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Declaration of Partnership BuildingSustainability / Compliance

In order to build new partnerships through cooperation, coexistence and co-prosperity with suppliers in the supply chain and with businesses that seek to create value, we state that we will focus on the following initiatives:

1.Coexistence and co-prosperity of the entire supply chain and new partnerships beyond size and lineage

We will work to increase added value in the entire supply chain through direct business partners (from "Tier N" to "Tier N + 1"), and aim to build coexistence and co-prosperity with business partners by cooperating beyond existing business relationships and company sizes. Then, taking into account business continuity and work style reform in times of disaster, we will provide support such as the introduction of telework and advice on the formulation of business continuity plans (BCPs).

(Individual initiative)

By providing a clean energy supply platform combining renewable energy and low-carbon thermal power generation, we will support decarbonization of production processes and the improvement of business efficiency of business partners by promoting electronic commerce.

2.Compliance with “Promotion Standards”

We will comply with the "Promotion Standards" based on the Small and Medium-sized Enterprise Basic Act and actively work to correct business practices and business practices that hinder the building of partnerships with suppliers. In addition, regarding inter-company transactions other than subcontract transactions, we will keep in mind the purpose of the following initiatives to ensure that transactions between companies with superior or inferior trading positions are appropriate.

①Pricing method

We do not request unreasonable cost reduction. In determining the transaction value, if the subcontractor requests consultation, the main subcontracting entrepreneur shall respond to the request and hold sufficient discussions so as to include appropriate benefits for the subcontractor, including consideration of the impact of increased labor costs. In the contract, including the determination of the transaction value, the main subcontracting entrepreneur shall clearly indicate and deliver the contract terms in writing, etc.

②Terms of payment, such as bills

In principle, we will pay the subcontract fee in cash by the end of next month.

③Intellectual property and know-how

We do not request the conclusion of a unilateral confidentiality agreement, the disclosure of know-how using our trading position, or the free transfer of intellectual property rights.

④Disadvantages associated with workstyle reforms

To enable suppliers to respond to workstyle reforms, we do not place orders with subcontractors for short delivery times or change specifications without incurring appropriate costs. In the event of a disaster, etc., we will not impose a unilateral burden on our subcontractors, and in the event of business resumption, etc., we will give as much consideration to the continuation of business relationships as possible.

3.Other

Based on the JERA Group Compliance Policy and Code of Conduct, the JERA Group Human Rights Policy, and the Procurement Policy, we will procure safe, economical, and high-quality materials and services based on mutual trust with our business partners, and aim for sustainable development throughout the supply chain.

May 31, 2022