Supply Chain Management Policy and Governance Structure

Basic Concept

At Mizuno Group, we define “Excellent Products” as products that are not only safe, reliable, and of high quality, but are also manufactured under conditions that appropriately address human rights, occupational health and safety, environmental protection, and governance in line with international standards.
To this end, we have established the Mizuno CSR Procurement Code of Conduct, which incorporates the principles of ISO 26000, the international guidance standard on social responsibility. Through this Code, we communicate our expectations and values to suppliers and request their compliance with these principles.

The Mizuno CSR Procurement Code of Conduct is available not only in Japanese, Chinese (Traditional and Simplified), and English, but also in a variety of other languages listed below. These translations have been prepared in consideration of workers who are employed at overseas manufacturing facilities away from their home countries.
Italian, Indonesian, Urdu, Korean, Khmer (Cambodian), Spanish, Thai, German, Turkish, Bulgarian, Vietnamese, Portuguese, Bengali, Malay, Myanmar (Burmese), Lao, Lithuanian, and Romanian.

Furthermore, to help supplier management and senior staff deepen their understanding of the principles of the “Mizuno CSR Procurement Code of Conduct”, we engage in dialogue with suppliers and support organizational capacity building initiatives—commonly referred to as “capacity building.”

Mizuno CSR Procurement Code of Conduct

Management system

Mizuno has established the Cross-departmental Products Committee, chaired by the Vice President. The Committee discusses matters such as promoting compliance with the Mizuno CSR Procurement Code of Conduct and conducting CSR procurement audits.
For further details, please refer to “Sustainability Governance Structure.”

Sustainability Governance Structure

Human Rights Due Diligence

Mizuno recognizes supply chain management, with a focus on respect for human rights and labor conditions, environmental conservation, and fair business practices, as a key management priority. We promote CSR procurement based on human rights due diligence while building a shared understanding with suppliers both in Japan and overseas.
We conduct audits of key suppliers to verify their compliance with the Mizuno CSR Procurement Code of Conduct. When non-conformities are identified through these audits, we require suppliers to implement corrective actions and preventive measures, and we follow up on their progress. Through these efforts, we strive for the continuous improvement of our supply chain and the mitigation of related risks.

Due Diligence Process for CSR Procurement

Supply Chain Status

Mizuno manufactures products such as sports shoes, sportswear, and golf clubs at its own factories as well as at contracted factories (suppliers).
The main supplier countries, in addition to Japan, include China, Taiwan, Indonesia, Vietnam, Thailand, the Philippines, Myanmar, and Cambodia.

Status of the Entire Supply Chain

Please refer to our ESG data for the breakdown of our Tier 1 suppliers by product category, as well as by country and region.

Status of Important Suppliers

From the perspective of annual transaction amount, occupancy rate, and the importance of procured goods, we categorize suppliers that have a significant impact on our business continuity and business value as important suppliers. Please refer to our ESG data for the status of these important suppliers (Tier 1 suppliers).

Disclosure on the status of key suppliers:

Number of key suppliers: 185
Percentage of key suppliers among all Tier 1 suppliers: 37.7%
Percentage of total procurement value sourced from key suppliers: 96.6%
Percentage of key suppliers for whom Mizuno is a major customer: 34.8%

* Key supplier is defined as a supplier whose transactions with Mizuno account for 30% or more of the annual sales

Disclosure of Supplier Information

To help stakeholders better understand the status of our supply chain, we have been disclosing a “Supplier List” since fiscal year 2017. The Supplier List includes the following information:

① Supplier name
② Location
③ Country
④ Product category (Apparel / Equipment / Footwear)
⑤ Number of employees (Less than 1,000 / 1,000 to 5,000 / 5,001 to 10,000)
⑥ Parent company
⑦ Percentage of female employees
⑧ Percentage of migrant workers
⑨ Presence of labor union

List of Major Suppliers

CSR Evaluation of New Candidate Supplier Factories Before the Commencement of Business

We believe that conducting evaluations before initiating business relationships is essential to ensuring effective CSR procurement. Accordingly, based on the Mizuno CSR Procurement Regulations, we have established a system for conducting CSR preliminary evaluations of new suppliers. For major new candidate suppliers, we carry out assessments prior to the start of production, focusing on human rights, labor practices, occupational health and safety, and environmental impact.
Before conducting a CSR audit, we present the supplier candidates with three documents: the Mizuno CSR Procurement Code of Conduct, the Mizuno CSR Pledge Statement, and the Mizuno CSR Self-Assessment Checklist. If the supplier agrees to the principles outlined, they are asked to sign and submit the CSR Pledge Statement of their own free will. In addition, we provide an explanation based on the Mizuno CSR Procurement Guidelines, which serve as a reference for understanding our CSR procurement approach.
If the audit results fall below the required Evaluation B level (score of 80–89), which is a prerequisite for starting business, we engage with the supplier to discuss a corrective action plan based on the audit report. We also offer guidance and recommendations for improvement, and in some cases, conduct on-site visits. Through these efforts, we ensure that suppliers meet Mizunoʼs required standards before commencing business, thereby enhancing the effectiveness of our CSR procurement practices.

