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Materiality
Supply Chain Management

Basic Concept

The Mizuno Group recognizes the importance of supply chain management based on respect for human rights and labor conditions, environmental consideration, and fair business practices. To this end, we have established the “Mizuno CSR Procurement Code of Conduct” and are actively engaged in CSR procurement activities that adhere to this code.

By conducting CSR audits with both domestic and international suppliers under a shared understanding, we not only confirm compliance with laws and regulations, but also assess current practices and initiatives related to human rights, working conditions, occupational health and safety, and environmental protection. In cases where inappropriate practices are identified, we take effective action to resolve and correct them.

The ”Mizuno CSR Procurement Code of Conduct” is available in three languages—Japanese, Traditional Chinese, Simplified Chinese, and English—and is distributed to suppliers. In consideration of workers employed at overseas manufacturing sites away from their home countries, we have also prepared translations in the following languages:
Italian, Indonesian, Urdu, Korean, Khmer (Cambodian), Spanish, Thai, German, Turkish, Bulgarian, Vietnamese, Portuguese, Bengali, Malay, Burmese, Lao, Lithuanian, 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

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: 207
  • Percentage of key suppliers among all Tier 1 suppliers: 46.9%
  • Percentage of total procurement value sourced from key suppliers: 96.5%
  • 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 f ollowing information:

① List 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

Implementation of CSR Procurement Audits and Improvement Efforts Domestically and Internationally

Mizuno's CSR procurement audits cover not only the company itself but also overseas branches, domestic and international subsidiaries, as well as procurement sources of licensees and sales agents. Our CSR procurement efforts include two forms: pre-evaluation conducted before starting transactions with suppliers and regular audits of ongoing 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

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Implementation Status for Fiscal Year 2024

In fiscal year 2024, we conducted preliminary evaluations (audits) for new supplier candidates.
The number of suppliers by evaluation grade in the preliminary assessment is shown in the table below.
In recent years, there has been an increasing trend of new supplier candidates who have already undergone assessments by third-party auditing organizations. By reviewing and evaluating the results of audits conducted by these external organizations against Mizuno's standards, we determine whether the new supplier candidates meet the requirements to begin business transactions.

Preliminary Evaluation Number of Suppliers
Grade A 2
Grade B ―
Equivalent to Grade B or higher based on Mizuno standards applied to third-party audit assessments 18
Total 20

Corrective Action When the CSR Audit Result is Below B

If a factory receives a rating below B in the prior evaluation, we provide feedback on the results and discuss specific and feasible corrective and improvement measures with the supplier for the items deemed non-compliant. While respecting the supplier's autonomy in creating corrective and improvement plans, we conduct periodic checks and offer advice as needed, following up until they achieve a rating of B or higher, which is a prerequisite for commencing business.

Audits and Corrective Actions for Tier-1 Suppliers

CSR 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

In fiscal year 2024, including assessments by external auditing organizations, a total of 58 suppliers (4 domestic and 54 overseas) were evaluated.
The number of suppliers by evaluation grade based on these results is shown below.

Regular Audit Evaluation Number of Suppliers
Grade A 16
Grade B 6
Grade D 1
Equivalent to Grade B or higher based on Mizuno standards applied to third-party audit assessments 35
Total 58

The graph below shows the evaluation scores by country for 23 suppliers that underwent direct audits.

Number of audits conducted and Average score by country

graph

CSR 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 audits and corrective actions

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

We designate countries with high human rights risks as subject to CSR 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 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, we conduct audits for those employing foreign technical intern trainees, as human rights concerns have been observed in such cases.

Worldwide Governance Indicators

Audit Status for Suppliers Employing Foreign Technical Intern Trainees

As of April 1, 2024, Mizuno had 101 suppliers located in Japan. Among them, 29 suppliers employed a total of 285 foreign technical intern trainees. Of these, 17 suppliers were designated as key suppliers subject to audits, with 188 foreign technical intern trainees working at those facilities.
In fiscal year 2024, four audits were conducted, and all received a Grade A rating. The main nationalities of the foreign technical interns working at these 4 factories were 26 from Vietnam, 5 from China and 5 from Cambodia.

Main Monitoring Contents

We conduct monitoring by categorizing audit items into the areas of human rights, labor practices, occupational safety and health, and environmental impact.
In fiscal year 2024, as shown in the table below, some suppliers had items identified as “critical” or “major.” We have provided appropriate advice and recommendations to support corrective actions and improvements.

