Sustainability-related policies, criteria, and guidelines

AGC Group Charter of Corporate Behavior

(Established on June 1, 2007 and revised on March 9, 2016)

Under the tenet of “Our Mission” in the Group vision, “Look Beyond” the AGC Group strives to be a company trusted by all of its stakeholders, a company that meets the expectations of the world business community to grow and develop responsibly and a company that significantly contributes to a healthier global society. To this end, the Group has established the AGC Group Charter of Corporate Behavior and acts in line with the following principles.

●Integrity: Sincere Behavior

  1. The AGC Group will develop and provide useful goods and services of superior quality, giving due consideration to safety and the environment, and will strive for customer satisfaction and loyalty.
  2. The AGC Group will understand and comply with applicable laws and regulations of the countries and regions in which it does business and will respect international norms of behavior.
  3. The AGC Group will promote fair trade and conduct its operations in accordance with the principle of fair competition and all applicable laws and regulations.
  4. The AGC Group will maintain sound relationships with government agencies and other responsible organizations. The Group will not support any person or group that threatens the order and security of society.
  5. The AGC Group will properly manage and safeguard its own proprietary information, intellectual property, and other assets and will respect the property rights and interests of others including customers and business partners.

●Environment and Safety: With Due Consideration

  1. The AGC Group regards environmental conservation as an essential responsibility of global citizens and will proactively contribute to the development of a sustainable society.
  2. The AGC Group will pursue technological innovations and new product developments that reflect due consideration for the environment and will participate in activities to preserve the environment and safety and security at work.
  3. The AGC Group will maintain its workplaces with a proper regard to occupational health and safety for the people related to its business activities.

●Diversity: Respect for People

  1. The AGC Group will respect human rights and will operate its business with due regard for the cultures and customs of each country and region in the world.
  2. The AGC Group will respect people's diverse capabilities and personal dignity and will create fair and open environments at its workplaces without discrimination based on race, ethnicity, religion, nationality, gender, disability, or any other legally protected group.
  3. The AGC Group will not engage in forced labor or child labor and will not tolerate infringements of human rights.

●Harmony with Society: From “Responsibility” to “Reliability”

  1. The AGC Group will strive to be a trusted corporate citizen, fulfilling its responsibilities to the communities in which it does business.
  2. The AGC Group will build productive and proper relationships with business partners and encourage them to adhere to business principles consistent with its own.
  3. The AGC Group will communicate responsibly with customers, local citizens, shareholders, employees, and other members of society by gathering their opinions and disclosing information in a fair and appropriate manner.

The managements of all AGC Group companies, recognizing that it is their responsibility to realize the spirit of this Charter, will take the initiative to achieve an understanding of the Charter within all Group companies, and at the same time, will seek its business partners' cooperation.

The managements will also promote the development and implementation of systems that the principles stipulated in this Charter can be duly incorporated into the Group's decision making and implementation.

In the case of any behavior contrary to the principles of this Charter, we will work to identify the cause and prevent a recurrence, making it clear to those inside and outside Group companies that the situation is being addressed diligently. We will take appropriate corrective and disciplinary actions when necessary.

AGC Group Rules for Crisis Management and Business Continuity Management(excerpt)

(Established on November 1, 2013 and revised on July 1, 2023)

The AGC Group’s basic policy on business continuity shall be as follows.

  • The AGC Group shall place the highest priority on ensuring the lives and safety of all people involved in its corporate activities (employees and their families, customers, business partners, and community members).
  • The AGC Group shall work to prevent the spread of damage caused by the business interruption risk and to prevent secondary disasters from the viewpoint of ensuring the safety of the surrounding area.
  • The AGC Group shall strive to live in harmony with the local community from normal times, and when damage is caused by a disaster, the Group shall cooperate with the local community and carry out contribution activities.
  • The AGC Group shall fulfill its responsibility to society and minimize damage to the corporate value by continuing and promptly restoring important businesses and operations.

AGC Group “7 Key Principles for People”

The AGC Group wishes to pursue these principles as the foundation of our “7 Key Principles for People” to maximize our performance as a truly global corporation.

