Responsible Supply Chain
Addressing the Issue of Conflict Minerals
Konica Minolta’s Initiatives Regarding the Issue of Conflict Minerals
As a global company with a supply chain stretching around the world, Konica Minolta addresses the issue of conflict minerals in order to prevent human rights violations associated with conflict.
It has been pointed out that the mining of the mineral resources for tungsten, columbite-tantalite, gold, and cassiterite in the Democratic Republic of the Congo or adjoining countries can end up fueling conflict.
Seeking to prevent conflict-related violations of human rights such as child and forced labor, the Organization for Economic Co-operation and Development (OECD) established Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas*1 and requires that companies take responsible initiatives in the supply chain. Additionally, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in 2010 in the United States, requires companies listed on a U.S. stock exchange to disclose information about conflict minerals*2 derived from regions of conflict. Corporate organizations also pursue initiatives addressing conflict minerals, including the Conflict-Free Sourcing Initiative (CFSI)*3, which has a global reach, and in Japan the Responsible Minerals Trade Working Group, established as part of the Japan Electronics and Information Technology Industries Association (JEITA)*4.
- A measure for identifying and assessing the risk of infringement of human rights based on fact-finding surveys in the supply chain for minerals, and preventing or mitigating adverse effects
- Conflict minerals: Cassiterite (tin), coltan (columbite-tantalite), gold, wolframite (tungsten), or their derivatives; also known as 3TG.
- Conflict-Free Sourcing Initiative (CFSI): An organization that spearheads initiatives addressing conflict minerals to which over 300 companies and organizations around the world belong.
- Japan Electronics and Information Technology Industries Association (JEITA): An organization to which about 400 companies and organizations belong, primarily in Japan’s IT and electronics field.
Framework for Initiatives
Konica Minolta carries out initiatives addressing conflict minerals in line with the Five-Step Framework for Risk-Based Due Diligence in the Mineral Supply Chain in the OECD Guidance.
Step 1. Establish strong company management systems
Konica Minolta has established the Konica Minolta Conflict Mineral Policy Statement, which addresses the prevention of human rights violations caused by conflicts. This statement requires that suppliers are familiar with Konica Minolta policies on conflict minerals and that conflict mineral policies are incorporated into contracts with business partners.
Konica Minolta’s conflict mineral programs are incorporated into its environmental management system, which is led by an executive officer. In addition, a mechanism for implementing conflict mineral surveys, including production sites in Japan and overseas, has been prepared to identify the smelters and refiners in the supply chain. The management and staff in the procurement divisions in charge of procurement are given training to enhance their understanding of conflict mineral initiatives and motivate them.
Step 2. Identify and assess risk in the supply chain
Using the Conflict Minerals Reporting Template (CMRT) issued by CFSI, Konica Minolta implements conflict mineral surveys. The survey confirms the content of 3TG, surveys the country of origin, identifies the smelters and refiners in the company’s supply chain, and confirms the business partners’ due diligence. Based on the results of the survey and information about the identified smelters and refiners in the supply chain, Konica Minolta assesses the risk to the supply chain overall, by each business partner, and by each product. These results are reported to the executive officer in charge.
Step 3. Design and implement a strategy to respond to identified risks
Based on the results of the risk assessment, Konica Minolta requests suppliers to take any needed steps to ensure that their business is not in any way complicit in the funding of conflict forces. Indirect efforts are also made to eliminate the risk of conflict complicity, such as activities building awareness about the issue of conflict minerals.
Step 4. Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain
Konica Minolta is a member of CFSI, which operates an audit program certifying that smelters and refiners are conflict-free. In addition, through JEITA activities, smelters and refiners are encouraged to participate in the audit program.
Step 5. Report annually on supply chain due diligence
Konica Minolta’s conflict mineral initiatives are disclosed every year on its website and in its CSR report.
Cooperating with External Organizations
Konica Minolta promotes programs addressing conflict minerals in cooperation with external organizations.
Konica Minolta is a member of CFSI, which leads global initiatives on conflict mineral issues. CFSI’s Conflict Minerals Reporting Template is adopted worldwide. CFSI also operates a program that certifies which smelters and refiners are conflict-free, and it operates other activities designed to promote a responsible supply chain for mineral procurement.
In Japan, Konica Minolta participates in JEITA’s Responsible Minerals Trade Working Group. This working group promotes programs addressing conflict mineral issues among IT and electronics companies in Japan.
Fiscal 2016 Targets and Results
The Konica Minolta Group responded to requests about conflict minerals from customers across all of its businesses, and also continued to conduct a voluntary conflict minerals survey in its core Business Technologies Business. The Group assessed risk and encouraged conflict-free suppliers.
|Fiscal 2016 Targets||Fiscal 2016 Results|
Response to Customers’ Request for Survey
In fiscal 2016, many customers in the Business Technologies Business, Healthcare Business and Industrial Business requested conflict mineral surveys. Konica Minolta responded to all customers by submitting completed conflict mineral survey reports. Inquiries about conflict minerals other than surveys were responded to appropriately based on survey results and the company’s own initiatives.
Business Technologies Business’ Conflict Minerals Survey
In the core Business Technologies Business, annual conflict mineral surveys have been planned and implemented since fiscal 2013. The survey was also done in fiscal 2016, and 97% of suppliers in scope responded to the survey. In addition, when carrying out the survey, suppliers were requested to take any steps needed to ensure transparency in their supply chain and ensure their products are conflict-free.
The survey confirmed that 311 smelters and refiners in the supply chain are recognized by CFSI. Of these, 244 were certified as conflict-free. This was an increase of 34 from the 212 fiscal 2015 result, a 16% improvement. Also, 52 countries were thought to be sourcing 3TG in the supply chain (as of March 31, 2017).
In addition, toner, one of Konica Minolta’s major products, was confirmed to be conflict-free. Some other products and materials were confirmed to be conflict free because they are made from recycled materials. No evidence of conflict complicity was found in the supply chain surveyed.
The conflict mineral survey was also done in the Healthcare Business and the Industrial Business. As a result, Konica Minolta was able to confirm that some products in the optical lens and functional film categories are entirely conflict-free.
Konica Minolta cooperates with external organizations, including participating in an initiative where members of JEITA’s Responsible Minerals Trade Working Group encourage smelters and refiners to be involved in a conflict-free audit program. In addition, Konica Minolta provided an instructor for the JEITA Conflict Mineral Survey Briefing, held by JEITA in May-June 2016. Konica Minolta also participates in the Conflict Free Sourcing Working Group (CFS-WG), established jointly by JEITA and automotive companies, in programs that go beyond industry boundaries.