Conflict Minerals

Conflict Minerals refer to gold, tantalum, tin and tungsten that are produced in the Democratic Republic of the Congo and the surrounding countries where revenues from their sale may be used to finance armed groups and anti-government groups in those countries. In USA, the Securities and Exchange Commission (SEC) adopted the Dodd-Frank Wall Street Reform and Consumer Protection Act in August 2012 and the final rule requires manufacturers who file reports with the Securities and Exchange Commission to disclose whether or not their products contain Conflict Minerals.

Our Initiative through Our Supply chain

The DOWA group is not listed with the US SEC. Therefore, we are not obliged to comply with the reporting rule on conflict metals. Even so, our products are used in a vast number of products including automobiles, electronic and electric appliances. Tracing the origin of raw materials will eventually reach to suppliers of raw materials and smelters.

We started to prepare measures for conflict minerals in 2011. We prepared our policy on conflict minerals and published in August 2012. We also started to establish a management system to implement a survey on our use status and our suppliers of those minerals and suppliers. We also started our initiative as a responsible smelter to offer metals that are not from conflict minerals by obtaining the third party's certificate.

DOWA's Conflict Mineral Management Policy

CFS Obtained for Responsible Mineral Procuremente

As it is difficult to investigate whether conflict minerals are contained or not in a huge number of products, EICC, which is an organization to promote CSR in the electronic industry. and GeSI, which is an organization to promote economic, environmental and social sustainability in the ICT sector. offer the Conflict Free Smelter (CFS) certificate program to audit smelters that are closest to the upper stream of minerals. In this program metals shipped from these certified smelters are regarded as conflict free. Third party organizations evaluate procurement activities of smelters and refineries and determine whether all minerals handled by those are from conflict-free mines or recycled. More specifically, these organizations inspect procurement policies, standards of conduct, analytical processes of procured materials and how to select suppliers. They confirm whether the definition of materials for recycling of those smelters are appropriate or not through local auditing and relevant documents.

We started preparation to obtain the gold certificate as a smelter to offer conflictfree minerals in 2012.

Kosaka Smelting and Refining obtained the CFS certificate for Gold in August 2012 and cleared the renewal audit in August 2013. Eco-System Recycling that is engaged in precious metal recycling (secondary refining) obtained the CFS certificate for gold in December 2013.

Understanding and cooperation from our suppliers enabled DOWA to obtain the certificate for conflict-free minerals.

We will continue to promote risk management, monitoring of business activities and education not only across our business establishments but also across the entire group.