KONICA MINOLTA

About Konica Minolta

Responsible Supply Chain

CSR Procurement Initiatives

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CSR Procurement Promotion Program

Konica Minolta is engaged in a program to promote CSR procurement by calling for CSR activities, CSR assessments, and audits, as well as improvement support.

Konica Minolta has developed a four-step CSR procurement promotion program to address issues of labor (human rights), safety and health, environment, and ethics in the supply chain.
STEP 1: We request that suppliers comply with the Procurement Policy and the Supply Chain Code of Conduct. For upstream suppliers, we ask our direct suppliers to make this request on our behalf.
STEP 2: We identify “major suppliers” by considering transaction volume and risk perspectives. For these major suppliers, we conduct CSR questionnaire-based risk assessments. If a supplier is judged to be high risk, we provide corrective support and continuous follow-up so that improvements can be made voluntarily. If voluntary improvement is still difficult, or if there is a risk of serious human rights violations, we designate the supplier as a “prioritized supplier.”
STEP 3: For these prioritized suppliers identified in STEP 2, we conduct CSR audits.
STEP 4: For issues identified through CSR assessments or CSR audits, Konica Minolta provides support for improvements. Ultimately, Konica Minolta aims for suppliers to independently carry out their own CSR procurement activities through this program.
Please note that if there are no prospects for improvement despite providing support, Konica Minolta may decide to terminate business with the supplier.


Konica Minolta’s CSR Procurement Promotion Program

Ranking of CSR Assessment Results
Overall Evaluation Score Explanation
Low risk 80-100 Almost completely satisfies social demands
Medium risk 60-<80 Some issues need to be improved, but can be improved voluntarily
High risk 0-<60 Issues need to be improved, and immediate improvement is required along with an improvement plan.

(Defined with reference to the RBA SAQ risk classification)

Framework for Initiatives

STEP 1 - CSR Activity Request

Konica Minolta has formulated the Konica Minolta Procurement Policy, the Konica Minolta Supply Chain Code of Conduct, and the Konica Minolta Responsible Minerals Procurement Policy to ensure that suppliers understand and promote the CSR procurement policies and standards required by the Company. All first-tier suppliers are requested to comply with these policies and to confirm their agreement in writing. In addition, Konica Minolta asks its direct business partners to request compliance from their upstream suppliers.
The frequency of confirmation is as follows: for new business partners, at the start of business; and for existing suppliers, upon revision of the policies or at least once every three years. Since the Konica Minolta Supply Chain Code of Conduct was revised in fiscal 2024, agreement confirmations have been conducted sequentially. As of the end of fiscal 2024 (March 31, 2025), the agreement rate was 81.9%.
Previously, supply chain management at acquired companies had been left to those companies themselves. However, beginning in fiscal 2024, this has been newly integrated into the CSR procurement promotion activities of the entire Konica Minolta Group. This temporarily lowered the agreement rate, but the Company plans to complete agreement confirmations with all first-tier suppliers by the end of fiscal 2026.

Targets and Results

KPI Results
Targets
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2024
FY
2025
Percentage of suppliers requested to take CSR measures* - 100% - - 81.9% 100% of suppliers asked to take CSR measures during the medium-term plan’s period (FY2023-2025)
(100% implementation planned for FY2024)

* Requests to suppliers were made for each of the two medium-term periods: FY2020-FY2022 and FY2023-FY2025.