Implementation of “Look Beyond”

AGC Group requires all employees to commit to our Shared Values of “Look Beyond”—Our four Shared Values: Innovation & Operational Excellence, Diversity, Environment, and Integrity

Diversity for Organizational Competitiveness

AGC Group builds teams of diverse people who support our four Shared Values of “Look Beyond” and have the abilities to contribute to organizational competitiveness.

Development and Growth

AGC Group encourages employees to grow and provides them with opportunities for self-development.

Job Satisfaction and Pride

AGC Group encourages employees to achieve their goals so that they feel a sense of pride and satisfaction in their work.

Work Environment and Conditions

AGC Group provides a safe and healthy work environment.

Open Communication

AGC Group emphasizes open communication in the workplace to create a better organizational climate.

Evaluation, Recognition and Rewarding Performance

AGC Group evaluates and recognizes employees who contribute to the organization and rewards their contributions.

AGC Group Human Rights Policy

(Established on December 1st, 2023)

The AGC Group believes that, in fulfillment of its Group Vision,“Look Beyond”, it is essential for it to operate as a company that respects human rights. It hereby establishes the AGC Group Human Rights Policy (the “Policy”) with the aim of contributing to the realization of a better earth and society by becoming a trusted company whose stakeholders are united in its expected growth and development.

Article 1 Scope of Application

The Policy applies to all officers and employees of the AGC Group* (full-time, contract, temporary, part-time and others).

The AGC Group urges its suppliers, business partners, and other stakeholders associated with its business, products, and services to endorse the Policy.

AGC Inc. and its subsidiaries

Article 2 Commitment to Respecting Human Rights

1.Willingness to Respect Human Rights

The AGC Group’s understanding for respecting human rights is based on internationally recognized standards, including the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Guiding Principles on Business and Human Rights, and the Children’s Rights and Business Principles, developed by UNICEF.

The AGC Group recognizes that its own business activities and value chain may directly or indirectly cause or contribute to adverse human rights impacts.

The AGC Group shall conduct human rights due diligence based on the UN Guiding Principles on Business and Human Rights and seek to prevent or mitigate the risk of human rights abuses in its business activities and value chain.

The AGC Group shall proactively conduct its business activities in accordance with the Policy under the AGC Group Charter of Corporate Behavior.

2.Compliance with Laws and Regulations

The AGC Group shall comply with the applicable laws and regulations of the countries and regions in which it operates.

In the event of discrepancies between internationally recognized human rights standards and national laws, the AGC Group shall pursue ways to adhere to the higher standard and honor the principles of internationally recognized human rights standards.

3.Salient Human Rights Issues

The AGC Group recognizes specific human rights issues that should be taken into consideration in light of the unique characteristics of its business activities, and among them, identifies issues that could have a particularly large impact on human rights and for which it should focus on mitigating potential adverse human rights risks (“Salient Human Rights Issues”). It will work to mitigate such risks through the implementation of human rights due diligence.

The AGC Group shall continuously assess the risks of Salient Human Rights Issues and review them in response to changes in social conditions and business activities.

Article 3 Governance

The Group’s Sustainability Committee, chaired by the CEO, shall make decisions on important matters concerning the AGC Group's corporate commitment to respect for human rights, and such decisions shall be reported, discussed, and supervised by the Board of Directors.

The AGC Group shall appoint the CCO (Chief Compliance Officer) or the person(s) designated by the CCO to be responsible for the implementation of the Policy, and such person(s) shall be responsible for overseeing the AGC Group’s compliance with this Policy in its business activities.

Article 4 Internal Processes

In implementing the Policy, the AGC Group's corporate divisions and related divisions such as all in-house companies shall oversee the practical implementation and promotion of respect for human rights.

Article 5 Human Rights Due Diligence

The AGC Group shall conduct human rights due diligence to address the Salient Human Rights Issues.

