Responsible Minerals Procurement

Procurement Policy

The Socionext Group does not use materials in its products that derive from conflict minerals illegally mined in the Democratic Republic of Congo (DRC) or neighboring nations.

We have established management systems in accordance with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs) and have measures in place to prevent purchases from suppliers subject to such risks as human rights violations, environmental destruction, or conflict.

Should we discover that conflict minerals used to fund armed groups are being used in our products, we will notify customers promptly and take corrective action.

We also ask our suppliers to respect Socionext Group policy on this matter and to take action to ensure it is followed.

*:OECD Due Diligence Guidance:
  OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Practical Measures

Our production management group plays a central role in ensuring responsible minerals procurement in accordance with the Socionext Group CSR Procurement Guidelines. We conduct annual due diligence based on the results of CMRT and EMRT surveys to identify and rectify any risks.

Responsible Minerals Procurement Review (Process)

●Development of management system

In accordance with company practice, we have worked with the relevant departments in Japan and elsewhere to establish systems for procurement and for conducting risk surveys for the 3TG, cobalt, and mica used in our products.

As well as calling on suppliers to consent to our responsible minerals procurement practices, we also ask them to submit written agreements.

We require our suppliers to deal only with smelters and other processing facilities that are RMI certified.

We promulgate our responsible minerals procurement practices both internally and externally, through sustainability training resources as well as our website.

To build knowledge, deepen understanding, and boost motivation, we provide our procurement staff responsible for conducting investigations with training on responsible minerals procurement.

Details of investigation outcomes are managed and archived in accordance with company rules.

●Identification and assessment of supply chain risks

Each year, Socionext Group identifies which of the purchased parts and materials used in our products require investigation and we then conduct investigations of our the suppliers using the CMRT and EMRT templates provided by the RMI for this purpose.

We collect and collate the data provided by suppliers to identify the supply chain down to the level of individual processing facilities. When conducting the investigation, we also strive to identify all countries of origin by asking suppliers to identify the nations in which the minerals were mined.

Our due diligence of processing facilities includes checking for participation in and successful completion of current RMAP or other third-party audits.

●Development and implementation of strategies for dealing with identified risks

For ongoing risk minimization, we develop plans for responsible minerals procurement on an annual basis, keep up to date with the latest information, and conduct due diligence when necessary.

If processing facilities have not completed RMAP or other third-party audits, we work with suppliers to request that they do so.

When customers raise concerns about specific processing facilities, we assess the allegations, inform suppliers of the risk, and work with them to take appropriate action.

Annual reporting of supply chain due diligence

Socionext annually publishes details of our responsible minerals procurement initiatives on our website.

Outcomes of investigations conducted during fiscal 2023

・No. of suppliers investigated: 19
・No. of suppliers that replied to inquiries: 19 (100% response rate)
・No. of processing facility operators identified: 234 across all minerals (of which 213 facilities had obtained RMAP certification from RMI)

Fiscal 2023 (19 companies)
Total Gold Tantalum Tin Tungsten
No. of smelters or other processing facilities 234 99 34 65 36
No. of RMAP-certified (conflict-free) smelters or other processing facilities 213 87 33 62 31
No. of RMAP Active facilities 2 2 - - -
No. of other RMI-certified facilities 19 10 1 3 5
Percentage of RMAP-certified facilities 91% 88% 97% 95% 86%
Inquiry response rate 100% - - - -