SUBARU promotes CSR procurement activities through the Purchasing Committee, chaired by the executive officer supervising the Purchasing Division. The committee’s initiatives are led by the procurement departments of the Automotive Business and Aerospace Company, with the Sustainability Promotion Department providing advice based on its expertise and the Global Purchasing Planning Department serving as the secretariat.
The action policy of the Purchasing Committee is to facilitate fair procurement practices and encourage CSR at suppliers. The committee oversees efforts to address environmental, social, and governance (ESG) issues in procurement and shares the latest relevant information. By integrating any management issues identified into our action plans and implementing a plan-do-check-act (PDCA) cycle, we promote proper transactions between SUBARU and its suppliers as well as cooperative CSR procurement throughout the supply chain. We have also been promoting CSR procurement on a global scale in collaboration with Subaru of Indiana Automotive, Inc. (SIA) , our local production plant in the U.S.

If unethical conduct occurs in the supply chain, such as contributing to human rights violations or environmental destruction, it may not only create risks such as violations of international regulations and damage to brand value, but also cause business activities to have adverse impacts on society. We are implementing various initiatives to appropriately address these risks.

The procurement departments of SUBARU’s Automotive Business and Aerospace Company share SUBARU’s policies with suppliers through annual policy briefings and other channels. In addition, at various meetings and events with suppliers, we provide updated information and hear their unfiltered opinions. Building on this ongoing communication with suppliers, the SUBARU Group works with them toward sustainable procurement globally through initiatives such as building CSR-based relationships, promoting proper transactions, conducting supply chain due diligence, and establishing grievance and consultation channels (grievance mechanisms).
We believe these initiatives strengthen relationships of trust with suppliers, enhance the confidence of customers and investors, and create business opportunities through the co-creation of new technologies and materials and improvements in products’ environmental performance. The SUBARU Group views procurement not only as a conduit for risk management but also as a starting point for value creation, and is working to achieve sustainable Monozukuri.

• Environmental Management
• Mitigating Climate Change

Internal Training and Briefings for Suppliers

To achieve sustainable procurement, the SUBARU Group systematically trains its procurement personnel and continually provides briefing and dialogue opportunities for sharing policies and information with suppliers, thereby enhancing the reliability and sustainability of the entire supply chain.

Internal CSR Procurement Training

To foster awareness of sustainable procurement among procurement personnel, SUBARU has established a training system tailored to different levels and positions.

• Training for new employees: Understanding our CSR procurement policies, basics of human rights, environment, and compliance, basics of proper transactions (annual)
• Training for transferees: Same as above (as necessary)
• Training for all levels: CSR training (sharing CSR training content for suppliers) (once a year), comprehension tests for compliance, Sustainability Newsletter (as necessary)
• Training for CSR procurement promoters: External training at the United Nations Development Programme “B+HR Academy” and other institutions (at least once a year)

We will continue to review and enhance these training systems on an ongoing basis as a means of building trust with suppliers and strengthening the entire supply chain.

Automotive Business Purchasing Division

(Employees)

	FYE March 2022	FYE March 2023	FYE March 2024	FYE March 2025	FYE March 2026
Training for New Employees	8	12	6	8	10
Training for Transferees	17	54	16	19	15
Comprehension Tests for Compliance	214	239	243	249	244
CSR Training	228	283	279	271	266
External Training for CSR Procurement Promoters (United Nations Development Programme “B+HR Academy”)	-	1	1	1	1

Aerospace Company Supply Chain Management Department

(Employees)

	FYE March 2022	FYE March 2023	FYE March 2024	FYE March 2025	FYE March 2026
Training for New Employees	1	0*1	0*1	1	3
Training for Transferees	0*1	7	0*1	8	24
CSR Training	85	84	91	88	105

*1

Years with zero employees are those with no new graduate hires or new transferees.

Briefings for Suppliers

In accordance with the SUBARU Supplier CSR Guidelines, SUBARU strives to enhance training opportunities aimed at sharing information with its suppliers and building sustainable business relationships.

