EX-1.01 2 d195950dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Canon Inc.

Conflict Minerals Report

For the Period from January 1, 2015 to December 31, 2015

This Conflict Minerals Report for the period from January 1, 2015 to December 31, 2015, is presented as an exhibit to the Specialized Disclosure Report on Form SD, to comply with Rule 13p-1 under the Securities Exchange Act of 1934.

 

1. Introduction (Background to the disclosure of the Conflict Minerals Report)

Established in 1937, Canon Inc. is a Japanese corporation with its headquarters in Tokyo, Japan. Canon Inc. is one of the world’s leading manufacturers of plain paper copying machines, office multifunction devices (“MFDs”), laser printers, cameras, inkjet printers, semiconductor lithography equipment and flat panel display (“FPD”) lithography equipment. Canon Inc. earns revenues primarily from the manufacture and sale of these products domestically and internationally. For details of corporate activities please refer to our annual report filed on Form 20-F.

Canon Inc. is listed on the New York Stock Exchange and is subject to the final rules issued by the United States Securities and Exchange Commission (“SEC”) to implement Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).

In response to Rule 13p-1, Canon Inc. conducted a “Reasonable Country of Origin Inquiry” (“RCOI”) for products manufactured or contracted to manufacture by Canon Inc. and its consolidated subsidiaries (“Canon” or “Canon Group”) from January 1, 2015 to December 31, 2015 (“reporting period”). The inquiry identified four minerals classified as conflict minerals—namely tin, tantalum, tungsten, and gold (“3TG”)—that originated in the Democratic Republic of the Congo and adjoining countries (“covered countries”) and did not come from recycled or scrap minerals, that are used in some of the parts or materials that make up Canon Group’s products. Further, Canon Inc. conducted due diligence on the source and chain of custody of 3TG (“due diligence”) identified as originating from covered countries.

 

1


2. Application of Conflict Minerals Report on Canon and products subject to disclosure

As of December 31, 2015, Canon Inc. had 317 consolidated subsidiaries, of which 55 subsidiaries manufactured products or contracted to manufacture products in the reporting period for which 3TG were necessary to the functionality and production. In total, 56 companies of the Canon Group, including Canon Inc., conducted the RCOI. The subsidiaries that conducted the RCOI include certain marketing companies that contracted with manufacturers outside the Canon Group to manufacture items for sale outside the Canon Group.

The business operations of Canon can be divided into the following three categories: the Office Business Unit, the Imaging System Business Unit, and the Industry and Others Business Unit. The Office Business Unit includes office MFDs, laser multifunction printers and digital production printing systems. The Imaging System Business Unit includes interchangeable lens digital cameras, digital compact cameras, digital camcorders, digital cinema cameras, inkjet printers and large-format inkjet printers. The Industry and Others Business Unit includes semiconductor lithography equipment, FPD lithography equipment, digital radiography systems, network cameras and handy terminals.

In each of these units, electronic components and substrates which contain 3TG are used in the majority of products manufactured by or contracted to manufacture by Canon.

Canon Group purchases raw materials, parts and components which include 3TG and manufactures products. Canon Group is located downstream in the 3TG supply chain, does not directly purchase 3TG from mines and is not involved in the smelter or refinery business. Therefore, Canon Group had to rely on information provided by the first-tier suppliers to the Canon Group (“first-tier suppliers”) in identifying the source country of the 3TG.

 

3. Basic principles regarding response to conflict minerals

Canon Inc. established the “Basic Approach of the Canon Group Regarding Conflict Minerals” in September 2012. This has been published on Canon Inc.’s official website and applied to the entire Canon Group.

URL: http://www.canon.com/csr/conflict/policy.html

 

2


4. RCOI and Due Diligence

The design of Canon Inc.’s RCOI and due diligence measures is in conformity with the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (second edition)” (“OECD Guidance”). Canon took the steps described below in accordance with the five steps laid out in the OECD Guidance.

 

  a. Step 1: Establish strong company management systems
  - In order to respond to the conflict minerals situation, Canon established a cross-functional Conflict Minerals Response Project Team (“Project Team”) in its headquarters under the direction of a representative director in charge (Executive Vice President & CFO) in December 2010. Moreover, Canon designated a person in charge of conflict minerals in each of its group companies that manufacture or contract to manufacture products. In October 2015, Canon reorganized the Project Team into the Conflict Mineral Response Working Group (“Working Group”).
  - As stated above, Canon Inc. established the “Basic Approach of the Canon Group Regarding Conflict Minerals” in September 2012.
  - In July 2015, Canon Inc. summoned the persons in charge of conflict minerals for Canon Group’s domestic subsidiaries that manufacture or contract to manufacture products and held a meeting to share the result of the 2014 conflict minerals survey and discuss Canon’s policies in the survey of 2015. Moreover, for the persons in charge of conflict minerals for overseas subsidiaries, Canon Inc. shared the information by e-mail, video and telephone conference.
  - Canon created and distributed the Conflict Minerals Survey Manual to the first-tier suppliers.
  - Canon requested the first-tier suppliers to sign and submit written confirmation (“Letter of Agreement”) of their understanding of Canon’s “Basic Approach of the Canon Group Regarding Conflict Minerals” and their agreement to cooperate with the survey and to consult with the Canon Group concerning appropriate measures should any affiliation with armed groups be discovered in the supply chain.
  - Using its Conflict Minerals Information Management System, Canon Inc. linked survey responses to product information, conducted product-level assessments, and stored the assessment results in a database. Internal rules require that data records be retained for at least five years.

