Responsible Minerals Procurement Policy

Panasonic Energy Co., Ltd. recognizes that the procurement of tin, tantalum, tungsten, gold and cobalt from states in conflict areas and other high-risk areas may inadvertently fund organizations involved in bribery and other unlawful activities, which is a grave concern. Additionally, we are deeply concerned about human rights abuses such as child labor, harsh working conditions, and environmental destruction. In order to fulfill our corporate social responsibility, we promote responsible minerals procurement in the global supply chain.

We are implementing the following activities to promote the responsible minerals procurement.

- We establish an internal control structure and management system for responsible minerals procurement, based on the OECD Due Diligence Guidance.

- We adopt a survey sheet of RMI (Responsible Minerals Initiative), which is the industry standard, and conduct surveys and risk assessments by tracing back through supply chains in cooperation with Tier 1 suppliers.

- If a risk is identified, we develop a corrective plan and implement measures to minimize risk.

- We respond to requests from customers and other stakeholders and report on the risks identified based on evaluation standards and implement corrective measures if necessary.

Through the above-mentioned activities, we identify and procure materials from those smelters/refiners that underwent an audit and received a clean certification.

Director in charge of Procurement
Panasonic Energy Co., Ltd.

Responsible Minerals Procurement Policy

Panasonic Energy Co., Ltd. recognizes that the procurement of tin, tantalum, tungsten, gold and cobalt from states in conflict areas and other high-risk areas may inadvertently fund organizations involved in bribery and other unlawful activities, which is a grave concern. Additionally, we are deeply concerned about human rights abuses such as child labor, harsh working conditions, and environmental destruction. In order to fulfill our corporate social responsibility, we promote responsible minerals procurement in the global supply chain.

We are implementing the following activities to promote the responsible minerals procurement.

- We establish an internal control structure and management system for responsible minerals procurement, based on the OECD Due Diligence Guidance.

- We adopt a survey sheet of RMI (Responsible Minerals Initiative), which is the industry standard, and conduct surveys and risk assessments by tracing back through supply chains in cooperation with Tier 1 suppliers.

- If a risk is identified, we develop a corrective plan and implement measures to minimize risk.

- We respond to requests from customers and other stakeholders and report on the risks identified based on evaluation standards and implement corrective measures if necessary.

Through the above-mentioned activities, we identify and procure materials from those smelters/refiners that underwent an audit and received a clean certification.

Director in charge of Procurement
Panasonic Energy Co., Ltd.

Details of initiatives

The supply chains of minerals, which are the main materials in batteries, pose a variety of CSR risks, such as human rights violations, poor working conditions, environmental destruction around mines, and the involvement of armed groups. In contrast, such supply chains represent an important economic activity for mineral-producing countries, and appropriate due diligence with regard to CSR risks is essential. In accordance with the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas established by the Organization for Economic Co-operation and Development (OECD), we have formulated a responsible mineral procurement policy and are promoting activities. As a member of the Panasonic Group, which is a member of RMI*1 , a global organization that promotes responsible mineral procurement, we identify smelters and confirm their compliance with RMAP*2 every year with the cooperation of our suppliers. In addition to encouraging non-compliant smelters’ participation in RMAP, in the unlikely event that conflict-affected minerals are found, we would ask that they take steps to change suppliers or eliminate the use of such materials. Collecting survey forms from all our suppliers on an ongoing basis, we aim to procure only from conformant/active smelters*3 .

Due to the need to respond sensitively to the changing environment surrounding responsible mineral procurement activities, we have also established a Responsible Minerals Committee, which consists of relevant functions, such as procurement, legal and sales, and hold general meetings on a regular basis. Along with sharing the recognition of environmental changes in collaboration with relevant departments, at the general meetings we are promoting CSR risk responses by reporting, for example, the policy and status of responses to relevant problems and cooperating with related departments.

In fiscal 2024 (as in the previous fiscal year), we held a semi-annual general meeting (twice a year), as shown in the structure on the right, to confirm our policies and goals and to share global trends and results of our activities.

Responsible Mineral Procurement Committee Structure

Structure of the Responsible Minerals Procurement Committee. The committee is headed by a chairperson and includes a secretariat consisting of procurement and legal section, and related organizations such as primary battery-related departments, rechargeable battery cell department, rechargeable battery pack department, raw materials procurement department, and sales department.

Activities Regarding Tantalum, Tin, Tungsten and Gold

ItemData
CMRT*4 collection rate99%
Ratio of conformant/active smelters94.5%

Cobalt and mica related activities

ItemData
EMRT*4 collection rate99%
Ratio of conformant/active smelters61.4%

*1 : RMI: Responsible Minerals Initiative, an organization that provides industry-standard survey tools, etc. for companies to conduct responsible mineral procurement.
*2 : RMAP: Responsible Minerals Assurance Process program stipulated by RMI
*3 : Conformant smelters: Smelters that have been audited to be RMAP compliant
Active smelters: Smelters that are at the preparation stage to be audited
*4 : CMRT, EMRT: RMI-issued conflict minerals survey forms

Details of initiatives

The supply chains of minerals, which are the main materials in batteries, pose a variety of CSR risks, such as human rights violations, poor working conditions, environmental destruction around mines, and the involvement of armed groups. In contrast, such supply chains represent an important economic activity for mineral-producing countries, and appropriate due diligence with regard to CSR risks is essential. In accordance with the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas established by the Organization for Economic Co-operation and Development (OECD), we have formulated a responsible mineral procurement policy and are promoting activities. As a member of the Panasonic Group, which is a member of RMI*1 , a global organization that promotes responsible mineral procurement, we identify smelters and confirm their compliance with RMAP*2 every year with the cooperation of our suppliers. In addition to encouraging non-compliant smelters’ participation in RMAP, in the unlikely event that conflict-affected minerals are found, we would ask that they take steps to change suppliers or eliminate the use of such materials. Collecting survey forms from all our suppliers on an ongoing basis, we aim to procure only from conformant/active smelters*3 .

Due to the need to respond sensitively to the changing environment surrounding responsible mineral procurement activities, we have also established a Responsible Minerals Committee, which consists of relevant functions, such as procurement, legal and sales, and hold general meetings on a regular basis. Along with sharing the recognition of environmental changes in collaboration with relevant departments, at the general meetings we are promoting CSR risk responses by reporting, for example, the policy and status of responses to relevant problems and cooperating with related departments.

In fiscal 2024 (as in the previous fiscal year), we held a semi-annual general meeting (twice a year), as shown in the structure on the right, to confirm our policies and goals and to share global trends and results of our activities.

Responsible Mineral Procurement Committee Structure

Structure of the Responsible Minerals Procurement Committee. The committee is headed by a chairperson and includes a secretariat consisting of procurement and legal section, and related organizations such as primary battery-related departments, rechargeable battery cell department, rechargeable battery pack department, raw materials procurement department, and sales department.

Activities Regarding Tantalum, Tin, Tungsten and Gold

ItemData
CMRT*4 collection rate99%
Ratio of conformant/active smelters94.5%

Cobalt and mica related activities

ItemData
EMRT*4 collection rate99%
Ratio of conformant/active smelters61.4%

*1 : RMI: Responsible Minerals Initiative, an organization that provides industry-standard survey tools, etc. for companies to conduct responsible mineral procurement.
*2 : RMAP: Responsible Minerals Assurance Process program stipulated by RMI
*3 : Conformant smelters: Smelters that have been audited to be RMAP compliant
Active smelters: Smelters that are at the preparation stage to be audited
*4 : CMRT, EMRT: RMI-issued conflict minerals survey forms