• Procurement Policy Briefings: Briefings on our CSR procurement policies for management of suppliers (once a year)
• Responsible Mineral Procurement Briefings: Briefings on responsible mineral procurement when requesting mineral surveys (once a year)
• Supplier CSR Briefing^*2: Explanation of CSR procurement during Supplier CSR Surveys (once a year)
• Climate Change Initiative Briefing: Briefing for suppliers on initiatives focused specifically on addressing climate change (held irregularly)

*2

We present the importance of promoting CSR in addition to human rights and environmental preservation, details about the SUBARU Group’s CSR-related policies and activities, and make specific requests such as compliance with the SUBARU Supplier CSR Guidelines. We also provide English-language materials to explain the content to our major global suppliers and promote their understanding.

Number of Suppliers Participating in Briefings

(Companies)

Supplier CSR Survey

Through our Supplier CSR Survey, SUBARU monitors and evaluates negative impacts on human rights, labor, the environment, compliance, and other areas at suppliers to both the Automotive Business and Aerospace Company, and provides improvement support and follow-ups as necessary. The series of processes from the Supplier CSR Briefing through the Supplier CSR Survey is an important practical element of supply chain CSR due diligence at SUBARU. It was launched in FYE March 2016 and has been conducted every year since FYE March 2018.
The survey consists of the following three types of surveys, which evaluate our suppliers’ CSR initiatives from multiple perspectives.

• SUBARU supplier CSR check sheet
  Surveys are conducted via SUBARU supplier CSR check sheets, evaluating suppliers’ CSR systems, CSR initiatives for their suppliers, and compliance with the SUBARU Supplier CSR Guidelines covering human rights, labor, and the environment. In FYE March 2026, we identified five suppliers requiring further review in their initiatives, and conducted follow-up interviews that confirmed that the suppliers were taking appropriate actions to address these issues. The above survey and evaluation results are referenced in supplier selection.
• Survey on employment of non-Japanese skilled workers in Japan
  We conducted a survey regarding the employment of non-Japanese personnel by our suppliers, examining wage levels, payment methods, working hours, Article 36 Agreement on overtime work and working on holidays (Labour Standards Act) in Japan, insurance, pensions, health checkups, living conditions, passport possession, Japanese language education, daily life guidance, and industrial accidents. Five suppliers were identified as requiring further review. Follow-up investigations were conducted with the five companies. In all cases, the conclusion was that there were no issues with treatment regarding the human and labor rights of non-Japanese workers.
• Survey on human rights initiatives
  We conducted a survey on the implementation of human rights due diligence by our suppliers and within the supply chain, information on the origin of high-risk raw materials in case risk has been identified through due diligence, including country, region, ethnicity, company name, other specific details, and the results of addressing these risks. This survey identified two suppliers requiring further review. Follow-up interviews with said suppliers confirmed that there were no problems with the content of their initiatives.

Number of Target Companies in the Supplier CSR Survey in the Automotive Business

(Companies)

In the Aerospace Company, we continued to conduct the Supplier CSR Survey for suppliers in FYE March 2025 and confirmed that there were no issues. We will continue our activities in FYE March 2027 and beyond.

Promoting Proper Transactions

SUBARU maintains compliance with laws and regulations such as the Antimonopoly Act and the Proper Transactions Act. SUBARU also carries out proper transactions promotion initiatives based on Automobile Industry Fair Trade Guidelines issued by the Ministry of Economy, Trade and Industry. As part of these efforts, SUBARU conducts regular training for its employees and has set up a consultation service targeting suppliers in its supply chain to spread awareness. To promote understanding of proper transactions, we also provide annual training on proper transactions fundamentals for new employees and transferees. In addition, comprehension tests are conducted as necessary for employees at all levels.
Furthermore, in 2020, SUBARU issued the Partnership Formation Oath, which aims to promote collaboration, coexistence, and mutual prosperity with suppliers of all sizes, including large enterprises and SMEs. As a priority initiative, it calls for coexistence and mutual prosperity throughout the supply chain and new collaboration that transcends company size and corporate affiliations. SUBARU aims to increase added value throughout the supply chain and build coexistence and mutual prosperity with its suppliers through collaboration that transcends existing business relationships and company size. In addition, the Aerospace Company conducts a survey for its suppliers regarding satisfaction with its purchasing department. This allows better understanding of the current status of fair and proper transactions, including human rights considerations such as the conduct of those in charge of procurement at SUBARU, from the standpoint of its suppliers.

