Activities on Procurement

TAIYO YUDEN Group established "CSR Charter" and "CSR Code of Conduct" and promotes CSR activities in order to fulfill corporate social responsibility. As "Mutual Trust / CSR" in our Basic Procurement Policy, TAIYO YUDEN Group shall actively practice the CSR management in procurement activities and further establish sound partnership to build mutual trust and development.

There are concerns that the minerals such as tin, tantalum, tungsten, gold (3TG), cobalt and mica in the Democratic Republic of the Congo and adjoining countries or Conflict Affected and High-Risk Areas (CAHRAs) can finance armed groups in those conflict regions through illegal mining and trading of minerals and raise human rights abuses or labor issues such as child labor, forced labor. As one way of fulfilling its social responsibility in its supply chain, TAIYO YUDEN Group implements appropriate measures to procure minerals, ensuring that we do not become involved in such issues through the trade of minerals used in our products.

TAIYO YUDEN Group requests suppliers to understand the TAIYO YUDEN's procurement policy and cooperate with the survey in the procurement process. Furthermore, TAIYO YUDEN Group requests suppliers to procure minerals from the refiners/smelters approved by globally recognized frameworks such as RMI^*1.

Activities

1. TAIYO YUDEN Group establishes management system of minerals procurement complied with OECD due diligence guidance.
2. TAIYO YUDEN Group promotes "Responsible Minerals Procurement" throughout supply-chain in collaboration with industry organization.
3. TAIYO YUDEN Group identifies and evaluates risks by using globally standardized programs of RMI such as the latest version of CMRT or EMRT^*2.
4. When any problems are found in the mineral procurement process, TAIYO YUDEN Group stops using the said mineral and requests the upstream companies in the supply chain to take any corrective actions.
5. TAIYO YUDEN Group discloses results of mineral procurement survey upon customers' request.

April, 2021
Officer in charge of Procurement

TAIYO YUDEN is a member of "Responsible Minerals Trade Working Group" in JEITA (Japan Electronics and Information Technology Industries Association). Through the Working Group, TAIYO YUDEN Group works to create framework to act in coordination and cooperation with the industrial initiative "RMI (Responsible Minerals Initiative)".

TAIYO YUDEN Group implements promotional and educational activities outside the group through "Responsible Minerals Sourcing Inquiry Briefings" by JEITA, a RMI's association member. Furthermore, TAIYO YUDEN Group promotes awareness of its policy within its supply chain.

TAIYO YUDEN Group policy was revised in accordance with the expansion of target areas and risks from "Conflict risk of DRC and adjoining countries" to "CAHRAs defined by OECD Due Diligence Guidance Annex Ⅱ^*3.

• Serious abuses associated with the extraction, transport or trade of minerals
• Direct or indirect support to non-state armed groups
• Public or private security forces
• Bribery and fraudulent misrepresentation of the origin of minerals
• Money laundering
• The payment of taxes, fees and royalties due to governments

Survey Result

TAIYO YUDEN Group has regularly conducted Responsible mineral survey to our suppliers.
TAIYO YUDEN Group conducted the Responsible Mineral Survey to our target suppliers in FY2023, with the target of a 100% response rate.

In the survey to suppliers which handle 3TG, TAIYO YUDEN Group received 100% survey responses from suppliers and identified 237 smelters/refiners. We confirm that all smelters (100%) of the minerals contained in our company's mainstay products such as multilayer ceramic capacitors, inductors and communication devices are RMAP^*4certified. Most of these smelters were located in Asia, Europe and the United States.
TAIYO YUDEN Group continues the cobalt and mica survey.

From the survey results so far, no minerals involved in the source of funding for armed groups have been found in all suppliers. TAIYO YUDEN Group will continue regular surveys and disclosure of the results in collaboration with suppliers and the industry.

3TG Survey Results(FY 2023)

If you have any concerns about TAIYO YUDEN Group's management of Responsible Minerals Procurement, please contact through this link.
Procedure for the Submission of Concerns Regarding Responsible Minerals Risk