Procurement Operations shall be carried out in accordance with the following basic principles:

1. The Procurement Section shall strive to conduct procurement transactions on the basis of fair, equitable, transparent and free competition without involving personal interests or arbitrary considerations.
   1. The Procurement Section shall conduct work in the spirit and attitude of fairness and equity without involving any arbitrary considerations toward or against suppliers.
   2. The Procurement Section shall comply with all relevant laws, regulations and Sumitomo Chemical's internal rules, including spirit behind them, when conducting procurement transactions.
   3. The Procurement Section shall neither make a request for quotations (hereinafter “RFQ”) from suppliers from whom it has no intention to procure nor acquire information unnecessary for such procurement transactions.
   4. The Procurement Section shall make business decisions on procurement by placing the highest priority on Sumitomo Chemical's interests and without involving personal emotion or interests.
   5. The Procurement Section shall endeavor to prevent illegally acquiring or divulging confidential information regarding suppliers.
   6. The Procurement Section shall neither conduct procurement transactions with Sumitomo Chemical nor cause any interested person to transact with Sumitomo Chemical without obtaining explicit prior permission from Sumitomo Chemical.
   7. The Procurement Section shall not solicit or receive any personal benefit from suppliers, such as excessive entertainment or the acceptance of gifts and gratuities beyond the extent of socially acceptable business practices.
2. The Procurement Section shall strive to select suppliers to transact with in accordance with the most appropriate and economically rational methods and shall pursue the maintenance of sound business relationships with suppliers, aiming for mutual growth and development.
   1. The Procurement Section shall select the best or the most appropriate suppliers for Sumitomo Chemical after considering such factors as the stability of their management foundation, quality of Goods and Services supplied, prices, supply stability, technology development capabilities and Sustainability activities.
   2. The Procurement Section shall negotiate and coordinate with suppliers from the viewpoint of the entire Group, assuming responsibility for its words and actions in order to build mutual trust with suppliers.
3. The Procurement Section shall strive to provide corporate services globally throughout the entire Group.
   1. The Corporate Procurement Section and Procurement Section shall perform their operations in close communication with related departments and affiliates within the Group.
4. In its procurement, the Procurement Section shall give preference to those suppliers that are active in Sustainability initiatives, with the aim of fulfilling its corporate social responsibilities and building sound relationships with suppliers.
   1. ⅰ The Procurement Section shall give the maximum possible consideration to the following when selecting suppliers.
      • Being in compliance with laws and social rules
      • Striving to prevent accident and ensure safety
      • Striving to protect the environment
      • Striving to respect human rights and eliminate discrimination
      • Placing importance on work environment
5. The Procurement Section shall strive always to meet quality requirements of Sumitomo Chemical's internal sections that request purchase of Goods and Services.
   1. The Procurement Section shall stringently evaluate Goods and Services to be purchased and only enter into transactions that satisfy the requested quality.
6. In performing Procurement Operations, the highest priority shall be given to safe and stable operation in order to realize zero-accident and zero-injury operations.
   1. The Procurement Section shall always place the highest priority on realizing safe and stable operation when making decisions in the course of Procurement Operations.
7. In performing Procurement Operations, the highest consideration shall be given to customer satisfaction.
   1. The Procurement Section shall always place the customer foremost in all aspects of its operations.
8. The Procurement Section shall ensure the Transparency of Procurement Operations.
   1. The Procurement Section shall implement procedures for Procurement Operations based on documentation.
   2. The Procurement Section shall retain and keep under its control all relevant documents relating to Procurement Operations according to standards established by Sumitomo Chemical.
   3. The Procurement Section shall disclose information in an appropriate and timely manner.