SUBARU CANADA, INC.
Report Regarding Forced and Child Labour

Last revised: June 4, 2024

Subaru Canada, Inc. ("Subaru Canada") is a wholly-owned subsidiary of Subaru Corporation of Japan. Subaru Canada sources from Subaru Corporation, and imports for distribution in Canada, Subaru vehicles, replacement parts and accessories. Subaru Corporation sources and monitors materials and assembly labour from all over the world that carry risk of human rights issues, including but not limited to agriculture, mining, oil extraction, construction, manufacturing, wholesale, transportation and warehousing, and information sectors.

As part of Subaru Corporation’s Human Rights Policy, we do not tolerate child labour, forced labour, slave labour, or human trafficking whatsoever, and we have implemented responsible procurement practices for all our direct vehicle parts suppliers and major secondary packaging and materials parts suppliers. The priority issues in the Human Rights Policy Appendix, a full copy of which can be found in the link below, are also reviewed regularly to ensure their effectiveness.

Subaru Corporation’s Procurement Committee – which includes our Sustainability Promotion Department –advises our purchasing and procurement divisions. The Procurement Committee further collaborates with our procurement colleagues at Subaru Corporation’s factories, such as Subaru of Indiana Automotive, Inc. in the United States, and our third-party supply chain partners globally. The Procurement Committee manages all procurement and labour policies described below.

Subaru Corporation follows the practices for Corporate Social Responsibility (CSR) from the Japan Automobile Manufacturers Association (JAMA). Above all, Subaru takes several approaches in its procurement activities, including:

Subaru Corporation’s procurement departments conduct regular surveys of our suppliers to determine whether any of their activities are not in compliance with our procurement policies. During our last round of surveys, nine business partners were initially identified as having potential human rights issues, however follow-up investigations revealed no such issues in actuality. In FYE2023 and in an effort to mitigate the risk of the use of conflict minerals in our supply chain, we expanded the scope of our annual mineral supplier surveys from 361 suppliers of automotive components and materials to include additional business partners specializing in repair parts, bringing the total number of surveyed companies to 394.

Subaru Corporation also engages in training for its Automobile Business Procurement Division, including training for new recruits, recent transferees from elsewhere in the corporation, comprehension tests for compliance, CSR education, and external training under the United Nations Development Programme’s (UNDP) “Business + Human Rights Academy”.

As responsible corporate citizens, Subaru Corporation and Subaru Canada strive to continually identify any new risks of forced or child labour in our supply chain. While we have not identified any forced or child labour activities in our supply chain, we are committed to monitoring and preventing any potential use of same for the future.

To learn more about Subaru Corporation’s human rights and procurement policies and activities, please visit the links below.

This report was approved by the board of directors of Subaru Canada.

Sincerely,

Tomohiro Kubota
Chairman, President & CEO
Subaru Canada, Inc.