FRONTEO Co., Ltd. (Headquarters: Minato-ku, Tokyo, President and CEO: Masahiro Morimoto, hereinafter FRONTEO) has added conflict minerals to the supply chain analysis solution for its economic security AI system, KIBIT Seizu Analysis. We are pleased to announce that we have started operation with new functions that support diligence.

Figure 1 Example of supply chain analysis using conflict minerals due diligence support function

    This time, FRONTEO has added a new function for conflict minerals due diligence to the supply chain analysis solution of KIBIT Seizu Analysis, an AI system specializing in economic security measures.With this enhancement, it is now possible to determine whether companies or organizations in the supply chain may be smelters or refiners with ties to conflict minerals.Analysis using this function is performed using a list created by FRONTEO based on standards such as laws and regulations around the world regulating trade in conflict minerals.

Figure 2 Targets that can be confirmed using the conflict minerals due diligence support function

　Conflict minerals are minerals whose profits from mining and trading can be used as a source of funds for conflicts between armed groups and nations.The world's major regulatory laws stipulate that 3TG (tin, tantalum, tungsten, Gold is designated as the main target.There are concerns that funds obtained from these minerals can cause civil wars and conflicts to break out and prolong them, leading to serious human rights violations.

    As ESG responses move from "consideration" to human rights and the environment to "proactive activities" to reduce risks, companies are increasing their efforts to understand their supply chains in detail and take "responsible" measures to reduce risks. Mineral procurement is now required. In 2010, the U.S. Financial Regulatory Reform Act, known as the Dot-Frank Act, was enacted, requiring U.S.-listed companies to clarify and report the refineries they use, and the OECD (Organization for Economic Co-operation and Development) Regulations have been strengthened on a global level, such as the publication of guidance by the United Nations (2011) and the enactment of the EU Conflict Minerals Regulation (2017), making it essential for companies to operate their businesses in accordance with these laws and regulations.

    FRONTEO's economic security business uses KIBIT Seizu Analysis, an AI system specialized in economic security measures, to visualize economic security risks hidden in supply chains, shareholder networks, and R&D systems, and to improve import and export control. We have supported companies' strategic decision-making regarding ESG responses, etc.In the future, we will continue to strive to improve the analysis technology of KIBIT Seizu Analysis so that we can provide multifaceted support to companies promoting economic security measures, such as the enhancement of the conflict minerals due diligence response function that we recently conducted.

* Conflict Affected and High Risk Areas specified in the EU Conflict Minerals Regulations

economic security business　　 URL: https://osint.fronteo.com/

■ About FRONTEO　URL: https://www.fronteo.com/

FRONTEO is a data analysis company that provides various AI solutions and services using the in-house developed AI engine "KIBIT". Based on the philosophy of "providing solutions that do not overlook risks and opportunities buried in records and realizing fairness in the information society," extract meaningful and important information from vast amounts of text data and complex networks. Our strengths are natural language processing and network analysis technologies that support advanced judgments by experts.We are developing businesses in the areas of legal tech AI, business intelligence, life science AI, and economic security, and contributing to solving various corporate and social issues. Founded in August 2003, listed on Tokyo Stock Exchange Mothers (currently Tokyo Stock Exchange Growth) on June 8, 2007.The company operates in Japan, the United States, South Korea, and Taiwan.Acquisition of first-class medical device manufacturing and sales business license, notification of controlled medical device sales business.Capital 6 thousand yen (as of March 26, 3,042,317).

* FRONTEO and KIBIT are registered trademarks of FRONTEO in Japan.

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Public Relations Officer, FRONTEO Inc.
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