 

3


  - Canon Inc. is a member of the Responsible Minerals Trade Working Group (“RMTWG”) of the Japan Electronics and Information Technology Industries Association (“JEITA”). As part of its initiatives, the RMTWG held conflict minerals inquiry briefings for suppliers in supply chains in the electrical and electronics industry. Step 3 below provides details of the industry initiatives on conflict minerals that Canon Inc. participates in.
  - As an early-warning risk-awareness system for conflict minerals specified in the OECD Guidance, Canon Inc. established a grievance mechanism — “Contact Point for Reporting Concerns Regarding Conflict Mineral Issues” — on its official website in 2015. No reports from employees, suppliers, or other stakeholders were received by the contact point in 2015.

URL: https://secure1.canon.com/ssl-form/csr_conflict-form-e.html

  - In 2015, Canon Inc. organized its activities on conflict minerals dating back to 2010 and reviewed the departments and frameworks responsible for the Canon Group’s handling conflict minerals responses.

 

  b. Step 2: Identify and assess risk in the supply chain
  - Canon designed a framework to identify each of the parts and materials used in the products that it manufactured or contracted to manufacture. Canon used its budget control system for procurement to identify the parts and materials, based on the actual purchase records and estimated purchase budget. Then, Canon carried out the RCOI on the first-tier suppliers. To ascertain the conflict minerals status of each Canon Group product, Canon requested first-tier suppliers to provide information at the part or material level instead of information tabulated for each supplier.
  - For the RCOI, Canon used the CFSI Conflict Minerals Reporting Template (“CMRT”). The CMRT is published by the Conflict Free Sourcing Initiative (“CFSI”), one of the programs of the Electronic Industry Citizenship Coalition (“EICC”). The number of the first-tier suppliers which may use 3TG and to which the CMRT was sent amounted to 3,307.
  - In addition to the RCOI described above, Canon conducted due diligence examinations of first-tier suppliers that reported the use of 3TG originating from covered countries.
  - Canon requested replies from the first-tier suppliers who did not respond by the closing date of the response.
  - As of March 18, 2016, Canon had received responses from 81 percent of all first-tier suppliers surveyed.

 

4


  - Canon compared the smelters or refiners (“SORs”) identified through the RCOI against the list of the SORs which are compliant with the Conflict Free Smelter Program (“CFS Program”), as published by the CFSI. The CFS Program recognizes and includes SORs from other lists such as the London Bullion Market Association (LBMA) and the Responsible Jewellery Council (RJC).

 

  c. Step 3: Design and implement a strategy to respond to identified risks
  - The head of the Working Group reported the progress of conflict minerals response activities to the representative director in charge. Moreover, the Working Group reported annually on its progress to relevant directors of Canon Inc. and to the presidents of the relevant domestic and overseas subsidiaries.
  - Canon Inc. is a key member of JEITA’s RMTWG. The RMTWG is allied with EICC and CFSI, which play the leading role in the response to conflict minerals. Canon Inc. has held the role of co-chair of the RMTWG since 2013. Canon Inc. has also served as team leader of the RMTWG’s Smelter Support Team since 2015. In this capacity, Canon Inc., along with the other 16 companies in the RMTWG, created a plan in 2015 to send letters to SORs encouraging them to join the CFSI’s CFS Program and began executing the plan in January 2016.
  - Canon Inc. participates in the Japan Conflict-Free Sourcing Working Group (CFSWG), a joint initiative by JEITA’s RMTWG and major Japanese automobile manufacturers, and serves as the CFSWG vice-chair. The CFSWG met seven times in 2015 to examine creating conditions to better facilitate conflict minerals surveys by supply chains in the electrical and electronics industry and the automobile industry.
  - In addition to the above activities, Canon Inc. formally joined the CFSI membership in April 2015. Its membership code is “CNON.” Canon Inc. assists CFSI activities as a corporate member of CFSI.

 

  d. Step 4: Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain
  - As a CFSI member, Canon Inc. supports audits under the CFS Program carried out by CFSI on SORs.
  - The CFSWG, as part of its activities, held a briefing session with twelve Japanese gold refineries and recommended that they join the CFS Program.

 

5


  e. Step 5: Report on supply chain due diligence
  - In accordance with the Dodd-Frank Act and the SEC’s final rules, on or before May 31, 2016, Canon Inc. plans to file a Form SD and Conflict Minerals Report (this report) with the SEC, and plans to publish the same information on its official website.
  - Canon Inc. has been reporting its activities in response to conflict minerals in its Annual Report and Sustainability Report since 2011.

 

5. Survey results for the 2015 calendar year

 

  a. Result of RCOI and due diligence
  - Canon conducted the RCOI on 3,307 first-tier suppliers that possibly use 3TG. Canon conducted further due diligence on first-tier suppliers which reported the use of 3TG from the covered countries.
  - In cases where 3TG originating from covered countries were used, Canon received some responses indicating the minerals in question had been sourced from SORs that comply with the CFS Program.
  - Within the scope of the responses, there was nothing to clearly suggest that the Canon Group’s purchasing of parts and materials contributed to funding armed groups.

