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 tantalum, tin, 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 = gold (Au), tantalum (Ta), tungsten (W) and tin (Sn)
- *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 | Because the Business Innovation business is particularly relevant to targeted minerals, under a structure headed by the director responsible for production and procurement, the procurement divisions and the ESG division play a central role in promoting activities such as formulating annual plans, collecting survey results, and responding based on risk assessment results. |
| （2）Identify and assess risks in the supply chain |
We track the origin of our minerals, verifying the results and identifying the country of origin, following the procedures specified by the Responsible Minerals Initiative (RMI)*6. We report the investigation results to our customers for OEM products in the Business Innovation business. In addition, we collect responses from suppliers, conduct risk assessments, report the results to the director responsible for production and procurement, and obtain approval for actions in response to the risks. Regarding other businesses such as the Professional Imaging business, the Graphic Communication business and the Recording Media business, we receive inquiries from many customers about the origin of the minerals in question contained in our products and respond to all of them appropriately. |
| （3）Design and implement a strategy to respond to identified risks | Based on the results of the risk assessment, we request 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 | In the Fujifilm Group, Fujifilm and FUJIFILM Business Innovation participate in the Responsible Minerals Trade Working Group of JEITA*7 and discuss a rational and effective process to avoid complicity in human rights violations (RMAP*8) jointly with other companies. FUJIFILM Business Innovation also carries out activities as a member of RMI. |
| （5）Report annually on supply chain due diligence | The Fujifilm Group’s stance towards the conflict minerals*9 issues, 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 Conflict Minerals: Minerals (tantalum, tungsten, tin 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
Each business in the Fujifilm Group responds to requests from customers for a survey to trace the targeted minerals back through the supply chain to the origin (conflict minerals survey).
In the Business Innovation business, we are enhancing our efforts of responsible minerals, taking into account the expansion of the countries/regions of our sales and the rising social demands. A survey of 3TG (tantalum, tungsten, tin and gold) resulted in a 99.8% response from the suppliers subject to the survey. The responses helped identify 337 smelters and refiners registered in the Responsible Minerals Initiative (RMI) list. Out of these smelters or refiners, 220 were confirmed to be RMAP conformant (certified smelters) as of May 2023.
In response to client requests, we also added a survey of cobalt to the conventional 3TG surveys in fiscal 2021. The response rate for the fiscal 2022 cobalt survey was 99.6%. The survey results identified 70 smelters and refiners registered on the RMI list, of which 35 were confirmed to be RMAP conformant as of May 2023. Based on the survey results, we requested the suppliers to switch to source from the certified smelters to avoid using high-risk smelters. We continue to appropriately manage our responsible mineral procurement while expanding the scope of these surveys.
3TG (tantalum, tungsten, tin and gold)
| FY2020 | FY2021 | FY2022 | FY2023 target | |
|---|---|---|---|---|
| Supplier response rate for conflict minerals survey | 99% | 98% | 99% | 95% or over |
| Percentage of RMAP conformant smelters in the survey | 75% | 72% | 65% | Continuous improvement of RMAP conformant smelters percentage |
Cobalt
| FY2022 | FY2023 target | |
|---|---|---|
| Supplier response rate for conflict minerals survey | 99% | 95% or over |
| Percentage of RMAP conformant smelters in the survey | 50% | Continuous improvement of RMAP conformant smelters percentage |
| FY2022 | Total | Gold | Tantalum | Tin | Tungsten | Cobalt |
|---|---|---|---|---|---|---|
| Number of identified smelters | 407 | 36 | 49 | 81 | 171 | 70 |
| Number of RMAP conformant smelters | 255 | 34 | 36 | 58 | 92 | 35 |
| Percentage of RMAP conformant smelters | 63% | 94% | 73% | 72% | 54% | 50% |