Through the process of human rights due diligence, the AGC Group will assess the impact of its business activities on human rights and work to prevent, mitigate, and avoid exacerbating any potential or actual adverse impacts on human rights that may be discovered. In preventing, mitigating, and avoiding the exacerbation of such adverse impacts, the AGC Group shall utilize the knowledge of internal and external experts, and shall periodically monitor and improve the effectiveness of such measures.

Article 6 Remediation

The AGC Group has established internal and external reporting channels through which suspected or possible human rights abuses in its business activities can be addressed. The AGC Group shall take necessary corrective action if and when its business activities are found to cause any adverse impacts on human rights.

Article 7 Dialogue with Stakeholders

The AGC Group shall make a sincere effort to engage in dialogue and communication with internal and external stakeholders to identify and review Salient Human Rights Issues, and to utilize expertise from outside the AGC Group to improve its efforts to respect human rights.

Article 8 Education and Training

The AGC Group shall provide appropriate education and training to ensure that the Policy is understood by all officers and employees, and shall also make efforts to ensure that the Policy is understood by suppliers, business partners, and other stakeholders related to the AGC Group's businesses, products, and services.

Article 9 Reporting and Disclosure

The AGC Group shall disclose the status and results of its efforts to respect human rights on its website and elsewhere.

Article 10 Revision of the Policy

The AGC Group shall review and revise the Policy where appropriate in response to changes in social conditions and business activities.

AGC Inc. has adopted the Policy at a meeting of its Board of Directors.


●Detailed rule(s)

The person responsible for the implementation of the AGC Group Human Rights Policy: CCO (Chief Compliance Officer)

●The Salient Human Rights Issues for AGC Group

The AGC Group has analyzed and assessed its business areas, including the characteristics of its business activities and the nature of its value chain, as well as its various stakeholders, and identified the 14 items in the table below as human rights issues that it should consider. From among these, the AGC Group has identified Salient Human Rights Issues which the AGC Group should focus its efforts to mitigate potential adverse human rights risks. The AGC Group shall work to mitigate risks related to these Salient Human Rights Issues through the implementation of human rights due diligence. The AGC Group's Salient Human Rights Issues shall undergo continual risk assessment and be reviewed in accordance with changes in social conditions and business activities.

Human rights issues for AGC Group to consider (14items)
Salient human rights issues
(5 items)
Worker’s health and safety, Rights of local people, Conflict minerals (Responsible mineral procurement), Procurement of raw materials, Discrimination and harassment in the workplace and employment
Other human rights issues to consider
(9 items)
Consumers’ health and safety, Forced labor, Child labor, Freedom of association and collective bargaining, Adequate working hours, Desent wages, Rights of foreign and migrant workers, Rights to privacy, Corruption

AGC Group EHSQ Policy

(Established January 1st, 2023)

To realize a sustainable society and to grow and evolve continuously, AGC Group pursue the Group Vision “Look Beyond” and engage in EHSQ (Environment, Industrial Safety & Security, Occupational Health & Safety, Quality) as prerequisite of our business activities.

Environment

We commit to achieve sustainability in society and our company by contributing to decarbonization, a circular economy, and harmony with nature in all phases of our value chain.

Industrial Safety and Security

We proactively engage in industrial safety and security activities based on the philosophy, “ensuring security is our fundamental obligation as a company operating business in local communities”.

Occupational Health and Safety

Our motto is “No Production without assurance of safety”. We are committed to sharing and demonstrating this motto with all workers of the AGC Group.

Quality

Based on the principle of “incorporating Customer Satisfaction perspective into our daily work”, we develop and provide products and services to continuously create the value that meet customer expectations.

AGC Group Environment Policy

(Established on February 9th, 2001 Revised on January 1st, 2023)

We commit to achieve sustainability in society and our company by contributing to decarbonization, a circular economy, and harmony with nature in all phases of our value chain.

  • In order to contribute to decarbonization, a circular economy, and harmony with nature, we set environmental goals based on our sustainability targets and strive to achieve and further improve them.
  • We strive to develop and offer to the society, products, technologies, services, and equipment taking into due consideration of the sustainability and our entire value chain, and respond to the changing era with innovative solutions.
  • We continuously improve our environmental performance, in accordance with our environmental management system.
  • We comply with the relevant internal and external environmental rules, work toward the prevention of pollution and relevant issues, and contribute to environmental protection.