 

  b. Result of SORs survey
  - Canon analyzed the information on the SORs mentioned in the responses from the supply chain through the RCOI and identified 305 as the CFSI’s known SORs. Among these, 214 SORs were compliant with the CFS Program. Appendix 1-(1) and 1-(2) provide lists of these SORs.
  - Canon was unable to determine whether the remaining entities reported by the first-tier suppliers as SORs were truly SORs.
  - Due to inadequate information from its supply chains, Canon was unable to determine the country or region of origin of many 3TG used in Canon Group products.
  - Appendix 1-(3) lists examples of 3TG countries and regions of origin first-tier suppliers reported to Canon through CMRT responses.
  - Based on the results of the RCOI and due diligence mentioned above, Canon was unable to determine whether the 3TG used for the products of the Canon Group financed or benefitted armed groups in the covered countries.

 

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6. Efforts to determine the mine or location of origin of 3TG with the greatest possible specificity and risk mitigation

The following efforts to determine the mine or location of origin of 3TG with the greatest possible specificity are planned to be implemented from 2016 onwards.

  - In accordance with the conflict minerals risk identification and response policies specified in Canon Inc.’s Guidelines for Compliance with Conflict Minerals Regulations, Canon will conduct risk analyses of first-tier suppliers. Procurement departments at Canon Inc. and Canon Group companies will take the lead in verifying the status of high-risk suppliers and improving the accuracy of the conflict minerals survey.
  - Canon Inc. will continue its participation at JEITA’s RMTWG, CFSWG and CFSI, and support activities to make entire supply chains conflict free.

 

7. Independent monitoring
  - KPMG AZSA Sustainability Co., Ltd. conducted an independent private sector audit of this report. The audit assessed whether the due diligence framework Canon designed conforms to the OECD Guidance’s due diligence framework and whether the due diligence description in this report is consistent with the actual measures Canon undertook. The independent assurance report is attached in Appendix 2.

Forward-Looking Statements

This report contains not only past and present facts about Canon, but also future forecasts based on plans, prospects, management policies and strategies as of the publication date. These future forecasts are assumptions or estimations based on information available at the time the report was prepared. Due to a range of variables, however, the results or circumstances of our future business activities may vary from the forecasts contained herein.

 

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Appendix 1

 

1. List of the SORs identified in Canon’s supply chain which were compliant with CFS Program (As of March 15, 2016)

 

     

Metal    

 

  

SOR

 

  

Country/Region

 

 

Gold

 

  

 

Western Australian Mint trading as The Perth Mint

 

  

 

AUSTRALIA

 

 

Gold

 

  

 

Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH

 

  

 

AUSTRIA

 

 

Gold

 

  

 

Umicore SA Business Unit Precious Metals Refining

 

  

 

BELGIUM

 

 

Gold

 

  

 

AngloGold Ashanti Córrego do Sítio Mineração

 

  

 

BRAZIL

 

 

Gold

 

  

 

Umicore Brasil Ltda.

 

  

 

BRAZIL

 

 

Gold

 

  

 

Asahi Refining Canada Limited

 

  

 

CANADA

 

 

Gold

 

  

 

CCR Refinery - Glencore Canada Corporation

 

  

 

CANADA

 

 

Gold

 

  

 

Royal Canadian Mint

 

  

 

CANADA

 

 

Gold

 

  

 

Heraeus Ltd. Hong Kong

 

  

 

CHINA

 

 

Gold

 

  

 

Jiangxi Copper Company Limited

 

  

 

CHINA

 

 

Gold

 

  

 

Metalor Technologies (Hong Kong) Ltd.

 

  

 

CHINA

 

 

Gold

 

  

 

Shandong Zhaojin Gold & Silver Refinery Co., Ltd.

 

  

 

CHINA

 

 

Gold

 

  

 

Sichuan Tianze Precious Metals Co., Ltd.

 

  

 

CHINA

 

 

Gold

 

  

 

The Refinery of Shandong Gold Mining Co., Ltd.

 

  

 

CHINA

 

 

Gold

 

  

 

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

 

  

 

CHINA

 

 

Gold

 

  

 

Zijin Mining Group Co., Ltd. Gold Refinery

 

  

 

CHINA

 

 

Gold

 

  

 

Allgemeine Gold-und Silberscheideanstalt A.G.

 

  

 

GERMANY

 

 

Gold

 

  

 

Aurubis AG

 

  

 

GERMANY

 

 

Gold

 

  

 

C. Hafner GmbH + Co. KG

 

  

 

GERMANY

 

 

Gold

 

  

 

DODUCO GmbH

 

  

 

GERMANY

 

 

Gold

 

  

 

Heimerle + Meule GmbH

 

  

 

GERMANY

 

 

Gold

 

  

 

Heraeus Precious Metals GmbH & Co. KG

 

  

 

GERMANY

 

 

Gold

 

  

 

MMTC-PAMP India Pvt., Ltd.

 

  

 

INDIA

 

 

Gold

 

  

 

PT Aneka Tambang (Persero) Tbk

 

  

 

INDONESIA

 

 

Gold

 

  

 

Chimet S.p.A.

