California Transparency in Supply Chains Act Disclosure

Yakult U.S.A. Inc. (“Yakult U.S.A.”) is committed to ensuring that our supply chain reflects our company’s values and respect for sustainability and human rights. We expect our suppliers to obey all laws and regulations applicable to supply transactions with our company, including those that require them to treat workers fairly and provide a safe and healthy work environment for such workers.

As a member of the Yakult Group, our company fully endorses and follows the policies and guidelines published by our parent corporation, Yakult Honsha Co., Ltd. (“YHL”), on this important issue. Please see, for example, “Human Rights,” page 89 of YHL’s 2024 Sustainability Report: https://www.yakult.co.jp/english/pdf/sustainability2024_en.pdf

Managers and other personnel of Yakult U.S.A. who have responsibility for sourcing or supply chain management are trained to recognize environmental, health, safety, and labor issues and possible problems, including those relating to forced labor, and to report to company management all suspicions of improper conduct at any supplier, wherever located.

Yakult U.S.A. has put in place formal procedures to monitor and verify our suppliers’ compliance not only with our company’s policies, but also with all laws and regulations applicable to sustainability and human rights issues. By way of example, Yakult U.S.A. requires its major suppliers to respond to a detailed Supply Procurement Questionnaire covering a broad range of these matters, including employment discrimination and harassment, employee discipline, human trafficking, forced or child labor, worker safety and working conditions, advancement, and wage and hour issues. The Questionnaire also addresses compliance with fair trade, competition, and various other laws and regulations applicable to supply agreements, and asks suppliers to provide related information regarding their own supply chain partners. Furthermore, the Questionnaire requires responses concerning suppliers’ knowledge of and compliance with our company’s policies and all applicable laws and regulations regarding sustainability and the environment, including resource conservation, recycling, and greenhouse gas emissions.

Yakult U.S.A.’s supply contracts contain provisions requiring suppliers to comply with all applicable laws and regulations in the performance of their contractual obligations. Suppliers who are found to violate our company’s policies, or otherwise fail to comply with applicable laws, may be subject to termination of contractual or other business dealings with our company.

Yakult U.S.A. personnel and executives who fail to follow company procedures, or who violate the letter or spirit of our company standards with respect to sustainability, compliance, or human rights—including slavery and trafficking—may be subject to disciplinary action up to and including termination of employment.