may slander or infringe on the rights of others in advertising or catalogues, etc. regarding our products and services.
   • We will not take advantage of our superior position as a purchaser or outsourcer in commercial transactions to unilaterally put a business partner at a disadvantage. We will conduct honest, fair and just transactions based on contracts in accordance with laws and regulations.
   • We will appropriately manage tangible and intangible company assets ^* and will not use them for purposes other than business activities. In particular, it will not be used for any purpose that would harm the company's interests, such as unauthorized use or personal diversion.
   • We will not allow fraudulent or unsubstantial reporting, falsification, or fraud with respect to information such as financial reports, accounting documents, research reports, business reports, expense accounts, attendance records, and other documents and data that are managed and used in our business activities. No operation will be performed.
   • Tangible and intangible company assets: Tangible company assets include land, buildings, company furniture, equipment, cash, and securities. Intangible company assets include intellectual property rights, customer/sales information, technical information, production information, brand power, etc.
   Reference: [Antitrust Law Compliance Regulations], [Antimonopoly Law Compliance Manual], [Operating Guidelines for Subcontracting Transactions], [Information Protection Management Regulations], [Information System Management Regulations]
   Reference: [Policy on anti-corruption]
   Reference: [Sustainable Supply Chain Guidelines] 5-6. Fair business activities / 5-7. Prohibition of abuse of dominant position
5. Appropriate information management
   • We will appropriately and strictly manage and protect important information (confidential information) received from our group, customers, and third parties. We will not obtain or use confidential information of other companies through illegal means.
   • We respect the intellectual property rights of others, including those of our customers and business partners, and strive not to infringe upon them. When conducting business activities, we will conduct reasonable preliminary investigations to avoid infringing on the intellectual property rights of others.
   • We respect the personality of individuals and appropriately acquire, use, manage, and protect all personal information in accordance with the laws and regulations of the countries or regions in which we conduct business activities.
   • We will thoroughly implement preventive actions based on information security in our daily operations, and strive to prevent damage not only to our group but also to our customers and business partners.
   • We provide all customers with accurate and non-misleading information about our products and services. In particular, if there is a risk to quality or safety, we will promptly and appropriately disclose information.
   Reference: [Information Protection Management Regulations], [Personal Information Management Regulations], [Information System Management Regulations], [Confidential Information Handling Regulations], [Personal Information Management Regulations Regarding Employment Management]
   Reference: [Information Disclosure Policy (Disclosure Policy)], [Personal Information Protection Policy (Privacy Policy)]
   Reference: [Sustainable Supply Chain Guidelines] 5-5. Protection of intellectual property rights / 6-3. Providing accurate product and service information / 7. Information security
6. Farewell to anti-social forces
   • We will not have any relationships with anti-social forces or activities that threaten social order and safety or impede healthy social and economic activities.
   • We will take a resolute stance against anti-social forces, and will not respond to any transactions such as offering money or goods, purchasing goods, or making unreasonable demands.
   Reference: [Rules for dealing with anti-social forces]
   Reference: [Sustainable Supply Chain Guidelines] 5-3. Prohibition of involvement with anti-social forces
7. Responsibilities as a member of a global chemical company
   • We confirm that transactions involving all products of our group do not violate security export control laws and regulations aimed at maintaining international peace and security, and that they are not used for weapons development, etc. Masu.
   • We recognize that violations of security export control-related laws and regulations not only result in criminal and administrative sanctions, but also affect the very existence of our company. to hold.
   • We carry out appropriate chemical substance management to ensure that chemical substances contained in our group's products and raw materials do not affect human health or the environment.
   • We strive to secure information on the toxicity and safe handling of chemical substances in all processes, from raw material procurement to disposal, and to provide appropriate information to employees and customers involved in our products.
   Reference: [Basic Security Export Control Regulations], [Chemical Substances Management Regulations]
   Reference: [Basic policy regarding the environment]
   Reference: [Sustainable Supply Chain Guidelines] 4-3. Chemical substance management/10-3. Appropriate import/export management
8. Responsibilities as a member of a listed company or its Group Companies
   • We reaffirm that the management of our company, which is a listed company, is entrusted to us by our shareholders, and we strive to live up to this mandate, and our responsibility is to improve the brand and corporate value of our group. will be carried out.
   • We will disclose important information regarding the management of our company and our group to shareholders, investors, and other stakeholders in a timely, appropriate, and fair manner.
   • We abide by the principle of shareholder equality and do not engage in transactions or actions that are contrary to the interests of other shareholders, such as providing special benefits to specific shareholders.
   Reference: [Basic Policy on Corporate Governance], [Policy on Information Disclosure (Disclosure Policy)]
   Reference: [Guidelines for timely disclosure of company information]

Regarding revision, abolition, and management of this Code

The amendment or abolition of this Code will be decided by Board of Directors of artience Co., Ltd.
In addition, the revision and abolition of this Code will be carried out by the secretariat of Sustainability Committee, which oversees artience group 's company-wide sustainability activities.

Established October 1998
Revised on January 1, 2024 (Resolved at Board of Directors on December 8, 2023)

The Business Conduct Standards set out the following seven basic principles, with specific standards of conduct incorporated into each of the basic principles.

basic principles

• Ⅰ. Improving customer satisfaction
• Ⅱ. Respect for individual diversity
• Ⅲ. Coexistence with society
• Ⅳ. Improving shareholder satisfaction
• V. Compliance with laws and regulations
• Ⅵ. Employee positions and responsibilities
• VII. Management Structure and Compliance Program

Basic Principles V. Compliance with laws and regulations (partial)

1. Adhering to fair and free competition (compliance with antitrust laws)
   Understand and pay attention to antitrust laws and foreign competition laws, and never engage in cartel activities.
2. Do not engage in insider trading
   Not only do we not engage in insider trading ourselves, we also do not provide information that could lead to insider trading to family members or others.
3. Respect international trade rules
   Respect the culture of each country and region and comply with laws and social norms.
4. Conduct strict import and export controls
   Comply with Japanese laws, U.S. export control regulations, and foreign national security laws.
5. Properly manage chemical substances
   As a chemical manufacturer aiming for global expansion, we comply with not only domestic laws and regulations related to chemical substance management, but also relevant laws and regulations overseas.
6. Obtain, use and manage information appropriately
   Recognize that information is an important asset and manage it correctly.
   Furthermore, we will not illegally obtain confidential information from other companies, nor will we leak or use confidential information after retirement.
7. Protect your personal information
   When handling personal information, obtain, use, and manage it in accordance with laws and regulations so as not to infringe on the rights and interests of individuals.
8. don't make political contributions
   Do not use company assets as political contributions to any political party, political organization, or candidate for public office.
   Furthermore, we will not exert any direct or indirect pressure on others to make political contributions or support a particular political party or candidate.
9. Do not bribe public officials
   When dealing with government agencies, understand and comply with laws and regulations, taking into account the differences between practices among private companies.
   Do not offer money or goods to public officials, whether domestic or foreign, or provide any kind of favors.
10. Do not conduct fictitious transactions or interfering transactions
    We conduct our business with the understanding that sales are limited to those realized by actually selling products and providing services.

(Established October 1998, revised April 1, 2014)