 

  

 

ITALY

 

 

Gold

 

  

 

T.C.A S.p.A

 

  

 

ITALY

 

 

Gold

 

  

 

Aida Chemical Industries Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Asahi Pretec Corporation

 

  

 

JAPAN

 

 

Gold

 

  

 

Asaka Riken Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Dowa

 

  

 

JAPAN

 

 

8


 

Gold

 

  

 

Eco-System Recycling Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Ishifuku Metal Industry Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Japan Mint

 

  

 

JAPAN

 

 

Gold

 

  

 

JX Nippon Mining & Metals Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Kojima Chemicals Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Matsuda Sangyo Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Mitsubishi Materials Corporation

 

  

 

JAPAN

 

 

Gold

 

  

 

Mitsui Mining and Smelting Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Nihon Material Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Ohura Precious Metal Industry Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Sumitomo Metal Mining Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Tanaka Kikinzoku Kogyo K.K.

 

  

 

JAPAN

 

 

Gold

 

  

 

Tokuriki Honten Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Yamamoto Precious Metal Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Yokohama Metal Co., Ltd.

 

  

 

JAPAN

 

 

Gold

 

  

 

Kazzinc

 

  

 

KAZAKHSTAN

 

 

Gold

 

  

 

LS-NIKKO Copper Inc.

 

  

 

KOREA, REPUBLIC OF

 

 

Gold

 

  

 

METALÚRGICA MET-MEX PEÑOLES, S.A. DE C.V

 

  

 

MEXICO

 

 

Gold

 

  

 

Schone Edelmetaal B.V.

 

  

 

NETHERLANDS

 

 

Gold

 

  

 

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

 

  

 

PHILIPPINES

 

 

Gold

 

  

 

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

JSC Uralelectromed

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

Moscow Special Alloys Processing Plant

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

OJSC Novosibirsk Refinery

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

Prioksky Plant of Non-Ferrous Metals

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

SOE Shyolkovsky Factory of Secondary Precious Metals

 

  

 

RUSSIAN FEDERATION

 

 

Gold

 

  

 

Metalor Technologies (Singapore) Pte., Ltd.

 

  

 

SINGAPORE

 

 

Gold

 

  

 

Rand Refinery (Pty) Ltd.

 

  

 

SOUTH AFRICA

 

 

Gold

 

  

 

SEMPSA Joyería Platería SA

 

  

 

SPAIN

 

 

Gold

 

  

 

Boliden AB

 

  

 

SWEDEN

 

 

Gold

 

  

 

Argor-Heraeus SA

 

  

 

SWITZERLAND

 

 

Gold

 

  

 

Metalor Technologies SA

 

  

 

SWITZERLAND

 

 

Gold

 

  

 

PAMP SA

 

  

 

SWITZERLAND

 

 

9


 

Gold

 

  

PX Précinox SA

 

  

SWITZERLAND

 

Gold

 

  

Valcambi SA

 

  

SWITZERLAND

 

 

Gold

 

  

Singway Technology Co., Ltd.

 

  

TAIWAN

 

 

Gold

 

  

Solar Applied Materials Technology Corp.

 

  

TAIWAN

 

 

Gold

 

  

Umicore Precious Metals Thailand

 

  

THAILAND

 

 

Gold

 

  

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

 

  

TURKEY

 

 

Gold

 

  

Istanbul Gold Refinery

 

  

TURKEY

 

 

Gold

 

  

Nadir Metal Rafineri San. Ve Tic. A.Ş.

 

  

TURKEY

 

 

Gold

 

  

Emirates Gold DMCC

 

  

UNITED ARAB EMIRATES

 

 

Gold

 

  

Asahi Refining USA Inc.

 

  

UNITED STATES

 

 

Gold

 

  

Elemetal Refining, LLC

 

  

UNITED STATES

 

 

Gold

 

  

Kennecott Utah Copper LLC

 

  

UNITED STATES

 

 

Gold

 

  

Materion

 

  

UNITED STATES

 

 

Gold

 

  

Metalor USA Refining Corporation

 

  

UNITED STATES

 

 

Gold

 

  

Republic Metals Corporation

 

  

UNITED STATES

 

 

Gold

 

  

United Precious Metal Refining, Inc.

 

  

UNITED STATES

 

 

Tantalum

 

  

Plansee SE Liezen

 

  

AUSTRIA

 

 

Tantalum

 

  

Plansee SE Reutte

 

  

AUSTRIA

 

 

Tantalum

 

  

LSM Brasil S.A.

 

  

BRAZIL

 

 

Tantalum

 

  

Mineração Taboca S.A.

 

  

BRAZIL

 

 

Tantalum

 

  

Resind Indústria e Comércio Ltda.

 

  

BRAZIL

 

 

Tantalum

 

  

Changsha South Tantalum Niobium Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Conghua Tantalum and Niobium Smeltry

 

  

CHINA

 

 

Tantalum

 

  

Duoluoshan

 

  

CHINA

 

 

Tantalum

 

  

F&X Electro-Materials Ltd.

 

  

CHINA

 

 

Tantalum

 

  

FIR Metals & Resource Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Guangdong Zhiyuan New Material Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Hengyang King Xing Lifeng New Materials Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Jiangxi Dinghai Tantalum & Niobium Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

JiuJiang JinXin Nonferrous Metals Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Jiujiang Tanbre Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Jiujiang Zhongao Tantalum & Niobium Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

King-Tan Tantalum Industry Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Ningxia Orient Tantalum Industry Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

RFH Tantalum Smeltry Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

XinXing HaoRong Electronic Material Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Yichun Jin Yang Rare Metal Co., Ltd.

