CSR Report > CSR Report 2013 - Q & A > Business Partner Relations

CSR Report

Q&A

Business Partner Relations

What is Nintendo's approach to business partner relations?

We place great importance on building strong relationships with all of our business partners. Through these relationships, we are able to offer the best products and services to our consumers.

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What is the fabless production model?

Fabless is derived from "fabrication-less," meaning "without fabrication facilities." At Nintendo, we do not own the production factories that manufacture our products. All production processes are outsourced to external suppliers and production factories (production partners). We regularly visit our production partners' manufacturing sites to check the quality, safety, conditions and efficiency of their production processes.

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What is CSR procurement?

CSR procurement is the practice of requiring production partners to comply not only with environmental protection and safety rules (as specified in our Green Procurement Specifications) but also with certain social responsibility principles (as specified in the Nintendo CSR Procurement Guidelines).

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How does Nintendo verify its production partners' performance on sustainability and ethical sourcing?

We share the Nintendo CSR Procurement Guidelines, which include specific requirements on sustainability, ethical sourcing and employee relations, with all of our production partners. We also ask our production partners to submit a Business Status Survey annually, which includes sections on their performance relating to sustainability and ethical sourcing. Furthermore, we conduct on-site inspections at production sites based on Business Status Survey results, to confirm the compliance with our Guidelines. In fiscal year 2013, we adopted an independent third-party monitoring process to increase transparency with our production partners and ensure our CSR Procurement Guidelines are being followed.

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What is Nintendo’s approach on the conflict minerals issue?

It has become a global concern that the use of minerals from conflict-affected regions, which are often a financial source of armed groups, means that as a result companies could be playing a role in conflicts. In the U.S., Section 1502 of the Dodd-Frank Act, effective January 2013, requires U.S. listed companies to disclose whether any of the four conflict minerals (tin, tantalum, tungsten and gold), which are extracted from the Democratic Republic of Congo or its adjoining countries and could become a financial source of armed groups, are used in their products, and if so, to disclose among other matters, the measures taken to exercise due diligence on the source and chain of custody of those minerals.

Although Nintendo is not subject to the law since we are not publicly listed in the U.S., Nintendo has an unequivocal policy banning the use of conflict minerals in any of our products. We share our policy with production partners, and work closely with them on this issue, and specifically detail supply chain investigations and the non-use of conflict minerals in the Nintendo CSR Procurement Guidelines, with which we require compliance.

In fiscal year 2013, we used the internationally recognized EICC-GeSI Conflict Minerals Reporting Template to conduct a supply chain survey, and worked with an independent third party to interview our priority production partners to further examine the progress made and challenges ahead.

The results of the survey will be included in the upcoming CSR Report 2014.

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