Konica Minolta’s Environmental Activities

Decarbonization of Suppliers
(Carbon Neutral Partner Activities)

Background and Issues

As more effective use of energy and resources is demanded throughout society, there is a limit to what one company alone can do to reduce its environmental impact. Global corporations are being asked to expand the scope of their activities to include suppliers of parts and materials, and to increase their contribution to the global environment throughout the supply chain.

Vision

Konica Minolta seeks to share the environmental technologies and know-how it has developed, work together with its suppliers to reduce their environmental impact, and contribute significantly to the environment throughout the supply chain.

Konica Minolta’s Carbon Neutral Partner Activities provide suppliers with the energy-saving and renewable energy know-how that the Company has developed at its own worksites. This is expected to help reduce their environmental impact and lower costs, thereby making Konica Minolta a top choice of customers and responding to the growing demand for solutions that promote carbon neutrality.

Key Measures and KPIs

Dramatic reduction of environmental impact at suppliers using DX

(Unit: thousand tons)

KPI	Results			Targets
KPI	FY 2020	FY 2021	FY 2022	FY 2022	FY 2023	FY 2024	FY 2025
Reduction of CO₂ emissions at suppliers	1.1	2.8	6.4	5.0	1.8	3.5	4.1

Note:: Cumulative reduction amount for each period from fiscal 2020 to fiscal 2022 and from fiscal 2023 to fiscal 2025. Total reduction amount for each fiscal year due to the measures implemented from the first fiscal year of each period to the relevant fiscal year.
Note:: Targets and results have been revised retrospectively to fiscal 2020 figures as the method of calculating the effects of measures was changed in fiscal 2021.

Overview of the Activities

Konica Minolta works hard not only to reduce its own environmental impact and costs but also those of its suppliers. The Company does this by providing them with the environmental technologies and expertise it has accumulated through its own environmental impact reduction efforts at its production sites (e.g., Green Factory Activities). In the past, Konica Minolta has conducted Green Supplier Activities, having specialists visit supplier sites to conduct an environmental diagnosis and propose improvements that take into account cost reduction effects and return on investment. However, in order to expand the number of companies benefiting, it has developed an energy conservation assessment tool for this purpose by digitalizing the expertise of experts, establishing an innovative new program that does not require on-site visits.

In fiscal 2021, Konica Minolta initiated Carbon Neutral Partner Activities that expand on its existing Green Supplier Activities and incorporate the social movement toward carbon neutrality. The Carbon Neutral Partner Certification System was established to certify carbon neutral suppliers based on not only energy conservation (CO₂ emissions reduction) but also targets for the introduction of renewable energy. These activities are meant to enhance the value of both our suppliers and Konica Minolta in society.

Carbon Neutral Partner Certification System

Konica Minolta has established two metrics: 1) energy conservation (reduction of CO₂ emissions) and 2) introduction of renewable energy, as well as two activity levels. It is important to consider introducing renewable energy sources only after making sufficient progress in energy conservation. Therefore, we have started to operate a system in which all suppliers that participate in the initiative are required to achieve Level 1 energy conservation standards within three years of the start of their activities.

Activity levels	Metrics	Target (After 3 years of activity)
Level 1	CO₂emission reduction rate	6%
Level 2	CO₂emission reduction rate	6%
Level 2	Rate of electricity derived from renewable energy sources	100% of electricity usage

Fiscal 2022 Activity Results

Konica Minolta has been promoting its activities to provide environmental technologies and know-how cultivated through its own environmental impact reduction activities, including Sustainable Factory Activities, at its production sites, and by fiscal 2021, it had provided this knowledge to 40 suppliers. In fiscal 2022, it has initiated activities with 10 new suppliers who have endorsed our carbon neutral partner activities. Cumulatively, since the start of activities in 2014, CO₂ emissions have been reduced by 21,000 tons, and 3,000 tons of resources have been put to effective use, reducing environmental impact.

Companies That Support Konica Minolta’s Environmental Impact Reduction Activities (Green Supplier Activities, etc.) in the Supply Chain and Achieved the Activity Targets

