Efforts with Business Partners
Responsible Minerals Procurement
The considerations for responsible minerals procurement are heightened lately, following the enactment of The US Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010. Especially the concern regarding conflict minerals (tin, tantalum, tungsten, and gold commonly known as "3TG") that are mined from the Democratic Republic of the Congo and surrounding areas and used by an armed group or anti-government force as a source of funds.
According to the Article 1502 of The Securities and Exchange Commission (SEC), companies listed on securities exchanges in the US are required to investigate/report usage conditions regarding conflict minerals that are mined from the Democratic Republic of the Congo and surrounding areas that are used by an armed group or anti-government force as a source of funds.
From the standpoint of the protection of human rights, the ROHM Group makes it a rule not to use conflict minerals (tantalum, tin, tungsten, and gold) in target countries, where the conflict minerals are used as a source of funds by an armed group that has violated human rights in these areas, as materials for the Group's products.
Furthermore, we request that our business partners respect ROHM's policy not to use such minerals as materials for our products and to make efforts to comply with this policy. If it is found that a conflict material used as a source of funds to support acts of human rights violations has been used as a raw material in the ROHM Group's supply chain, we ask that our business partners immediately inform us and take corrective action, in accordance with our instructions, to establish a responsible supply chain.
Governing Structure and Responsible Sourcing of Minerals
With the procurement division playing a central role, the ROHM Group is building a governing structure that is in accordance with the OECD Due Diligence Guidance.
A survey is carried out each year using the Conflict Minerals Reporting Template (CMRT) provided by the Responsible Minerals Initiative (RMI) to confirm matters, including whether conflict minerals (3TG) are contained. Investigations are made at the countries of origin, and smelters are identified. Based on the findings, risks are identified, and due diligence is exercised. The findings are reported to ROHM management, and future strategies and implementation plans are formulated.
- ※RMI：Responsible Minerals Initiative
- ※CMRT：Conflict Minerals Reporting Template
Cooperation with Industrial Associations
We have been participating in the JEITA's "Responsible Minerals Trade Working Group" since its establishment in 2012, to cooperate and coordinate with industrial associations. Through this participation, we have collected extensive information, addressed "Responsible Minerals Procurement" issues, and held an explanatory meeting.
Promoting ROHM Group's Green Procurement
The ROHM Group has always shown consideration for the global environment and promoted efforts for the healthy continuation of humankind as the most important issue declared in its environmental policy.
In order to achieve sustainable economic development without destroying the global environment, we need to manufacture recyclable products of lower environmental load. So, the ROHM Group has promoted the manufacture of environmental-friendly products by enforcing compliance efforts throughout the entire supply chain.
Laws and regulations regarding chemical substances are becoming more stringent lately, therefore, ROHM has been working to promote green procurement by improving the accuracy of investigation on the use of chemical substances in the supplied parts and materials. The Green Procurement Guidelines are also published in order to monitor the procurement situations and its conformance, as well as establishing a comprehensive management system to ensure that prohibited substances are not allowed to be used in our products.
The ROHM Group will continue to manufacture environmental-friendly products by further strengthening our management system and deepening mutual understanding between us and our business partners.
BCP of Procurement
As part of the Business Continuity Plan (BCP), the ROHM Group deepens its cooperation with business partners from normal times to maintain a system that can be quickly restored, and prepares alternative materials, so as not to interrupt customers' business even in emergency situations
Definition of Risk in the Procurement Department
The ROHM Group has established a Risk Management and BCM Committee to manage risk in each department. The procurement department defines four risks: “quality”, “price”, “delivery time” and “compliance”, and prepares for emergencies by checking the status of handling these risks on a quarterly basis.
Selection of Business Partners
As also asked in the Basic Stance Requested of Our Business Partners, information is shared across the entire supply chain, including our business partners, during times of emergency. We therefore select business partners who can do so and respond in a way that ensures a continuous supply. Furthermore, when entering into business relations, we have our business partners provide written pledges to that effect.
Implementation of BCP Survey
We collaborate with our business partners on the information on the manufacturing company and manufacturing location of procured materials so that we can get the first move as quickly as possible in case of emergency. Based on the survey results, we evaluate the critical ranks of procured parts and decide on the action according to the rank in consultation with the manufacturing department.
- ※A more detailed database system for procured materials will be completed in 2020 to speed up the response to emergencies