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Supply Chain

Approach

Mitsui Kinzoku Group operates our business activities together with suppliers and customers globally. Therefore, we have to understand the impact of our Group’s business in the whole value chain beyond national borders. In particular, social and environmental negative impact by our Group’s supply chain may pose a risk for the business of Mitsui Kinzoku Group. We will fulfill our responsibilities by implementing initiatives for sustainability in the supply chain according to the requests from our stakeholders including customers. Mitsui Kinzoku Group Procurement Policy has been established, in which we advocates our commitment in the supply chain. Mitsui Kinzoku Group strives to develop sustainability in the supply chain based on the procurement policy.

Mitsui Kinzoku Group Procurement Policy

Mitsui Kinzoku Group respects the globally recognized codes and guidance, such as the United Nations Global Compact We will fulfill our social responsibilities in human rights and labor, health safety, ethics, and on the environment, based on ensuring legal compliance throughout our procurement activities. The Mitsui Kinzoku Group procurement policy has been established as our basic commitment. The policy consists of the basic procurement policy and the Mitsui Kinzoku procurement guidelines that gives specific instructions for executing the basic procurement policy.

Basic Procurement Policy

Mitsui Kinzoku Group operates sustainable supply chain that are in accordance with its Code of Conduct so as to “contribute to society by providing valuable products” as defined in the Management Philosophy. Through fulfilling our supply chain responsibility based on mutual understanding and trust with suppliers, we work to achieve mutual development and growth with suppliers.

  1. We comply with laws, regulations, social norms, and the corporate code of ethics in procurement.
  2. We require suppliers’ sound business operating bases, improvement of technical competence, excellent quality, price competitiveness, and stable supply, as well as promote supply chain responsibility in the fields of human rights and labor practices, health and safety, ethics, and the environment. We are not complicit directly or indirectly in human rights abuses, including child labor and forced labor. We conduct procurement based on transparent and fair competition and work against corruption in all its forms.
  3. In selecting suppliers, we make a comprehensive assessment to ensure supply chain responsibility in the fields of human rights and labor practices, health and safety, ethics, and the environment. In actual transactions, we, in cooperation with suppliers, work on responsible procurement in these fields. In deciding whether to continue business relationships, we place priority on supply chain responsibility.

April 2018


 
  • Mitsui Kinzoku Group Basic Procurement Policy
  • 三井金属集团 采购基本方针(Basic Procurement Policy)
  • นโยบายพื้นฐานการจัดหาของ (Mitsui Kinzoku Basic Procurement Policy)
  • Procurement Guidelines

    Mitsui Kinzoku Group is engaged in its supply chain responsibility based on the Basic Procurement Policy and following internationally recognized rules and guidelines, such as the United Nations Global Compact. In particular, we implement supply chain management in line with the approach of the RBA (Responsible Business Alliance) Code of Conduct to address risks in supply chain.
    We established Mitsui Kinzoku Group Procurement Guidelines based on the RBA Code of Conduct. The Group as well as suppliers are all required to observe the guidelines in procurement transactions.
    ※RBA: Responsible Business Alliance

    Management System

    The supply chain management system is formulated as follows: The senior executive officer in charge of supply chain is appointed as chief person responsible for our procurement. The Supply Chain Committee of the Group has organized under the chief person, which consists of the representatives of each division.

     

    Supplier Due Diligence

    In order to respond to risks in our supply chain, Mitsui Kinzoku Group promotes supplier due diligence by requesting suppliers to implement our procurement policy and assessing their implementation status.

    (1) Performance in the first cycle (FY2018-2020)
    Medium- and long-term target
    Implementation rate of a Self Assessment Questionnaire (SAQ) to the critical suppliers (by FY2020) :100%

    Performance
    Implementation rate as of March 31, 2021:92% (721/784)

    (2) Initiatives in the second cycle (FY2021-2023)
    Commitment (FY2024) :
    Effectively implement supplier due diligence and reduce critical risks in the supply chain
     
    Targets (KPIs)
    Achieve the 100% annual SAQ implementation rate for the target suppliers
    Achieve the 100% engagement rate for corrective actions with C-ranked suppliers

    Integrated Report Supply chain management 

    Responsible Minerals Sourcing

    As a corporate group in the minerals supply chain, Mitsui Kinzoku Group promotes responsible minerals sourcing. Along with the heightened global interest in responsible minerals sourcing, relevant risks are expanding. The scope of target risks is expanding to environment and human rights issue, target areas are widening to CAHRAs and other minerals such as cobalt, silver, copper, zinc and lead are included as target minerals. Mitsui Kinzoku Group has developed its management system in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We are working in close partnership with international initiatives such as the RMI, LBMA, and the LME. We have formulated the Responsible Mineral Sourcing Policy as a comprehensive policy and is promoting initiatives in the minerals supply chain.