STEP 2 - CSR Assessments Using a Self-Assessment Questionnaire

To evaluate the level of implementation of the Konica Minolta Supply Chain Code of Conduct, Konica Minolta has been conducting CSR assessments using the RBA Self-Assessment Questionnaire (SAQ) for “major suppliers” selected based on both business continuity factors—such as transaction volume (top 80% of Group procurement value), handling of critical parts, and substitutability—and risk factors such as country/region-specific, sector-specific, product-specific, corporate governance, social, and environmental risks.
The CSR assessment evaluates site initiatives to address social issues such as labor (human rights) protection, health and safety, ethics, as well as environmental issues such as minimizing environmental impact. Results are classified into three ranks: Low Risk, Medium Risk, and High Risk. For suppliers rated High Risk, Konica Minolta provides corrective support and continuous follow-up to encourage voluntary improvement. If voluntary improvement is still difficult, or if there is a risk of serious human rights violations, such suppliers are designated as “prioritized suppliers” and subject to CSR audits in STEP 3.
In fiscal 2024, Konica Minolta requested CSR assessments from 143 major suppliers (119 first-tier suppliers and 24 second-tier suppliers). The implementation rate was 91.6% (131 out of 143). Starting in fiscal 2024, in order to improve supply chain risk management levels, Konica Minolta expanded the selection criteria for major suppliers and changed the frequency of implementation from once every three years to annually, resulting in a significant increase in the number of assessments conducted. From fiscal 2025 onward, the Company aims to achieve a 100% implementation rate and further enhance the level of initiatives.
Among the 143 companies assessed, three suppliers were rated High Risk, and improvement support through on-site visits was provided for all of them (details are provided in STEP 3). Overall trends indicated lower scores in the areas of health and safety and the environment. Specifically, in health and safety, lower scores were related to emergency preparedness training and establishment of management systems; in the environment, lower scores were related to resource usage, waste, and GHG reduction programs. Suppliers with lower scores have been asked to make voluntary improvements.

Results of fiscal 2024 CSR Assessment for Suppliers (percentages for rank on overall and specific components)

Results of fiscal 2023 CSR Assessment for Suppliers (percentages for rank on overall and specific components)

Targets and Results

KPI Results
Targets
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2024
FY
2025
Number of CSR assessments 4 Group manufacturing sites,
40 suppliers
13 Group manufacturing sites,
30 suppliers
4 Group manufacturing sites,
28 suppliers
9 Group manufacturing sites,
30 major suppliers
30 Group manufacturing sites,
131 major suppliers
Implementation of CSR assessments at Group production sites (30 sites) and major suppliers*1
In fiscal 2024, the number of major suppliers is 143.
Implementation of CSR assessments at Group production sites (30 sites) and major suppliers*1
CSR assessment implementation rate (cumulative)*2 - - - 31% 91.6% 60% 100%
Number of major suppliers*3 - - - 103 143 - -

*1 The Company expands initiatives to improve supply chain risk management levels, changing to annual CSR assessments.
*2 Figures are cumulative for the medium-term plan (FY2023 - FY2025) and are calculated as the number of CSR assessments implemented divided by the number of sites planned for implementation (FY2023: Group production sites + major suppliers; FY2024/FY2025: major suppliers only).
*3 The number of major suppliers is reviewed annually.

Konica Minolta is also working to ensure that indirect material suppliers, critical partners essential to its business operations, understand the RBA's requirements. In fiscal 2024, we identified on-site contractors and temporary staffing agencies at major manufacturing sites as important indirect material suppliers and conducted self-assessment questionnaires. The risk assessment results showed a 100% implementation rate, and none of the indirect material suppliers were rated “high risk.”

Type of indirect material supplier No. of companies
assessed for risk
Result
On-site contractors Cafeteria 4 All low risk
Security 3 All low risk
Maintenance 3 All low risk
Cleaning 3 All low risk
Other (logistics, waste disposal, etc.) 2 All low risk
Temporary staffing/Contracting 11 All low risk
Logistics/Warehouse operators 5 All low risk
Total 31 All low risk

STEP 3 - CSR Audits

Suppliers identified as “prioritized suppliers” in STEP 2 are subject to CSR audits. These consist of the Konica Minolta CSR Audit*1 conducted by Konica Minolta employees, and the RBA VAP Audit*2 conducted by RBA-certified third-party auditing organizations.

Notes:
*1 Konica Minolta CSR Audit: An audit conducted by Konica Minolta employees using RBA auditing standards.
*2 RBA Validated Audit Program (VAP) Audit: An audit conducted by an RBA-accredited third-party organization to verify compliance with the RBA Code of Conduct. Depending on the level of conformity, Platinum, Gold, or Silver certification ranks are awarded. The RBA VAP is recognized as one of the most trusted third-party CSR audits globally.

In fiscal 2024, three suppliers were identified as high risk in STEP 2, and Konica Minolta proposed improvement measures and has been working with them on corrective actions. Specific issues identified included the formulation of CSR policies and codes of conduct, personal retention of official identification documents, provision of documents in workers’ native languages, and training for emergency preparedness. Progress is confirmed through on-site visits, where Konica Minolta works together with suppliers to support their voluntary improvements.

Among high-risk direct-material suppliers, the percentage of sites that underwent RBA VAP audits or equivalent audits: 100%.