 

  

CHINA

 

 

Tantalum

 

  

Zhuzhou Cemented Carbide

 

  

CHINA

 

 

10


 

Tantalum

 

  

Molycorp Silmet A.S.

 

  

ESTONIA

 

 

Tantalum

 

  

H.C. Starck GmbH Goslar

 

  

GERMANY

 

 

Tantalum

 

  

H.C. Starck GmbH Laufenburg

 

  

GERMANY

 

 

Tantalum

 

  

H.C. Starck Hermsdorf GmbH

 

  

GERMANY

 

 

Tantalum

 

  

H.C. Starck Smelting GmbH & Co.KG

 

  

GERMANY

 

 

Tantalum

 

  

Metallurgical Products India Pvt., Ltd.

 

  

INDIA

 

 

Tantalum

 

  

Global Advanced Metals Aizu

 

  

JAPAN

 

 

Tantalum

 

  

H.C. Starck Ltd.

 

  

JAPAN

 

 

Tantalum

 

  

Mitsui Mining & Smelting

 

  

JAPAN

 

 

Tantalum

 

  

Taki Chemicals

 

  

JAPAN

 

 

Tantalum

 

  

Ulba Metallurgical Plant JSC

 

  

KAZAKHSTAN

 

 

Tantalum

 

  

KEMET Blue Metals

 

  

MEXICO

 

 

Tantalum

 

  

Solikamsk Magnesium Works OAO

 

  

RUSSIAN FEDERATION

 

 

Tantalum

 

  

H.C. Starck Co., Ltd.

 

  

THAILAND

 

 

Tantalum

 

  

D Block Metals, LLC

 

  

UNITED STATES

 

 

Tantalum

 

  

Exotech Inc.

 

  

UNITED STATES

 

 

Tantalum

 

  

Global Advanced Metals Boyertown

 

  

UNITED STATES

 

 

Tantalum

 

  

H.C. Starck Inc.

 

  

UNITED STATES

 

 

Tantalum

 

  

Hi-Temp Specialty Metals, Inc.

 

  

UNITED STATES

 

 

Tantalum

 

  

KEMET Blue Powder

 

  

UNITED STATES

 

 

Tantalum

 

  

QuantumClean

 

  

UNITED STATES

 

 

Tantalum

 

  

Telex Metals

 

  

UNITED STATES

 

 

Tantalum

 

  

Tranzact, Inc.

 

  

UNITED STATES

 

 

Tin

 

  

Metallo-Chimique N.V.

 

  

BELGIUM

 

 

Tin

 

  

EM Vinto

 

  

BOLIVIA

 

 

Tin

 

  

Operaciones Metalurgical S.A.

 

  

BOLIVIA

 

 

Tin

 

  

Cooperativa Metalurgica de Rondônia Ltda.

 

  

BRAZIL

 

 

Tin

 

  

Magnu’s Minerais Metais e Ligas Ltda.

 

  

BRAZIL

 

 

Tin

 

  

Melt Metais e Ligas S/A

 

  

BRAZIL

 

 

Tin

 

  

Mineração Taboca S.A.

 

  

BRAZIL

 

 

Tin

 

  

Resind Indústria e Comércio Ltda.

 

  

BRAZIL

 

 

Tin

 

  

Soft Metais Ltda.

 

  

BRAZIL

 

 

Tin

 

  

White Solder Metalurgia e Mineração Ltda.

 

  

BRAZIL

 

 

Tin

 

  

China Tin Group Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Gejiu Non-Ferrous Metal Processing Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Jiangxi Ketai Advanced Material Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Yunnan Tin Group (Holding) Company Limited

 

  

CHINA

 

 

Tin

 

  

CV Ayi Jaya

 

  

INDONESIA

 

 

Tin

 

  

CV Gita Pesona

 

  

INDONESIA

 

 

11


 

Tin

 

  

CV Serumpun Sebalai

 

  

INDONESIA

 

 

Tin

 

  

CV United Smelting

 

  

INDONESIA

 

 

Tin

 

  

CV Venus Inti Perkasa

 

  

INDONESIA

 

 

Tin

 

  

PT Aries Kencana Sejahtera

 

  

INDONESIA

 

 

Tin

 

  

PT Artha Cipta Langgeng

 

  

INDONESIA

 

 

Tin

 

  

PT ATD Makmur Mandiri Jaya

 

  

INDONESIA

 

 

Tin

 

  

PT Babel Inti Perkasa

 

  

INDONESIA

 

 

Tin

 

  

PT Bangka Prima Tin

 

  

INDONESIA

 

 

Tin

 

  

PT Bangka Tin Industry

 

  

INDONESIA

 

 

Tin

 

  

PT Belitung Industri Sejahtera

 

  

INDONESIA

 

 

Tin

 

  

PT BilliTin Makmur Lestari

 

  

INDONESIA

 

 

Tin

 

  

PT Bukit Timah

 

  

INDONESIA

 

 

Tin

 

  

PT Cipta Persada Mulia

 

  

INDONESIA

 

 

Tin

 

  