    Responsible Minerals Sourcing Policy

    With regard to minerals sourcing, Mitsui Kinzoku Group fulfills its corporate social responsibility in its mineral supply chain in compliance with applicable laws and regulations and in accordance with standards and guidance of international initiatives such as RMI*1, LBMA*2 and LME*3.

    Regarding the covered minerals originating in Conflict Affected High-Risk Areas (CAHRAs), Mitsui Kinzoku Group does not use minerals involving any injustices specified in paragraph 1-14 of Annex II of “the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”.

    Mitsui Kinzoku Group identifies CAHRAs according to three categories as below:
    1.Countries and/or areas in the CAHRAs list based on REGULATION (EU) 2017/821 that is released by the Europe Commission
    2.The Democratic Republic of the Congo (DRC) and its nine adjoining countries as defined in Section 1502 of the Dodd Frank Act
    3.Countries and/or areas other than the above-mentioned that are identified by Mitsui Kinzoku Group referring to the requirements of the international initiatives

    In addition, we identify Tin, Tantalum, Tungsten, Cobalt, Gold, Silver, Zinc, Lead and Copper as the covered minerals. We will appropriately review the covered minerals in line with the international initiatives.

    Along with the standards and guidance of the international initiatives Mitsui Kinzoku Group properly conducts supply chain due diligence for the covered minerals and discloses related information according to requests from stakeholders including customers.

    *1 Responsible Minerals Initiative (Formerly Conflict-Free Sourcing Initiatives (CFSI), changed in October 2017)
    *2 London Bullion Market Association
    *3 London Metal Exchange

    Established October 2019

    Revised February 2021


    Appendix:
    ・Indicative, non exhaustive list of CONFLICT-AFFECTED AND HIGH-RISK AREAS under regulation(EU)2017/8/21
    https://www.cahraslist.net/cahras (accessed February 2021)
    ・OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
    See AnnexⅡ on page 20-24.
    http://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf (accessed February 2021)
      

     

    Issues of Conflict Minerals

    Some conflict minerals mined in the Democratic Republic of the Congo (DRC) and its nine adjoining countries are suspected to benefit armed groups. Mitsui Kinzoku Group does not use conflict minerals that directly or indirectly finance or benefit inhumane acts such as conflicts in the covered countries.

    Mitsui Kinzoku Group Conflict Minerals Policy

    Mitsui Kinzoku Group promotes responsible mineral sourcing for corporate social responsibility and compliance, taking human rights, environment and laws/regulations into consideration.

    As a member of the global supply chain, we set a policy of not using “conflict minerals※1” , if these minerals are the source of funds for armed groups who are violating human rights.

    In particular, some conflict minerals mined in the Democratic Republic of the Congo (DRC) and its nine adjoining countries are suspected to benefit armed groups. Mitsui Kinzoku Group works with suppliers and the international industry initiatives to promote the use of conflict minerals that do not directly or indirectly finance or benefit armed groups in the covered countries.

    1. We establish internal management systems and manage the supply chain appropriately in accordance with the OECD (Organisation for Economic Co-operation and Development) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
    2. Regarding the smelting business of tantalum and gold, Mitsui Kinzoku Group, as a responsible smelter, carries out due diligence for conflict minerals which utilized smelting. We have acquired the certification of conformant smelter ※2 for the smelting business by undergoing third-party audits every year.
    3. Regarding our products containing smelted conflict minerals, Mitsui Kinzoku Group carries out supply chain due diligence utilizing the Conflict Minerals Reporting Template (CMRT) developed by RMI ※3 for supply chain risk management and disclose results if necessary.

    ※1. Tin, Tantalum, Tungsten and Gold. Conflict minerals are defined as cassiterite, columbite-tantalite, gold, wolframite, or their derivatives, or any other minerals or their derivatives determined by the Secretary of State to be financing conflict in the DRC or its adjoining countries (Sourced by the section 1502 of the U.S. Dodd Frank Wall Street Reform and Consumer Protection Act).
    ※2. Certificated by RMAP (Responsible Minerals Assurance Program) and equivalent cross-recognized third-party audit programs included the LBMA’s Responsible Gold Program.
    ※3. RMI(Responsible Minerals Initiative): An international industry initiative working for improvement of regulatory compliance and supporting companies’ responsible sourcing from conflict-affected and high-risk areas.

    We request our suppliers to agree to the Conflict Minerals Policy for responsible supply chain and to cooperate with surveys and audits implemented by Mitsui Kinzoku Group.

    July 2017

    Initiatives by our smelting business

    Engineered Powders Division: Procurement policy for Tantalum containing minerals

    Metals & Recycling Division: Responsible Minerals Sourcing in Metal Business

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