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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

Addressing responsible minerals sourcing

Mitsui Kinzoku Group Responsible Minerals Sourcing 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.

Medium and long term target:Rate of implementation of a Self Assessment Questionnaire (SAQ) to the critical suppliers (by FY2020)

The Integrated Report”Supply chain management”[PDF:268kb]

Responsible Minerals Sourcing

Mitsui Kinzoku Group promotes responsible minerals sourcing. As a company in the minerals supply chain, we are aware of the possibility that risks in the supply chain related to minerals sourcing could affect the business of our Group.
The scope of target risks is expanding, target areas are widening to CAHRAs* and other minerals are included as target minerals. In order to address such emerging demands, Mitsui Kinzoku Group has established a inclusive policy for responsible minerals sourcing.

Responsible Minerals Sourcing Policy

With regard to minerals sourcing, Mitsui Kinzoku Group fulfills its corporate social responsibility (CSR) in its mineral supply chain in compliance with applicable laws and regulations and in accordance with the standards and guidance of international initiatives.

Regarding covered-minerals*1 originating in Conflict Affected High-Risk Areas (CAHRAs), Mitsui Kinzoku Group does not use minerals involving any injustices including violations of laws and regulations such as direct/indirect contribution to conflict, human rights abuses such as child labor and forced labor, fraudulent misrepresentation of the origin of minerals, bribery, terrorist financing, and money laundering. In addition, Mitsui Kinzoku Group promotes sustainability of the mineral supply chain by taking initiatives for human rights/labor, health and safety, the environment and ethics.

Along with the standards and guidance of the international initiatives such as RMI*2, LBMA*3 and LME*4, 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 Tin, Tantalum, Tungsten, Gold, Silver, Zinc, and Lead. We will appropriately review the covered-minerals in line with the international initiatives.
*2 Responsible Minerals Initiative (Formerly Conflict-Free Sourcing Initiatives (CFSI), changed in October 2017)
*3 London Bullion Market Association
*4 London Metal Exchange

October 2019

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 : About Handling of Conflict Minerals

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