PT DS Jaya Abadi

 

  

INDONESIA

 

 

Tin

 

  

PT Eunindo Usaha Mandiri

 

  

INDONESIA

 

 

Tin

 

  

PT Inti Stania Prima

 

  

INDONESIA

 

 

Tin

 

  

PT Justindo

 

  

INDONESIA

 

 

Tin

 

  

PT Mitra Stania Prima

 

  

INDONESIA

 

 

Tin

 

  

PT Panca Mega Persada

 

  

INDONESIA

 

 

Tin

 

  

PT Prima Timah Utama

 

  

INDONESIA

 

 

Tin

 

  

PT Refined Bangka Tin

 

  

INDONESIA

 

 

Tin

 

  

PT Sariwiguna Binasentosa

 

  

INDONESIA

 

 

Tin

 

  

PT Stanindo Inti Perkasa

 

  

INDONESIA

 

 

Tin

 

  

PT Sukses Inti Makmur

 

  

INDONESIA

 

 

Tin

 

  

PT Sumber Jaya Indah

 

  

INDONESIA

 

 

Tin

 

  

PT Timah (Persero) Tbk Kundur

 

  

INDONESIA

 

 

Tin

 

  

PT Timah (Persero) Tbk Mentok

 

  

INDONESIA

 

 

Tin

 

  

PT Tinindo Inter Nusa

 

  

INDONESIA

 

 

Tin

 

  

PT Tommy Utama

 

  

INDONESIA

 

 

Tin

 

  

PT Wahana Perkit Jaya

 

  

INDONESIA

 

 

Tin

 

  

Dowa

 

  

JAPAN

 

 

Tin

 

  

Mitsubishi Materials Corporation

 

  

JAPAN

 

 

Tin

 

  

Malaysia Smelting Corporation (MSC)

 

  

MALAYSIA

 

 

Tin

 

  

Minsur

 

  

PERU

 

 

Tin

 

  

O.M. Manufacturing Philippines, Inc.

 

  

PHILIPPINES

 

 

Tin

 

  

Fenix Metals

 

  

POLAND

 

 

Tin

 

  

FSE Novosibirsk Refinery

 

  

RUSSIAN FEDERATION

 

 

Tin

 

  

Elmet S.L.U. (Metallo Group)

 

  

SPAIN

 

 

Tin

 

  

Rui Da Hung

 

  

TAIWAN

 

 

12


 

Tin

 

  

O.M. Manufacturing (Thailand) Co., Ltd.

 

  

THAILAND

 

 

Tin

 

  

Thaisarco

 

  

THAILAND

 

 

Tin

 

  

Alpha

 

  

UNITED STATES

 

 

Tin

 

  

Metallic Resources, Inc.

 

  

UNITED STATES

 

 

Tin

 

  

VQB Mineral and Trading Group JSC

 

  

VIET NAM

 

 

Tungsten

 

  

Wolfram Bergbau und Hütten AG

 

  

AUSTRIA

 

 

Tungsten

 

  

Chenzhou Diamond Tungsten Products Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Chongyi Zhangyuan Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Fujian Jinxin Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganzhou Huaxing Tungsten Products Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganzhou Jiangwu Ferrotungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganzhou Seadragon W & Mo Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganzhou Yatai Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Guangdong Xianglu Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Hunan Chenzhou Mining Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Hunan Chunchang Nonferrous Metals Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Gan Bei Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Malipo Haiyu Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Xiamen Tungsten (H.C.) Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Xiamen Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Xinhai Rendan Shaoguan Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

H.C. Starck GmbH

 

  

GERMANY

 

 

Tungsten

 

  

H.C. Starck Smelting GmbH & Co.KG

 

  

GERMANY

 

 

Tungsten

 

  

A.L.M.T. TUNGSTEN Corp.

 

  

JAPAN

 

 

Tungsten

 

  

Japan New Metals Co., Ltd.

 

  

JAPAN

 

 

Tungsten

 

  

Hydrometallurg, JSC

 

  

RUSSIAN FEDERATION

 

 

Tungsten

 

  

Global Tungsten & Powders Corp.

 

  

UNITED STATES

 

 

Tungsten

 

  

Kennametal Huntsville

 

  

UNITED STATES

 

 

Tungsten

 

  

Niagara Refining LLC

 

  

UNITED STATES

 

 

Tungsten

 

  

Asia Tungsten Products Vietnam Ltd.

 

  

VIET NAM

 

 

Tungsten

 

  

Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC

 

  

VIET NAM

 

 

Tungsten

 

  

Tejing (Vietnam) Tungsten Co., Ltd.

 

  

VIET NAM

 

 

Tungsten

 

  

Vietnam Youngsun Tungsten Industry Co., Ltd.

 

  

VIET NAM

 

 

13


2. List of the SORs identified in Canon’s supply chain which were known by CFSI but do not appear on CFS compliant SORs list (CFS compliant SORs listed above were not included) (As of March 15, 2016)

 

     

Metal    

 

  

SOR

 

  

Country/Region

 

 

Gold

 

  

Daye Non-Ferrous Metals Mining Ltd.

