Responsible Supply Chain

Implementing CSR Procurement

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Cooperating with External Organizations

UN Global Compact

• News release on Konica Minolta Participates in UN Global Compact
• The United Nations Global Compact Website

Responsible Business Alliance (RBA)

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Konica Minolta’s CSR Procurement Initiatives

Working to improve labor conditions (human rights), ethics, the environment, and safety and health in the supply chain

Companies have to take social responsibility not only for their own products but also for improving labor conditions (human rights), ethics, the environment and health and safety in the supply chain*¹ used to deliver products to customers. In line with this recognition, Konica Minolta promotes CSR procurement that pursues these kinds of improvements together with its business partners who supply and produce materials such as raw materials, parts and components, as well as Group production sites, with the aim of establishing a sustainable society in which human rights are respected.

Laws such as the California Transparency in Supply Chains Act and the UK Modern Slavery Act 2015 have been enacted. More than ever, companies’ human rights initiatives must also address the issues of slavery and human trafficking. In response to social demands like these, the RBA*² has been updating its code of conduct and various systems. As an RBA member, Konica Minolta will make use of the RBA’s framework to address these social issues.

*1

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.

*2

Responsible Business Alliance (RBA): Organization that promotes CSR in the supply chain.

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Konica Minolta’s CSR Procurement Promotion Program

Konica Minolta is engaged in a program to promote CSR procurement by requesting suppliers participation in CSR activities, assessments, and audits, thus helping them to improve.

Konica Minolta has implemented a four-step CSR procurement promotion program to address any issues related to labor conditions (human rights), ethics, the environment, and health and safety in its supply chain.
First, suppliers are requested to carry out CSR activities based on clearly articulated standards to be maintained in line with Konica Minolta’s procurement policies and Supply Chain Code of Conduct. Suppliers from which the Group makes purchases directly are asked to acknowledge and implement the Code to their upstream suppliers.
103 suppliers (84 tier-1 suppliers, 19 tier-2 suppliers) identified to be particularly important to Konica Minolta’s business in terms of transaction volume, and the irreplaceability or importance of the parts they handle have been asked to use the Responsible Business Alliance's Self-Assessment Questionnaire (RBA SAQ) to carry out a CSR assessment that confirms the extent of their implementation of the Konica Minolta Supply Chain Code of Conduct. Important business suppliers account for approximately 80% of our direct procurement value. Where assessment results do not meet targets, Konica Minolta requests suppliers to implement corrective actions.
Further, the Group conducts CSR audits on suppliers that are especially important for its business and on suppliers that did not achieve targets despite making improvements.
Konica Minolta provides support to help suppliers improve any issues that come to light through the CSR assessments and CSR audits. The aim of Konica Minolta’s CSR procurement promotion program is ultimately to empower its suppliers to implement self-directed CSR activities.
Finally, the Group sometimes considers ending business with suppliers that do not make any improvement at all despite the support provided.

• Konica Minolta Supply Chain Code of Conduct

Konica Minolta uses the RBA Code of Conduct as the Konica Minolta Supply Chain Code of Conduct, which it provides in Japanese, English, and Chinese. See the RBA Code of Conduct for other languages.

• RBA Code of Conduct (Source: RBA website)

Konica Minolta’s CSR Procurement Promotion Program

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Targets and Results

Plan Duration FY2020 to FY2022
Key Measures and KPIs	Targets	Performance			Target Year
		FY2020	FY2021	FY2022
Percentage of suppliers asked to take CSR activities	100% of suppliers asked to take CSR measures during the medium-term plan’s period (FY20-22)	-	100%	-	Fiscal 2022
Number of CSR assessments	CSR assessments carried out at all Group manufacturing sites and important suppliers (about 100 companies)	4 Group manufacturing sites, 40 suppliers	13 Group manufacturing sites, 30 suppliers	4 Group manufacturing sites, 28 suppliers
Number of CSR Audit	CSR third-party audits (RBA-VAP) carried out at particularly important Group manufacturing sites and particularly important suppliers (total of seven sites)	One supplier	Two Group manufacturing sites, one supplier	Audits completed at three Group manufacturing sites, 4 suppliers

