PHILOSOPHY

The “K” LINE LOGISTICS Group, in implementing the Charter of Conduct : “K”LINE Group Companies declared by Kawasaki Kisen Kaisha, Ltd. and in accordance with Code of Corporate Ethics established on September 1, 2025, has established the following implementation guidelines.

1. 0.Basic Principles

   “K” LINE LOGISTICS recognizes the public role played by international air and ocean freight forwarders, and has established the following Implementation Guidelines for the Charter of Conduct. It does so with the understanding that the purpose of its daily operations is not solely the pursuit of profit, but rather to serve not only all its customers and shareholders but also wider society, and to contribute to the personal growth of each and every executive and employee. “K” LINE LOGISTICS employees are required to fulfill their duties with integrity and fairness in the performance of their work. To this end, they must always comply with laws, ordinances, and social norms, and actively engage in proper corporate activities and the creation of a company that is open to the international community.
   Based on the above, all employees will understand the spirit of these Implementation Guidelines for the Charter of Conduct, and take concrete actions in compliance with the following principles.

2. 1.Respect for fundamental human rights

   The “K” LINE LOGISTICS Group will consistently respect the human rights of all stakeholders involved in its business activities. The “K” LINE Group will strive to develop and improve safe and pleasant work environment for its employees to provide them with comfortable and affluent lives."

   1. 1-1. “K” LINE LOGISTICS will respect the human rights of all people, strive not to violate or discriminate against the human rights of people affected by its business activities and not be complicit, even indirectly, in human rights abuses.
   2. 1-2. “K” LINE LOGISTICS will respect international norms related to human rights, comply with “K” LINE Group Basic Policy on Human Rights, and strive to comply with laws and regulations related to labor and human rights applicable in each country and region where it operates.
   3. 1-3. To minimize any adverse impact it has on human rights, “K” LINE LOGISTICS will conduct human rights due diligence, assess both actual and potential human rights risks associated with its business activities, and take measures to prevent or mitigate them.
   4. 1-4. “K” LINE LOGISTICS will respect the rights of socially vulnerable people exposed to risks of their human rights being violated, such as indigenous people in the regions where it operates and contribute to the development of an inclusive society.
   5. 1-5. “K” LINE LOGISTICS will protect its employees from forced or compulsory labor including overly long working hours, strive to eliminate all forms of forced labor such as bonded labor, human trafficking and slave labor, including any unintentional complicity in such activities. “K” LINE LOGISTICS will also strive to effectively eliminate child labor.
   6. 1-6. “K” LINE LOGISTICS will respect the diversity and inclusion of employees and, will respect diversity and inclusion to deepen mutual understanding among employees to enable employees with different personalities and values to work together, and will strive to ensure that employees are treated equally and eliminate discrimination on any grounds, including but not limited to nationality, race, ethnicity, gender, sexual orientation, gender identity, creed or religion, disability, etc., in terms of recruitment, employment, and worker treatment, and to protect privacy.
   7. 1-7. “K” LINE LOGISTICS will strive to prevent all forms of harassment, including power harassment and sexual harassment, as well as slander and defamation that harms the dignity of individuals. “K” LINE will promptly and adequately respond to any such event that may occur.
   8. 1-8. “K” LINE LOGISTICS will comply with minimum wage laws and regulations in each country, and strive to ensure wages that meet a living wage, enabling employees to lead stable lives.
   9. 1-9. To assist each employee of the corporation in the maximization of their potential and their achievement of self-actualization, “K” LINE LOGISTICS will strive to adequately assign personnel to tasks and provide the education, training and other systems necessary to facilitate the balance between career planning and human resource utilization.
   10. 1-10. “K” LINE LOGISTICS will evaluate personnel in an objective and unbiased manner through a due process of appraisal and it will treat employees fairly and equally.
   11. 1-11. “K” LINE LOGISTICS will promote a healthy work-life balance by establishing necessary systems such as work schedule flexibility and leave systems.
   12. 1-12. To promote health-conscious management, “K” LINE LOGISTICS will properly manage occupational health and safety, maintain a safe and appropriate work environment and support employees’ efforts to maintain their mental and physical health.
   13. 1-13. “K” LINE LOGISTICS will ensure the safety of its employees in their work environment ensuring there are sufficient security systems in place. Additionally, we ensure that the use of outside security personnel (e.g., armed guards) does not unreasonably infringe on the rights of local residents.
   14. 1-14. “K” LINE LOGISTICS will prepare a disaster manual and establish a crisis management system for its employees and their families by establishing stores of emergency supplies and a safety confirmation system.