 

  

CHINA

 

 

Gold

 

  

Gansu Seemine Material Hi-Tech Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Great Wall Precious Metals Co., Ltd. of CBPM

 

  

CHINA

 

 

Gold

 

  

Guangdong Jinding Gold Limited

 

  

CHINA

 

 

Gold

 

  

Guoda Safina High-Tech Environmental Refinery Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Hangzhou Fuchunjiang Smelting Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Hunan Chenzhou Mining Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited

 

  

CHINA

 

 

Gold

 

  

Lingbao Gold Company Limited

 

  

CHINA

 

 

Gold

 

  

Lingbao Jinyuan Tonghui Refinery Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Luoyang Zijin Yinhui Gold Refinery Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Metalor Technologies (Suzhou) Ltd.

 

  

CHINA

 

 

Gold

 

  

Penglai Penggang Gold Industry Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Shandong Tiancheng Biological Gold Industrial Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Tongling Nonferrous Metals Group Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Yunnan Copper Industry Co., Ltd.

 

  

CHINA

 

 

Gold

 

  

Bauer Walser AG

 

  

GERMANY

 

 

Gold

 

  

SAXONIA Edelmetalle GmbH

 

  

GERMANY

 

 

Gold

 

  

WIELAND Edelmetalle GmbH

 

  

GERMANY

 

 

Gold

 

  

Faggi Enrico S.p.A.

 

  

ITALY

 

 

Gold

 

  

Chugai Mining

 

  

JAPAN

 

 

Gold

 

  

Aktyubinsk Copper Company TOO

 

  

KAZAKHSTAN

 

 

Gold

 

  

Kazakhmys Smelting LLC

 

  

KAZAKHSTAN

 

 

Gold

 

  

Daejin Indus Co., Ltd.

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

DSC (Do Sung Corporation)

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Hwasung CJ Co., Ltd.

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Korea Metal Co., Ltd.

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Korea Zinc Co. Ltd.

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Samduck Precious Metals

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

SAMWON Metals Corp.

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Torecom

 

  

KOREA, REPUBLIC OF

 

 

Gold

 

  

Kyrgyzaltyn JSC

 

  

KYRGYZSTAN

 

 

14


 

Gold

 

  

Metahub Industries Sdn. Bhd.

 

  

MALAYSIA

 

 

Gold

 

  

Caridad

 

  

MEXICO

 

 

Gold

 

  

Morris and Watson

 

  

NEW ZEALAND

 

 

Gold

 

  

KGHM Polska Miedź Spółka Akcyjna

 

  

POLAND

 

 

Gold

 

  

OJSC Kolyma Refinery

 

  

RUSSIAN FEDERATION

 

 

Gold

 

  

L’ azurde Company For Jewelry

 

  

SAUDI ARABIA

 

 

Gold

 

  

Sudan Gold Refinery

 

  

SUDAN

 

 

Gold

 

  

Cendres + Métaux SA

 

  

SWITZERLAND

 

 

Gold

 

  

Al Etihad Gold Refinery DMCC

 

  

UNITED ARAB EMIRATES

 

 

Gold

 

  

Kaloti Precious Metals

 

  

UNITED ARAB EMIRATES

 

 

Gold

 

  

Advanced Chemical Company

 

  

UNITED STATES

 

 

Gold

 

  

Geib Refining Corporation

 

  

UNITED STATES

 

 

Gold

 

  

Sabin Metal Corp.

 

  

UNITED STATES

 

 

Gold

 

  

So Accurate Group, Inc.

 

  

UNITED STATES

 

 

Gold

 

  

Almalyk Mining and Metallurgical Complex (AMMC)

 

  

UZBEKISTAN

 

 

Gold

 

  

Navoi Mining and Metallurgical Combinat

 

  

UZBEKISTAN

 

 

Gold

 

  

Fidelity Printers and Refiners Ltd.

 

  

ZIMBABWE

 

 

Tantalum

 

  

Guizhou Zhenhua Xinyun Technology Ltd., Kaili branch

 

  

CHINA

 

 

Tin

 

  

Estanho de Rondônia S.A.

 

  

BRAZIL

 

 

Tin

 

  

Chenzhou Yunxiang Mining and Metallurgy Company Limited

 

  

CHINA

 

 

Tin

 

  

CNMC (Guangxi) PGMA Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Gejiu Kai Meng Industry and Trade LLC

 

  

CHINA

 

 

Tin

 

  

Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Gejiu Zili Mining And Metallurgy Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

HuiChang Hill Tin Industry Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Huichang Jinshunda Tin Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Linwu Xianggui Ore Smelting Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Nankang Nanshan Tin Manufactory Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

 

  

CHINA

 

 

Tin

 

  

Feinhütte Halsbrücke GmbH

 

  

GERMANY

 

 

Tin

 

  

PT Alam Lestari Kencana

 

  

INDONESIA

 

 

Tin

 

  

PT Bangka Kudai Tin

 

  

INDONESIA

 

 

Tin

 

  

PT Bangka Timah Utama Sejahtera

 

  

INDONESIA

 

 

Tin

 

  

PT Fang Di MulTindo

 

  

INDONESIA

 

 

Tin

 

  

PT Karimun Mining

 

  

INDONESIA

 

 

Tin

 

  

PT Pelat Timah Nusantara Tbk

 

  

INDONESIA

 

 

15


 

Tin

 

  

PT Seirama Tin Investment

 

  

INDONESIA

 

 

Tin

 

  

PT Tirus Putra Mandiri

 

  

INDONESIA

 

 

Tin

 

  

Metahub Industries Sdn. Bhd.

