CSR Report > CSR Report 2014 - 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, working 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 with not only 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.

On-Site Inspections

FY 2008 7 companies (5 new)
FY 2009 14 companies (7 new)
FY 2010 13 companies (5 new)
FY 2011 9 companies (2 new)
FY 2012 13 companies (7 new)
FY 2013 11 companies (6 new)

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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*1 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.


Conflict Minerals Survey Results

The response rate of our fiscal year 2013 conflict minerals survey was 100%. Of the surveyed companies, 54% were able to identify all of their smelters and confirmed that no conflict minerals are sourced from the DRC, 13% were unable to complete their survey, but insofar as surveyed, there are no conflict minerals from the DRC, and 33% have not finished their tracing survey because of supply-chain complexity.

The results of our conflict minerals survey have been reported to the Executive Management Committee. Nintendo will continue to endeavor to refrain from using any minerals involved in conflict in our products, and by referring to the OECD Due Diligence Guidance on conflict minerals*2, we will further improve the structure and process of our conflict minerals survey.

Of the surveyed companies, 54% identified all smelters and confirmed that there are no conflict minerals from the DRC

*1 EICC-GeSI
Electronic Industry Citizenship Coalition (www.eicc.info), Global e-Sustainability Initiative (www.gesi.org). Together EICC and GeSI develop tools and resources such as the Conflict Minerals Reporting Template.

*2 OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
Guidance that provides recommendations for responsible minerals supply chain management concerning conflict-affected or high-risk regions.

*3 Conflict-Free Smelter (CFS)
Smelters or refiners that have no relationship with the conflict in the DRC and have been found to be compliant with the Conflict-Free Smelter program assessment protocols.

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