In addition, regardless of CSR assessment results, some suppliers involved in the Digital Workplace and Professional Print businesses are required to undergo RBA VAP audits and obtain certification in response to social demands, customer requests, and bid requirements. Konica Minolta supports these suppliers in their improvement efforts based on its audit experience. In fiscal 2024, three supplier sites underwent RBA VAP audits and successfully obtained certification.

Among first-tier direct-material suppliers, the percentage of sites that underwent RBA VAP audits or equivalent audits: 0.3%.

Targets and Results

KPI Results
Targets
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2024
FY
2025
Number of CSR third-party audits (RBA-VAP) One supplier Two Group manufacturing sites, one supplier 3 Group manufacturing sites, 4 suppliers 3 Group manufacturing sites, 2 suppliers 4 Group manufacturing sites, 3 suppliers 3 Group manufacturing sites, 4 suppliers 3 Group manufacturing sites, 3 suppliers
Rate of CSR third-party audit implementation - - - 100% 100% 100% 100%

STEP 4 - Supplier Support

To mitigate supply chain risks, Konica Minolta provides capacity building for internal stakeholders and suppliers from two perspectives: addressing actual negative impacts and addressing potential negative impacts.
For actual negative impacts, Konica Minolta identifies issues from CSR self-assessments, CSR audits, and findings from external organizations, and provides specific proposals for corrective actions to encourage improvements.

For potential negative impacts, Konica Minolta shares information on customer and societal expectations regarding respect for human rights, social demands for CSR procurement, legal and regulatory trends, and the content of the RBA Code of Conduct. By helping suppliers understand their relevance to business, we support them in recognizing these issues as their own and in taking proactive action.
As an example, for Dongguan Konka Mould Plastic Co., Ltd. in China, which underwent a CSR audit, we provided training for internal auditors to help the company establish a system that enables it to conduct its own internal audits and work toward continuous improvement. In addition, for MFP contract manufacturer plants that underwent VAP audits, we shared Konica Minolta’s own improvement examples and supported their corrective actions.

Procurement Collaboration System

Promoting procurement collaboration to increase customer satisfaction

In the Digital Workplace and Professional Print businesses, Konica Minolta promotes the Procurement Collaboration System, in which suppliers and Konica Minolta work together in pursuit of improvements. In this initiative, the Group shares challenges through dialogue with and visits to suppliers, makes proposals needed for their resolution, and provides concrete support aimed at comprehensive improvements in terms of quality, delivery, productivity, the environment, and business management. Suppliers also point out issues to Konica Minolta, which serves to improve problems in business transactions.

Environmental Collaboration Aimed at Strengthening the Management of Chemical Substances Included in the Supply Chain

Konica Minolta has implemented environmental collaboration with suppliers to reduce environmental risk as a procurement collaboration system in the area of the environment. This initiative creates solid partnerships through on-site assessments and educational support for suppliers in order to strengthen management of chemical substances included in the supply chain.
In fiscal 2024, Konica Minolta went directly to the manufacturing sites of 51 suppliers in and outside Japan and conducted on-site assessments, working with suppliers to strengthen the chemical substances management system. In addition, the Company confirms activities in areas such as labor, health and safety, the environment, and ethics at its suppliers’ manufacturing sites.
In addition, Konica Minolta has established an educational system focused on laws and regulations as well as on-site management that it uses to train suppliers’ internal assessors in an effort to support the independent management of chemical substances on the part of suppliers. Education on changing trends and Konica Minolta’s initiatives was added to CSR procurement initiatives starting in fiscal 2018. In fiscal 2024, Konica Minolta conducted approximately 80 internal assessments.

Holding Suppliers’ Meetings

Konica Minolta holds annual suppliers’ meetings as part of its procurement collaboration system. Previously, these meeting were held in person, but since fiscal 2019, we have changed over to an online format due to COVID-19’s impact and they are now mainly held for suppliers in Japan, China, and ASEAN.
In fiscal 2024, a total of 257 suppliers (447 people) participated, representing a majority of our suppliers. At the meeting, Konica Minolta’s procurement policy was explained, requests were made for cooperation in CSR procurement, procurement results and plans were reported, and goals and challenges were shared.

Additionally, Konica Minolta takes the opportunity of the suppliers’ meeting to commend suppliers. The purpose of commending suppliers with excellent records in terms of quality, delivery, productivity, and the environment is to encourage all suppliers to undertake further improvement initiatives.

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