Nichia’s Efforts for Due Diligence on Responsible Mineral Procurement

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Nichia’s Efforts for Due Diligence on
Responsible Mineral Procurement (Fiscal Year 2020)

1. Organization

Nichia's Minerals Procurement Division plays a central role in promoting responsible mineral procurement activities in cooperation with other related divisions.
For activities that violate Nichia's policy on responsible mineral procurement, Nichia has established the "Hotline for Responsible Mineral Supply Chain" as the reporting contact office, which leads to improvement for these activities.

2. Fiscal Year 2020 - Due Diligence Activities on Responsible Mineral Procurement

Nichia is promoting "responsible mineral procurement" throughout its supply chain with the cooperation of its business partners.
Nichia is putting efforts into making the supply chain transparent in accordance with the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance)".
Regarding the investigation of smelting/refining companies, Nichia uses the "Conflict Mineral Reporting Template (CMRT)" and "Cobalt Reporting Template (CRT)" published in the "Responsible Minerals Initiative (RMI)" when working with Nichia’s suppliers in order to improve the efficiency by streamlining the workload of the investigations.

3. Investigation Status

Nichia sent surveys to 110 suppliers of conflict minerals and cobalt across the Nichia Group and collected the responses from 100% of them.
After receiving the investigation reports from its business partners, Nichia conducts a risk assessment of that information.
Following that assessment, Nichia implements risk mitigation activities (e.g. identification of smelters/refiners, additional investigations/surveys, etc.) in order to ensure that Nichia can continue to do sustainable business with those companies.