Responsible Mineral Sourcing
Our Approach
Aratas recognizes respect for human rights as a fundamental corporate responsibility.
Minerals such as tantalum, tin, tungsten, and gold (3TG), as well as cobalt, have been associated with risks including the financing of armed groups, human rights abuses, child labor, forced labor, and environmental degradation during their extraction, trading, and processing.
Recognizing these risks, Aratas is committed to promoting respect for human rights and enhancing transparency throughout the supply chain while advancing responsible mineral sourcing. This commitment is reflected in our Human Rights Policy and Sustainable Procurement Guidelines. We work collaboratively with our suppliers and other business partners to promote responsible sourcing practices and continuous improvement across the supply chain.
Responsible mineral sourcing *Excerpt from the Aratas Human Rights Policy
Aratas will conduct its due diligence activities on the source and chain of custody of the tantalum, tin, tungsten, gold, and cobalt, etc. in the products it manufactures to reasonably assure that they are sourced in a way consistent with the Organization for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework. This ensures that such minerals do not benefit or finance armed groups or other actors committing serious human rights abuses in the Conflict-Affected and High-Risk Areas.
Management Framework
To promote responsible mineral sourcing, Aratas has established a management framework led by its procurement function. Working closely with suppliers, we verify information related to the origin of minerals as well as the smelters and refiners involved in the supply chain, while identifying and mitigating sourcing-related risks.
In addition, Aratas conducts regular supplier surveys and centrally manages the collected information. This enables us to respond appropriately to customer inquiries, due diligence requests, and disclosure requirements regarding minerals used in our supply chain.
Conflict Minerals Due Diligence
Aratas uses gold and tin in electrical contacts, terminals, and other product components. In addition, 3TG (tantalum, tin, tungsten, and gold) is contained in various electronic components and equipment procured by Aratas.
To enhance supply chain transparency, Aratas uses the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI) to conduct due diligence across its upstream supply chain.
This process serves as a risk assessment framework based on the due diligence principles set forth in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Aratas conducts the assessment through the following four steps:
1.Establish Strong Company Management Systems
Based on its Responsible Mineral Sourcing Policy, Aratas conducts the necessary due diligence activities under the leadership of its procurement function.
In addition, Aratas has established and utilizes an information management system to collect and maintain due diligence data and support responses to customer inquiries and disclosure requests regarding minerals used in its supply chain.
2.Identify and Assess Risks in the Supply Chain
Each year, Aratas identifies materials requiring assessment from among those procured for its manufacturing sites and conducts conflict minerals due diligence with suppliers using the Conflict Minerals Reporting Template (CMRT).
The due diligence process includes verification of the presence of 3TG minerals, countries of origin, smelters and refiners, and suppliers' due diligence practices.
Aratas also reviews smelters and refiners identified within the supply chain against the latest Responsible Minerals Initiative (RMI) list of conformant facilities to identify any smelters or refiners that are not listed as conformant by the RMI.
3.Design and Implement a Strategy to Respond to Identified Risks
When risk assessments identify smelters or refiners that are not listed as conformant by the RMI within the supply chain, Aratas works with suppliers to promote corrective actions.
In cases where customers raise concerns regarding specific smelters, refiners, or sourcing practices, Aratas reviews the issues identified and communicates those concerns to the relevant suppliers, requesting appropriate follow-up actions, including further verification of smelters and refiners.
In addition, Aratas also promotes supplier awareness and understanding of conflict minerals requirements and responsible sourcing practices.
4. Public Reporting
Aratas publicly discloses information regarding its responsible mineral sourcing activities, including the results of conflict minerals due diligence, through its website.
Cobalt Sourcing
Cobalt is an important raw material used in lithium-ion batteries for applications such as electric vehicles and mobile devices. The Democratic Republic of the Congo (DRC) is the world's largest producer of cobalt, and human rights concerns, including occupational health and safety issues and child labor, have been reported at some artisanal and small-scale mining sites.
The Aratas Sustainable Procurement Guidelines establish fundamental principles, including the prohibition of forced labor and child labor. Aratas promotes responsible cobalt sourcing with the aim of preventing and mitigating adverse impacts on human rights and the environment. In addition, Aratas utilizes the Responsible Minerals Initiative (RMI) Extended Minerals Reporting Template (EMRT) to conduct due diligence on cobalt contained in lithium-ion batteries.
Collaboration with Suppliers
Promoting responsible mineral sourcing requires collaboration throughout the entire supply chain.
Aratas requests that suppliers understand and comply with the Aratas Sustainable Procurement Guidelines and cooperate with conflict minerals due diligence activities. In addition, through dialogue and corrective actions where necessary, Aratas works to enhance transparency and reduce risks across the supply chain.
Engagement with Industry Initiatives
Aratas monitors international developments related to responsible mineral sourcing and promotes initiatives aimed at respecting human rights and enhancing transparency throughout the supply chain.
In addition, Aratas pursues continuous improvement by drawing on the information, tools, and guidance provided by international initiatives such as the Responsible Minerals Initiative (RMI) and the Responsible Business Alliance (RBA).