SUPPLY CHAIN MANAGEMENT

In light of the recent expectations of society regarding sustainability, Mazda is promoting compliance with the labor laws of the countries and regions in which it operates, including those regarding the prohibition of child labor and forced labor. In addition, the Company respects the Charter of Corporate Behavior issued by Keidanren (Japan Business Federation) and other international standards and engages in a wide range of initiatives for facilitating coexistence and mutual growth with suppliers in Japan and overseas.

Mazda has formulated its Basic Purchasing Policy, based on which it is making efforts to build open and fair business relationships while extending opportunities to businesses throughout the world, regardless of their home country, scale, or history of transactions with the Company. Upon receiving a request to start business with Mazda, we will assess the company in question in accordance with our in-house criteria for the evaluation of suppliers in order to determine the feasibility of a business partnership. Moreover, we coordinate with suppliers in terms of sustainability and risk management and proactively provide opportunities for communication along with various support to facilitate concerted efforts. The Company also conducts questionnaire surveys of its suppliers on an as-needed basis, aiming to track and evaluate the status of their implementation of sustainability initiatives in more detail.

Supplier Support Measures

• Co-creation activities and technology exchanges with suppliers aimed at improving their competitiveness
• Cooperation with suppliers in improving their product quality
• Adoption of a milk-run approach* (shifted from conventional system, with delivery of parts by each supplier, to milk-run approach in which Mazda trucks stop at multiple suppliers to collect parts)
• Provision of information on exhibitions and conventions to showcase the latest technologies and manufacturing methods

* A milk-run approach is a method in which a single truck visits multiple suppliers to collect supplies that is named after the way that milk trucks would visit multiple farms to pick up milk at each location.

【Related Information (Sustainability Website)】

Stakeholder Engagement

The Mazda Supplier Sustainability Guidelines have been formulated based on Mazda's basic approach to sustainability initiatives and with reference to the Supplier CSR Guidelines of the Japan Automobile Manufacturers Association. The guidelines outline sustainability areas and items that are closely related to procurement. In the guidelines, sustainability activities are categorized into six areas: Customer Satisfaction (Safety & Quality), Environment, Social Contributions, Respect for People (Human Rights & Work), Compliance, and Information Disclosure. The Company requests that all suppliers comply with the guidelines in these areas.

Mazda Supplier Sustainability Guidelines

Areas Requiring Compliance by All Suppliers

• Customer Satisfaction (Safety & Quality)
  Suppliers are requested to abide by guidelines regarding products and services that meet the needs of consumers and customers, appropriate sharing of information about products and services, safe products and services, and product and service quality.
• Environment
  Suppliers are requested to abide by guidelines regarding environmental management; greenhouse gas emissions reduction; air, water, and soil pollution prevention; resource conservation; waste reduction; chemical management; and ecosystem preservation.
• Social Contributions
  Suppliers are requested to engage in proactive and ongoing social contributions at domestic and overseas bases in response to the needs of the relevant region to fulfill their responsibilities as a good corporate citizen.
• Respect for People (Human Rights & Work)
  Suppliers are requested to abide by guidelines regarding abolition of discrimination, respect for human rights, prohibition of child labor and forced labor, non-use of conflict materials, wages, working hours, dialogue with employees, and safe and healthy working environments.
• Compliance
  Suppliers are requested to abide by guidelines regarding regulation compliance with competition and other laws, promotion of fair business practices, corruption prevention, confidential information management and protection, export control, and intellectual property protection.
• Information Disclosure
  Suppliers are requested to disclose information to their stakeholders in a timely and appropriate manner and to make efforts to maintain and develop mutual understanding and trusting relationships with stakeholders through open and fair-minded communication.

Mazda has established the Mazda Green Purchasing Guidelines with the aim of installing a consistent commitment to environmental preservation throughout its entire supply chain. These guidelines require all suppliers worldwide to advance measures to reduce their impacts on the environment at all stages, spanning from product development to manufacturing and delivery. The guidelines also make it clear that Mazda will give preference in purchasing to suppliers who implement such environmental measures. Questionnaires are administered and other measures are taken on a regular basis to confirm compliance with the guidelines.

Moreover, under the guidelines, Mazda asks suppliers to formulate and enact road maps for reducing their CO₂ emissions. Local and other major suppliers have submitted such CO₂ emissions reduction road maps to the Company, and collaborative efforts are being advanced toward achieving carbon neutrality. Mazda also requires suppliers of parts, materials, and production equipment and tools to obtain and maintain ISO 14001 certification and to pursue reductions to the amount of greenhouse gas emissions generated through their corporate activities. Currently, all major suppliers involved in Mazda's vehicle development and production activities have acquired ISO 14001 certification. In addition, certain suppliers of affiliates are required to submit information detailing their energy and water usage strategies. Going forward, we will continue to supply information and otherwise work with suppliers to promote environmental action.

