April 8, 2022

To our stakeholders:

I am pleased to confirm that Tokai Carbon CB reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mr. William Jones
President

Tokai Carbon Group Global Policy on Human Rights

The Tokai Carbon Group believes that consideration for human rights is particularly important for realizing its corporate philosophy of "Ties of Reliability".Based on the Universal Declaration of Human Rights (UDHR), the Guiding Principles on Business and Human Rights, and other international regulations on human rights established by various treaties, etc. of the International Labour Organization (ILO), we understand human rights issues properly from a corporate standpoint, embed awareness of "respect for fundamental human rights" within our group, and promote the building of bright and lively societies.

This Policy provides specific guidelines regarding "respect for human rights" within our group, applies to all employees and business sites, and requires our business partners to comply with it.

1. Compliance with laws and regulations: Our group complies with the laws and regulations of the countries and regions in which it operates, and if there is any conflict between the laws of those countries and regions and international human rights regulations, etc., it seeks ways to respect international human rights regulations, etc.

2. Prohibition of discrimination: Our group prohibits workplace discrimination on the basis of race, skin color, national origin, sex, sexual orientation, age, language, religion, political or other opinions, property, disability, descent or other social status, or any similar grounds and guarantees equal opportunities in employment and work.

3. Prevention of child labor and slave labor: Our group prohibits child labor and slave labor such as human trafficking, forced labor, and bonded labor in its business activities in all countries and regions.

4. Support for basic labor rights: Our group respects the freedom of association, the right to organize and the right to collective bargaining of workers, and other basic labor rights, and does not prevent employees from lawfully exercising their rights.

5. Reduction of excessive working hours and securing the right to wages: Our group strives to reduce excessive work hours and to pay wages that are appropriate for the circumstances of the countries in which it operates.

6. Health and safety standards: Our group places the highest priority on ensuring the safety and health of its employees in the workplace, complies with the laws and regulations of each country and region concerning occupational safety and health, and maintains an environment that takes into consideration the prevention of accidents and disasters.

7. Prohibition of harassment: Our group recognizes that harassment in the workplace is an act that damages the dignity of an individual and has a negative impact on human relations in the workplace, worker’s motivation, and the reputation of a company, and strives to prevent harassment.

8. Respect of privacy: In order to protect the privacy of individuals, our group complies with the relevant laws and regulations of each country and region with respect to the handling of personal information, and endeavors to prevent information leakage and loss.

9. Prevention and mitigation of negative impacts on human rights: Our group strives to identify and prevent or mitigate negative impacts on human rights through human rights due to diligence mechanisms and consultation with stakeholders. We also report on our efforts to respect human rights through various reports.

10. Response to human rights violations: In order to prevent human rights violations, our group continues to provide company-wide education and training, and if it is discovered that we have caused or contributed to human rights violations in our business activities, we promptly make efforts to remedy the situation

The Tokai Carbon CB employee handbook has been updated to cover more on the subject of human rights. Those in management are tasked with holding the standards on human rights we have set forward in this handbook.

Tokai Carbon CB has began using metrics regarding human rights so it can track performance year to year. Our employee handbook clearly states that human rights violations will not be tolerated in any way. Fortunately we have had no cases involving violation. This data is reviewed annually by senior management.

Tokai Carbon guarantees fair employment opportunities for all individuals and considers only aptitudes and strengths in making hiring decisions. We make no distinctions based on race, geographic origin, nationality, age, gender, sexual orientation, or disability. We have collective bargaining agreements that address practically all aspects of our labor policies that the employees must come to agreement upon.

The employee handbook as been updated to address many issues dealing with labor policies and how we will respond to any violations. We have initiated several new methods for ensuring employee safety such as hazard recognition training. In addition this year we are doing training at the supervisory level on civil treatment of employees.

Metrics regarding labor have been developed so that the HR department and upper management can monitor our performance

VISION STATEMENTS

Tokai Carbon Group’s (“TCJ”) vision is to be a global carbon company contributing to a better society. The
philosophy behind this vision is Ties of Reliability. This reflects a belief in the importance of being a reliable
partner to all stakeholders: Customers, Shareholders, Employees, and Communities.
In addition, Tokai Carbon CB Ltd’s (“TCCB”) vision centers around trailblazing a path to forge reliable partnerships
for a better future.
Furthermore, it is TCCB’s specific policy for contributing to the company vision and philosophy through:
• producing quality carbon black in an efficient and sustainable manner
• satisfying all customer needs
• protecting the environment and the communities in which we operate
• maintaining a safe and clean working environment
• following all regulatory requirements
• continually improving all aspects of business and environment
MISSION STATEMENT
Answering the call to provide our stakeholders with innovation and sustainability through our People, Carbon
Products and Technology.
Environmental and Safety Mission Statement
Tokai Carbon CB is committed to conducting business in a safe and environmentally responsible manner in order
to protect our Employees, the environment, and the communities in which we operate. Achieving this
commitment is the primary management objective and the responsibility of all Tokai Carbon CB Employees.
Accordingly, Tokai Carbon CB will adhere to the following guiding principles:
Environmental Principles
• Comply with and exceed applicable environmental regulations in our operations.
• Design, construct and operate our facilities to minimize any impact on the environment.
• Integrate sustainability into business plans and decisions.
• Train and motivate Employees to take personal accountability of environmental commitments.
Safety Principles
• Train, motivate and guide every Employee so that they will take personal responsibility to
complete their work in a safe manner.
• Implement and enforce applicable safety rules and procedures that must be followed by all
Employees.
• Provide Employees with the proper tools and resources to ensure that they are working in a safe environment

Last year our Addis, LA facility achieved ISO 14001 certification and this year we expect our Big Spring facility to achieve the same certification

We have developed a number of metrics to track performance on a monthly and annual basis. Executive mangement participates in reviews of these metrics on a quarterly basis.

Since we have established a supplier code of conduct we are striving to make sure all our major suppliers agree and sign off on this policy. We have goals to do training in ethics that will assist our efforts to prevent corruption..

Implemented a supplier code of conduct and requested suppliers to sign off on their agreement with this. Also initiated a sustainable procurement policy that is aimed at preventing corruption among other things.

We have developed a few metrics to track the company's anti-corruption performance