Sustainability | SocietyResponsible Sourcing of Minerals
- Our Approach
- Fiscal 2019 Goals and Achievements / Evaluations and Future Activities
- Concrete Activities
Based on concerns that minerals mined in the Democratic Republic of the Congo (DRC) and adjoining countries serve as a source of funding for armed groups provisions on conflict minerals were incorporated in the US Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010, and its final rule was adopted in August 2012. The TDK Group Policy on Conflict Minerals was formulated in April 2013, to promote initiatives in full compliance with the Due Diligence Guidance of the Organization for Economic Cooperation and Development (OECD).
In order to reduce involvement not only in conflicts but also serious human rights violations and environmental pollution, TDK has expanded the scope of its responsible sourcing of minerals beyond those from conflict-affected and high-risk areas. In January 2019, we revised our policy, which is now entitled the “TDK Group Policy on Responsible Sourcing Minerals.” Under this revised policy, TDK will continue to promote responsible sourcing of minerals throughout the supply chain, including minerals such as tantalum, tin, tungsten, gold and cobalt, which may be sourced from not only conflict areas but also areas with high risks of misconduct, including human rights abuses and environmental destruction.
The Headquarter Procurement Function and suppliers Quality Assurance Function supervise surveys of suppliers and replies to customers, respectively, and each Group company has installed a survey reply mechanism to respond.
Fiscal 2019 Goals and Achievements / Evaluations and Future Activities
|DRC conflict-free supplier ratio: over 92%||DRC conflict-free supplier ratio: 93.1%|
|Monitor number of customer responses||Implement monitoring|
|Fiscal 2020 Goals|
|DRC conflict-free supplier ratio: over 92%|
|Monitor number of customer responses|
Evaluations and Future Activities
In fiscal 2019, TDK continued to inform business partners of its expectation of DRC conflict-free mineral use and to request unconfirmed business partners to make the utmost efforts to this end. As a result, the confirmed DRC conflict-free supplier ratio increased further from the previous year to reach 93.1%, meaning that we had achieved our target.
In fiscal 2020 also, we have set “confirmed DRC conflict-free supplier ratio of over 92%” and “monitor number of customer responses” as common KPIs of the TDK Group and will continue to promote Group-wide efforts. Specifically, we will continue to make requests to business partners and also respond to inquiries from customers in a precise and timely manner. Furthermore, since collaboration with industrial organizations is essential to solve the expanding problem of responsible sourcing of minerals, we will continue to participate in such industrial discussions.
Responses to surveys and promotion of DRC Conflict-free at each group company
TDK uses the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI)* to facilitate the collection of sourcing information relating to conflict minerals.
In fiscal 2019, according to the conflict mineral survey conducted by our group companies, 93.1% of TDK's suppliers are DRC conflict-free, exceeding the year's goal of 92%. At this point in time, no minerals involved in the funding of armed forces in the DR Congo or adjoining countries have been confirmed.
Furthermore, TDK has been responding appropriately to requests from customers, and is monitoring the number of responses.
* An organization of over 380 companies and associations that leads the effort for responsible mineral sourcing.
TDK uses the Cobalt Reporting Template released by RMI to identify smelters.
Issues in survey responses
Within the RMI conflict mineral survey framework, identification of smelters is essential to truly certify such operations as being DRC Conflict-Free*. However, among products unable to confirm as being DRC Conflict-Free, and notably items for which supply chains contain long stages, there are instances when product groups with diversified electronic components are traded among component manufacturers, complicating the supply chain structure, there are frequent examples when the information gathered on smelters is incomplete, rendering it difficult to fully identify the smelters. Based on that and other factors, TDK products successfully found to be DRC Conflict-Free have been limited to certain product groups for which the supply chain stages are short.
*The earlier Conflict-Free Smelter Program (CFSP) was changed to the Responsible Minerals Assurance Process (RMAP) in June 2018, and the scope of risks was expanded beyond conflict risks in the DRC and adjoining countries.
Collaboration with industrial organizations
Addressing the responsible sourcing of minerals issue must be a comprehensive effort undertaken by all members of the supply chain. TDK has participated in the RMI in February, 2020, and TDK has participated in the JEITA Responsible Minerals Trade Working Group from the beginning, and since fiscal 2013, TDK is a managing company of the group.
The Japan Electronics and Information Technology Industries Association (JEITA) has concluded a memorandum of understanding (MOU) with the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSI) and is jointly pursuing efforts to resolve the responsible sourcing of minerals issue. During fiscal 2019, TDK participated in the following initiatives.
- Joined the Education and PR Team and participated as a speaker in and cooperated with operation of the JEITA Responsible Minerals Sourcing Inquiry Briefings 2018, which was convened to raise awareness of the responsible sourcing of minerals issue and promote understanding of survey methods among secondary suppliers and others.
- As leader of the Data Exchange Standard Developing Team, collaborated in the push to revise the IPC-1755 responsible minerals sourcing data exchange standard for exchanging data between different computer systems based on EU regulations and submitted opinions to RMI on blockchain technology as part of determining preferable data exchange methods.
- Participated in the Japan Conflict-Free Sourcing Working Group of the automobile industry, coordinating feedback on the survey manual and its tools.
- Participated in the Smelter Support Team to jointly confirm risks with smelters.