Actions for the “Conflict Mineral” Disclosure Rules

Nidec Group Conflict Minerals Policy Statement

“Conflict minerals” are mineral resources mined in conditions of armed conflict and human rights abuses, notably in the eastern provinces of the Democratic Republic of the Congo (“DRC”) and its surrounding countries. The profits from the extraction and trade of these conflict minerals, defined by the US State Department as gold, tin, tantalum, and tungsten, are believed to finance multiple armed groups and contribute to inhumane treatment, including human trafficking, slavery, forced labor, child labor, torture and war crimes in the conflict regions. Conflict minerals usually pass through a variety of intermediaries before reaching the final consumer.

In order to avoid the use of conflict minerals in our supply chain that contribute to human rights abuses in the DRC or its adjoining countries, we encourage our supply chain partners to source only from smelters that have been validated by industry audit program (e.g. *RMI) and are exercising due diligence on the origin and chain of custody of minerals in accordance with the **OECD Due Diligence Guidance. If we discover the use of gold, tin, tantalum, and tungsten produced in facilities that are considered to be non-conflict free, in any material, parts or components we procure, we will take appropriate actions to make our products conflict free.

*RMI (Responsible Minerals Initiative)
A cross-industry organization that promotes the responsible procurement of minerals (formerly Conflict Free Sourcing Initiative, or CFSI)

**OECD Due Diligence Guidance
A set of international guidelines intended to help companies avoid contributing to conflict through their mineral sourcing practices and cultivate transparent and sustainable mineral supply chains.

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