Procurement Policy

1. We provide equal opportunities to all Japanese and foreign companies and evaluate them fairly for our procurement activities.
2. We shall abide by rules and regulations as well as public morals, and strive to establish a relationship to coexist and pursue mutual prosperity with our business partners.
3. Through our procurement activities, we perform social responsibilities for the environment.
4. We will pursue the products with the best quality and the most appropriate cost.

For procurement activities, Rinnai acts on the following specific ideas.

1. Procurement at the most appropriate cost through fair procurement activities
   - Procurement activities should give priority to fairness, and pursue the most appropriate cost based on the market competition principle.
2. Pursuit of the best quality
   - Based on our basic policy for quality management, "Quality is our destiny (our livelihood depends on the quality of our products)", we shall secure the supply of parts that satisfy our quality requirements to provide our customers with products that they can use without any concern.
3. Establishment of a trusting relationship to coexist and pursue mutual prosperity
   - We shall abide by rules and regulations as well as public morals, and strive to establish a relationship to coexist and pursue mutual prosperity with our business partners.
4. Assurance of appropriate delivery period and stable supply
   - For stable supply of our products to our customers, we try our best to secure parts with adequate delivery schedules.
5. Global environment conservation
   - Based on our slogan for the environment, "We act by consolidating our wisdom to pay attention to the creation of the environment which is friendly to people and the earth.", we will strengthen our environment conservation activities through the alliance with our business partners. At the same time, we promote environment-friendly procurement activities by facilitating programs such as the procurement of parts with fewer burdens on the environment.
6. Responsible Mineral Procurement
   - We will work to practice responsible mineral procurement, recognizing human rights abuses, labor issues, and environmental destruction in the mining and trade of minerals as important social issues.
7. Pursuit of creative technologies
   - To provide fresh satisfaction, we actively employ parts created with creative and epoch-making technologies.

To conduct its business activities, Rinnai is required to administer its social responsibilities as an element to constitute a supply chain with its business partners. To fulfill the need, Rinnai would like to solicit its business partners to observe the followings:

1. Compliance with laws and regulations as well as social morals
   Please abide by the followings in addition to the laws, regulations and social morals that are applicable to the countries and areas that partners are operating.
   - Compliance with the laws and regulations related to manufacturing and sales of parts
   - Observance with labor-related laws and orders
   - Compliance with laws and regulations related to safety and health, and facilitation of appropriate working environment
   - Prohibition of child labor and forced labor
   - Ban on the discrimination on the ground of race and gender, etc. Respect of dignity of each employee.
   - Compliance with environment laws and regulations
   - Prohibition of bribery and other unfair conduct
2. Attainment of the most appropriate quality and cost
   - To provide our customers with "the best products", please comply with the rules such as safety standards established in each country/area, and provide parts that satisfy our quality requirements.
   - Please provide parts at an appropriate price based on the market competition principle.
3. Promotion of healthy business management
   - Please promote healthy business management to continue business transactions and establish a trusting relationship to coexist and pursue mutual prosperity. Moreover, we request the disclosure of financial status.
4. Consideration for the environment
   - Please actively participate in environment conservation activities and environment management programs to operate a business while paying attention to the environment. In addition, please provide parts that satisfy Rinnai's "E-Procurement Standards".
5. Responsible mineral procurement
   - We request that minerals mined or traded in conflict and high-risk areas that are feared to be involved in human rights abuses, labor problems, environmental destruction, etc., not be used as raw materials.
6. Stable supply of parts
   - Please set up an appropriate delivery schedule to ensure stable parts supply for us to realize stable product supply to our customers.
   - Please actively work on risk management issues.
7. Ability at advanced technology
   - Please propose parts developed utilizing creative and epoch-making technology
8. The security of confidential information
   - The information that you gained through the transaction with Rinnai shall be strictly managed. Please confirm the security of confidential information and do not disclose the information without Rinnai's consent.

Declaration of Partnership Building

Rinnai commits to the following measures to establish new partnerships with our business partners.

Declaration of Partnership Building (in Japanese)