Toward a Sustainable Society

1. Protection of Human Rights (Prohibition of Child Labor, Forced Labor, and Discrimination, and Protection of Employee Health and Safety)

We have positioned respect for human rights as a fundamental management policy, including the prohibition of child labor, forced labor, discrimination, and the protection of employee health and safety. Since our establishment in 2019, this commitment has been clearly stated in the Vehicle Energy Japan Standards of Conduct.

In addition, as a member of the Nissan Group, we act in accordance with the Nissan Global Code of Conduct.

1. Compliance with applicable laws, regulations, and corporate rules in all countries and regions is a fundamental principle in conducting our business activities.
2. The human rights of all stakeholders are respected.
3. We ensure that all employees share a common understanding of the essential importance of acting in accordance with the highest ethical standards.

We also comply with the following provisions of the Nissan Global Guideline on Human Rights:

1. Labor Management System and Access to Remedy
2. Forced Labor
3. Child Labor and Young Workers
4. Working Conditions
5. Discrimination
6. Freedom of Association
7. Health and Safety

To strengthen management oversight, we have established an internal reporting system, a harassment consultation office, and our Compliance Committee. We also proactively provide a range of training programs, including information security training (The table below shows training programs conducted in 2025.).

In line with these policies, we have established and shared information about a range of management indicators and have a consolidated list of key indicators we track as a part of our efforts to improve.

• Indicators related to occupational safety and health: annual average overtime hours and use of various types of leave
• Indicators related to appropriate employment practices: advancement of women, reemployment after mandatory retirement, employment of people with disabilities, and employment of people under the age of 18

The status of these key indicators in fiscal year 2025 is as follows.

In particular, we have established the targets and action plans below to promote the advancement of women, and we are working to achieve all of them within three years.

2. Health and Safety

Our health and safety policies and principles, applied consistently across all countries, regions, and business units, affirm that labor safety and employee health are top priorities in all aspects of our operations. To foster a corporate culture where the safety and well-being of people are respected, we conduct occupational health and safety activities in accordance with the Guidelines on Occupational Safety and Health Management Systems (Ministry of Health, Labour and Welfare Notification No. 113). Through these activities, we seek to reduce potential hazards, promote employee health, create a comfortable work environment, and enhance the overall safety and health standards at our workplaces. We have also been recognized as a KENKO Investment for Health Outstanding Organization.

As a global leader in lithium-ion battery technology, we are committed to designing, developing, manufacturing, and servicing automotive products that are precisely tailored to meet the evolving needs of our customers. Through continuous innovation and technological excellence, we contribute to the advancement of people, mobility, and society.

While pursuing technological advancement in harmony with the environment, we are committed, in accordance with our environmental policy, to environmental conservation and responsible environmental management.

Our company is committed to contributing to the realization of a sustainable society in harmony with the environment. To this end, we have established an environmental management system based on ISO14001 and promote responsible business activities, products, and services.

1. Air Pollution (Reduction of GHG Emissions)

In response to the April 2023 revision of the Act on the Rational Use of Energy, which has been renamed the Act on Rationalization of Energy Use and Shift to Non-fossil Energy, our company has established and implemented the 'Standard for the Rational Use of Energy and Conversion to Non-Fossil Energy.' Through this framework, we aim to promote energy conservation, advance the transition from fossil fuels to renewable energy, and contribute to achieving carbon neutrality.

In alignment with Japan's national goal of achieving carbon neutrality by 2050 and driving societal transformation, we are actively engaged in the challenge of Green Transformation (GX). As participants in the GX Future League — a public-private-academic initiative aimed at realizing sustainable growth in both current and future societies — we are working to reduce CO₂ emissions based on our own strategic plan.

In addition to our CO₂ reduction efforts, we have established a procedure titled “Management Protocol for Specified Products Related to Fluorocarbons,” through which we are actively engaged in managing and reducing other atmospheric pollutants.

2. Reduction of CO₂ Emissions through Energy Savings

Based on “the Act on Rationalization of Energy Use and Shift to Non-fossil Energy” we are actively engaged in energy-saving initiatives aimed at reducing CO₂ emissions.

3. Securing Water Resources

Globally, population growth and economic development are expected to drive increasing demand for water. At the same time, climate change is altering rainfall patterns, heightening societal concern over the stability and reliability of water supply.

By 2030, global freshwater supply is projected to fall short of demand by 40%, highlighting the urgency of addressing water-related challenges. In the World Economic Forum's annual Global Risks Report, risks associated with water — such as extreme weather events, natural resource crises, and environmental damage — consistently rank among the most critical threats to global stability.

In accordance with our environmental policy outlined in the Environmental Manual — “Promoting nature conservation and ecosystem preservation through business activities for harmonious coexistence with nature” — we implement water resource management, simplified water supply systems, and wastewater control through the following procedures.

