Responsible Mineral Procurement

Basic Policy

Based on the "Yokogawa Group Human Rights Policy" the Yokogawa Group, as a global company, works on responsible mineral procurement to prevent serious human rights violations. That may occur in connection with the mining, trading, and handling of minerals from conflict areas and high-risk areas.
The Democratic Republic of the Congo and its neighboring countries are examples of conflict areas and high-risk areas. Minerals mined in these regions, known as Conflict Minerals* 1, can fund armed groups and contribute to human rights violations and environmental destruction. There are concerns about the possibility.
To address this international issue, the Yokogawa Group use the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" (OECD DD Guidance) provided by the Organization for Economic Co-operation and Development (OECD) as a reference, we will establish a system as a group company, carry out mineral surveys and supply chain management across the supply chain, and prevent the purchase of products containing minerals related to risks such as human rights violations and bribery that occur in conflict areas and high-risk areas.
When signing contracts with suppliers we ask for their support for the contents of the "YOKOGAWA Group Sustainable Procurement Guidelines for Suppliers" and if necessary, their cooperation in investigations and information disclosure. If our investigations reveal that a product funds armed groups, we will take steps to avoid using it, such as reassessing our transactions with suppliers based on their progress in addressing violations.
Yokogawa will continue to make every effort for responsible mineral procurement.

 

Our Systems

With reference to 5 Steps described in OECD DD Guidance, roles are set according to the functions of each department, and the Yokogawa Group has established a system for initiatives. The outline is shown below.

Yokogawa Group has established a system

 

Product Liability division: (Sales / Planning Department of products / solutions provided to customers)

  • We handle customer inquiries and survey requests related to Article 1502* 2 of the US Dodd-Frank Act, as well as other requests.

Managing Product-related Laws and Regulations division: (The department responsible for investigating and managing information on product laws and regulations)

  • Confirmation by CMRT * 3 etc. and storage of confirmation results.
  • Participate as a member in the "Responsible Mineral Procurement Study Group" of the industry group JEITA* 4 , and stay updated with the latest information while coordinating with the industry. We continuously share the latest information across the entire Yokogawa Group.
  • Standardize and develop procedures * 5 within the Yokogawa Group for information and investigations on conflict minerals.

 Production Responsibility division: (Manufacturing departments responsible for purchasing their parts )

  • We will request surveys such as CMRT from our business partners and collect the answers.
  • In conducting the survey, we will convey the importance of sustainable procurement and expectations from the Yokogawa Group, and play a role in strengthening relationships with our business partners.

Procurement Control division: (Department that formulates procurement strategies and controls globally)

  • Promote activities related to sustainable procurement and organize and disclose information related to procurement activities. (This includes sharing records related to conflict minerals with relevant departments and conducting analysis for risk assessment.)
  • Cooperate and synchronize with the human rights initiatives of the Yokogawa Group.

 

* 1 Conflict minerals: Generally, tantalum, tin, tungsten, gold, etc. are produced in the Democratic Republic of the Congo or its neighboring countries, and are the source of funds for armed groups that are serious human rights infringers in the place of origin and its supply chain. It refers to the minerals that have become.
* 2 US "Dodd Frank Act" Article 1502: Listed companies in the US produce conflict minerals such as tin, tantalum, tungsten, gold (abbreviated as 3TG), and minerals designated by the Secretary of State. Companies are required to report annually to the US Securities and Exchange Commission (SEC) if they are not using them. Although the Yokogawa Group's US affiliates are not listed companies in the US, we will do investigations in response to customers who have to make such reports.
* 3 CMRT (Conflict Minerals Reporting Template): A Conflict Minerals Survey Form issued by RMI (Responsible Minerals Initiative).
* 4 JEITA(Japan Electronics and Information Technology Industries Association)
* 5 In response to customer inquiries, Yokogawa requests information from its parts suppliers based on Yokogawa product design information, and records and stores the results of its investigations.

 


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