 

  

MALAYSIA

 

 

Tin

 

  

Phoenix Metal Ltd.

 

  

RWANDA

 

 

Tin

 

  

An Thai Minerals Company Limited

 

  

VIET NAM

 

 

Tin

 

  

An Vinh Joint Stock Mineral Processing Company

 

  

VIET NAM

 

 

Tin

 

  

Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company

 

  

VIET NAM

 

 

Tin

 

  

Nghe Tinh Non-Ferrous Metals Joint Stock Company

 

  

VIET NAM

 

 

Tin

 

  

Tuyen Quang Non-Ferrous Metals Joint Stock Company

 

  

VIET NAM

 

 

Tungsten

 

  

Dayu Jincheng Tungsten Industry Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Dayu Weiliang Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganxian Shirui New Material Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Ganzhou Non-ferrous Metals Smelting Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji

 

  

CHINA

 

 

Tungsten

 

  

Hunan Chuangda Vanadium Tungsten Co., Ltd. Yanglin

 

  

CHINA

 

 

Tungsten

 

  

Jiangwu H.C. Starck Tungsten Products Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Xinsheng Tungsten Industry Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Jiangxi Yaosheng Tungsten Co., Ltd.

 

  

CHINA

 

 

Tungsten

 

  

Pobedit, JSC

 

  

RUSSIAN FEDERATION

 

 

Tungsten

 

  

Kennametal Fallon

 

  

UNITED STATES

 

 

Tungsten

 

  

Sanher Tungsten Vietnam Co., Ltd.

 

  

VIET NAM

 

 

16


3. Examples of the countries and regions of origin from which the SORs listed in Appendix 1-1 and 1-2 are believed to have sourced 3TG

 

Argentina

   Poland

Australia

   Portugal

Austria

   Republic of Korea

Belgium

   Russia

Bolivia

   Rwanda

Brazil

   Sierra Leone

Burundi

   Singapore

Canada

   South Africa

Chile

   Spain

China

   Suriname

Columbia

   Switzerland

Democratic Republic of the Congo

   Taiwan

Estonia

   Tanzania

Ethiopia

   Thailand

Germany

   United Kingdom

Guyana

   United States

India

   Uzbekistan

Indonesia

   Vietnam

Italy

   Zimbabwe

Japan

  

Kazakhstan

  

Laos

  

Malaysia

  

Mexico

  

Morocco

  

Mozambique

  

Myanmar

  

Namibia

  

Nigeria

  

Papua New Guinea

  

Peru

  

Philippines

  

 

17


Appendix 2

INDEPENDENT ASSURANCE REPORT

To the Board of Directors and Stockholders of Canon Inc.

We have undertaken a reasonable assurance engagement of:

 

 

management’s assertion, included in section 4 of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2015, that the design of Canon Inc.’s (the “Company”) due diligence framework is in conformity with the criteria set forth in the Organisation of Economic Co-Operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Second Edition 2013 (“OECD Due Diligence Guidance”), and

 

whether the Company’s description of the due diligence measures it performed, as set forth in section 4 of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2015, is consistent, in all material respects, with the due diligence process that the Company undertook.

Management is responsible for the design of the Company’s due diligence framework and the description of the Company’s due diligence measures set forth in the Conflict Minerals Report, and performance of the due diligence measures. Our responsibility is to express an opinion on the design of the Company’s due diligence framework and on the description of the due diligence measures the Company performed, based on the procedures we have performed.

Our reasonable assurance engagement was conducted in accordance with ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical Financial Information’, issued by the International Auditing and Assurance Standards Board, and the standards applicable to performance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the design of the Company’s due diligence framework and the description of the due diligence measures the Company performed, and performing such other procedures as we considered necessary in the circumstances. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our reasonable assurance engagement was not conducted for the purpose of evaluating:

 

 

The consistency of the due diligence measures that the Company performed with either the design of the Company’s due diligence framework or the OECD Due Diligence Guidance;

 

The completeness of the Company’s description of the due diligence measures performed;

 

The suitability of the design or operating effectiveness of the Company’s due diligence process;

 

Whether a third party can determine from the Conflict Minerals Report if the due diligence measures the Company performed are consistent with the OECD Due Diligence Guidance;

 

The Company’s reasonable country of origin inquiry (RCOI), including the suitability of the design of the RCOI, its operating effectiveness, or the results thereof; or

 

The Company’s conclusions about the source or chain of custody of its conflict minerals, those products subject to due diligence, or the DRC Conflict Free status of its products.

Accordingly, we do not express an opinion or any other form of assurance on the aforementioned matters or any other matters included in any section of the Conflict Minerals Report other than section 4.

In our opinion,

 

 

the design of the Company’s due diligence framework for the reporting period from January 1 to December 31, 2015, as set forth in section 4 of the Conflict Minerals Report is in conformity, in all material respects, with the OECD Due Diligence Guidance, and

 

the Company’s description of the due diligence measures it performed as set forth in section 4 of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2015, is consistent, in all material respects, with the due diligence process that the Company undertook.

 

18


We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. In accordance with International Standard on Quality Control 1, we maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

 

/s/ KPMG AZSA Sustainability Co., Ltd.
Tokyo
May 27, 2016

 

19