Respect Human Rights
in Supply Chains

In all of our business activities, the Group will respect the fundamental human rights of our own employees and all those involved in our supply chain, and at the same time we will strive to mitigate potential human rights risks.

In accordance with the Basic Policy on Procurement, the Group conducts checks with our suppliers about issues such as ensuring worker rights, the presence of discrimination in hiring and work, forced labor and child labor, and compliance with prohibition against purchasing conflict minerals. In addition, in fiscal 2019, we began conducting CSR Procurement Questionnaires to foster CSR in procurement across our entire supply chain. We will continue to conduct these questionnaires and provide feedback to our suppliers, while at the same time taking precautions to prevent human rights violations from occurring in our supply chain.

Our Group Policy for Selecting Procurement Partners extends to our supply chain and stipulates that forced labor, child labor, racial discrimination, and gender discrimination are prohibited and that there is to be compliance with all labor laws and regulations. Neither in the Group nor among our suppliers have there been any reported cases of forced labor, child labor, violations of freedom of association, factory shutdowns due to strikes, or employment discrimination. Going forward, we will continue to prohibit forced labor, child labor, and discrimination of all kinds.

RBA-issued VAP audit certificates

The TANIOBIS Japan Mito Plant received a perfect score of 200 points in the Validated Assessment Program (VAP) audit, which evaluates compliance with the Responsible Business Alliance (RBA) Code of Conduct, receiving platinum status, the highest status in the RBA certification program.
The Mito Plant is the third site to receive Platinum Status in the RBA audit, following Isohara Works (April 2022) and the Chigasaki Plant of Toho Titanium Co., Ltd (June 2021). We believe this status depicts the steady progress of our group-wide efforts to promote ESG and serves as proof of the transparency of our semiconductor material supply chains.

“Conflict minerals” is the general term for minerals that are mined (illegally, in most cases) in conflict-affected regions, providing a source of funds for local armed groups. The use of these minerals may lead to increasing human rights abuses and inhumane acts. In response to the international trend for stronger information disclosure and monitoring by stakeholders, industry organizations relevant to the Group (including the LBMA^*1, LPPM^*2, and RBA) have established monitoring programs for eliminating conflict minerals, and require each business operator to undergo investigations and external audits.

• *1London Bullion Market Association (LBMA)
  An industry association composed of financial institutions and others that deal in gold and silver ingot. Inclusion on this association's Good Delivery List is viewed as a guarantee of high quality and reliability.
• *2London Platinum and Palladium Market (LPPM)
  An industry association composed of financial institutions and others that deal in platinum and palladium ingot. Inclusion on this association's Good Delivery List is viewed as a guarantee of high quality and reliability.

JX Metal Smelting Co., Ltd., as a producer of gold, silver, platinum, and palladium ingots, has established and operates a management system for supply chain due diligence that calls confirmation of the origin of raw materials, risk assessments, and confirmation of distribution routes. Operational status is reported to the LBMA and LPPM after undergoing an external audit by a third-party organization designated by the association. As a result of these processes, both of these organizations have put the company's gold, silver, platinum, and palladium ingots on their respective Good Delivery Lists. At the same time, the company has also been included on the RMAP Conformant Smelters list for gold compiled by the RBA and GeSI^* -recognition that it is taking proper measures to exclude conflict minerals.
For refined copper, the company also established a supply chain due diligence management system, which includes confirmation of the origin of raw materials, risk assessment, and distribution channels. The system began operating in fiscal 2022. Its operational status is verified by external audits conducted by a third-party organization, as stipulated under the process followed to obtain The Copper Mark.

• *GeSI: Global e-Sustainability Initiative
  A global trade association of information and communications businesses focused on achieving digital sustainability.

TANIOBIS GmbH is a Group company that produces tantalum powder. This company conducts supply chain due diligence in accordance with international standards as a refiner of tantalum, a designated conflict mineral. TANIOBIS GmbH strives to prevent complicity in human rights violations in conflict zones and high-risk areas.
The supply chain management of TANIOBIS GmbH received certification from RMI^*1, an international framework for responsible mineral procurement, and was evaluated as an RMAP^*2 Conformant Smelter.

• *1Responsible Minerals Initiative (RMI): An organization within the Responsible Business Alliance (RBA) that facilitates due diligence in the conflict minerals supply chain and provides programs to certify appropriate measures.
• *2Responsible Minerals Assurance Process (RMAP): A certification program for responsible mineral procurement established by RMI.