Number and Percentage of Factories with Non-Conformities in Critical and Major Items in Audits (FY2024)

Items Audit item Audit Requirements Number of Critical Items Number of Major Items Percentage of Applicable Suppliers (%)
Human Rights Freedom of Association Mechanism for resolving worker grievances between the factory and worker representatives 1 4.5
Method for selecting worker representatives 1 4.5
Right to form labor unions 2 9.1
Forced Labor / Slave Labor / Migrant Labor Contracts involving home-based work 1 4.5
Labor Practices Compensation Method of wage payment 1 4.5
Workersʼ social insurance 6 27.3
Overtime pay 3 13.6
Wage statements 3 13.6
Working Hours Method of recording working hours 1 4.5
Authorization from labor authorities for extended working hours (overtime) 1 4.5
Excessive working hours and overtime 10 45.5
Workersʼ access to leave 7 31.8
Safety and Health Chemical Substances Safety Data Sheets (SDS) for chemical substances 2 9.1
Labeling of chemical substances 2 9.1
Fire Safety Certificates/permits for building safety 6 27.3
Emergency exits and evacuation routes 2 9.1
Fire extinguishers 2 9.1
Fire inspection certificates/permits 5 22.7
Signage or indicator lights for exits and emergency exits 8 36.4
Access to fire extinguishers, fire hydrants, and fire alarms 4 18.2
Fire safety training 3 13.6
Locking of emergency exits 1 4.5
Direction of emergency exit door opening 3 13.6
Dormitories Location of dormitory facilities 1 4.5
Work Environment Periodic health checkups for workers exposed to hazardous environments 4 18.2
Regular health checkups 1 4.5
Provision of personal protective equipment (PPE) 7 31.8
Environment Pollution Preventio Monitoring of noise impact on local communities (noise measurement at boundaries) 2 9.1
Monitoring of exhaust gas emissions 3 13.6
Waste storage areas 5 22.7
Transportation and disposal of waste 3 13.6
Monitoring of wastewater discharge 3 13.6
Management of discharge limits for pollutants in discharged wastewater/sewage 1 4.5
Management Systems Environmental permits 4 18.2

Details of Non-Compliance Related to Human Rights

In recent years, with the remarkable rise in human rights awareness, cases of suppliers suppressing employee rights have become increasingly rare.
Under these circumstances, five human rights-related issues were identified during audits conducted in FY2024.Of these, four cases involved the following: Absence of mechanisms for receiving and addressing employee complaints and grievances, Inadequate or unreasonable methods for selecting employee representatives, Partial interference in the process of forming employee unions. As of the end of March 2025, these issues had not yet been corrected, and each supplier is currently working on remediation.
Additionally, one case involving deficiencies in contracts with home-based workers was identified domestically. This issue has already been corrected, and remediation has been confirmed.

Non-Compliance Issues Other Than Human Rights

In fiscal year 2024 audits, non-compliance issues unrelated to human rights were identified in the areas of “occupational safety and health” and “labor practices”.
Specific cases are shown in the table below.

Audit Category Specific Non-Compliance Case Number of supplier Percentage of Applicable Suppliers (%)
Occupational Safety and Health Are adequate guards or devices installed for moving/rotating parts of machine, pulleys and belts or any other dangerous parts of machines? 11 50.0
Labor Practices Does the working hour of factory meet law requirements? 10 45.5
Occupational Safety and Health Are exits and fire exits identified with sign or indicator lamps? 8 36.4
Occupational Safety and Health Are adequate first aid kits located at each factory floor and marked with signs? 8 36.4
Occupational Safety and Health Are dangerous/ hazardous substances safely and securely stored? And is fire-extinguishing equipment appropriate there? 7 31.8
Occupational Safety and Health Is personal protective equipment (PPE) in fully acceptable condition provided for workers? 7 31.8
Labor Practices Are workers available to take one day off in seven? 7 31.8
Occupational Safety and Health Are all site buildings structurally safe, inspected and have certificate/license issued by local government authority? 6 27.3
Occupational Safety and Health Are adequate emergency lights installed at each factory floor? 6 27.3
Labor Practices Are all workers provided social insurance met local legal requirements? 6 27.3

Correction Status of Non-Conformities

In the CSR audits conducted in fiscal year 2024, a total of 51 critical or major non-conformities were identified. As of the end of March 2025, corrective actions had been confirmed for 40 of these cases (78%).
It is worth noting that during the fiscal year, there were no instances in which business relationships were terminated due to suppliers failing to meet the evaluation grade required for continued transactions.

