I. Policy Background and Purpose
In light of the fact that the mining and use of conflict minerals around the world may trigger or exacerbate regional conflicts, violate human rights, and cause environmental destruction, we have established and implemented a Conflict Minerals Procurement Policy based on the CMRT (Conflict Minerals Reporting Template) and EMRT (Extended Minerals Reporting Template). The purpose of this policy is to ensure that the minerals we procure are not directly or indirectly sourced from conflict-affected regions, while also promoting ethical procurement principles throughout our supply chain.
II. Policy Principles
1. Legal and Regulatory Compliance: Strictly adhere to international laws, regulations, and industry standards to ensure that all procured minerals are legal and conflict-free.
2. Transparency and Traceability: Improve supply chain transparency to ensure that every stage—from mining, processing, and transport to usage—is traceable.
3. Responsible Sourcing: Promote responsible sourcing and establish long-term cooperative relationships with suppliers to jointly address conflict mineral issues.
4. Continuous Improvement: Periodically review and update the policy and implementation to ensure ongoing effectiveness and adaptability.
III. Implementation Measures
1. Supplier Management and Audits:
- Conduct rigorous due diligence on suppliers, including qualification review, credibility checks, mineral source verification, and supply chain management.
- Require suppliers to submit CMRT & EMRT reports disclosing mineral origins, mining methods, and smelting processes.
- Perform regular re-evaluations of suppliers to ensure continued compliance with this policy.
2. Traceability and Verification of Mineral Sources:
- Establish traceability mechanisms to ensure procured minerals originate from conflict-free areas.
- Engage third-party audit organizations to verify mineral source data for authenticity and accuracy.
3. Supply Chain Collaboration and Supervision:
- Foster close cooperation with suppliers to jointly resolve conflict mineral challenges.
- Encourage suppliers to adopt responsible sourcing practices and elevate ethical standards across the supply chain.
- Accept oversight from stakeholders and respond promptly to concerns and issues.
4. Training and Communication:
- Provide internal training for employees to improve understanding and execution of the conflict minerals policy.
- Promote the policy to suppliers, customers, and the public to raise awareness and a sense of shared responsibility.
IV. Policy Execution and Oversight
We will establish a dedicated unit to oversee the execution and supervision of the Conflict Minerals Procurement Policy, ensuring effective implementation. At the same time, we encourage active participation from employees, customers, and partners to collectively drive the continuous improvement and refinement of this policy.
