Policy and framework of efforts
In the supply chains of minerals from conflict-affected and high-risk areas, the Fujifilm Group perceives the issues concerning the minerals such as tin, tantalum, tungsten and gold (3TG), which are associated to human rights abuse such as child labor, environmental destruction, and funding for groups involved in inhumane armed acts, are one of the serious social issues. The Fujifilm Group manages minerals by following the five steps of the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas” specified by the Organisation for Economic Co-operation and Development (OECD) to ensure responsible procurement across our supply chain.
Fujifilm Group's stance toward the issue of responsible minerals procurement
The Fujifilm Group is committed to fair trading with regard to the mining and procurement of minerals in full recognition of our social responsibility.
As a member of the global community, the Fujifilm Group perceives human rights violations and environmental destruction associated with mineral mining and trading as one of the serious social issues. We have no intention of using minerals whose mining and trading operations have become funding sources for armed groups or minerals linked to human rights violations and inhumane behaviors.
For minerals produced in conflict affected and high risk areas (CAHRAs), the Fujifilm Group observes the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" to ensure responsible procurement across our supply chain. We are involved in the Responsible Minerals Trade Working Group, set up by the Japan Electronics and Information Technology Industries Association (JEITA), so that our activities always meet the level of international requirements. We also use mechanisms and tools defined by the RMI*1 to investigate the history of minerals contained in our products.
In response to customer requests on conflict minerals, reporting of which is obligated by laws and regulations, we provide the results of mineral history investigation, using the RMI. We recommend that our suppliers procure minerals from refineries that have received conflict-free certification from the RMI and other industry organizations.
- *1 RMI = Responsible Minerals Initiative
Conflict minerals issue
Some minerals used in many industrial products are serving as funding sources for armed groups responsible for human rights violations and environmental destruction. There have been international calls for greater awareness and improvement on the matter.
The so-called 3TG minerals*2, mined in the Democratic Republic of Congo (DRC) and its neighboring countries*3, contain minerals that infringe on this issue. The United States has introduced a law*4 mandating Securities and Exchange Commission (SEC) listed companies in the country to disclose their status of 3TG use. Europe have also introduced conflict minerals regulations of a broader sense in recent years. Cobalt and other minerals are also reported to be affected.
In the given environment, there has been a growing social interest in responsible mineral procurement throughout a supply chain. In particular, the RMI, established by the RBA*5, have set international standards, defining mechanisms and tools for clarifying the involvement of armed groups in the supply chain of companies around the world.
- *2 3TG minerals = tin (Sn), tantalum (Ta), tungsten (W) and gold (Au)
- *3 DRC and its neighboring countries = Angola, Burundi, Central African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia
- *4 Article 1502 of the “Financial Regulatory Reform Act” (Dodd-Frank Act) enacted on July 21, 2010 in the United States
- *5 RBA = Responsible Business Alliance
Fujifilm Group Efforts
| OECD 5 steps | Fujifilm Group Efforts |
|---|---|
| （1）Establish strong company management systems | The ESG Division of FUJIFILM Holdings formulates and announces the group-wide policy. Business innovation segment handles products closely related to the targeted minerals. Led by the director responsible for production and procurement, the procurement divisions and the ESG division promote mineral management, such as formulating annual plans, collecting survey results, and creating measures based on risk assessment results. |
| （2）Identify and assess risks in the supply chain | In Electronics, Business Innovation, and Imaging segments, we conduct annual surveys respectively on their products that are particularly relevant to targeted minerals, including verifying results and identifying the country of origin. The tools specified by the Responsible Minerals Initiative (RMI)*6 are used for the surveys. The investigation results are reported to Business Innovation OEM customers. We conduct the mineral risk assessment based on the investigation results, report the assessment results to the procurement & manufacturing director, and obtain approval. |
| （3）Design and implement a strategy to respond to identified risks | Based on the results of the risk assessment, each division responsible for risk evaluation requests the suppliers to switch to certified smelters. We request suppliers who use high-risk smelters to switch at the earliest opportunity. |
| （4）Carry out independent third-party audits of the due diligence practices of smelters / refiners | As a JEITA*7 Responsible Minerals Trade Working Group member, Fujifilm and FUJIFILM Business Innovation encourage smelters to undergo the Responsible Minerals Assurance Process (RMAP*8). FUJIFILM Business Innovation also carries out activities as a member of RMI. |
| （5）Report annually on supply chain due diligence | The Fujifilm Group’s conflict minerals*9 policies, measures and results are disclosed on the official website and in the sustainability report. |
- *6 RMI: Responsible Minerals Initiative
- *7 JEITA: Japan Electronics and Information Technology Industries Association.