Flow of CSR evaluation of new candidate supplier factories before the commencement of business

Audits for Tier-1 Suppliers

CSR procurement audits for existing suppliers are conducted under the "Mizuno CSR Procurement Regulations," targeting approximately 200 key suppliers. These audits monitor compliance with the standards outlined in the Mizuno CSR Procurement Code of Conduct on a regular basis, completing a full cycle every three years.
There are two methods of monitoring:
1. Direct audits commissioned by Mizuno and conducted by auditing agencies
2.Evaluations based on assessments conducted by other auditing organizations, reviewed against Mizunoʼs standards

CSR procurement audits consist of on-site inspections, document reviews, and employee interviews, and are typically conducted by multiple auditors over one or several days.
To assess compliance, a globally standardized monitoring sheet based on ISO 26000 is used. Each audit item in the monitoring sheet is classified into three categories—Critical, Major, and General—based on its importance and urgency.
If an item is found to be compliant, points assigned to each category are totaled to quantify the evaluation.

Suppliers are rated using four grades:
A for scores of 90 or above
B for scores between 80–89
C for scores between 70–79
D for scores below 69, or if child labor or forced labor is detected

System for CSR procurement audits and corrective actions

Criteria for Determining the Need for CSR Procurement Audits Based on Supplier Country

In general, regions affected by conflict, political instability, or low regulatory transparency are considered more susceptible to human rights oppression and violations. However, accurately assessing the extent of such risks is not straightforward, and there are inherent limitations to evaluations conducted solely by individual companies. Therefore, it is essential to utilize internationally recognized human rights indicators that ensure fairness, objectivity, and rationality in the assessment process.
We designate countries with high human rights risks as subject to CSR procurement audits, using the "Worldwide Governance Indicators" published by the World Bank as a reference, along with our own perspectives. Based on the latest version of these indicators, we conduct annual reviews.
Suppliers located in countries ranked highly in the following six dimensions of the indicators are considered to pose a low risk of potential human rights violations and are therefore excluded from audits, in line with the intent of the indicators:

Voice and Accountability
Political Stability and Absence of Violence
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption

Although suppliers located in Japan are generally excluded from audits based on these indicators, we conduct audits of suppliers that employ foreign technical intern trainees, as human rights concerns have occasionally been observed in relation to such workers.

Worldwide Governance Indicators

Response to Secondary and Tertiary Suppliers

For our primary suppliers, with whom we have direct business relationships, we focus on understanding and managing human rights, labor, and environmental impacts. We request improvements and corrections as necessary to build a better supply chain.
Additionally, for secondary and tertiary suppliers—those who do not have direct business relationships with us but supply raw materials, components, semi-finished products, or labor to our primary suppliers—we strive to identify any potential concerns by collecting information through our primary suppliers.
Since FY 2017, we have expanded the scope of our audits to include secondary and tertiary suppliers. The main targets include plating factories for golf iron heads and tanning factories for leather used in baseball gloves and shoes.
Details of our actions taken each fiscal year are provided below.

Activities Beyond CSR Procurement Audits

Against the backdrop of rapid social and environmental changes, merely correcting non-conformities identified through CSR procurement audits is not sufficient to address fundamental issues related to human rights, labor practices, and the environment. Therefore, in addition to conducting CSR procurement audits, we believe it is essential to place greater emphasis on capacity building both within and outside the company. By enhancing understanding of the purpose and importance of CSR procurement, we seek to encourage voluntary and continuous improvement among all stakeholders.

As part of these efforts, we have strengthened employee education programs, ranging from basic training for all employees to tailored programs for executives, managers, and employees assigned overseas. In FY2025, we implemented the following initiatives:

Online training on Mizunoʼs CSR procurement management for procurement personnel of Mizuno Group subsidiaries.
A study session led by an external expert on Japanʼs foreign worker employment system, primarily for procurement personnel in the apparel business.

In addition, to promote a better understanding of Mizunoʼs CSR procurement principles and management framework, we conducted briefing sessions for selected suppliers. For further details, please refer to the section, “Communication with Suppliers.”

Communication with Suppliers.

Efforts to Eliminate Child Labor

Sports products such as apparel and footwear are often manufactured in the Asia-Pacific region, where wage levels for workers tend to be relatively low. It has been pointed out that, for various reasons, the risk of child labor may increase in the future. Therefore, we consider child labor to be one of the most critical items in our audit process and recognize the need for enhanced monitoring in the Asia-Pacific region, where many of our suppliers are located.

We have clearly stated our commitment to prohibiting child labor in the Mizuno Code of Ethics, and in the Mizuno CSR Procurement Code of Conduct, we require suppliers to respect the following two core labor standards established by the International Labour Organization (ILO):

The Minimum Age Convention (No.138)
The Worst Forms of Child Labour Convention (No.182)

In addition, to identify countries and regions with a high risk of child labor, we utilize the previously mentioned Worldwide Governance Indicators to classify countries where audits are necessary and those where they are not.