Achievement Date	Company	Activity Launch
Mar. 2016	Shenzhen Changhong Technology Co., Ltd.	FY2014
Mar. 2017	Toyo Communication Technology (Shenzhen) Co., Ltd.	FY2014
Mar. 2017	Allied Technologies (Saigon) Co., Ltd.	FY2015
Aug. 2017	Szepak Precision (Wuxi) Co., Ltd.	FY2015
Aug. 2017	Catthai Manufacturing & Trading Co., Ltd. (CATHACO., Ltd.)	FY2016
Mar. 2018	Well King Plastic Manufacturing Co., Ltd.	FY2015
Mar. 2019	Changshu Xinda Plastic Molding & Injection Co., Ltd	FY2016
Mar. 2019	Guppy Plastic Industries (Penang) Sdn. Bhd.	FY2016
Mar. 2019	Triplus Industry Sdn. Bhd.	FY2016
Mar. 2020	Dongguan Konka Mould Plastic Co., Ltd	FY2017
Mar. 2020	Pendge Precision Technology (Shenzhen) Co., Ltd	FY2017
Mar. 2020	Shanghai KUMHO_SUNNY Plastics Co., LTD.	FY2017
Mar. 2020	Nippon Seiki Consumer Products (Thailand) Co., Ltd. Thai Nippon Seiki Co., Ltd.	FY2017
Mar. 2020	Asian Stanley International Co., Ltd.	FY2017
Jul. 2021	Shenzhen EVA Precision Technology Group Limited Yihe Plastic and Electronic Products (Shenzhen) Co., Ltd..	FY2018
Jul. 2021	Allied Precision Technologies (M) Sdn. Bhd.	FY2018
Jul. 2021	Pacestar Industries (Melaka) Sdn. Bhd.	FY2018
Mar. 2022	Shanghai Xintonglian Packaging Co., Ltd.	FY2019
Mar. 2022	Dongguan Zhongxing Electronics Co. Ltd.	FY2019
Mar. 2022	Yihe Precision Industry (Suzhou) Co Ltd.	FY2019
Mar. 2022	Sun Mansfield Manufacturing (Dongguan) Co., Ltd.	FY2019
Mar. 2022	Mansfield (Suzhou) Manufacturing Co., Ltd.	FY2019

Voice of a Supplier | Shenzhen EVA Precision Technology Group Limited
Yihe Plastic and Electronic Products (Shenzhen) Co., Ltd

Hu Xiaofeng, Vice President, Yihe Electric Group, Yihe Holdings We have only one Earth. Environmental conservation is one of the most important social responsibilities for all companies, and at Yihe we are making every effort to conserve the environment. Konica Minolta has provided us with a great deal of support in this regard.
In particular, we are deeply grateful to Konica Minolta for their onsite guidance and support in our Green Supplier Activities, which has provided us with much learning and growth.
We will continue our efforts to become a world-class environmental conservation company and contribute to the reduction of global environmental impacts by continuing our effort to mitigate global warming, support a recycling-oriented society, and reduce the risk of chemical substances.

There is an old Chinese proverb which states, "The road of practice is long, far, and endless, but I will continue my search for the truth through twists and turns." This expresses the truth about reducing environment impact as well — it is a long road to a distant destination, but I will continue to act with the belief that things will surely get better along the way as each one of us takes action.

Voice of a Supplier | Allied Precision Technologies (M) Sdn. Bhd.

Angeline Tan
Managing Director
Allied Precision Technologies (M) Sdn. Bhd With the global climate changes, it has increased the impact to our environment and natural resources. We must renew our production processes and establish environmental-friendly operations in our manufacturing field. We are grateful to Konica Minolta, for inviting us to participate in the Green Supplier Activity program since 2018. Through this program, Konica Minolta has taught us the best practices in using fewer material resources, reduce and recycle materials, saving energy resources and moderate emissions from our manufacturing processes. With Konica Minolta’s guidance, we have introduced various green activities to our manufacturing processes. This has enabled us to achieve greater costs savings and effectively reduce the carbon footprint in our operations. Moving forward, Allied will continue to practice environmental conservation and strengthen our business strategies as a Green Manufacturer.

Allied Precision Technologies (M) Sdn. Bhd Achieved Green Supplier Activity Targets

Voice of a Supplier| Asian Stanley International Co., Ltd.

Shigeru Kawasumi
President
Asian Stanley International Co., Ltd. Our basic environmental philosophy is to minimize the impact on the environment of all of our corporate activities and create productive value and harmony with the environment so that our irreplaceable earth and the rich benefits of its biodiversity can be passed down to the next generation in a sound condition. Environmental activities are an important component of these efforts. By carrying out Green Supplier activities with Konica Minolta, we learn ways of creating energy conservation effects and their perspective, and these efforts lead to concrete results. Moreover, these activities help us to achieve our targets for the entire factory, not just the environmental team, and this raises awareness and initiatives company-wide. I think that continuing these activities is of utmost importance, and we will continue to conserve energy and resources, prevent contamination, and develop products and carry out manufacturing activities that reduce environmental impact.

Voice of a Supplier| Nippon Seiki Consumer Products (Thailand) Co., Ltd.

Hiroshi Mizuochi
General Manager
Nippon Seiki Consumer Products (Thailand) Co., Ltd. Thank you for two and a half years of advice. Through the Green Supplier activities, we have been able to change awareness about the environment, including members’ energy loss and waste and reductions to CO₂ emissions. Not only did we benefit from the actual effects, but we made many realizations. Going forward, we plan to share and develop the experiences and knowledge we have received through these activities to achieve sustainable growth.

Voice of a Supplier| Guppy Plastic Industries (Penang) Sdn. Bhd.