Plan Duration FY2023 to FY2025
Key Measures and KPIs	Target	Target year
Percentage of suppliers asked to take CSR activities	Request CSR from 100% of suppliers during the medium-term plan period (FY2023-FY2025)	FY 2025
Number of CSR assessments	Conduct CSR assessments at Group production sites and important suppliers
Number of CSR Audit	Conduct CSR third-party audits (RBA-VAP) at especially important production sites and suppliers

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Requesting CSR Activity to Suppliers

Suppliers worldwide are sent copies of Konica Minolta’s procurement policies and the Konica Minolta Supply Chain Code of Conduct and Konica Minolta Responsible Minerals Policy Statement and asked to comply with them. The aim is to get suppliers to understand and promote the CSR procurement policies and standards required by Konica Minolta.

From fiscal 2017 to fiscal 2019, while requesting suppliers to undertake CSR activities, Konica Minolta also confirmed their cooperation with the policies and standards by written consent. The response rate was 98%. In fiscal 2021, the Company conducted written confirmation of compliance in line with the revision of the Supply Chain Code of Conduct, and the collection rate was 100%.

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CSR Assessments Using a Self-Assessment Questionnaire

CSR assessments using a Self-Assessment Questionnaire are conducted at production sites and important suppliers in order to assess the level of implementation of the Konica Minolta Supply Chain Code of Conduct.
Konica Minolta has conducted CSR assessments using the self-assessment questionnaire based on the RBA since fiscal 2009. The CSR assessment evaluates site initiatives to address social issues such as labor (human rights) protection, ethics, and health and safety, as well as environmental issues such as minimizing environmental impact. Konica Minolta classifies the results of the self-assessment questionnaire from rank A to C. The targets for overall scores are rank A for all Group production sites and rank B or higher for all suppliers. Rank C suppliers are considered to be high-risk, and CSR audits are conducted for those suppliers that have not achieved their targets even after implementing improvements.
In fiscal 2022, four Group production sites and 28 suppliers conducted the assessment, with all production sites achieving rank A and all suppliers achieving rank B or higher on their overall score. There were no high-risk suppliers. These assessment results met the target, but scores tended to be low in the areas of health and safety, the environment, and ethics. Items related to safety training for employees, water and waste reduction programs, and external audits of ethics were among the factors contributing to the decline. We asked suppliers whose assessments have declined to make voluntary improvements.

Fiscal　2022 results of CSR assessment for supplier
(percentages for rank on overall and specific components)

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CSR Audits

This is an implementation level with no CSR audit requirement under the above CSR procurement promotion program, but additional CSR audits are conducted based on customer requests at the production companies and at certain suppliers that produce MFPs and printing equipment and consumables. CSR audits include Konica Minolta CSR Audits*¹ conducted by Konica Minolta employees and RBA third-party audits (VAP audits)*² conducted by RBA-certified third parties.

*1

Konica Minolta CSR Audits are performed by Konica Minolta auditors with RBA qualifications, using RBA auditing standards.

*2

RBA third-party audits (VAP audits): A third-party RBA-accredited auditing organization that verifies compliance with the RBA Code of Conduct based on auditing standards, identifies areas in need of improvement, and encourages corrective action. RBA is one of the most trusted third-party CSR audits in the world.

In the CSR audit, the Company uncovered issues related to the management of total working hours, the implementation of safety and health education and building an internal audit system, but we are making improvements. No issues were found in the RBA standards (A2.1, D7.1), particularly in relation to child labor and responsible mineral sourcing. There are no suppliers with whom transactions have been terminated.

CSR Audit Results (10 companies in total)

• Konica Minolta Business Technologies (Wuxi)
• Konica Minolta Business Technologies (Dongguan)
• Konica Minolta Business Technologies (Malaysia)
• Konica Minolta Supplies Manufacturing Co., Ltd.
• Konica Minolta Supplies Manufacturing France S.A.S.
• Allied Precision Manufacturing
• Dong Guan Konka Mould Plastic Co., Ltd.
• Three contract manufacturers of MFP/printing equipment

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Support for Improvement (Capacity Building) – Training Stakeholders and Support for Improvement

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