This faq document has been revised to incorporate the latest questions on guidance available on this. Should the outcome of this case change the compliance requirements of the rules, we will send an update informing you of the changes. Conflict minerals is a term used to describe critical raw materials that are mined in conditions of violent conflict in the democratic republic of congo or adjoining countries. Identifying the source of your supplied metals is the main purpose of conflict minerals compliance. Conflict minerals include tantalum, tin, tungsten and gold, which are used in many electronic components and computer products. Conflict minerals compliance tracking progam actio.
Our conflict minerals compliance program has helped thousands of companies with. Conflict minerals reporting laws require transparency and disclosure of conflict minerals used in products for both inhouse and supplied product parts, as well as the smelters used in conflict minerals processing. Many companies have heard about the securities and exchange commissions sec conflict minerals rules, but they may not be aware that both public and private companies across a wide array of industries must be prepared to comply with these new disclosure rules andor assist their customers in complying with them. The securities and exchange commission sec adopted final rules in august 2012 regarding disclosure and reporting requirements with respect to the use of conflict minerals to implement section 1502 of the doddfrank wall street reform. Securities and exchange commission sec, public companies are required to source their raw materials responsibly and disclose the use of conflict minerals, including tungsten, gold and 3tgtin tantalum. Conflict minerals software free trial ipointsystems. The sec rules define conflict minerals as 3tg metals, wherever extracted. Initiate, manage, and use your supply chain communication for your cm reporting the free trial has no hidden fees or setup costs. One part of the law stipulates that specialty metals must be melted in the u. Key compliance checks such as sanity check, crossreferencing between 3tg and smelter details are completed within minutes. Our data intelligence team analyzed the sec filings, as of august 11, 2017, across a range of metrics to provide key observations and trending data on the state of conflict minerals compliance. Electronics ranks high in conflict minerals compliance.
The company files reports with the sec under the exchange act. Businesses subject to the rule complain about its costs, but human rights groups say it has produced tangible benefits and that the compliance costs are vastly overstated. Conflict mineral compliance, conflict mineral consulting, conflict mineral services, conflict mineral software, conflict minerals august 20, 2012 in 2 days from now the sec will hold a vote on the final rules for the conflict mineral provisions in the dodd frank act. Sec suspends conflict mineral rule enforcement supply chain. Oecd guidance to meet its sec compliance and reporting requirements by correlating the. Conflict minerals software and services ihs markit. Issuer files reports with sec under the exchange act conflict minerals are necessary to the functionality or productionof. Conflict minerals rule will continue to be the primary driver of compliance programs, for now assuming that the u. Conflict minerals basic license test the extended premium functionalities of the leading conflict minerals software for free. It explains what employees need to know about conflict minerals in the supply chain, as well as the duediligence and reporting requirements of the rule.
Conflict minerals compliance software ipointsystems. Five practical steps to support sec conflict minerals disclosure. Turning to software to identify conflict minerals in the. Conflict minerals frequently asked questions addresses many questions that have arisen related to conflict minerals, the sec s final rule, and its implementation.
On two different occasions a federal appellate court found that the rules disclosure requirements violated the first amendment. The conflict minerals rule, issued by the sec in august 2012, requires companies to disclose information each calendar year on the source of tantalum, tin, gold, and tungsten used in their products. Conflict minerals management dodd frank 1502 sec form sd filings, cfsi, conflict free sourcing initiative. Conflict minerals reporting is due by may 30th of each year for the previous calendar year ie. Investment management, corporate governance, capital markets, disclosure, sec akin gump provides details on the recent securities and exchange commissions sec deadlines for filing certain exchange act reports for publicly traded companies that have been particularly impacted by. This doddfrank conflict minerals training course covers the fundamentals of the conflict minerals rule, as it applies in light of the april 2014 court ruling that struck down portions of the rule. This has for some years been a particular problem in the. Section 1502 of the doddfrank financial reform act. The ipoint conflict minerals platform ipcmp is a webbased, ondemand software solution, providing conflict minerals data collection, management, aggregation and reporting.
With the second filing period nearing its close for conflict minerals compliance under us doddfrank act section 1502 known as the conflict minerals rule many businesses have become aware that their current system for tracking substances and smelters is not working. In the sec rule, drc conflictfree is defined as minerals that were extracted and did not directly or indirectly benefit armed groups in the covered countries. For example, tin extracted in canada, russia or argentina is considered a conflict mineral by definition. Securities and exchange commission sec adopted rule p1 to implement reporting and disclosure requirements related to conflict minerals as directed by the doddfrank wall street reform and consumer protection act of 2010 doddfrank act. Conflict mineral software assent compliance blog page 3.
