Sustainable Procurement

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Conflict Minerals in Epson Products

Epson's Policy response to Conflict Minerals

Epson's procurement policies are aimed at developing mutually beneficial trusting relationships with its business partners around the world based on the concepts of fairness, coexistence, transparency, and co-prosperity. Epson has committed itself to maintaining high ethical standards and a social conscience, and has declared that it will conduct procurement in strict compliance with both the letter and the spirit of laws and regulations in every country and region in which it operates.

Epson considers the conflict mineral issue to be important in terms of socially responsible procurement. Consequently, we do not use conflict minerals, as they are tied to human rights abuses, environmental destruction, and the funding of armed groups in the Democratic Republic of the Congo (DRC) and adjoining countries.

Epson will be taking the following actions to exclude conflict minerals from Epson products.

  1. We ask our suppliers to understand and follow the Procurement Guidelines and the Epson Supplier Code of Conduct. We take various opportunities to explain and gain their understanding with regard to actions we take to ensure that our products do not contain conflict minerals.
  2. Epson is not required to report to the US Securities and Exchange Commission about 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, we do survey our supply chain using the tool provided by the Conflict-Free Sourcing Initiative (CFSI), a group that is working with enterprises to promote responsible mineral procurement. If, in the future, a more effective means of carrying out due diligence on conflict minerals is established, we will adopt it and ask our suppliers to do so as well.
  3. Epson requests the suppliers throughout its supply chain to produce evidence of compliance 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.

Main Initiatives to Date

  • In September 2012, we requested our suppliers to abide by our rules concerning responsible mineral procurement that we added to the Epson Supplier Code of Conduct, which is included in our Procurement Guidelines.
  • In September 2013, we set up a cross-organizational Conflict Minerals Review Committee consisting of personnel from all Epson's operations divisions and the procurement departments of Epson Group companies. Organization and administrative oversight is provided by the 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.
  • In the 2013 fiscal year, we conducted conflict mineral surveys using the CFSI template for the main products in every business segment.
  • In the 2014 fiscal year, we expanded the coverage of the conflict mineral surveys to all production material suppliers - approximately 950 companies around the globe - and received a 96% response.
  • In the 2015 fiscal year, we requested additional surveys from 537 companies that reported that they could not identify refining companies, and conducted new surveys among 187 suppliers including 724 companies in total, receiving a 99% response.
  • In April 2016, we held another Procurement Policy Orientation at which we once again asked suppliers to understand and cooperate in our responsible mineral procurement efforts.
Supply Chain Overview and Epson's Survey

Initiatives from 2016

We will continue our efforts to achieve our target of identifying every refining company whose materials are contained in our products by March 2018. We will also improve our survey contents to enhance detecting capability, and carefully analyze our survey results. We will also communicate and cooperate more closely with our suppliers, improve survey accuracy and the rate of identifying refining companies, and supply chain transparency.