• Supply Chain Management
• Supplier Evaluation Program
• Socially Responsible Procurement Program

• Human Rights Initiatives
• Supply Chain Environmental Initiatives
• Partnerships with External Organizations

Epson considers suppliers to be important partners in its business activities. As such, our procurement activities are designed to develop mutually beneficial trusting relationships with our business partners based on fairness, transparency, and respect.

Epson procures goods from around the world. Domestic Japanese procurement accounts for about 38% of our total procurement spend. Asia accounts for the large majority of the remaining 62%.
Our procurement spend for direct materials (production materials and outsourced manufacturing) accounts for about 65% of the spend and indirect materials (including factory consumables, machinery, public relations, logistics, and staffing) for about 35%.
Epson has business with 1,700 direct material suppliers mainly in Asia where our main manufacturing sites are located, and about half of our indirect materials spend is in Japan.

Procurement Over View

Epson conducts multifaceted evaluations of all suppliers.

Direct Evaluation Results

Evaluation of Prospective New Suppliers

We require prospective new suppliers to agree to abide by the Epson Group Supplier Guidelines and the RBA Code of Conduct (with requirements covering human rights, health and safety, the environment, and ethics) as a condition for starting business with us. We also conduct indirect and direct evaluations^* based on standards that set out supplier selection procedures.
^* Self-assessments equivalent to the annual evaluations that are used to assess a supplier's quality control, cost control, delivery date control, environmental management, management systems, including business continuity management, and information security

The detailed CSR evaluation is a part of Epson’s supplier CSR due diligence program. We are endeavoring to improve the level of CSR across our global supply chains. Toward this end, we have revised the scope, frequency, and some other aspects of our program to meet our obligations¹ as a Regular Member of the Responsible Business Alliance (RBA).Every year, Epson evaluates supplier compliance with the Epson Supplier Code of Conduct (RBA Code of Conduct) based on a detailed self-assessment questionnaire (SAQ). Suppliers are asked to take corrective action, depending on the results of the SAQ. We also have a process for verifying supplier answers via audits, site observations, and interviews.
Suppliers can choose to answer either an online SAQ provided by the RBA or an SAQ prepared by Epson that is based on the RBA’s Validated Audit Program (VAP) audit criteria. The Epson SAQ is designed to thoroughly check the human rights situation at suppliers’ sites  and thus has many questions in the labor section as well as questions about the protection of the rights of indigenous peoples and foreign immigrants. Epson’s SAQ form is available in multiple languages² to ensure that local suppliers of Epson's overseas manufacturing sites understand the questions on the SAQ and provide accurate answers.
Suppliers who are deemed high risk are audited in accordance with RBA criteria and are asked to take corrective action as needed.

¹ Summary of RBA Regular Member obligations

² The SAQ for direct material suppliers is available in five languages and that for other suppliers is available in six languages.

Epson SAQ Scores and Risk Ranks (FY2024)

^* The risk rank of suppliers who complete RBA's online SAQ is determined in accordance with RBA's risk ratings.

2024 SAQ

In 2024, we conducted a detailed CSR evaluation (SAQ and corrective actions) for the following major suppliers:

Scope of 2024 SAQ

¹ Epson’s first-tier (direct) suppliers are arranged in descending order based on transaction amounts and selected until 80% of the total spend is reached.
If a first-tier supplier is a trading company, the manufacturer that supplies the trading company is asked to complete an SAQ.

² Contractors who provide security, food service(canteen), and other services at Epson Group sites.

Direct material suppliers

We asked 267 first-tier direct material suppliers to complete the 2024 SAQ. All 547 manufacturing sites/ facilities responded. Other key suppliers, such as single-source suppliers, were also asked to complete the SAQ. In cases where the  first-tier supplier was a trading company, we also asked the second-tier suppliers (the manufacturers) to complete the SAQ.
The number of suppliers using RBA-Online has been increasing each year and now accounts for about 36% of all Epson suppliers. For reference, the facility SAQ in RBA-Online has been updated and is now called the "Risk SAQ." It was optional in 2023 but was made mandatory starting in 2024.The changes to the SAQ tended to result in lower scores for the newly included Country Risk and Product Risk (business risk) questions in RBA-Online, with about half of the sites receiving a medium risk rating. The latest SAQ has new questions on Country Risk and Product Risk (business risk) . Scores in these areas tend to be lower, resulting in about half of facilities receiving a medium-risk rating. Epson communicated directly with suppliers that received a high-risk rating on RBA-Online or that failed to provide adequate answers, asking them to take corrective action.

All suppliers who completed the Epson SAQ were notified of their results. In addition to their SAQ scores, we prepared a feedback sheet that included advice on correcting identified issues. We also monitored the formulation and progress of the corrective action plans for addressing failures to comply with high-priority requirements related to human rights¹ and provided assistance as needed.
No high-risk suppliers were identified in either the RBA-Online SAQ or Epson SAQ.
¹ Representative high-priority requirements related to human rights:
・Prohibition of child labor (not detected)
・Prohibition of slave labor and forced labor (conclusion of appropriate employment contracts, freedom of movement, limits on company loans)
・Proper management of working hours (no more than six consecutive work days and a limit on working hours of 60 hours/week)
・Proper payment of wages (payment of at least the legal minimum wage and overtime, and timely payment of wages)
・Prohibition on charging workers recruitment fees
・Humane treatment (prohibition of harassment)
・Evacuation drills (enterprise-wide participation, with nighttime and dormitory drills, etc.)
・Provision of suitable personal protective equipment at no cost to workers
・Provision of safety measures for pregnant and nursing mothers, and provision of a clean room for expressing breast milk.

