Status of "Responsible Mineral Procurement" at Toshiba Tec

As a member of the Toshiba Group, Toshiba Tec continues to conduct activities in accordance with the Toshiba Group Responsible Mineral Sourcing Policy as follows.

Ensuring Responsible Minerals Sourcing

Since Section 1502 on conflict minerals of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) enacted in January 2013, companies listed in American Exchange are required to report on the use of conflict minerals mined in the Democratic Republic of the Congo and its adjoining countries. Toshiba Group is not a listed company, however, as a part of the supply chain of listed companies, investigates and reports to our customers.
Prior to the enactment of the Act, Toshiba Group organized an internal system to address conflict minerals issues, and established the Toshiba Group Conflict Mineral Policy and publicized it on its website in October 2011.
In recent years, however, there has been heightened risk associated with minerals sourcing, affecting not only the Democratic Republic of Congo and adjoining countries but also other conflict-affected and high-risk areas, and extending to child labor and other general human rights violations, as well as corruption and other sources of risk. In September 2020, therefore, we revised our Conflict Mineral Policy and formulated the Responsible Minerals Sourcing Policy.

Toshiba Group Responsible Minerals Sourcing Policy

Toshiba Group has put in place this policy and the provisions below in order to avoid complicity in any conflict in any high-risk area, and in order to prohibit the use of tin, tantalum, tungsten, gold and cobalt whose production is the result of human rights violations, including forced labor and child labor, environmental pollution, corruption, or other abuses.

STEP 1: ESTABLISH STRONG COMPANY MANAGEMENT SYSTEMS

Prior to the enactment of the Act, Toshiba Group organized an internal system to address conflict minerals issues, and established the Toshiba Group Conflict Mineral Policy and publicized it on its website in October 2011.
Headed by the executive in charge of Sustainability, the Corporate Responsible Minerals Sourcing Management Committee, consisting of related corporate divisions, promotes activities in accordance with the Toshiba Group Responsible Minerals Sourcing Policy. Each Group company appoints a person and office in charge of responsible minerals sourcing management, who attend liaison meetings organized by the Corporate Management Committee and make use of information on the in-house website to develop comprehensive initiatives.

STEP 2: IDENTIFY AND ASSESS RISKS IN THE SUPPLY CHAIN

We undertake appropriate supply chain management, in accordance with the provisions of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
We require suppliers to procure minerals from smelters that are compliant with the Responsible Minerals Assurance Process (RMAP) established by the Responsible Materials Initiative (RMI).
We do not refrain from using minerals produced in conflict-affected and high-risk areas, provided that such minerals are sourced in regions that are not involved in conflict, human rights violations, environmental pollution, corruption, or other abuses.
We ask our suppliers to adopt and observe the Toshiba Group Procurement Policy and Responsible Minerals Sourcing Policy, request that they provide us with information on smelters in their supply chain, and engage in dialogue and cooperation with them in order to contribute to reducing and eliminating risk in conflict-affected and high-risk areas.
We conduct surveys of Toshiba Group suppliers to monitor their use of tin, tantalum, tungsten, and gold (3TG) and the smelters they deal with using the Conflict Minerals Reporting Template (CMRT).

STEP 3: DESIGN AND IMPLEMENT A STRATEGY TO RESPOND TO IDENTIFIED RISKS

When a potential risk in the supply chain is identified, we require our supplier to take corrective action, and depending on the outcome we may suspend the transaction or take other measures.

STEP 4: CARRY OUT INDEPENDENT THIRD-PARTY AUDIT OF SMELTER/REFINER’S DUE DILIGENCE PRACTICES

Toshiba, the parent company of Toshiba Tec, participates in meetings and workshops as a member of RMI (Responsible Minerals Initiative) which is promoting an audit.
Toshiba has joined "Responsible Minerals Trade Working Group" in JEITA (Japan Electronics and Information Technology Industries Association) from November, 2011, and promotes cooperation with industry organizations.

STEP 5: REPORT ANNUALLY ON SUPPLY CHAIN DUE DILIGENCE

Toshiba Tec's efforts in "Responsible Minerals Sourcing" are disclosed annually in integrated reports and on the website.
Results of Activities
Toshiba Tec investigate conflict minerals, and provide encouragement in the risk assessment and non-involvement conflicts.
In the results of the conflict minerals investigation in 2022, we received responses from 96% of our suppliers surveyed. Moreover, in conducting the survey, we asked our suppliers to make the supply chain transparent by reducing the number of unknown answers regarding smelter information and to promote efforts in non-involvement conflicts.
As a result of responsible minerals sourcing investigation, we have identified 349 suppliers in the supply chain that RMI has classified as smelters and have confirmed that 233 of their suppliers are RMAP compliant smelters. (As of November 30, 2022)(attached graph of survey results)
No evidence of involvement in the conflict was found in any of the supply chains we investigated.