Latest updates in conflict minerals law braumiller law group. The compliance software and data management solution automates supply chain communications and data collection processes. Sec requirements but also conformity to the oecd 5step due diligence framework. Apas cmcs is an automation software that simplifies the conflict minerals reporting process. The doddfrank wall street reform and consumer protection act came into effect on january 1, 20, and section 1502 on conflict minerals requires compliance from all public companies that are listed with the securities and exchange commission sec under sections a or 15d. On may 30, 20, the sec issued 12 frequently asked questions providing guidance on various aspects of the conflict minerals rules.
Pec modules conflict minerals compliance software why choose us the dodd frank sec conflict minerals legislation requires companies to comprehend and subsequently disclose the use of minerals 3tg in conflict areas such as the drc in order to protect human rights in the supply chain. Frequently asked questions cmrt supplier help center. The conflict minerals reporting template cmrt is a free, standardized reporting template developed by the responsible minerals initiative rmi and is considered the industry standard reporting template for conflict minerals compliance. The securities and exchange commission sec has created a ruling which. Aiag the musthave conflict minerals reporting checklist. Tuv rheinland helps you to fulfill conflict minerals. The 2015 study not only measured compliance to the u. Build a company conflict minerals program framework.
Work faster, more efficiently and more accurately by using the ipoint conflict minerals application to fulfill your due diligence obligations across the supply chain. The conflict mineral module, part of the assent compliance corporate social responsibility suite, facilitates compliance with evolving global conflict mineral regulations. Conflict minerals solution service wo tuv rheinland. Paper a business case for conflict minerals compliance software automation. Four unfinished doddfrank rules to watch at sec in 2020. Those minerals are known to have funded violent conflict in the drc and adjoining countries. On april 7, 2017, the securities and exchange commission sec division of corporate finance the division indicated that it will not recommend enforcement of the conflict minerals source and chain of custody due diligence, independent audit and conflict minerals report requirements set forth in item 1. The final rule requires a company to provide the disclosure on a new form to be filed with the sec form sd. Secure goldstar status on the sustainable supply chain. Smelter and refiner audit compliance with conflict minerals management. Conflict minerals compliance software ipoint systems. The securities and exchange commission sec adopted final rules in august 2012 regarding disclosure and reporting requirements with respect to the use of conflict minerals to implement section 1502 of the doddfrank wall street reform and consumer protection act the doddfrank act. On august 22, 2012, the securities and exchange commission sec adopted a new rule and form, as mandated by section 1502 of the doddfrank wall street reform and consumer protection act doddfrank act, to require companies to publicly disclose their use of conflict. The dodd frank sec conflict minerals legislation requires companies to comprehend and subsequently disclose the use of minerals 3tg in conflict areas such.
Most conflict mineral rules require companies to annually report on conflict minerals compliance. To get more background information about the situation in the congo, go to. Conflict minerals disclosure requirements and corporate. As of april 7, the securities and exchange commission sec ruled that u. The 2017 sec filings mark the fourth year of conflict minerals reporting. Apr 12, 2017 conflict minerals regulation updates and sec statement april 12, 2017written by greensoft technology, inc. Sec suspends conflict mineral rule enforcement supply. Act would apply to issuer company filing sec reports if. Conflict minerals compliance guide best practices for complying with the new conflict minerals disclosure requirements summary. Filings related to conflict minerals reporting year ry 2016 were due to may 31st, 2017. The sec s conflict mineral rule requires uslisted companies to disclose whether their products contain certain metals tin, tantalum, tungsten, or gold and whether these metals originate from rebelheld mines which are funding armed conflict in the democratic republic of the congo drc region. Conflict minerals special disclosure report in august 2012, the u.