AGC Group Industrial Safety & Security Policy

(Established on February 7th, 2003 Revised on January 1st, 2023)

We proactively engage in industrial safety and security activities based on the philosophy,“ensuring security is our fundamental obligation as a company operating business in local communities”.

  • We comply with the relevant laws, regulations, and internal and external rules concerning industrial safety and security.
  • We develop and continuously improve management initiatives to prevent incidents associated with industrial safety and security.
  • We strive to proactively communicate with internal and external stakeholders.

AGC Group Occupational Health and Safety Policy

(Established on February 9th, 2001 Revised on January 1st, 2023)

Our motto is “No Production without assurance of safety”. We are committed to sharing and demonstrating this motto with all workers of the AGC Group.

  • We comply with OHS-related laws and other requirements.
  • We set objectives and strive to achieve them to continuously improve the OHS Management System.
  • We create a safe and healthy workplace through continuous risk assessment.
  • We foster a safety culture in the AGC Group through all the workers’ participation in the OHS activities.

AGC Group Quality Policy

(Established on February 8th, 2004 Revised on January 1st, 2023)

Based on the principle of “incorporating Customer Satisfaction perspective into our daily work”, we develop and provide products and services to continuously create the value that meet customer expectations.

  • We provide our products and services in conformance with the requirements of laws, regulations, and customers.
  • We ensure and improve the quality of our products and services, including safety and appropriate environmental consideration.
  • We record necessary information related to our products and services on a factual basis, and appropriately control, report, and disclose such information.
  • We together participate in the continual improvement of effectiveness and efficiency of our quality management, and strive to enhance the value of individual’s work.
  • To ensure the above are materialized, we determine individual policy and targets, and facilitate in the PDCA cycle.

Health Management Policy

(Established on March 1, 2007)

The AGC Group has established the following health management policy to be followed by its employees in conducting their business operations, to continuously create value for the world under the Group Vision “Look Beyond”

Health consciousness

Employees represent one of the most important assets for the AGC Group, and health is one of the most important elements of the daily lives of employees.

Corporate support for employee health

The AGC Group will actively implement measures to maintain and promote the physical and mental health of its employees, thereby supporting them in driving the growth of the Group by fully displaying their individual abilities, and in striving to lead meaningful lives.

Self-discipline by employees

Employees themselves must be aware of the importance of their health, and they must maintain and promote their health through self-discipline, taking responsibility for their own health.

The AGC Group plans to extend this Health Management Policy from AGC Inc. to Group companies in and outside of Japan in the future.

AGC Group Purchasing Policy

(established in 2009 and revised on January 1, 2020)

AGC Group pursues values of the Group Vision “Look Beyond” and the "AGC Group Charter of Corporate Behavior" and will regulate our performances on purchasing which are explicitly stated in the following "AGC Purchasing Policy".

Basic Purchasing Principle

  1. Fair & equitable transactions

    Our procurement policy is to consistently search for innovative technologies, products and services with a fair and equitable manner globally.

  2. Compliance to related laws & regulations, and behavior considering safety, environment & human rights

    In carrying out purchasing activities, AGC will comply with the applicable laws and regulations of each country and international norms, act with integrity and give due consideration to safety, environment, natural resource conservation and human rights.
    In particular, in order not to promote conflicts or foster human rights violations through the procurement of mineral resources, identifying conflict minerals (tin, tantalum, tungsten, gold) and cobalt as high-risk minerals, we will promote responsible mineral procurement through the adoption of smelters and refiners that have been certified as not using minerals that are related to armed forces or injustice such as human rights violations.

  3. Partnership with business partners

    AGC will establish a long-term, mutual prosperous partnership to produce a better product with our business partners.
    To this end, we will endeavor to keep close communication with our business partners to build and enhance our trusting relationship.

  4. Protection of information, intellectual property, and other assets

    AGC will properly manage and protect the proprietary information, intellectual property and other assets of our business partners while procuring goods and services.

