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Responsible Supply Chain

Practicing Responsible Minerals Procurement

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Konica Minolta’s Initiatives for Responsible Minerals Procurement

As a global company with a supply chain stretching around the world, Konica Minolta practices the issue of Responsible Minerals procurement 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. In addition, the EU Conflict Minerals Regulation went into effect in 2021, and the EU also released a list of Conflict-Affected and High-Risk Areas under Regulation. Corporate organizations also pursue initiatives for Responsible Minerals procurement, including the Responsible Minerals Initiative (RMI)*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. In 2021, Konica Minolta replaced the Konica Minolta Conflict Minerals Policy with the Konica Minolta Responsible Minerals Policy. The company will do its part to prevent human rights violations and other issues caused by conflict.

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.
Responsible Minerals Initiative (RMI): 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 Responsible Minerals Policy Statement, which addresses the prevention of human rights violations caused by conflicts. This statement requires that suppliers are familiar with Konica Minolta responsible policies on minerals and that conflict mineral policies are incorporated into contracts with business partners.

Konica Minolta’s Responsible Minerals programs are incorporated into its sustainability promotion system, which is led by an executive officer. In addition, a mechanism for implementing Responsible Minerals surveys, including production sites in Japan and overseas, has been prepared to identify the smelters or 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 Responsible Minerals initiatives and motivate them. In addition, Grievance platform developed by RMI is used.

Step 2. Identify and assess risk in the supply chain

Using the Conflict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) issued by RMI, Konica Minolta implements surveys on minerals of necessity for the high functionality of Konica Minolta products (3TG, cobalt and others). The survey confirms the content of 3TG and cobalt, surveys the country of origin, identifies the smelters or 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 or 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 all suppliers to take any needed steps to ensure that their business is not in any way complicit in the funding of conflict forces. Konica Minolta conveys any customer concerns to suppliers using smelters or refiners that customers have expressed concerns about, and asks that they respond appropriately, such as reassessing the smelters or refiners in question. Indirect efforts are also made to eliminate the risk of conflict complicity, such as activities building awareness about the issue of responsible minerals.

Step 4. Carry out independent third-party due diligence audits for smelters or refiners

Konica Minolta is a member of RMI, which operates an audit program (the Responsible Minerals Assurance Process [RMAP]) certifying that smelters or refiners are conflict-free.* In addition, through JEITA activities, smelters or refiners are encouraged to participate in RMAP.

smelters or refiners that conform to the Responsible Minerals Assurance Process managed by RMI.

Step 5. Report annually on supply chain due diligence

Konica Minolta’s Responsible Minerals initiatives are disclosed every year on its website and in its CSR report.

Cooperating with External Organizations

Konica Minolta promotes programs on responsible minerals in cooperation with external organizations.

Konica Minolta is a member of RMI, which leads global initiatives on Responsible Minerals issues. RMI’s Responsible Minerals Reporting Template is adopted worldwide. RMI also operates a program that certifies which smelters or 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 minerals issues among IT and electronics companies in Japan.

Targets and Results

The Konica Minolta Group responded to requests about responsible minerals from customers across all of its businesses, and also continued to conduct a voluntary conflict minerals and cobalt survey in its core Office Business and its Professional Print Business. The Group assess risk and encourages conflict-free suppliers.

Response to Responsible Minerals procurement

KPI Results Target Target year
Percentage of suppliers returning conflict mineral surveys 99% 98% 95% 98% Maintained at 95% or higher in every year Fiscal
Percentage responding to requests for surveys from customers 100%
Maintained at 100% or higher in every year Fiscal

Response to Customers’ Request for Survey

In fiscal 2020, many customers in the Business Technologies Business, Professional Print Business, Healthcare Business and Industrial Business requested Responsible Minerals surveys. Konica Minolta responded to all customers by submitting completed Responsible Minerals survey reports. Inquiries about responsible minerals other than surveys were responded to appropriately, based on survey results and the company’s own initiatives. Konica Minolta started surveys of cobalt responding to requests from customers in fiscal 2018.

Office Business and Professional Print Business Conflict Minerals Survey

In the core Office Business and the Professional Print Business, annual conflict mineral surveys have been planned and implemented since fiscal 2013, cobalt surveys since fiscal 2019. These surveys were also done in fiscal 2020, and 98% of suppliers within the scope responded. In addition, when carrying out the survey, suppliers were requested to reduce smelters unknown to ensure transparency in their supply chain and ensure their products are conflict-free.

Fluctuations in the number of smelters or refiners recognized by RMI
Fluctuations in the number of smelters or refiners recognized by RMI

The results of the responsible minerals survey confirmed that 318 smelters or refiners in the supply chain are recognized by RMI. Of these, 235 were certified as being RMAP-compliant smelters or refiners. All refiners procure tantalum from RMAP-compliant smelters or refiners. Also, 91 countries were identfied to be sourcing 3TG in the supply chain (as of March 31, 2021).

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.

Other Initiatives

The Responsible Minerals survey was also done in the Healthcare Business and the Industrial Business, not only the Office Business and the Professional Print 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 or 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 on June 14, 2019, and supported activities providing education on Responsible Minerals regulations. 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.

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