KONICA MINOLTA

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Responsible Supply Chain

Practicing Responsible Minerals Procurement

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Konica Minolta’s Initiatives for Responsible Minerals Procurement

Konica Minolta is addressing Responsible Minerals procurement 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 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*1 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)*2, 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)*3.

*1
Conflict minerals: Cassiterite (tin), coltan (columbite-tantalite), gold, wolframite (tungsten), or their derivatives; also known as 3TG.
*2
Responsible Minerals Initiative (RMI): An organization that spearheads initiatives addressing conflict minerals to which over 300 companies and organizations around the world belong.
*3
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), Extended Minerals Reporting Template (EMRT) issued by RMI, Konica Minolta implements surveys on minerals of necessity for the high functionality of Konica Minolta products (3TG, cobalt and mica). The survey confirms the content of 3TG, cobalt and mica surveys the country of origin, identifies the smelters or refiners in the company’s supply chain, and confirms their 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 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 when 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 this website.

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

Konica Minolta conducts conflict mineral surveys in its Digital Workplace Business and Professional Printing Business, which account for about 76% of its sales, and works to make risk assessments conflict-free. The Company also responds appropriately to all customer requests for responsible mineral sourcing.

Response to Responsible Minerals procurement

KPI Results Target Target year
FY
2020
FY
2021
FY
2022
Percentage of suppliers returning conflict mineral surveys 98% 96% 96% Maintained at 95% or higher in every year FY
2025
Percentage responding to requests for surveys from customers 100%
response
100%
response
100%
response
Maintained at 100% or higher in every year FY
2025

Response to Customers’ Request for Survey

In fiscal 2022, many customers in the Digital Workplace Business, Professional Print Business and Industry 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 has been conducting surveys on cobalt since fiscal 2018, and on mica since fiscal 2021. It is appropriately responding to requests from customers for surveys.

Conflict Minerals Survey

In our Digital Workplace and Professional Printing businesses, we conducted the Conflict Minerals Survey, the Cobalt and the Mica Survey in fiscal 2022. The survey response rates were 96% and 92%, respectively.
We also conduct Responsible Minerals surveys in our Industry businesses.
In conducting these surveys, we also ask our suppliers to conduct due diligence to ensure supply chain transparency and conflict-free operation by reducing the number of unknown responses about smelter information.

Due diligence conducted on Conflict Minerals, Cobalt and Mica survey responses identified 416 smelters, 256 RMAP1 purchased smelters, and 19 Active smelters2. We also identified 132 countries in the supply chain that are considered 3TG countries of origin (as of March 31, 2023).

As a result of these surveys, we confirmed that one of our main products, toner, and some of our other products such as optical lenses, and functional films, were conflict-free. No evidence of conflict involvement was found in any of the supply chains surveyed.

Smelter Due Diligence Results by Metal

  Identified Smelters or refiners Smelters or refiners verified as conflict-free or in the audit process Percentage
Gold 171 100 58%
Tantalum 34 33 97%
Tin 82 62 76%
Tungsten 48 35 73%
Total 3TG 335 230 69%
Cobalt 70 42 60%
Mica 11 3 27%
Total 416 275 66%
* 1
Smelters that comply with the Responsible Minerals Assurance Process (RMAP) administered by RMI
* 2
Active smelters: Smelters that are under RMAP audit or are scheduled for audit.

Other Initiatives

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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