【Statistics from FY March 2025】

Mazda Green Purchasing Guidelines

In accordance with the Mazda Supplier Sustainability Guidelines, we are endeavoring to develop supply chains that will allow us to fulfill our social responsibilities in relation to human rights.

【Detailed Information (Sustainability Website)】

Supply Chain Human Rights Due Diligence

Mazda promotes fair business practices to ensure that both the Company and its suppliers can engage in fair dealings under clear standards with a shared understanding to strengthen their global competitiveness through mutual collaboration. Based on the Guidelines for Appropriate Transactions in the Automobile Industry, which were formulated under the guidance of the Ministry of Economy, Trade and Industry, we have created the Promotion Manual for Appropriate Purchasing, provide education for those engaged in procurement activities at Mazda, and offer information for suppliers through our website and briefing sessions. Moreover, monthly meetings with local suppliers are used as an opportunity for promoting education and awareness raising on environmental, social, and governance (ESG) themes through briefings on carbon neutrality, human rights, and other relevant themes.

In-House Education for Entrenching Fair Transaction Practices

The following in-house educational programs are provided for individuals engaged in procurement activities at Mazda.

• Regular education and comprehension tests on promotion of fair business practices (including programs pertaining to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors)
• Courses on promotion of fair business practices (including programs pertaining to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors) for employees who were newly assigned to the relevant sections
• Education on financial control
• Provision of guides and process rules regarding fair business practices and compliance on the intranet

When starting transactions with a new supplier, relevant departments coordinate to confirm the supplier's quality control system, R&D system, technological capabilities, supply capacity, and management conditions. We also assess whether the supplier in question is conducting anticorruption, compliance, environmental, and other sustainability initiatives in accordance with the Mazda Supplier Sustainability Guidelines. In this manner, steps are taken to verify the compatibility of suppliers with the Mazda Group's procurement and screening policies. For suppliers with ongoing transactions, Mazda conducts comprehensive evaluations looking at the entirety of transactions, including the quality, cost, and delivery time of the goods and services provided as well as supplier's quality management systems, R&D systems, technological capabilities, supply capacity, and sustainability initiatives. Moreover, remote audits as well as on-site audits of actual facilities and items are conducted as deemed necessary based on reports on the quality of regularly delivered products and the results of self-audits. Through these audits, we are implementing a quality management system that allows us to constantly track and assess conditions and provide improvement instructions to suppliers. Furthermore, Mazda comprehensively evaluates suppliers every year from the perspectives of quality, costs, delivery time, and other considerations in order to build more positive business relationships. Outstanding suppliers identified through this process are recognized with awards. The Company also conducts sustainability-based evaluations, and has presented special awards to suppliers that have made outstanding proposals on weight trimming, which greatly affects environmental performance.

【Statistics from FY March 2025】

Mazda has continued to conduct questionnaire surveys of its suppliers since FY March 2014 with the aim of tracking and evaluating the status of their sustainability initiatives and promotion systems. After analyzing the results of these surveys, the Company arranges individual meetings with suppliers deemed to be in need of further improvement in order to help them in devising improvement methods. These surveys are also used as an opportunity to confirm suppliers' compliance with the Mazda Supplier Sustainability Guidelines.

【Statistics from FY March 2025】

From the perspective of risk management, Mazda works together with its suppliers to enhance its business continuity plan (BCP) in order to prevent a suspension of business with the potential to have an extensive impact on society. In this regard, the Company has introduced SCR (Supply Chain Resiliency) Keeper,* a supply chain risk management system, to accelerate its initial response in the event of a disaster by promptly and thoroughly gathering information on the situation at operating sites. Initiatives are also underway to promote disaster prevention and mitigation activities related to earthquakes, landslides, flooding, and other natural disasters. Going forward, the Company will continue to work with suppliers to enhance its BCP. In addition, the Company promotes awareness among suppliers regarding the threats posed by cyberattacks, which are becoming increasingly more commonplace and more advanced, and asks them to enhance their security measures. Mazda also arranges discussions with certain suppliers regarding hypothetical cyberattacks on these suppliers to formulate measures for minimizing the impact of such attacks on the production of materials and components.

* SCR Keeper is a system combining map data with earthquake information from the Japan Meteorological Agency through which the seismic intensity at the registered production sites can be determined quickly in the event of an earthquake.