For details on the correction status of non-conformities, please refer to the ESG data.

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.

FY Actions Taken
2017 We conducted audits of two suppliers involved in golf component manufacturing. In addition, to better understand the actual working conditions at secondary and tertiary suppliers outside of component manufacturing, we visited the production sites of a metal processing facility in Japan and a fabric dyeing facility in Thailand.
2018 We conducted CSR audits of suppliers involved in golf club component manufacturing and plating processes for golf clubs in China, leather tanning in Vietnam, upper (vamp) manufacturing for shoes, and rubber outsole manufacturing for shoes.
2019 We conducted audits of suppliers involved in golf club component manufacturing, as well as upper (vamp) and sole manufacturing for shoes. Among these, non-conformities were identified during audits of suppliers engaged in golf component manufacturing, sole production, and upper (vamp) processing.
2020 We conducted follow-up audits of suppliers where non-conformities had been identified in FY 2018 and FY 2019, and confirmed that the issues had been corrected. Additionally, we conducted audits of suppliers involved in golf club manufacturing.
2022 We conducted an audit of a supplier involved in golf club component manufacturing and identified non-conformities. As a result, we scheduled a follow-up audit for FY 2023.
2023 We conducted a follow-up audit of a supplier involved in golf club component manufacturing, where non-conformities had been identified during the FY 2022 audit, and confirmed that the issues had been corrected.
We also reviewed the transaction status of secondary and tertiary suppliers in the apparel, footwear, and equipment categories, as well as the necessity of future audits. Based on this review, we considered future management approaches.
2024 In relation to product procurement by our U.S. subsidiary, we investigated the first- to third-tier suppliers to ensure compliance with U.S. customs regulations and the Uyghur Forced Labor Prevention Act. As a result, we confirmed that no procurement was made from suppliers banned by U.S. Customs and Border Protection.

* We were unable to conduct audits in fiscal year 2021 due to preventive measures against the spread of COVID-19.

Activities Beyond CSR Audits

In Southeast Asia, where many of our suppliers are located, rapid economic growth has led to increased risks of environmental issues and labor disputes.
Under such evolving social conditions, correcting non-conformities identified through CSR audits alone is no longer sufficient to address fundamental human rights, labor, and environmental challenges.
Therefore, we believe it is necessary to place greater emphasis on capacity building for suppliers as part of our activities beyond CSR audits.
As a foundation for this approach, we have strengthened internal education efforts. These include broad, general programs for all group employees, as well as targeted programs focusing on specific issues and themes for executives, managers, and employees assigned to overseas offices. Through these initiatives, we aim to raise awareness and understanding of the significance and importance of CSR procurement.
In fiscal year 2024, we held discussions with employees of our U.S. subsidiary regarding the role they should play as representatives of the brand when engaging with suppliers.
Additionally, Mr. Tomohiro Tsukada, an attorney at Mori Hamada & Matsumoto LPC, who supports companies across industries in addressing business and human rights issues, interviewed us about Mizunoʼs initiatives. The content of this interview was featured in the first article of the series “Essence of Initiatives from Practical Perspectives on Business and Human Rights” in NBL (New Business Law), a magazine published by Shojihomu Co., Ltd., which bridges economics and law.

image

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.

Respect for Human Rights

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 2024, there were approximately 2.3 million foreign workers, including around 470,000 technical intern trainees. The number of workplaces employing foreign workers was reported to be approximately 340,000.

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 audits—that help identify potential issues in the supply chain at an early stage.

For more details on the actual conditions of audit target factories employing foreign technical interns, 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 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 RMI’s 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 and expand, the risk of disruptions to stable product supply is also increasing. To maintain a reliable supply of products, it is essential to diversify production sites and reduce dependence on specific countries or suppliers. This will likely lead to an increase in procurement from suppliers located in new countries and regions. Accordingly, it is becoming increasingly important to conduct thorough and precise evaluations of potential new suppliers, including pre-assessments.
Furthermore, we believe it is crucial to ensure that any issues identified through CSR procurement audits are properly addressed and do not recur. We will continue our efforts to ensure the integrity of our supply chain and remain committed to responsible procurement practices.