3. 2.Compliance with laws, regulations and other social norms

   The “K” LINE LOGISTICS Group promises to comply with applicable laws, ordinances, rules and other norms of behavior in both the domestic and international community and conduct its corporate activities properly in good faith through fair, transparent and free competition.

   1. 2-1. “K” LINE LOGISTICS promises to comply with laws and ordinances in each country and region where it operates, such as competition laws, anti-corruption laws and anti-fraud laws, anti-bribery laws, intellectual property laws, laws and regulations regarding insider trading and laws and regulations regarding security trade control policies, as well as the conventions and rules of the international community related to these matters, and the values of society, including ethical and moral standards.
   2. 2-2. “K” LINE LOGISTICS recognizes that the regulations on fair competition in each country in which it operates are the basic rules for fair, transparent and free competition, and it promises to neither enter into any agreement in breach of these regulations nor abuse its dominant position.
   3. 2-3. “K” LINE LOGISTICS’s procurement activities and business transactions will always be in line with the appropriate policies outlined below and it will always maintain fair and sound relationships with its business partners.
      • 1Purchasing decisions will be made with opportunities provided fairly and the fair and impartial evaluation of not just the economic aspects of the matter, such as quality, cost and delivery, but also consideration of society and the environment.
      • 2Procurement activities will be conducted in compliance with laws, ordinances, social norms and business ethics and cooperative relationships based on mutual trust are established with business partners.
      • 3Procurement activities will be conducted by duly considering sustainability and responsibilities to society, including respect for human rights, health and safety and environmental preservation.
      • 4Transactions with business partners will be conducted in an appropriate manner for coexistence and co-prosperity throughout the supply chain. Sufficient consultation shall be conducted when determining transaction terms such as prices, including regular opportunities.
      • 5Information gained through the procurement process will be properly managed.
   4. 2-4. “K” LINE LOGISTICS will maintain transparent and sound relationships with governments and regulatory authorities. “K” LINE LOGISTICS will not use company assets as political contributions to any political party, political organization, or candidate for public office in accordance with the law.
   5. 2-5. “K” LINE will LOGISTICS neither offer nor receive any excessive entertainment, gifts or other favors beyond commonly accepted business courtesies.
   6. 2-6. “K” LINE LOGISTICS will neither offer nor receive bribes, and will not give or accept entertainment, gifts, money or valuables, the payment of commissions, or other favors with the aim of receiving unfair benefits or preferential treatment. “K” LINE LOGISTICS will not provide entertainment, gifts, or money or valuables to officials of public agencies, nor shall we accept excessive entertainment, gifts, or other benefits, whether from inside or outside the company.
   7. 2-7. “K” LINE LOGISTICS will not tolerate any acts by its officers and employees for the benefit of themselves or third parties that may harm the interest of the company.
   8. 2-8. “K” LINE LOGISTICS will seek to protect and fully utilize its intellectual property and respect the intellectual property rights of others.
   9. 2-9. “K” LINE LOGISTICS will establish strict internal rules and procedures to prevent any insider trading or suspicious activities from occurring and keep every member of “K” LINE LOGISTICS duly informed of these rules and procedures to ensure compliance.
   10. 2-10. “K” LINE LOGISTICS will establish an internal reporting system and necessary measures for continually monitoring its compliance status and it will respond to any problem that may arise in a timely and effective manner.
   11. 2-11. “K” LINE LOGISTICS will not treat any whistleblower adversely for complying with applicable laws, regulations or policies regarding internal reporting, etc.
   12. 2-12. “K” LINE LOGISTICS will establish a mechanism for ensuring compliance with laws and regulations concerning security trade control policies.
   13. 2-13. “K” LINE LOGISTICS will protect and manage its confidential information appropriately and strictly, and it will use it in its business activities.
   14. 2-14. “K” LINE LOGISTICS will strictly manage personal information, customer information, such as customers, business partners or employees, in accordance with laws, regulations and social norms. When it is necessary to disclose information outside the Company, employees must consider whether specific arrangements regarding confidentiality are required. Furthermore, when receiving and using information from third parties, employees must similarly recognize that such information constitutes trade secrets, and manage it with due care.
   15. 2-15. “K” LINE LOGISTICS will strictly adhere to conduct based on laws, regulations, and corporate ethics to prevent all forms of misconduct and fraud.
   16. 2-16. “K” LINE LOGISTICS will not engage in any way with money laundering or the financing of terrorist activities that threaten the order of international society.
   17. 2-17. Although “K” LINE LOGISTICS is currently unlisted, employees must comply with laws and regulations such as the Financial Instruments and Exchange Act, conduct fair transactions, and strictly refrain from any acts that constitute insider trading, as well as any acts deemed to pose a risk of such conduct.
   18. 2-18. “K” LINE LOGISTICS will encourage creativity and innovation related to intellectual property and strive for its appropriate protection and utilization. Intellectual property is a vital asset of the Company, and “K” LINE LOGISTICS will take a resolute stance against any infringement, and respect the intellectual property of third parties. In particular, acts that violate software license agreements and the Copyright Act must be strictly prohibited.