- *8 RMAP: Responsible Minerals Assurance Process.
- *9 Minerals (tin, tantalum, tungsten, and gold) regarded to be problematic because profits may be used for inhumane purposes or its mining may infringe human rights.
Results and targets for responsible minerals procurement
The Fujifilm Group is reinforcing its efforts concerning responsible mineral procurement, taking into account the expanding number of countries and regions where we make sales and rising social demands. The following table shows the fiscal 2023 investigation results and targets by business segment per year.
1. Results of minerals survey by segment
Business Innovation
| FY2021 | FY2022 | FY2023 | FY2024 target | ||
|---|---|---|---|---|---|
| 3TG | Supplier response rate | 98% | 99% | 99% | 95% or over |
| Percentage of conformant smelters | 72% | 65% | 63% | Continuous improvement of conformant smelters percentage | |
| Cobalt | Supplier response rate | － | 99% | 98% | 95% or over |
| Percentage of conformant smelters | － | 50% | 55% | Continuous improvement of conformant smelters percentage | |
Electronics
| FY2023 | FY2024 target | ||
|---|---|---|---|
| 3TG | Supplier response rate | 87% | 92% or over |
| Percentage of conformant smelters | 97% | Continuous improvement of conformant smelters percentage | |
| Cobalt | Supplier response rate | 87% | 92% or over |
| Percentage of conformant smelters | - (No products) | - (No products) | |
Imaging
| FY2023 | FY2024 target | ||
|---|---|---|---|
| 3TG | Supplier response rate | 82% | 90% or over |
| Percentage of conformant smelters | 64% | Continuous improvement of conformant smelters percentage | |
| Cobalt | Supplier response rate | 89% | 90% or over |
| Percentage of conformant smelters | 56% | Continuous improvement of conformant smelters percentage | |
2. Rate of conformant smelters by segment
Business Innovation
| FY2023 | Total | Tin | Tantalum | Tungsten | Gold | Cobalt |
|---|---|---|---|---|---|---|
| Number of identified smelters | 439 | 85 | 38 | 54 | 177 | 85 |
| Number of RMAP conformant smelters | 270 | 66 | 35 | 32 | 90 | 47 |
| Rate of RMAP conformant smelters | 62% | 78% | 92% | 59% | 51% | 55% |
Electronics
| FY2023 | Total | Tin | Tantalum | Tungsten | Gold | Cobalt |
|---|---|---|---|---|---|---|
| Number of identified smelters | 29 | 26 | 0 | 3 | 0 | 0 |
| Number of RMAP conformant smelters | 28 | 25 | 0 | 3 | 0 | 0 |
| Rate of RMAP conformant smelters | 97% | 96% | － | 100% | － | － |
Imaging
| FY2023 | Total | Tin | Tantalum | Tungsten | Gold | Cobalt |
|---|---|---|---|---|---|---|
| Number of identified smelters | 423 | 92 | 37 | 47 | 172 | 75 |
| Number of RMAP conformant smelters | 266 | 69 | 34 | 31 | 90 | 42 |
| Rate of RMAP conformant smelters | 63% | 75% | 92% | 66% | 52% | 56% |