Policy on Raw Material Procurement
Ishifuku Metal Industry has formulated a Policy on Raw Material Procurement under which we fulfill our social responsibility to prevent improper procurement of raw materials. We maintain materials supply chains so that our customers can trade with confidence.
Policy on Raw Material Procurement
Ishifuku Metal Industry Co., Ltd. strives to prevent procurement of raw materials originating from such activities as the funding of conflicts or terrorism, abuses of human rights, payment of taxes, fees, or mining royalties in conflict regions, or money laundering.
Recognizing that the supply chains for the raw materials we procure are associated with certain risks such as those (listed under 1-6 below) identified in Annex Ⅱ of the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" ("OECD Guidance") issued by the Organization for Economic Co-operation and Development (OECD) as well as the risks associated with the funding of terrorism and support for conflicts, we manage materials in accordance with our regulations to avoid such following risks and fulfill our environmental and sustainability responsibilities.
- 1Human rights abuses associated with the extraction, transport or trade of minerals
- 2Direct or indirect support for non-state armed groups
- 3Unlawful acts by public or private security forces
- 4Bribery and fraudulent misrepresentation of origin of minerals
- 5Money laundering
- 6Non-compliance with of taxes, fees, and royalties due to governments
- Scope
We review suppliers of tin, tungsten, and tantalum(3T).
For gold, silver, platinum, and palladium, as a refiner, we carry out supply-chain management. - Organization and responsibilities
Ishifuku Metal Industry set up a committee to establish and supervise a management system. The committee appoints a compliance manager to monitor and operate the management system appropriately.
- Criteria regarding procurement from high-risk suppliers
We consider high-risk suppliers of materials as follows.
3T : Suppliers that provide the raw materials originating from the Democratic Republic of Congo and its nine neighboring countries and suspected of human rights abuses, funding terrorism, money laundering, etc.
Gold and Silver : Suppliers identified as OECD Guidance Annex II risk in accordance with the guidance of the London Bullion Market Association (LBMA).
Platinum and Palladium : Suppliers identified as OECD Guidance Annex II risk in accordance with the guidance of the London Platinum and Palladium Market (LPPM). - Raw-materials due diligence
In accordance with guidance from the LBMA for gold and silver and from the LPPM for platinum and palladium, we identify and assess risks associated with suppliers in line with OECD guidance. In cases identified as high risk, we take measures to mitigate such risk. Where these measures cannot be implemented, we either temporarily suspend or permanently discontinue transactions, depending on the level of risk.
- Education
We continually provide the education and training needed in procurement department sections, department receiving raw materials, and relevant departments sections.
- Transaction monitoring and recording
We monitor the appropriate operation of the system through the committee and internal audits regarding procurement conditions. Records related to transactions in procurement are managed by the relevant departments with defined retention periods.. We employ a system comprising an internal management committee and internal auditing to ensure that procurement conditions are properly monitored. Related sections control records of procurement transactions under defined retention periods.
Established March 2012
Amended October 2023
ISHIFUKU Metal Industry Co., Ltd
material supply chain management supervisor
Hideo Kato, Director, and Executive Officer
- *We have been named a Conformant Gold Refiner by the RMI.