1. Procedure Manual for Water Resources and Simplified Water Supply Systems
2. Procedure Manual for the Measurement of Industrial and Domestic Wastewater

4. Waste Management

It has long been recognized that waste has a significant impact on the natural environment, particularly on wildlife, across the globe. In response, we have incorporated the following principles into our environmental policy, as outlined in the Environmental Manual, and are actively implementing them.

We promote environmentally responsible manufacturing practices across all stages — from product research and development, design, procurement of materials, production, distribution and sales, to usage and disposal — with the aim of reducing environmental impact.

1. Development and Design of Environmentally Conscious Products
2. Promotion of Energy Efficiency to Prevent Global Warming
3. Reduction of Chemical Substance Usage and VOC Emissions
4. Promoting Resource Efficiency and Recycling in Support of a Circular Society
   (with a Focus on the Effective Use of Rare Metals)

In accordance with the regulations and standards set forth in the “Act on Waste Management and Public Cleansing”, we have developed and implemented a “Waste Management Procedure” to ensure proper handling and disposal of waste generated within the company. This procedure clarifies the responsibilities and operational steps necessary to promote autonomous waste management, resource recycling, and waste reduction.

Furthermore, we follow the procedure outlined below when entering into basic contracts with contractors for the collection, transportation, and disposal of industrial waste.

1. The Environmental Management Department shall enter into outsourcing contracts with contractors who hold licenses for waste collection, transportation, and disposal, according to each type of waste entrusted.
2. The outsourcing contract shall be prepared and retained by the Environmental Management Department.
3. When entering into an outsourcing contract, the Environmental Management Department shall conduct on-site inspections and other necessary verifications regarding the content of the governor's license, such as the type of business, types of industrial waste handled, license conditions, and expiration date, to ensure that the contractor is capable of proper waste management and determine whether the contractor is suitable as a business partner.
4. In the case described in (3), if the contractor transports waste to a prefecture that implements a prior consultation system, the Environmental Management Department shall conduct prior consultation with the relevant prefectural authority.

Meanwhile, within our company, we define the required competencies for personnel engaged in activities that affect environmental performance or are necessary to meet compliance obligations identified through environmental impact assessments. We clarify training needs, ensure that individuals possess the required competencies, and verify the effectiveness of these measures. Furthermore, we promote awareness among all employees regarding the environmental impacts of their work.

5. Hazardous substances

We do not use any hazardous substances regulated under the Act on Control of Household Products Containing Harmful Substances. Furthermore, all chemical substances handled in accordance with the Chemical Substances Control Law are centrally managed, and we regularly verify that they are stored and used appropriately.

In addition, we have certified instructors for organic solvent operations, as well as licensed supervisors for the handling of poisonous and hazardous substances. These qualifications enable us to provide training on the safe use of organic solvents and related hazardous materials.

6. Noise and Vibration

We comply with both the legal regulatory limits and voluntary management standards for noise and vibration at the site boundary. To contribute to the protection of the local environment, we have established and operate in accordance with the “Noise and Vibration Management Procedure Manual.”

Furthermore, the following matters are stipulated and implemented.

1. Clarification of Responsibilities and Authorities
2. Confirmation and establishment of regulatory limits and voluntary management standards
3. Preparation of Operational Procedures
4. Recording, Verification, and Reporting of Measurement Results
   Noise and vibration levels are measured at least twice a year to ensure compliance with the Noise Regulation Act.
5. Retention of Records

7. Soil Protection

In line with the environmental policy set forth in our Environmental Manual — 'to promote nature conservation and ecosystem preservation through our business activities in harmony with nature' — our company implements soil protection initiatives.

8. Biodiversity and Protected Areas

Based on the environmental policy stated in our Environmental Manual — "to promote nature conservation and ecosystem preservation through business activities for harmonious coexistence with nature" — we implement initiatives for the protection of biodiversity and ecosystems.

Furthermore, we support and engage in activities related to the global target adopted in the 'Kunming-Montreal Global Biodiversity Framework' in December 2022, which aims to effectively conserve more than 30% of terrestrial and marine areas as healthy ecosystems by 2030 ('30 by 30').

9. Plant Safety
(Environmental Emergency Plans, Emergency Response Drills,
and Special Training for Natural Disasters (Floods, Typhoons, and Earthquakes))

As part of our plant safety measures, we are enhancing our preparedness for emergency situations. To ensure readiness and effective response to potential emergencies, we have established, implemented, and maintained the following processes.