However, recently, a combination of court opinions, regulatory reversals, and legislative proposals have joined to change the outlook for conflict minerals compliance under section 1502. The rule provides opportunities for covered companies to pursue sustainable practices, integrate conflict minerals. Monitoring other regions and minerals learning from our experience combating conflict minerals in the drc and surrounding countries, we are expanding monitoring and supplier engagement activities to 3tg from all regions, as well as other minerals linked to. Securities and exchange commission sec issued a 357page set of rules of compliance for the doddfrank section 1502. The minerals are necessary to the functionality or production of a product manufactured or contracted to be manufactured by the company. Conflict minerals solutions in an attempt to mitigate unsavory aspects of a global supply chain, the u. May 03, 2017 on april 7, 2017, the securities and exchange commission sec division of corporate finance the division indicated that it will not recommend enforcement of the conflict minerals source and chain of custody due diligence, independent audit and conflict minerals report requirements set forth in item 1. Securities and exchange commission sec is clear on this issue. Five practical steps to support sec conflict minerals. Assent compliance, on behalf of its clients requires.
Whether conflict minerals are found or not, the company must also disclose its findings publicly on its website. Csrware uses a standardized approach for collecting key data from suppliers to analyze risk, increase response rates, prepare for audits and generate reports for form sd, cmr conflict minerals report and company reports. Actio now provides all this protection and functionality in one groundbreaking, award. Securities and exchange commissions secs division of corporate finance announced it will not recommend enforcement action for companies that disclose, but do not further investigate usage of conflict minerals which may be from the democratic republic of congo drc. The sec s implementing regulations went into effect in late 2012, but even six years later, the conflict minerals rule has never gained a sure foothold in u. This means suppliers will be asked to complete a new cmrt every year in advance of the reporting deadline. In 2010, congress passed the doddfrank act, which directs the commission to issue. But what are these minerals and how do they affect our everyday lives. What minerals are covered by the sec conflict minerals rules. But, its not because the original estimates were overstated or inflated. In april, the acting chairman of the securities and exchange commission sec came out against enforcing doddfrank section 1502, which required companies to trace the origins of any tin, tungsten, tantalum or gold 3tg used in their products and disclose whether these conflict minerals have been sourced from the democratic republic of congo. Conflict minerals compliance software reporting solutions. Over 300,000 companies around the world trust source intelligence to exchange information, roll up data for their customers, run due diligence programs for compliance requirements, and much more source intelligence is where compliance happens. Conflict minerals compliance source intelligence cmrts.
Mining the disclosures is a yearly evaluation of companies activities to address conflict minerals, including risk management, human rights impact, and reporting quality. Conflict minerals program responsible sourcing and complying. Unfinished rules cover executive pay, resource extraction, conflict minerals the biggest rewrite of wall street rules since the last financial crisis isnt over at the sec. Mining the disclosures responsible sourcing network. Jul 14, 2015 under the doddfrank act, public companies in the us now must report to the securities exchange commission sec their use of socalled conflict minerals, in an attempt to weed out illicit trade of the minerals that produce tin, tungsten, tantalum, and gold and which funds warlords in the democ. Conflict minerals management see a demo mandated by doddfrank and the consumer protection act, and adopted by the u. Compliance with the sec s conflict minerals rule seems difficult due to complex and constantly changing international supply sources and lack of transparent sourcing information, especially for smaller and outofreach suppliers. Conflict minerals, specialized disclosure report cummins. In the sec rule, drc conflict free is defined as minerals that were extracted and did not directly or indirectly benefit armed groups in the covered countries. While it may seem easy to make sure your company isnt using minerals from mines in areas of conflict, the hard part is making sure your contractors your supply chains arent purchasing in these areas. The successful way to comply with existing and upcoming conflict minerals regulations usa, eu improves efficiency.
Actios conflict minerals tracking program provides compliance, audit and. Like the similar issue of conflict diamonds or blood diamonds, the term conflict minerals refers to raw materials that come from a particular part of the world where conflict is occurring and affects the mining and trading of those materials. Teamcenter can help you track conflict minerals used in products, and report on them to stay compliant. With more than 380 member companies, the responsible minerals initiative is one of the most utilized and respected resources for companies from a range of industries addressing responsible mineral sourcing issues in their supply chains we provide companies with tools and resources to make sourcing decisions that improve regulatory compliance and support responsible sourcing of minerals from. Conflict minerals regulation updates and sec statement. Other company items such as forklifts or office supplies that do not physically go into. Due to the fact that companies current conflict minerals reporting obligations are solely related to drc conflict minerals, as defined in the doddfrank act, this paper focuses exclusively on. Meet customer and doddfrank conflict minerals policy requirements.
