Sustainable Procurement

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Conflict Minerals in Epson Products

Epson's policy on conflict minerals

Epson's procurement policies are designed to develop mutually beneficial trusting relationships with our business partners around the world based on the concepts of fairness, coexistence, transparency, and co-prosperity. We have thus committed ourselves to maintaining high ethical standards and a social conscience, and have declared that we will conduct our procurement activities in strict compliance with both the letter and spirit of laws and regulations in every country and region in which we operate.

We consider the conflict mineral problem to be a major issue in terms of socially responsible procurement, and it is our policy not to use conflict minerals, profits from the sale of which are used to fund armed groups that engage in human rights abuses in the Democratic Republic of the Congo (DRC) or adjoining countries.

In line with the foregoing policy, Epson will continue to take the following actions.

  1. Epson requests that its suppliers read and follow its Procurement Guidelines and the Epson Supplier Code of Conduct. We will take additional opportunities to explain and gain understanding of its suppliers about actions it takes to keep conflict minerals out of its products.
  2. Epson is not required to report to the US Securities and Exchange Commission the use of conflict minerals, as defined in the final rules of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). However, Epson is implementing supply chain due diligence by using a standardized reporting tool available from the Conflict-Free Sourcing Initiative (CFSI). If, in the future, a more effective means of carrying out conflict mineral due diligence is established, Epson and its suppliers will adopt it.
  3. To ensure that minerals are procured only from smelters and refiners that have been found to be compliant with the Conflict-Free Smelter (CFS) Program of the CFSI, Epson requests smelters and refiners to obtain proof of compliance via the supply chain.

Main actions up to the 2013 fiscal year

In line with the foregoing policies, Epson took the actions described below to exclude from Epson products conflict minerals connected with human rights abuses.

  • In September 2012 we asked our suppliers to abide by a clause concerning responsible mineral procurement that we added to the Epson Supplier Code of Conduct, which is found in our Procurement Guidelines. We also asked for understanding and cooperation in our responsible mineral procurement efforts at a meeting held on April 10, 2014, to brief suppliers about Epson's procurement policies.
  • As mentioned above, Epson is not required to report to the US Securities and Exchange Commission the use of conflict minerals, as defined in the final rules of Section 1502 of the Dodd-Frank Act. However, we set up a cross-organizational Conflict Minerals Review Committee made up of personnel from all Epson's operations divisions and from the procurement departments of Epson Group companies. Organization and administrative oversight is provided by the Seiko Epson Head Office department that supervises socially responsible procurement. Under the direction of the Committee, Epson has switched from a passive to a proactive approach to conflict mineral surveys.
  • We conducted conflict mineral surveys using the CFSI template for products (one model or multiple models) in every business of every business segment in the 2013 fiscal year. However, although we did our due diligence and analyzed the answers provided by suppliers, issues with some suppliers' answers made it impossible to determine whether minerals were procured from sources not engaged in conflict.

Actions for the 2014 fiscal year

We found that there was room for improvement in the 2013 survey in terms of answers to survey questions. We will continue to seek the cooperation of suppliers who did not participate in the survey. We will also ask suppliers who did participate in the survey to improve the accuracy of answers and increase the rate at which smelters/refiners are identified. Going forward we will continue our efforts to deepen ties with our suppliers and increase the transparency of the supply chain. In the 2014 fiscal year we will conduct surveys over an expanded range of products. From 2014 onward Epson's Conflict Minerals Review Committee will establish action plans for Epson and continue our effects to exclude conflict minerals connected with human rights abuses from Epson products.