Evaluation Results for Direct Material Suppliers

¹ Corporate group
² Risk assessment criteria

Other suppliers

Epson is also working to ensure that its other suppliers, who are essential partners in its business operations, understand the RBA's requirements and are working to improve their operations in accordance with them.
Since 2019, we have been asking our major suppliers, including on-site outsourcing companies, temporary staffing and recruitment companies, and logistics warehouse companies, to complete the SAQ and take corrective action depending on the results.  We exanded the scope of the SAQ in 2022 based on findings from a risk assessment.
At manufacturing sites, we conduct audits in addition to the SAQ to check the working environment and employment conditions of employees of companies stationed on the premises. We provide them with support until verifying the correction of issues that were identified, including issues involving long working hours, the granting of days off, consecutive working days, and appropriate payment of overtime wages. These efforts have helped to raise SAQ scores.
In 2024, we received completed SAQs from all 149 companies that have a permanent presence on Seiko Epson's business sites and major Epson Group manufacturing sites. We also received completed SAQs from all 102 temporary staffing and recruitment companies. Additionally, all 37 logistics and warehousing companies and all 27 call centers at sales companies also completed the SAQ. As with direct material suppliers, we ask these companies to create corrective action plans and correct any issues found in key areas related to human rights, and we confirm that the corrections have been completed.

Examples of confirmed corrective action

• Refunds to workers for expenses (for Japanese language education, visa acquisition, etc.) incurred in the sending country by foreign workers employed by contract manufacturing companies.

Other supplier evaluation results

¹ As a result of risk assessment, SAQs were conducted on logistics warehouse companies and call center contractors in 2022, 2023, and 2024.
² Includes 37 companies used by sales companies

Epson schedules field audits and on-site verification of suppliers, mainly of Epson group's major manufacturing sites because it believes that it is important, as part of the detailed CSR evaluation due diligence process, to understand the situation. We provide assistance for corrective action taken by suppliers who are found to be at risk.

Third-Party Audits

On-site verification and support for correction and improvement

Members of Epson's manufacturing sites visit suppliers to conduct on-site verification and support corrective actions.
For on-site service vendors, second-party audits were conducted by Epson employees, and they were asked to make improvements to the working environment, such as reducing and managing working hours, providing holidays, paying overtime wages appropriately, and prohibiting employees from having to bear expenses when they start working.

Audit and On-Site Verification (number of sites, Japan and other areas)

¹ Includes Priority Closure Audit
² Includes 10 staffing and recruitment agencies.

Epson drives business continuity management (BCM) programs across the supply chain so that it can resume supply within the target period and fulfill its supply responsibilities in the event of a disaster, accident, pandemic, or other contingency in the supply chain.

Epson requires its suppliers to implement business continuity management (BCM) initiatives in the Epson Group Supplier Guidelines. Epson monitors the progress of suppliers' initiatives through regular evaluations, providing feedback on the results and supporting improvement activities as needed.

Epson assesses the safety management of suppliers to verify compliance with relevant laws and regulations (such as the Fire Service Act). In fiscal 2024, Epson also added safety management assessments to the conditions for starting new transactions.

To improve the effectiveness of its supplier safety management assessments, Epson has been sending safety management specialists to supplier sites since 2017 to conduct safety inspections and provide support for improving management.

Epson has declared in its Human Rights Policy that human rights should be respected not only by Epson but also by its suppliers. As stated in the Human Rights Policy, Epson is committed to respecting internationally recognized human rights as stated in the Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights, and as a member and supporter of the RBA, we are committed to ensuring that our suppliers also comply with the RBA Code of Conduct. Through these efforts, we aim to ensure that human rights are respected throughout the entire supply chain of Epson products.

Epson's Supplier Guidelines include a code of conduct that suppliers are required to adhere to. In addition to requests related to quality, cost, delivery (QCD), and compliance, the Supplier Guidelines set forth the Supplier Code of Conduct on CSR (aligned with the RBA Code of Conduct). Regarding the reduction of environmental impact, Epson requires its suppliers not only to comply with the RBA Code of Conduct (covering pollution prevention and resource conservation, hazardous substances, solid waste, and air emissions, etc.) but also to address environmental issues such as reducing greenhouse gas emissions, promoting resource circulation, managing water resources, managing chemicals, and preserving biodiversity. Additionally, Epson requests that suppliers manage chemical substances contained in products and ensure compliance with environmental regulations at their factories.

In addition to our own initiatives, Epson supports and actively participates in alliance activities in order to resolve CSR issues, including human rights issues in the supply chain. We have joined the RBA and JEITA to work on solving societal issues around the world and improving supply chain CSR through industry collaboration.

Domestic Japanese industry initiative
The Japan Electronics and Information Technology Industries Association (JEITA),CSR Committee
Member companies: 30 (as of 6/2025)

Example activities:

• General CSR support (e.g., tracking and sharing information on regulations in various countries)
• Streamlining of socially responsible procurement (e.g., develop guidance on responsible corporate conduct, educate and build awareness in the supply chain)
• Utilization and development of grievance mechanisms
• Correspondence with government and CSR-related organizations and institutions