BK Goh
Managing Director
Guppy Plastic Ind. Sdn. Bhd. Our environmental conservation activities started with small and simple activities since our inception days. Our program continues internally and later on, enhanced to include involvement with external parties such as the local council, schools, and the public. The program included city beautification, zero waste, and school beautification.
Recent years are showing the rise of the negative impact to the environment from plastic products. However, we as plastic injection moulding manufacturer remained positive in our position as a diversified supplier in supplying to various industries.
Green Supplier Activity by Konica Minolta has given us the opportunity to further enhance our program to higher level. The program will support us in meeting our goal which also aligned with our environmental policy that is to contribute toward environmentally sustainable development.
We have shared good practices and gained additional knowledge from the Konica Minolta team and appreciate the exposure of the new ideas and methodologies introduced in implementing waste elimination. We look forward for continuous support from Konica Minolta in our journey to improve the quality of life for our employees, business partners, and future generations.

Guppy Plastic Industries (Penang) Sdn. Bhd. Achieved Green Supplier Activity Targets

Voice of a Supplier | Well King Plastic Manufacturing Co., Ltd.

We view environmental conservation as an extremely important initiative in the context of China’s recent pursuit of rapid economic growth and the advancement of its manufacturing industry. Konica Minolta’s Eco Vision 2050 is aimed at sustainable growth, which is an approach that matches the course we wish to follow.
In the manufacturing industry, resource and energy consumption increase with business expansion and rises in production. This is why I believe that the “waste elimination activities” we worked on as part of the Green Supplier activities are essential for a growing manufacturing industry. Moreover, Konica Minolta’s sharing of its environmental expertise enabled us to reduce our environmental impact while increasing our performance, giving us the experience of simultaneously contributing to the environment and supplying competitive products.
We will continue to practice environmental conservation and energy reduction activities and will do our best to pursue sustainable development in collaboration with Konica Minolta.

Happy Tsai
President
WELLMEI HOLDING CO., LTD.

Voice of a Supplier | Szepak Precision (Wuxi) Co., Ltd.

Through the Green Supplier activities, we received a wealth of advice on things such as energy conservation,
resource reduction measures, and calculation methods. Thanks to Konica Minolta, we were able to take the first steps toward environmental contribution. For environmental measures requiring investment, we received proposals from a management perspective, including measures sorted into short-, medium-, and long-term investments, as well as by depreciation period. The government also has several requirements for environmental conservation measures, and we were able to work even more positively on them by pursuing the Green Supplier activities. In the future, we would like to develop self-diagnosis mechanisms while applying diagnostic tools from Konica Minolta.

Yushi Ueda
Director / General Manager
Szepak Precision (Wuxi) Co., Ltd.

Voice of a Supplier | Allied Technologies (Saigon) Co., Ltd

In our daily lives, we receive much information about global warming, the greenhouse effect, and CO₂ emissions, which are contributing to environmental risk with rising temperatures, rising sea levels and extreme weather conditions that affect the lives of human beings and other living organisms around the world.
Konica Minolta introduced the Green Supplier Activity at Allied Vietnam in 2015. Through the program, my team has been introduced to the benefits these activities can have for the company. We understand that it can contribute to cost reduction, increased sales opportunities, reduced business risk, and the environmental awareness of every employee.
Through the program, Konica Minolta, working with Allied, evaluated ways to save energy and reduce waste, took productive measures to make plans, and executed to meet the targets set. This, in turn, met the wider goal of working to curb global warming and supporting a recycling oriented society.
During the activity, Konica Minolta continuously shared with Allied many methods for reducing energy use, and also shared their experience with best practices to enable us to execute the program effectively.
Moving forward, Allied will continue to sustain the activities that are in place, and will also continue to make plans for reducing energy and recycling waste, working to be part of a company that exercises its social responsibility to the community.

Tung Gee Khim
Group Operation Manager
Allied Technologies (Saigon) Co., Ltd.

Voice of a Supplier | Changhong Technology Co., Ltd.

As part of the Green Supplier activities, Konica Minolta environmental manufacturing experts visited our production site, and we discussed environmental measures for molding machines and utilities use. Preparing for the actual implementation of the suggested measures, we visited a Konica Minolta production site in China, and we were able to address our situation while discussing specific ways to proceed. The local government places great importance on energy-saving activities, and we received a monetary incentive after reporting the energy-saving initiatives we took through the Green Supplier activities. We were able to reduce our emissions by 800 tons per year, and also contributed to CO₂ emissions reduction in China.

Xu Yanping
President
Changhong Technology Co., Ltd.

Visiting a Konica Minolta site to see environmental measures

Voice of a Supplier | Toyo Communication Technology (Shenzhen) Co., Ltd.

I think the biggest feature of the Green Supplier Initiative is the way in which Konica Minolta is committed to coming into suppliers’ sites and working with them to make improvements.
Indeed, the people who visited our factory did not just bring the methods cultivated in Japan as-is; rather, they thought together with us about what kinds of measures we need. This method improved the motivation of our employees, and an attitude of thinking on one’s own and devising improvements started to spread throughout the company.
Going forward, we are determined to keep cooperating with Konica Minolta to form and implement environmental plans and measures, and foster a system and culture that values environmental management.

Lou Yiliang
Chairman and Managing Director
Toyo Communication Technology (Shenzhen) Co., Ltd.

Decarbonization of Suppliers (Carbon Neutral Partner Activities)