Shin Etsu Polymer : 2022 Sustainability Report

Corporate Code of Conduct

1. We have pride and awareness as employees of Shin-Etsu Polymer Co., Ltd. and its Group companies and do our best to become a company trusted by society by always maintaining a law-abiding spirit, complying with laws, regulations, internal codes and rules and conducting fair and highly transparent corporate activities.
2. We disclose a comprehensive range of corporate information where necessary and appropriate and promote communication with society as well as stakeholders, investors, customers, and communities as an "open company."
3. We respect the histories, cultures, customs, etc. of individual countries and regions, work at developing business based on mutual trust, and make efforts to coexist with communities.
4. We recognize global environmental preservation as one of our first pri- ority challenges and, by fulfilling our social responsibilities, actively par- ticipate in the establishment of a recycling-oriented economic society aiming for sustainable development.
5. Through our business activities, we try to develop and manufacture environmentally friendly products with high performance, contribute to an affluent society, and preserve the environment. Furthermore, we im- plement green procurement, properly control chemical substances, and comply with regulations on substances contained in products.

1. We commit ourselves to meeting the requirements of customers and consumers and making efforts to provide attractive, safe, and quali- ty products and services that are highly satisfactory. Furthermore, we carefully handle personal information associated with customer's priva- cy and strictly control such information so that no leakage or illegal use should occur.
2. We respect the principle of free competition and always promote fair trade. We also build transparent, fair, and healthy relations with custom- ers and consumers.
3. We respect the human rights, individuality, and diversity of employees, realize fair treatment, and establish a working environment where they can exert their abilities and skills. We comply with occupational laws and regulations and do not engage in inhumane labor practices such as child or forced labor.
4. We maintain healthy and normal relations with governments and their administrations.
5. We confront antisocial groups and organizations that threaten social order and security with a resolute attitude.
6. As a good corporate citizen, we carry out social contribution activities in a positive manner.

Editorial Policy

The Shin-Etsu Polymer Group issues a Sustainability Report every year as a communication tool to enable stakeholders to understand group activities that will lead to the realization of a sustainable society. In addition to reports focusing on key sustainability issues (previously "key CSR issues,") we also strive to disclose information in line with requirements from our stakeholders.

The editorial policies for the fiscal 2022 version are as follows:

• In the Special Feature, we introduce products that contribute to solving "Water Cri-

sis/Water Stress" issues.

❷The Sustainability Report covers our organizations and activities related to gover- nance, suppliers, employees, local communities, and the environment in an easy- to-see and easy-to-understand manner for relevant stakeholders.

❸The information in this Report (including the English version) and details of environ- mental data are all disclosed on our website. We also provide additional information

❹For this fiscal 2022 version, we received third-party comments from Mr. Yoshinao Kozuma, Professor at Sophia University, as with previous editions. We will draw on the comments in our future efforts and initiatives.

WEB WEB About our sustainability initiatives

https://www.shinpoly.co.jp/en/environment.html

◦Period covered by this report

April 2021 - March 2022 (For group companies in Japan); January 2021 - Decem- ber 2021 (For overseas group companies)

◦Issued

September 2022 (Previous issue: September 2021; next issue: September 2023)

◦Organizations covered by this report

Shin-Etsu Polymer Group (For further information, please see page 44)

◦Fields covered by this report

This report covers the fields of environmental conservation and social activities. For an overview of the business, please refer to our corporate profile.

◦References

Environmental Reporting Guidelines 2018 by the Ministry of the Environment GRI Sustainability Reporting Standards 2016/2018/2019/2020

◦Inquiries

Office of the President, Shin-Etsu Polymer Co., Ltd.

Ote Center Building 1-1-3 Otemachi, Chiyoda-ku,Tokyo100-0004 Japan

TEL +81-3-5288-8404  FAX +81-3-5288-3111URL https://www.shinpoly.co.jp/en/

Contents

Prologue

1. Financial and Non-Financial Highlights

1. Top Commitment

08 Sustainability Activities

Our Basic Sustainability Policy and Corporate Code of

Conduct

Sustainability Promotion Structure / Key Sustainability

Issues

Shin-Etsu Polymer Value Chain

Stakeholder Engagement

12 Towards Establishing a Recycling-Oriented Economic Society

13

Special Feature

Infrastructure Maintenance

Materials to Support a

Livable and Durable Urban

Environment

14 Polymer Ace

and Polymer Multi Tape

1. Comments from a customer
2. Environment

Environmental Management / Countermeasures Against Global Warming / Waste Reduction and Recycling / Control of Chemical Substances / Activities for Bio-diversity Protection / Endorsement of TCFD Recommendations

31 Society

Improving Quality / Supply Chain Management / Human Resources Development / Respect for Human Rights / Work-Life Balance / Diversity & Inclusion / Occupational Health and Safety / Social Contribution Activities

39 Governance

Corporate Governance / Dialogues with Shareholders and Investors /Compliance / Risk Management

46 Closing Remarks

Business Overview of the Shin-Etsu Polymer Group Third-Party Opinion / Response to Third-Party Opinion

Sales / Operating Income (consolidated)

Net Profit Attributable to Owners of Parent / Net Profit per Share

(Yen)

*The CO2 emission coefficient uses our coefficient.

*The CO2 emission coefficient uses our coefficient.

Workplace Accidents / Accident Frequency Ratio (Domestic Plants)

Workplace Accidents / Accident Frequency Ratio (Overseas Plants)