Policies and Guidelines

The followings define specific policies and guidelines of business activities based on 'NGK Group Guidelines for Corporate Behavior'

Basic Environmental Policy

Basic Environmental Principle

Given its corporate philosophy–"NGK products and technologies must create new value and contribute to the quality of life"–NGK will contribute to tackling environmental issues through its "Triple-E" business segments of ecology, electronics, and energy to create a comfortable environment for future generations.

Guidelines for Environmental Action

(1)Strive to develop, design, and manufacture products that contribute to the environment and products with low environmental impact.

(2)Work to reduce the environmental impact arising from business activities.
Conduct design reviews to scientifically study and evaluate the environmental impact of business activities.

1. Promote energy conservation measures for all processes and facilities, and make efforts to control CO₂ emissions.
2. Promote resource saving and recycling, and make efforts to control the generation of byproducts.
3. Through the appropriate use and control of chemical agents, work to reduce the risks inherent in toxic substances.
4. Give precedence to environmentally friendly materials, parts, products, and facilities in procurement and purchasing, strengthening cooperative alliances with our business partners.

(3)Enhance environmental management systems from a global perspective while continuously reducing our environmental burden.

(4)Not only abide by environmental laws, regulations, and other requirements, but also institute voluntary standards and work to improve our own environmental conservation.

(5)Provide environmental information to the public at the appropriate time and pursue dialogue with all stakeholders.
Proactively develop social action programs. Also, engage in education and publicity in order to improve employees' environmental consciousness.

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Companywide Quality Policy

Take quality seriously, providing useful products and services that earn our customers' trust and that of the world at large

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Basic Human Resource Development Guidelines

NGK is implementing a rewarding education program with the following goals in human resource development:

1. To cultivate personnel who can both inherit and develop the tradition and spirit of monozukuri, or "making things"
2. To cultivate personnel with the ability and talent to provide support for overseas business development; and
3. To provide all interested employees worldwide a platform for growth and learning.

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Companywide Health and Safety Policy

'Securing the safety and health of each employee is the very foundation of a company's operation and existence'

1. Comply with Occupational Safety and Health Law and Company Regulations.
2. Engage in activities in line with the OSHMS to continuously raise the safety and health standards.
3. Promote safety and health activities under good communication with employees.
4. Eliminate the risks of hazards and prevent accidents to provide a pleasant workplace.
5. Prevent employees' health disorders and promote health enhancement activities.

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Basic Purchasing Policy

Open-Door

• Open, fair, and equitable procurement
• Pursuit of the principles of competition and economic potential

Mutual Benefit

• Mutual prosperity based on mutual trust with suppliers

Social Partnership

• Obeying the law
• Protecting the environment

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Basic Green Procurement Policy

1. Implement green purchasing behavior for raw materials, parts, manufacturing facilities, submaterials, office supplies, and all other purchased goods and services.
2. Give precedence to products and services with good quality, price, and delivery terms that also feature a low environmental burden, as well as to corporations which give important consideration to environmental protection.

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Expansion and Penetration of Green Procurement

In order to adapt to environmental regulation such as REACH in EU, NGK released its "Green Procurement Guideline" at the end of 2004. In 2005, we requested the understanding of our suppliers and eco-friendly action based on this Guideline. At the same moment, we started surveying our suppliers to evaluate their current situation of environmental practice and also conveying our Basic Green Procurement Policy.
We have invited our suppliers to share our environmental goals and to work hand in hand with us to enhance a cooperative relationship with our suppliers.

From now on, NGK would like to promote this Green Procurement in all NGK manufacturing Group Companies at home and abroad. With this in mind, we revised the "Green Procurement Guideline" as "NGK Group's Green, Procurement Guideline" in February 2011. We believe that this Guideline promotes reduction of environmental burdens throughout the entire Supply-Chain.
We thank our suppliers for their understanding and adoption of environmentally-friendly practices through this Guideline.

As for hazardous chemical substances control, it is becoming much more stringent worldwide. In the world. In our endeavors to achieve a sustainable society, we have organized a cooperative system not only our Group companies but also our suppliers.

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Basic NGK Group Information Security Policy

As our information-communication society grows ever more sophisticated, the NGK Group has come to handle much more in the way of information assets, and is aggressively pursuing the safekeeping of any and all information assets it retains. While it is essential to share these assets in order to conduct business in a smooth and efficient manner, establishing a system for information security likewise becomes a necessity. For this reason, the NGK group has set forth this basic policy regarding information security and will work to safeguard the information assets in its possession.

• In order to ensure the safety of retained information assets, which includes information retained in the course of business activities, as well as any devices, facilities, or services necessary to handle said information, we will establish an information security management system to prevent unauthorized intrusion, loss, theft, leaks, modification, damage, denial-of-service attacks, and any other threat.
• All individuals who work at any office of NGK or its group companies and who make use of information assets will be subject to ongoing information security education and training for an increased awareness of security issues. Actions in violation of this Policy may be subject to legal penalties, as well as reprimands set forth in labor regulations, contracts, and/or other binding documents.
• Should a security issue arise concerning information assets, we will promptly investigate the cause and work to keep any damage to a minimum.
• We will comply with all laws and social norms with regard to information security, as well as any such contractual requirements and duties entered into with a customer.
• NGK will strive to continuously review and revise the activities noted herein.

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