• Consultation service for promoting proper transactions (Japanese version only)
• Partnership Formation Oath (Japanese version only)

Responsible Mineral Procurement

To avoid contributing to human rights violations and environmental destruction through the procurement and use of conflict minerals, SUBARU has participated in collaborative initiatives addressing conflict minerals since 2014 as a member of the Japan Automobile Manufacturers Association (JAMA).
In 2025, we conducted a conflict minerals survey of 392 suppliers of components and raw materials for automotive mass production and repair. As a survey of minerals other than conflict minerals, we also conducted a mica and cobalt survey of the same 392 suppliers covered by the conflict minerals survey. We will work to roll out surveys regarding minerals other than these conflict minerals (tin, tantalum, tungsten, and gold).

We codified our Responsible Mineral Procurement Policy in May 2022 as follows. Going forward, we will continue working with our customers and suppliers toward “No use of materials engendering social problems” as our social responsibility in procurement activities.

Number of Target Companies in the Conflict Minerals Survey in the Automotive Business

(Companies)

Established in May 2022

Procurement with Consideration for Biodiversity

SUBARU surveys the use of biological resources, including cowhide and plant-derived materials, to ensure no negative impact on the ecosystem during procurement of raw materials. In FYE March 2026, we conducted due diligence through interviews with 16 rubber parts manufacturers.

Supply Chain Human Rights Consultation Service

In FYE March 2023, SUBARU endorsed and cooperated with the supply chain human rights initiative, Japan Platform for Migrant Workers towards Responsible and Inclusive Society (JP-MIRAI), on the establishment of a consultation service for foreign workers in the supply chain in Japan. As background to this, employees of the Purchasing Division, including the general manager in charge, took part in JP-MIRAI’s Consultation and Relief Pilot Project for Foreign Workers.
We continued our participation with the Collaborative Program for Companies Responsibly Hosting Foreign Migrant Workers, which marked the full-fledged implementation of the program in FYE March 2024, targeting local business partners.
We provide support in 23 languages^*1 for the consultation service, the area of the program that SUBARU is involved in. This service is available not only for non-Japanese but also Japanese workers employed by business partners.
The consultation service covers a wide range of topics, from gathering information about daily life in Japan to addressing concerns related to human rights and labor issues. For matters that cannot be resolved through the consultation service, we provide accompanying support through consultations with specialists such as lawyers, or utilize the Tokyo Bar Association’s Alternative Dispute Resolution (ADR) for added assistance. This ensures a fair and transparent approach through third-party involvement.
We held a briefing for relevant business partners on the procedures for using the consultation service and requested that they disseminate the information among their employees.
This program, including the consultation service, is designed to be an effective and reliable complaint handling channel that reflects the opinions of stakeholders (suppliers, worker organizations, etc.) gained from dialogue.

*1

Easy Japanese, English, Chinese, Korean, Thai, Vietnamese, Indonesian, Malay, Tagalog, Nepali, Myanmar, Khmer, Mongolian, Sinhalese, Hindi, Bengali, Portuguese, Spanish, German, French, Italian, Russian, and Urdu

JP-MIRAI’s Collaborative Program for Companies Responsibly Hosting Foreign Migrant Workers

Communication with Suppliers

In our Automotive Business, we host online Policy Briefings every spring to share policies on development, quality, procurement, and production with our suppliers. At subsequent events with suppliers, we hold face-to-face dialogue to update information and listen to unfiltered opinions from them, which leads to improvements in our initiatives.

In FYE March 2026, the Aerospace Company held the SUBARU Status Report Meeting for our suppliers in May.
In FYE March 2027, the SUBARU Aerospace Company Overview Briefing was scheduled for May and the Aerospace Company Partner Conference for October. We will continue activities to deepen cooperation with our suppliers.