Criteria for Selecting Business Partners

AGC will apply key criteria to evaluate and select business partners, as follows.

  1. Sound management, Steady supply, and Flexibility to match with the fluctuating demand.
  2. Appropriate Quality, Pricing, Delivery date punctuality, consideration to Safety & Environment and Technical service level.
  3. Making endeavors to realize each item of the “Request for Cooperation in Sustainable Procurement” below.

Request for Cooperation in Sustainable Procurement

AGC strives to be a company trusted by all its stakeholders, a company that meets the expectations of the world business community to grow and develop responsibility, and a company that significantly contributes to a healthier global society.
In order to fulfill our social responsibilities towards the realization of a sustainable society as the AGC Group, we would like to promote our efforts together with the companies linked to our supply chain.
Accordingly, we would like to share with and request to our business partners compliance and enforcement of the following points and would like to ask our partners’ understanding and cooperation.

  1. Legal compliance, fairness and integrity
    To comply with laws and international norms of each country and region, conduct fair transactions, and execute the following:
    • Maintain healthy and normal relations with politics and government, and do not give or receive inappropriate profits in relation to stakeholders.
    • Do not engage in activities that hinder fair competition in the market or abuse superior bargaining position.
    • Establish a management system for the import and export of goods and technologies regulated by laws and regulations of each country and region and carry out proper export procedures.
    • In the procurement of mineral resources contained in products, identify conflict minerals (tin, tantalum, tungsten, gold) and cobalt as high-risk minerals, and promote responsible mineral procurement through the adoption of smelters and refiners that have been certified as not using minerals that are related to armed forces or injustice such as human rights violations.
    • Do not have any relationship with anti-social forces.
    • Establish and put into practice a mechanism such as policies, organizations, guidelines, reporting systems and educations, to enforce thorough compliance and to prevent and detect inappropriate practices at an early stage.
  2. Environment, safety and quality
    To provide high-quality, safe and environmentally friendly products and services, reduce environmental burdens, ensure product and workplace safety, and implement the following:
    • Comply with the laws and regulations of each country and region regarding the environment, and appropriately manage chemical substances contained in products and chemical substances discharged to the external environment based on laws and regulations.
    • Strive to protect the environment and natural resources and reduce the final disposal volume of waste.
    • Establish an environmental management system and continuously operate and improve it.
    • Contribute to the prevention of global warming and strive to save energy.
    • Work for safety, security and disaster prevention, and work to prevent accidents.
    • Products meet the safety standards stipulated by the laws and regulations of each country and region and provide accurate information on items that may cause danger or health damage to users.
  3. Human rights and labor
    Respect the dignity and human rights of all people and do the following:
    • Do not discriminate against people regardless of race, ethnicity, religion, nationality, political affiliation, age, gender, disability, marriage, sexual preference or any other positions.
    • Do not engage in acts such as sexual harassment or power harassment that deny the personality of others or harm personal dignity.
    • Do not allow forced labor, slave labor, child labor, unfair low-paid labor, and do not participate in human rights violations.
    • Respect employee rights and build and maintain good relationships with employees through discussion and dialogue.
    • Comply with the laws and regulations of each country and region regarding employee working hours, holidays, paid leave grants and wages.
    • Establish an environment where employees can work safely and physically and mentally healthily.
  4. Risk, information and intellectual property management
    Establish a system to avoid risk on business and execute the following for information and intellectual property management.
    • Establish a business continuity plan that provides measures to enable business continuity or early recovery when an unforeseen circumstance such as a disaster or accident occurs, and upon such occurrence, cope with it promptly and disclose accurate information.
    • Make proper recording and reporting necessary for the business activities based on the facts, and as well as keeping record, make appropriate information management so that confidential information of the parties such as customers, business partners and own companies including personal information will not be leaked.
    • Disclose information such as financial status, business results, and details of business activities appropriately to stakeholders as appropriate.
    • Properly manage own and other parties’ intellectual properties, and do not obtain third-party trade secrets by illegal means or perform any act that infringes on the intellectual property of a third party.