1. We are preparing our response by planning measures to prevent or mitigate adverse environmental impacts resulting from emergency situations.
2. We shall respond to actual emergency situations as they arise.
3. Emergency measures shall be implemented to prevent or mitigate the consequences of an emergency, in accordance with the magnitude of the emergency and its potential environmental impact.
4. If feasible, the planned countermeasures will be tested regularly.
5. We shall periodically review and revise its processes and planned response actions, particularly following the occurrence of an emergency or after conducting a test.
6. As necessary, we provide relevant information and training on emergency preparedness and response to employees and other stakeholders working under the organization's control.

In the event of damage to production facilities caused by natural disasters such as earthquakes or heavy rainfall, we will formulate and implement recovery procedures and planning flowcharts to ensure the prompt restoration of production activities.

10. Environmental performance data

Scope of Application

1. Scope: Our production sites (Kyoto, Sawa and Gifu)
2. Scope of greenhouse gas emissions:
   1. Scope 1 and 2 emissions are emissions for production sites above.
   2. For Scope 3 emissions, we have developed a plan for calculating and disclosing emissions by category and are currently conducting the necessary research, targeting disclosure in 2030.
      We expect that Category 1 emissions (purchased goods and services (procured items directly related to product manufacturing)) will be the majority of our CO₂ emissions. We have therefore asked our procurement partners to cooperate in not only calculating emissions but also reducing them.
3. Scope 2 calculation methodology
   1. Scope 2 CO₂ emissions are calculated using the market-based method.^*
      *A calculation method that takes into account the amount of renewable energy procured.
   2. The emission factors used to calculate Scope 2 emissions are the annual emission factors of the individual electricity utilities in Japan and those published by the Ministry of the Environment.
4. Other
   Greenhouse gases other than CO₂ are excluded from calculation because emissions of these gases from our production activities are negligible.

Actual and planned Scope 1 and Scope 2 emissions (Unit: t-CO₂)

Trends in energy, water, waste and other quantities

*The amount of water recycled in production is calculated by multiplying the flow rate of the pure water production system by its operating hours.

Introduction

Vehicle Energy Japan believes that advancing business activities with a focus on sustainability across the entire value chain contributes to the mutual prosperity of our procurement partners. To achieve this, we actively work to identify and mitigate potential risks in the supply chain associated with the globalization of business — such as human rights violations and adverse environmental impacts — and promote sustainable procurement practices.

In procurement activities, we have established our Basic Procurement Policy and the Code of Conduct that procurement partners are expected to comply with, as the "Supplier CSR Procurement Guidelines.

This guideline outlines the requirements that procurement partners are expected to comply with, covering seven major categories: "Labor", "Health and Safety" ,"Environment", "Business Ethics", "Management Systems" ,"Quality and Safety" , and "Prevention of Leakage of Personal and Confidential Information." It also serves as a communication tool to convey our company's initiatives to our procurement partners.

By promoting procurement activities in accordance with these guidelines, we aim to fulfill our social responsibilities through corporate activities together with our procurement partners, and contribute to the realization of a sustainable society.

* Please refer to the Supplier CSR Procurement Guidelines available on our company website.
https://www.ve-j.co.jp/en/company-06.html

Procurement Policy of Vehicle Energy Japan

This policy sets forth the code of conduct to be observed by all officers and employees of the Company in the procurement of materials, products, services, and information essential to our business operations from external sources.

Supply Chain Due Diligence

1. Vehicle Energy Japan: Ensuring Awareness and Compliance with
the Supplier CSR Procurement Guidelines

We have established the following provisions as the Code of Conduct for Procurement Partners within our Supplier CSR Procurement Guidelines. We expect our procurement partners not only to comply with applicable laws and regulations, but also to fulfill their social responsibilities through corporate activities as members of society. In other words, they are expected to actively engage in Corporate Social Responsibility (CSR) activities and demonstrate responsible corporate behavior.
Subsequently, we published the 2nd edition of these guidelines on our website in May 2025 to clarify our response to the EU Battery Regulation as an automotive battery supplier and provide more specific information about our responsible mineral sourcing initiatives, and we communicated information about these initiatives both internally and externally, including to our procurement partners.

A. Labor

Prohibition of Forced and Child Labor, Compliance with Working Hours, Fair Wages and Benefits, Humane Treatment of Workers, Elimination of Discrimination and Harassment, and Freedom of Association.

B. Health and Safety

Ensuring occupational safety, preparing for emergencies, responding to work-related injuries and illnesses, promoting industrial hygiene, considering the impact of physically demanding tasks, implementing safety measures for machinery and equipment, providing sanitary facilities, meals, and housing, and communicating matters related to health and safety.

C. Environment

Obtaining and maintaining necessary permits and reporting, pollution prevention and resource reduction, management of environmentally hazardous substances, management, reduction, and disposal of solid waste, air emissions control, restriction of substances used, water resource management, energy consumption and greenhouse gas emission management and reduction, and conservation of biodiversity and ecosystems.