4. 3.Earning, maintaining, and enhancing the trust of all stakeholders

   The “K” LINE LOGISTICS Group will earn, maintain, and enhance the trust of all stakeholders, including customers, business partners, shareholders, employees, governments, local communities and the international community.

   1. 3-1. To promote extensive communication with all stakeholders, “K” LINE LOGISTICS will disclose corporate information related to sustainability in a timely and appropriate manner.
   2. 3-2. “K” LINE LOGISTICS recognizes that its corporate activities are built on relationships of trust with its customers, business partners, and many other stakeholders, and will build sincere and sustainable relationships through its business activities.
   3. 3-3. “K” LINE LOGISTICS will comply with all applicable laws, regulations, rules, policies and corporate ethics in its advertising and public relations activities, including the use of social media. Additionally, “K” LINE LOGISTICS will eliminate false and exaggerated statements and ensure that information, content and statements are fair, accurate and appropriate, with due regard for the avoidance of social discrimination and human rights violations.
   4. 3-4. “K” LINE LOGISTICS will provide customers with adequate information concerning its services and will respond to inquiries in good faith.
   5. 3-5. “K” LINE LOGISTICS will duly consider harmony with the public interest in recognition of the public nature of the air, maritime transport and forwarding business.
   6. 3-6. “K” LINE LOGISTICS will contribute to the development of each country by providing knowledge and expertise, cooperating in human resources development and deepening friendships with related companies and organizations.
   7. 3-7. “K” LINE LOGISTICS will ask local business partners in each country to understand the spirit of its Charter of Conduct and its approach to sustainability and to improve their activities as needed.

5. 4.Establishing safe and reliable cargo transportation services

   As logistics professionals, the Group will strive to provide higher-quality, safer, and more optimized services, taking a customer-first approach.

   1. 4-1. “K” LINE LOGISTICS will comply with domestic and international laws and regulations, and contribute to the maintenance of international peace and security through accurate forwarding operations backed by thorough safety management.
   2. 4-2. “K” LINE LOGISTICS will strive for continuous improvement in service quality and pursue the provision of trust and value to further enhance customer satisfaction.

6. 5.Proactive efforts to address environmental issues

   “K” LINE LOGISTICS recognizes that it benefits from the irreplaceable resources and energy provided by nature. In light of the significant impact that climate change can have on its business, to realize a sustainable society, “K” LINE LOGISTICS recognizes that environmental issues are a common issue for all of humanity and that they are essential for both business activities and the existence of the company, and is committed to proactive efforts for transitioning to a low-carbon footprint and decarbonization, for both the company and society.