AGC Group Social Contribution Basic Policy

(Established on February 10, 2010)

In its AGC Group Charter of Corporate Behavior, the AGC Group declares it will “strive to be a trusted corporate citizen, fulfilling its responsibilities to the communities in which it does business.” To achieve this, we conduct social contribution activities in three priority areas.

Priority areas

  1. Support for the next generation
    We, as a creator of future value, support the development of children, who will carry the future, helping them to live out their dreams.
  2. Harmony with local communities
    We, as a member of the communities in which we operate, contribute to their sustainable development.
  3. Natural environment conservation
    We, as a global enterprise, contribute to the solution of global environmental problems.

AGC Tax Compliance Policy

I. Basic stance on taxation (proper tax payments are a corporate social responsibility)

Under its management policy, AGC PLUS, the AGC Group is committed to providing positive value to all stakeholders. Through this, the Group aims to earn the trust and expectations of society, and also contribute to realizing a sustainable society.
Compliance is a fundamental principle underlying the AGC Group’s all business activities. The "AGC Group Code of Conduct" (7. Reports and Records), which summarizes matters that the AGC Group’s employees are expected to observe, states the following:

We honestly record, report and disclose information so that our records reflect the facts.
We comply with financial, accounting and tax laws and company accounting policies and rules.

AGC and AGC Group companies endeavor to ensure accurate and timely tax returns pursuant to the tax laws of each country. We recognize that proper tax payments impact the economic and social development of each country, and that ensuring proper tax payments is one of our corporate social responsibilities.

II. Transactions between affiliated companies (based on arm's length pricing)

As set out in the "AGC Group Transfer Pricing Policy"

1. 「The transfer pricing for tangible goods and/or services should be determined by applying the arm‘s length principle reflecting the functions performed by the parties, taking into account the assets used by and risks assumed by them based on product groups and/or service categories.
2. The intellectual ownership (including patents, copyrights, trade secrets, know-how, brands and so on) is legally registered in the name of the contributing companies of the group who have developed the technologies and know-how.
The right to use the Intellectual asset can be afterwards granted to other companies of the group but an arm’s length compensation will have to be paid by those companies. To determine the compensation, reference will be made to the acquisition costs, the fair market value, and so on.
3. The transfer pricing of financial transactions should be reasonably determined by applying arms' length principle, by reference to estimated funding rates for borrowers and estimated return rates for lenders from investment or deposit or in consideration of the level of margin for lenders.

III. Relationship with tax authorities (building relationships of trust in good faith, reducing uncertainty, and preventing double taxation)


In addition to appropriate tax reporting and payments to the respective tax authorities in each country, the AGC Group will respond in good faith with regard to various types of tax investigations, preliminary consultations, disclosure of relevant information, etc.
The AGC Group is dedicated to building constructive relationships of trust with the tax authorities of each country to ensure proper tax compliance. The AGC Group also strives to reduce taxation uncertainty and prevent double taxation by building and maintaining fair trust relationships with the tax authorities of each country.

IV. Transparency - responding to international efforts (enhancement of corporate value and fulfillment of corporate social responsibility through appropriate tax payment and information disclosure according to the BEPS Action Plan)

The AGC Group recognizes the BEPS Action Plan (a countermeasure against Base Erosion and Profit Shifting), established by OECD/G20, as an important international tax framework for preventing international tax avoidance and excessive tax planning, and for ensuring tax transparency through tax information disclosure.
The AGC Group shall refrain from using excessive tax incentive schemes in low or no-tax countries and regions.

The AGC Group also understands that arbitrary tax avoidance or lack of tax compliance may result not only in immediate financial risks such as tax litigation and penalties, but also poses a risk to the AGC Group's reputation in addition to a risk of adversely affecting economic and social development or damaging relationships with the countries and regions in which the Group operates.

As a global business entity with social responsibilities, the AGC Group is committed to closely monitoring trends in international tax frameworks and responding to any changes in a timely manner. In addition to aiming to improve its corporate value through these efforts, the AGC Group also considers these efforts to be vital in fulfilling its social responsibilities as a global business entity.