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.
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| 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 thefirst-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
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| 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. |
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| - | 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. |
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| - | 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. |
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| 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
