Announcement Regarding the Establishment of "SMS Sustainable Procurement Policy" and "SMS Supplier Code of Conduct"

SMS Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director and President: Masaki Takahata; TSE Prime; hereinafter "the Company") announces the establishment of the "SMS Sustainable Procurement Policy" and the "SMS Supplier Code of Conduct."

The Company Group believes that initiatives for a sustainable society across the entire supply chain are indispensable for achieving its mission: "To improve people's quality of life and continuously contribute to society by building an information infrastructure suitable for an aging society." We aim to realize a sustainable supply chain with the understanding and cooperation of our suppliers.

The main items of the newly established "Sustainable Procurement Policy" and "Supplier Code of Conduct" are as follows:

SMS Sustainable Procurement Policy

1. Compliance with Laws and Regulations

We will comply with relevant domestic and international laws and social norms, and conduct fair transactions with high ethical standards (including the prohibition of all forms of corruption such as bribery).

2. Fair Selection of Business Partners

The selection of suppliers shall be conducted rationally and appropriately, excluding arbitrary personal decisions. We will primarily conduct business with suppliers who have stable management, social credibility, and high ethical standards.

3. Respect for Human Rights

Based on the "SMS Human Rights Policy," we will respect human rights throughout the entire supply chain and conduct procurement activities that exclude all human rights violations, including forced labor, child labor, discrimination, and harassment.

4. Environmental Conservation

Based on the "SMS Environmental Policy," we will work to reduce environmental impact across the entire supply chain and promote the procurement of environmentally friendly products and services, aiming to realize a circular economy.

5. Information Security

We will strive for appropriate protection and management of confidential information and personal information related to procurement activities.

SMS Supplier Code of Conduct

1. Compliance with Laws and Regulations

Comply with the laws, regulations, and social norms of the countries and regions where business activities are conducted.

2. Fair Transactions and Ethics

Conduct fair business activities with social credibility, social common sense, and high ethical standards. Do not engage in any form of corrupt practices such as bribery, embezzlement, or extortion. Also, do not offer or receive inappropriate benefits. Comply with competition laws such as antitrust laws and engage in fair and free competition. Respect and do not infringe upon the intellectual property rights of others. Do not have any relationship with anti-social forces that threaten the order and safety of civil society.

3. Human Rights and Labor

Respect international human rights standards and do not engage in any form of forced labor, child labor, or human trafficking. Do not discriminate in employment or treatment based on nationality, race, gender, religion, disability, age, sexual orientation, etc. Prohibit all forms of harassment, whether mental or physical, including power harassment and sexual harassment. Comply with statutory minimum wages, manage working hours appropriately, and ensure a workplace environment that considers employee health, safety, and hygiene. Respect employees' freedom of association and the right to collective bargaining, as well as the right not to participate in these, based on the laws of each country.

4. Environment

Comply with the environmental laws and regulations of the countries and regions where business activities are conducted. Autonomously engage in activities to reduce environmental impact aimed at realizing a circular society, such as reducing greenhouse gas emissions, waste reduction, and effective utilization of water resources. Strive to ascertain own greenhouse gas emissions and cooperate with requests from the Company for data provision.

5. Quality, Safety, and Stable Supply

Deliver and supply goods and services requested by the Company economically, stably, continuously, and without delay. Ensure the quality and safety of products and services provided and meet the standards required by the Company. In the event of a significant accident or problem, disclose information in a timely and appropriate manner and respond sincerely to its resolution.

6. Information Security

Appropriately manage and protect confidential information and personal information obtained through business operations, and take measures to prevent information leakage and unauthorized use.

7. Initiatives for the Supply Chain

Strive to encourage own suppliers to understand and promote the spirit of this Code.

The Company Group has set its mission as "To improve people's quality of life and continuously contribute to society by building an information infrastructure suitable for an aging society," and is working to solve social issues in an aging society. We believe that achieving sustainable growth through these business activities will, in turn, contribute to the realization of a sustainable society. With the establishment of this "Sustainable Procurement Policy" and "Supplier Code of Conduct," we will work not only within our own company but also with our suppliers to solve social issues such as global environmental conservation and respect for human rights. Moving forward, we will continue to contribute to further enhancing corporate value and realizing a prosperous society by fulfilling our social responsibilities across the entire supply chain.

【About SMS Co., Ltd.】

Founded in 2003, listed on the First Section of the Tokyo Stock Exchange in 2011, and transitioned to the Prime Market in April 2022 due to changes in the TSE market segmentation. With the mission of "To improve people's quality of life and continuously contribute to society by building an information infrastructure suitable for an aging society," the company develops and operates over 40 services focusing on "aging society x information."

Name: SMS Co., Ltd.

Location: Sumitomo Fudosan Shibakoen Tower, 2-11-1 Shibakoen, Minato-ku, Tokyo

Representative: Masaki Takahata, Representative Director and President

Company Establishment: April 2003

Capital: 2,551,720,000 JPY (as of March 31, 2025)

Number of Employees: 4,528 (consolidated), 3,049 (non-consolidated) (as of March 31, 2025)

Business Activities: Identifying areas required by an aging society as medical/nursing care/disability welfare, healthcare, and senior life, the company builds an information infrastructure as a platform connecting end-users, workers, and businesses, offering over 40 services.

URL: https://www.bm-sms.co.jp/