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ESG

SIFLEX

What is the Conflict Minerals Regulation?

The term ‘conflict minerals’ refers to four minerals (tin, tantalum, tungsten, and gold) that are mined in the Democratic Republic of the Congo (DRC) and its neighboring countries.In these countries, armed entities, such as rebels and government forces, dominate the mining and distribution of minerals, and this is believed to secure funds and continue the conflict. As a result, the mining business causes not only human casualties but also human rights issues, such as human rights violations of local residents and labor exploitation in the process of mineral extraction, and social problems such as environmental pollution.

In 2010, the US Congress enacted the Dodd-Frank Financial Regulatory Reform Act, which mandated the reporting of conflict minerals,
requiring companies listed on US stock exchanges to report their use of conflict minerals to the US Securities and Exchange Commission (SEC).

Conflict Minerals Regulation Policy

SI FLEX will make the following efforts actively with regard to the conflict minerals regulation, which is becoming an international issue

  • · We will establish a work process for conflict minerals to ensure compliancewith the law by applying international standards for regulating conflict minerals.
  • · We will join the activities to ban the use of conflict minerals promoted by the EICC and the Global e-Sustainability Initiative (GeSI).
  • · Based on the Conflict Minerals Use Reporting Questionnaire (EICC Template) provided by EICC and GeSI, we are conducting surveys on the use of conflict minerals for domestic and foreign suppliers. Through this, we will investigate the use of conflict minerals with regard to the application oftin, tantalum, tungsten and gold in our products.
  • · We will expand this policy by making it mandatory for all suppliers to adopt the “Declaration of Compliance with the Non-use and Non-advertisement of Minerals of Adjacent Disputed Areas.”

We require all suppliers to strictly comply with our conflict minerals management policy.

  • · Suppliers shall strive to identify all smelters from which conflict minerals have been purchased in their supply chain.
  • · Suppliers shall submit conflict minerals data in a timely manner when SI Flex requests it.
  • · If a supplier provides incorrect information regarding the supply chain of conflict minerals, or if the supply chain of a supplier is uncertain, SI FLEX may suspend business with the supplier.
The Company will work jointly with its suppliers for systematic supply chain management, and will establish a gradual process to respond to
the conflict minerals regulation by monitoring the policies and support measures of the government. Through this, we will actively
participate in global initiatives to ban the use of conflict minerals.