   1. 5-1. “K” LINE LOGISTICS will contribute to the creation of a global carbon-free society by promoting initiatives to reduce environmental impact throughout its supply chain, working toward the “K” LINE Group’s policy of achieving net-zero GHG emissions by 2050.
   2. 5-2. “K” LINE LOGISTICS will promote efforts to establish a material-cycle society prioritizing sustainable consumption by reinforcing the efficient use of energy and resources (including 3Rs and renewable energy).
   3. 5-3. To continuously reduce the adverse effects its business activities have on the environment, “K” LINE LOGISTICS will set goals and targets for environmental conservation, endeavor to develop technology and establish new business models that will help reduce these adverse effects.
   4. 5-4. “K” LINE LOGISTICS will consider all of the environmental risks contingent on its business activities and take measures to address them.
   5. 5-5. “K” LINE LOGISTICS will strive to properly manage and reduce waste, minimize the impact of its business activities on ecosystems, and reduce its environmental impact, while promoting various efforts to conserve biodiversity and realize a sustainable society.

7. 6.Promotion of Digital transformation (DX) and innovation

   Through DX and innovation, the “K” LINE LOGISTICS Group refines its strengths in safety, quality and environmental technology to provide new values for customers and society, embracing changes.

   1. 6-1. “K” LINE LOGISTICS is committed to pursuing innovation in the areas of safety, quality and environmental technology for the establishment of a low-carbon or carbon-free society.
   2. 6-2. “K” LINE LOGISTICS will further advance the digitalization of information and business processes, enhance its core safety, quality and environmental technology value through the utilization of data and digital technology, and increase the added value of its services to further strengthen competitiveness.

8. 7.Contribution to society

   There can be no corporate development without social development. “K” LINE LOGISTICS recognizes that companies are expected to play a certain role in society as part of private-sector public interest activities, and will actively engage in community investment activities as a good corporate citizen to contribute to the development of a sustainable society.

   1. 7-1. “K” LINE LOGISTICS will set up an in-house structure for promoting social contribution activities.
   2. 7-2. “K” LINE LOGISTICS will gather information about social issues worldwide, identify priority sustainability issues in light of its management philosophy and promote social contribution activities using its resources.
   3. 7-3. “K” LINE LOGISTICS will continue to proactively contribute to society by cooperating and collaborating with a broad range of stakeholders, including NPOs, NGOs, local communities, government agencies and international organizations.
   4. 7-4. “K” LINE LOGISTICS will support its employees’ voluntary participation in social activities such as volunteer work.
   5. 7-5. “K” LINE LOGISTICS will handle donations and sponsorships for contributing to society in a transparent and reasonable manner in compliance with relevant laws, regulations and social norms to ensure that they do not constitute unfair profit sharing or inappropriate expenditures.
   6. 7-6. In conducting its business, “K” LINE LOGISTICS will respect the cultures and customs of relevant countries and regions, and contribute to the development of international local communities.
   7. 7-7. “K” LINE LOGISTICS believes that employees should be encouraged to give lectures or write articles in response to external requests as part of its community investment, provided that it does not interfere with their work. In such cases, the amount of remuneration must not exceed reasonable limits.

9. 8.Thorough risk management

   The “K” LINE LOGISTICS Group recognizes the various risks associated with its business activities and will thoroughly manage them to fulfill its responsibilities to society as a corporation.

   1. 8-1. “K” LINE LOGISTICS will address various business risks, such as cyberattacks or terrorism, to keep them within the extent of sustainable business continuity and establish policies in advance to mitigate the impact of risks to corporate management should they materialize.
   2. 8-2. “K” LINE LOGISTICS will develop a business continuity plan (BCP) and strive to enhance response capabilities during normal times to prepare for emergencies such as large-scale natural disasters or infectious diseases.
   3. 8-3. In cooperation with authorities and organizations concerned, “K” LINE LOGISTICS will endeavor to eliminate anti social forces and mobilize the entire corporation to act in accordance with the law and prevent them from harming it.
   4. 8-4. “K” LINE LOGISTICS will take continuous measures to ensure the confidentiality, integrity, and availability of its information resources, and strengthen information security.

“K” LINE LOGISTICS’s management recognizes that it is its role to realize the spirit of the Charter and leads the implementation of this Charter in an exemplary manner while setting up effective mechanisms for its implementation throughout “K” LINE LOGISTICS and its group companies. Management also seeks to cooperate with its business counterparts. From the perspective of risk management, management establishes internal systems for preventing incidents in breach of the Charter, and, should such an event occur, “K” LINE LOGISTICS’s management will decisively resolve the problem, conduct a thorough investigation to determine the causes of the matter and take preventative measures. Additionally, management will expeditiously and accurately disclose information and fulfill its duties to be accountable to society.