If i am sourcing raw materials that are already dfars compliant, do i still need to submit a conflict minerals reporting template cmrt to comply with section 1502 of the doddfrank wall street reform and consumer protection act. Companies continue to file conflict minerals disclosures. Conflict minerals compliance our conflict mineral declaration. Manage conflict minerals policy such as tin, tantalum, tungsten and gold across the supply chain. Manage your conflict minerals program with a cloudbased software solution.
The conflict minerals regulation is a global standard for ethical sourcing. Learn how to build the business case for conflict minerals compliance software automation. The securities and exchange commission still is working on regulations that were part of the postcrisis doddfrank acta decade after it. Aug 19, 2016 among companies filing sec disclosure sd or conflict minerals reports cmr. At the same time, it should centralize data for multiple initiatives not just compliance under conflict minerals rules but also compliance under reach, rohs, weee and hundreds of other possible restrictions. With more than 380 member companies, the responsible minerals initiative is one of the most utilized and respected resources for companies from a range of industries addressing responsible mineral sourcing issues in their supply chains. For more on our due diligence efforts, read hps latest sec conflict minerals report. Learn how to build the business case for conflict minerals compliance software. The software not only saves significant time and cost but also greatly improves the accuracy of the data. The recent decision clarifies the acting chairmans position that, as it stands, the sec has no responsibility to enforce the rule. Nov, 2012 division of corporation finance conflict minerals disclosure a small entity compliance guide 1 introduction. Jun 28, 2017 the outofpocket costs of compliance with the sec conflict minerals rule have been lower than those originally estimated by industry and by the sec. This page provides a variety of resources to aid in conflict minerals compliance. One of the most common questions our regulatory experts have received from issuers this year is whether or not smelters and refiners need to be disclosed on conflict minerals reports cmrs, due in may.
Circuit held that a portion of the disclosure required by the commissions conflict minerals rule violated the first amendment. You can watch the webinar about mining the disclosures 2019 here. Csrware offers conflict minerals management solutions that enable your business to fulfill requirements for sec disclosure. The oecd is an international organization that counts the u. Rule is not repealed or modified, it will for the time being continue to drive the compliance procedures and programs at most downstream companies, whether they are public or private, large or small or located in the. The conflict minerals compliance app ipoints cloudbased conflict minerals app enables companies to fulfill the enormous challenge of collecting, managing, aggregating, and reporting conflict minerals information, and thus meet the requirements of their customers and the regulatory authorities.
Developed by aiags conflict minerals work group, a team of over 40 industry leaders from companies like chrysler, bosch, toyota, and lear, our conflict minerals reporting checklist breaks out tasks for easy sec compliance. Effective january 1, 20, companies that file exchange act reports with the sec are required to identify whether their products contain certain conflict minerals originating from the democratic republic of. Yet, the department of state has reportedly asked the commission to consider ways it can help stem the sourcing of conflict minerals. Software solutions for conflict minerals save time and money. The eu conflict minerals regulation frequently asked. From a legal perspective, only companies which are publicly traded in the usa under the supervision of the securities and exchange commission sec must. Software solutions for conflict minerals save time and money manage your conflict minerals program with a cloudbased software solution. Acting sec chairman halts enforcement of some provisions of conflict minerals rules, other provisions still apply. Conflict minerals management, dodd frank, cmrt, responsible.
A smelter is the first stop for raw materials once they have been mined or recycled by the provider. Securities and exchange commission sec created trade protocols. Among companies filing sec disclosure sd or conflict minerals reports cmr. This tailored assessment ensures your compliance with the u. In response to the august 22, 2012 sec final rule to implement the new disclosure requirements required by the july 21, 2010 section 1502 of the doddfrank act, analogic corporation is conducting due diligence to determine what subcomponents may contain the listed conflict minerals columbitetantalite coltan, cassiterite. Decreased enforcement expected from sec regarding conflict. Conflict minerals management software fulfills requirements for sec disclosure by adhering to the eicc gesi global esustainability initiative cmrt conflict minerals reporting template ipc1755 organized framework. As a global valueadded distributor of electronic components and embedded subsystems, avnet promotes the traceability of these minerals and the transparency of the supply chain. Jun 19, 20 conflict minerals are minerals mined in conditions of armed conflict and human rights abuses, and which are sold or traded by armed groups. Conflict minerals strategies for private companies. Even if doddfrank section 1502 does not apply to your company, the implementing rule may still be directly relevant to you and other nonissuers because it is directly applicable to businesses within your customer base.