D. Business Ethics

Prohibition of bribery, corruption, extortion, and embezzlement; elimination of improper benefits; disclosure of information; protection of intellectual property rights; compliance with fair business, advertising, and competition laws; protection of whistleblowers and elimination of retaliation; and promotion of appropriate export and import controls.

E. Establishment of a Management System

Establishing a framework for continuous improvement in relation to policy compliance, implementation systems, risk identification and assessment, corrective actions, and stakeholder engagement.

F. Quality and Safety

Ensuring Product Safety and Promoting Quality Assurance Activities

G. Prevention of Personal and Confidential Information Leaks

Defense against network-based threats including cyberattacks, formulation of privacy protection measures, prevention of personal information leakage, and formulation of measures to prevent leakage of confidential information of customers and third parties.

2. Commitments from Procurement Partners

The Vehicle Energy Japan Supplier CSR Procurement Guidelines were established in 2023 and published on our website. We also distributed them to our procurement partners to ensure thorough awareness. In conjunction with the publication of the revised 2nd edition in 2025, we obtained written confirmation of our procurement partners' agreement to the guidelines, confirming that our procurement partners themselves and all of the suppliers upstream in their supply chains would implement equivalent management standards.

3. Advancement of Responsible Mineral Sourcing Practices

3-1. Fundamental Initiatives

We are committed to responsible procurement practices to avoid sourcing components and materials that contain conflict minerals potentially associated with human rights violations — support for armed groups, human rights violations such as child labor, acts of corruption, and environmental destruction — in conflict-affected and high-risk areas. Relevant regulations include the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act, which covers tin, tantalum, tungsten, and gold, as well as the European Battery Regulation, which applies to lithium, cobalt, nickel, and natural graphite.

Specifically, we strive to develop a clear understanding of the social issues present in mineral-producing countries, as well as the roles expected of businesses operating in such regions. In addition, we identify and evaluate risks using internationally recognized indicators, such as the EU CAHRAs and global governance metrics. Through these efforts, we actively promote due diligence to support the establishment of responsible supply chains for minerals sourced from conflict-affected and high-risk areas.

3-2. Conflict Minerals Due Diligence

We request that our procurement partners conduct supply chain investigations using internationally recognized tools provided by the Responsible Minerals Initiative (RMI), including identifying the countries of origin of minerals and the smelters involved. Based on the results of these investigations, we carry out risk assessments. If any risks are identified, we request further investigation and ask our procurement partners to source from smelters that are compliant with the Responsible Minerals Assurance Process (RMAP).
In FY2025, we asked all procurement partners supplying parts and materials to complete the Conflict Minerals Reporting Template (CMRT), which covers tin, tantalum, tungsten, and gold (the 3TG minerals), as well as the Extended Minerals Reporting Template (EMRT), the scope of which was expanded in 2025 to include minerals covered by the EU Battery Regulation, such as lithium, nickel, and graphite. We received survey results from all of these procurement partners.
When survey results indicated a procurement partner’s supply chain included smelters or refiners whose conformity to RMAP could not be confirmed, we took steps to mitigate risks by requesting further investigation and, through the procurement partner, encouraged the relevant smelters and refiners to participate in the RMAP.

Implementation of the CSR Self-Assessment

To strengthen our efforts in Corporate Social Responsibility (CSR), including supply chain due diligence, we will distribute a CSR Self-Assessment Questionnaire (SAQ) to our procurement partners. This questionnaire comprehensively covers the requirements outlined in our CSR guidelines, and we request our partners to conduct a self-assessment accordingly.

In fiscal year 2025, we distributed an SAQ that incorporated the revisions made in the 2nd edition of the Supplier CSR Procurement Guidelines to our procurement partners and requested that they conduct a self-assessment. We received assessment results from the participating procurement partners.

We will provide feedback on the results of this self-assessment to our procurement partners. In cases where issues are identified that are deemed to have a negative impact on human rights or the environment, we will actively engage with the relevant parties to encourage corrective actions.

Establishment of a Supply Chain Reporting Channel for Grievances and Other Matters

As a responsible company committed to respecting human rights, we actively receive reports regarding grievances, human rights violations, and environmental issues arising from our business activities. When a way in which we are adversely impacting the world is identified, we act to remedy the situation and improve. We established a grievance mechanism in July 2025 to proactively identify risks related to human rights violations and adverse environmental impacts, not only in our own business activities but also throughout the supply and value chains associated with our business, and implement corrective and improvement measures. No grievances were received from July 2025 to March 2026.

Human Rights, Environmental, and Governance Grievance Reporting Channel