Initiatives to Prohibit Forced Labor

In the Asia-Pacific region, alongside child labor, forced labor—often referred to as “modern slavery”—also requires close monitoring.
In Japan, according to a survey by the Ministry of Health, Labour and Welfare as of the end of October 2025, there were approximately 2.57 million foreign workers, including around 500,000 technical intern trainees. The number of workplaces employing foreign workers was reported to be approximately 370,000.
Many of the suppliers from whom we procure products employ foreign workers under the Technical Intern Training Program. The treatment of these trainees has become a social issue due to concerns over human rights and working conditions. For this reason, our CSR staff conduct on-site audits of suppliers employing technical intern trainees.

Additionally, as a member of the JP-MIRAI Platform for Responsible Acceptance of Foreign Workers, we aim to support employers in fulfilling their responsibilities in line with the internationally recognized Platform Principles of Action.

* JP-MIRAI provides foreign workers with useful information and consultation support for daily life and employment. For companies employing foreign workers, it offers mechanisms and resources—such as grievance mechanisms, which serve as effective tools to complement CSR procurement audits—that help identify potential issues in the supply chain at an early stage.

For more details on the audit status of suppliers employing foreign technical intern trainees, please refer to this document.

Compliance with Overseas Laws and Regulations

We comply with laws and regulations in various countries and regions that require companies to disclose efforts to eliminate human trafficking and forced labor. In line with legislation promoting respect for human rights, we disclose relevant information in accordance with the “California Transparency in Supply Chains Act (effective since 2012)” in the United States and “the UK Modern Slavery Act (effective since 2015)”.

「Response to the California Transparency in Supply Chains Act

Statement on the UK Modern Slavery Act

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2025

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2024

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2023

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2022

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2021

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2020

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2019

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2018

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2017

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2016

MIZUNO CORPORATION MODERN SLAVERY STATEMENT FY2015

Efforts Regarding Conflict Minerals

What Are Conflict Minerals?

Conflict minerals refer to mineral resources mined in conflict-affected areas such as the Democratic Republic of the Congo (formerly Zaire) and surrounding African countries. In these regions, local residents and forcibly taken individuals are often subjected to threats and violence, and forced to work under harsh conditions, resulting in serious human rights violations.
Minerals extracted under such circumstances are known to serve as financial sources for armed groups and criminal organizations, making this a significant global issue.
One of the key regulatory frameworks addressing conflict minerals is the “Dodd-Frank Wall Street Reform and Consumer Protection Act” in the United States. Section 1502 of this law defines four minerals—tin, tantalum, tungsten, and gold (collectively referred to as “3TG”)—as regulated conflict minerals.
Companies listed in the United States are required to report to the U.S. Securities and Exchange Commission (SEC) whether they manufacture or contract to manufacture products containing these minerals, and if so, to disclose relevant information on their websites and other public platforms.

Efforts Regarding Conflict Minerals

Although we are not listed on the U.S. securities market and therefore not subject to reporting and disclosure requirements to the SEC, we believe that ensuring transparency in our supply chain is essential for responsible sourcing. Accordingly, we began investigating the use of conflict minerals—tin, tantalum, tungsten, and gold (collectively referred to as “3TG”)—in 2018, in line with the Dodd-Frank Act.
Specifically, tungsten is used as weights for balancing golf club heads and soft tennis rackets, as well as in the tips of ultra-hard spikes for baseball shoes. Tin and gold are used in plating for various metal products. We have confirmed that these minerals are not sourced from conflict-affected regions.

Since fiscal year 2022, we have conducted investigations into the tungsten used in golf club heads using the “Conflict Minerals Reporting Template (CMRT)” provided by the “Responsible Minerals Initiative (RMI)”. Through this process, we have identified all smelters involved and confirmed that they are listed as “Conformant Tungsten Smelters” under RMI.

Smelters listed in RMIʼs conformant list have undergone audits under the “Responsible Minerals Assurance Process (RMAP)”, which verifies that their mineral sourcing practices are free from illegal activities related to conflict minerals.

In parallel with CMRT-based investigations, we have also implemented traceability measures for tungsten used in golf products, creating a supply chain map to ensure transparency in sourcing routes. We request our suppliers not to use minerals from non-conformant smelters.

* RMI was established in 2008 and has over 400 member companies. It develops tools and resources to support responsible mineral sourcing throughout the supply chain.

Future Challenges

As our business continues to grow, supply chains are becoming increasingly complex, and the risks associated with ensuring a stable supply of products are also rising. Dependence on specific countries or suppliers poses significant challenges, as it increases exposure to geopolitical risks, natural disasters, and human rights and labor-related issues. As a result, we are diversifying our production bases and sourcing locations, and we expect procurement from suppliers in new countries and regions to increase further in the future.
In light of these developments, it is becoming increasingly important not only to enhance pre-assessment processes for new suppliers but also to identify and monitor risks throughout the upstream supply chain, including second- and third-tier suppliers beyond our direct suppliers. Accordingly, we are considering the establishment of new risk assessment methodologies that go beyond conventional CSR procurement audits.
Going forward, we will continue to monitor the implementation of corrective actions identified through CSR procurement audits while working to build a sustainable supply chain characterized by transparency and integrity. Through these efforts, we remain committed to promoting responsible procurement practices across our value chain.