Responsible Supply Chain

Policy and Structure

Basic Concept

Konica Minolta is committed to fulfilling its social responsibility not only in terms of its own products but also throughout the supply chain,^* based on relationships of trust with suppliers.

Konica Minolta creates innovative products and services that contribute to society and pursues customer satisfaction under its management philosophy of “The Creation of New Value.”

Konica Minolta views the suppliers that provide and produce raw materials and parts, carry out distribution, and offer services as essential partners in its business activities. The Group strives to build strong partnerships with these business partners, based on fair and transparent transactions, with a commitment to the shared goal of providing innovative products and services in a timely manner to customers all over the world.

As a global company striving to earn the trust of society worldwide, Konica Minolta promotes responsible procurement (CSR procurement) with consideration for labor issues (human rights), ethics, the environment, safety and health throughout the supply chain, including at its suppliers.

Additionally, the Group is committed to responsible mineral procurement, seeking to prevent violations of human rights in conflict areas from which mineral resources used in products are sourced.

* Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.

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Basic Policy

Konica Minolta aims to contribute to building a sustainable society that takes social issues such as human rights into consideration. To achieve this goal, the Company is working together with its business partners along the entire supply chain to help solve these social issues. Through such initiatives, both Konica Minolta and its business partners enhance their corporate value, and by providing products that customers can purchase with confidence, the Company can 'create shared value'.

Konica Minolta has established the Konica Minolta Group Charter of Corporate Behavior as its guiding principle for business activities. This charter identifies respect for human rights and responsible procurement as important elements. Based on this principle, the Company has formulated the Konica Minolta Group Human Rights Policy and the Konica Minolta Procurement Policy.
The Konica Minolta Procurement Policy promotes fair and proper procurement activities. It establishes openness, fairness, global reach, compliance, and ecology as fundamental stances, while clearly defining requirements for business partners.
Building on this policy, the Group adopted the RBA^* Code of Conduct as the Konica Minolta Supply Chain Code of Conduct when it joined the RBA in fiscal 2013. With this code, Konica Minolta requires compliance from suppliers in its supply chain to help create a sustainable society by ensuring continuous improvement in various areas. These areas include labor rights (such as forced labor, child labor, and freedom of association), health and safety (including emergency preparedness, occupational accidents, and occupational health), the environment (covering energy use, impacts of climate change such as CO₂ and greenhouse gas emissions, water use, pollution, waste, and resource use), and ethics (such as intellectual property, privacy, and anti-corruption). The basic contract with suppliers includes “compliance with the Konica Minolta Supply Chain Code of Conduct,” and the Group requests that suppliers comply with this Code.

* RBA (Responsible Business Alliance): A non-profit organization that promotes responsible business practices in global supply chains, primarily in the electronics industry.

Konica Minolta Procurement Policy

Konica Minolta Supply Chain Code of Conduct

For versions in languages other than Japanese, English, or Chinese, please refer to the RBA Code of Conduct.

RBA Code of Conduct (Available on the RBA website (English))

Konica Minolta Responsible Minerals Procurement Policy

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Structure for Promoting CSR Procurement

Establishing a Structure for Promoting CSR Procurement Throughout the Supply Chain

To fulfill its social responsibility within the supply chain, Konica Minolta has established a company-wide system under the Risk Management Committee, overseen by the executive in charge of risk management, to promote CSR procurement activities. The Company advances company-wide activities, primarily led by the Corporate Planning, Legal, and Production Planning Divisions. It also appoints CSR procurement promotion managers for each business area, who appropriately manage their respective supply chain risks.
The Company has established a system where the Risk Management Committee meets twice a year to receive reports on and deliberate supply chain risks identified through these activities.

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Supply Chain Management

Working to Establish a Sustainable Society in Which Human Rights Are Respected

As a global company, Konica Minolta operates in about 50 countries around the world. The total value of the Group’s procurement is approximately 590 billion yen, and it has approximately 2,400 suppliers. By region, Japan accounts for 32%, ASEAN for 18%, Europe for 16%, the United States for 16%, China for 16% and other regions for 2%.
Konica Minolta carries out production activities utilizing its high-quality manufacturing skills as a manufacturer, with production sites primarily in Japan, China and the ASEAN region. Konica Minolta divides procurement into the goods used directly in production and the goods and services needed indirectly for production, company operation, business activities, and development. It treats these as direct materials procurement and indirect materials procurement, respectively.
In direct materials procurement, distribution costs and environmental impact can be reduced by procuring parts and raw materials needed in production from regions close to the production site. Accordingly, the Group’s basic policy is to practice regional procurement, procuring close to the production site those materials that can be acquired locally. At the same time, it strategically employs global procurement, selecting optimal procurement sources worldwide, such as for materials that have cost savings when purchased in bulk and high-value added parts that require a high level of technical competence.
In such cases, procurement departments in Japan conduct centralized procurement. On the other hand, considering the recent tightening of environmental regulations in various countries, requests to take human rights risks into account, and the risk of supply chain disruptions caused by natural disasters and infectious diseases, the Group is working to avoid risks by tracing supply routes of irreplaceable critical parts and raw materials back to the raw materials, securing multiple suppliers, and considering alternative materials.
Regarding indirect materials procurement, efficient procurement is pursued through a combination of items to procure at sites in each country and procurement optimized worldwide through global contracts. The management department is strategically reducing costs for goods and services other than production materials.
In Konica Minolta’s primary field, the Business Technologies Business, service-related costs account for a large proportion of the total cost due to work required for equipment maintenance after the sale.

Fiscal 2024 Regional Procurement Analysis
(Based on monetary amount)

Fiscal 2024 Regional Procurement Analysis
(Based on number of suppliers procuring materials directly)

Fiscal 2024 Procurement Classification Analysis
(Based on monetary amount)

Konica Minolta promotes CSR procurement throughout its supply chain, helping to create sustainable societies. The company believes that enterprises are not only responsible for their products, but also socially responsible to improve conditions of labor (human rights), safety and health, the environment, and ethics, throughout the supply chain that delivers products to customers. Konica Minolta practices CSR procurement in order to realize these improvements at its manufacturing bases, and works closely with the suppliers who supply raw materials and parts for its products.
In order to fulfill social expectations such as respect for human rights, Konica Minolta not only addresses this issue at Group production sites but also cooperates with manufacturing and logistics suppliers. It also believes this improves the corporate value of both Konica Minolta and its suppliers. Further, this cooperation enables customers to purchase the company’s products with confidence and to know that, by doing so, they are contributing to the development of a sustainable society. Konica Minolta recognizes that CSR procurement is more than just the social responsibility of a global company; it is also convinced that improving working conditions increases employee satisfaction and reduces attrition rates. This in turn reduces business risk and raises quality throughout the supply chain. Konica Minolta is proactively expanding these efforts.