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Editor's Note
Getting Ready for Regulation
By Marshall Chase, Associate Director, Advisory Services
More than two years after “the conflict minerals law” appeared as part of the U.S. Dodd-Frank financial reform legislation, the U.S. Securities and Exchange Commission (SEC) is likely to finalize supply chain reporting regulations on August 22 for products containing tin, tantalum, tungsten, and gold. At the same time, events in the eastern Democratic Republic of the Congo—the region that is the focus of the law—continue to evolve, with the Congolese government taking steps to enforce mining laws intended to prevent the illegal trade of conflict minerals. However, a rebellion among army troops in the region has emerged, funded in part by this illegal trade.
Since 2009, BSR has worked with companies, governments, NGOs, and others on conflict minerals strategy, supply chain and stakeholder engagement, and reporting. In this work, we have encouraged a focus on both local issues and the wider supply chain. We support the development of due diligence approaches that seek to avoid sourcing conflict-related materials, while continuing to source conflict-free materials from the region to support local livelihoods.
At the same time, conflict minerals are only one of a range of issues that must be addressed, whether in the DRC or in companies’ global supply chains. This issue is just one example of growing pressures for supply chain transparency and accountability.
In this edition of the BSR Review, we present a collection of our recent blog entries, articles, and reports to highlight the following topics:
- Conflict Minerals Supply Chain Due Diligence: At the core of company attempts to deal with conflict minerals, how can an approach be developed that seeks to avoid sourcing conflict-related materials, while continuing to source conflict-free materials from the region to support local livelihoods?
- The DRC Beyond Conflict Due Diligence: Conflict is just one of the concerns associated with minerals extraction and trade in the DRC that companies will be expected to address, including forced and child labor and environmental degradation. At the same time, companies have opportunities to support positive change, whether directly through the minerals sector or by using their expertise to support local development more generally.
- Rising Global Expectations: Conflict minerals reporting rules are just one example of growing calls for companies to be more transparent and to “know and show” that they respect human rights, as highlighted by last year’s release of the UN Guiding Principles on Business and Human Rights. How can companies incorporate their conflict minerals work into broader corporate sustainability efforts?
For more information about BSR’s Conflict Minerals work, please contact Marshall Chase or Sasha Radovich.
Conflict Minerals Supply Chain Due Diligence
Has Progress Been Made on Due Diligence for Conflict Minerals?
(June 28, 2012)
By
BSR blog: Currently, companies face practical challenges in implementing due diligence, but they are also taking significant steps and progressing quickly in order meet the impending Dodd-Frank legislation and to enable responsible sourcing.
Read more→
Downstream Implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
(June 1, 2012)
BSR report: The second of three reports issued as part of the implementation phase of the Organization for Economic Cooperation and Development’s (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and its Supplement on Tin, Tantalum, and Tungsten. This report provides greater detail on current approaches and tools, challenges, and experiences in developing systems and processes for each of the five steps of the OECD framework.
Read more→
Conflict Minerals: The Impacts of the Regulations
(January 20, 2012)
By Marshall Chase, Associate Director, Advisory Services, BSR
BSR blog: A narrow focus on the rules neglects a point BSR has regularly emphasized in our years working on conflict minerals: Companies must take action with a real understanding of how that activity will affect local communities, and how it will fit into global supply chain sustainability trends.
Read more→
Conflict Minerals: Cleaning the Supply Chain and Solving the Problem?
(November 1, 2011)
BSR Conference session: Panelists from organizations at different points in the supply chain discuss due diligence, traceability, and transparency, as well as the importance of coordination and collaboration to tackle conflict minerals.
Read more→
Conflict Minerals Due Diligence: What Can Companies Expect?
(July 5, 2011)
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BSR Insight article: To help companies prepare for the imminent U.S. regulation, a five-step framework for responsibly managing minerals sourced from the area around the DRC and an exploration of stakeholders’ expectations at different ends of the supply chain.
Read more→
Creating a Supply Chain Strategy for Conflict Minerals
(May 24, 2011)
By Marshall Chase, Associate Director, Advisory Services, BSR
BSR Insight article: In this video, learn about the steps company leaders should take—from visioning and internal alignment through supply chain mapping and external engagement—to address conflict minerals in their supply chains. Additionally, our 2010 BSR Report provides a deeper dive.
Read more→
The Path to 'Conflict-Free': Risk Management or Responsibility?
(September 28, 2010)
By Marshall Chase, Associate Director, Advisory Services, BSR
BSR Insight article: With headlines about the DRC broadcasting strong claims like “Break the Link Between Laptops and War” and “Death by Gadget,” it’s easy to get the impression that the ICT sector is solely responsible for the violence in that country. Several key points are swept aside in this particular focus on ICT supply chains.
Read more→
The DRC Beyond Conflict Due Diligence
Going Beyond the Supply Chain in the Democratic Republic of Congo
(February 1, 2012)
BSR report: How can companies can move beyond supply chain traceability of conflict minerals to support local development in eastern DRC? This report summarizes findings from research and interviews with representatives from the private sector, NGOs, and government and identifies various opportunities for companies to engage in development activities to support a stable region, local economy, and society.
Read more →
Conflict Minerals and Local Development Concerns
(January 24, 2012)
By Marshall Chase, Associate Director, Advisory Services, BSR
BSR blog: In our work with companies on conflict minerals from the DRC, we sometimes get asked why labor, environmental, and economic conditions are a concern, when the U.S. regulation—and even activists and the press—focuses only on the conflict. Yet issues like child labor, environmental degradation, and gender inequity are also tied to the sourcing raw materials from the DRC, and these problems will not be solved by an end to conflict, let alone the elimination of trade in conflict minerals.
Read more →
Evaluating the Socioeconomic Benefits of Mining
(August 2, 2011)
BSR Insight article: A toolkit from the International Council on Mining and Metals provides companies, civil society, and government with a framework to evaluate the socioeconomic benefits of mining at local, regional, and national levels. A recent video by BSR’s Michael Oxman also expands upon the issue.
Read more →
What Conflict Minerals Regulation Means on the Ground
(March 31, 2011)
By
BSR blog: While the impending U.S. legislation is seen as a viable alternative to sanctions that would effectively put millions of livelihoods at risk in the African Great Lakes Region, it has placed pressure on both governments and companies to develop the processes to trace the minerals from the mine all the way to the end user.
Read more →
Conflict Minerals and the Democratic Republic of Congo
(May 1, 2010)
BSR report: The contribution of eastern mineral resources to funding the conflict in the DRC, and the need to sever this link, has been widely discussed by a range of organizations and governments. Although much of the public focus has been on conflict minerals use in the electronics industry, they feed a range of complex supply chains, serving as raw materials for component parts in everything from cell phones and cutting tools to jet engines and jewelry.
Read more →
Rising Global Expectations
Five Best Practices in Human Rights Reporting
(June 29, 2012)
By Chloё Poynton, Manager, Advisory Services, BSR
BSR blog: For too long, human rights reporting has focused on specific challenges, such as labor rights in the supply chain, without reporting on the broader human rights context. This trend is beginning to change, with leaders presenting nuanced views of their human rights challenges and centering them within the context of their wider business.
Read more →
Conflict Minerals and Global Trends in Responsible Sourcing
(February 8, 2012)
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BSR blog: When it comes to addressing concerns about conflict minerals in company supply chains, it is important to consider the broader trends related to supply chain transparency. Rather than approaching each transparency request in isolation, companies that implement systems to manage risks holistically will be better equipped to respond to current and future demands.
Read more →
Bad Bedfellows: Avoiding Complicity in Human Rights Violations
(December 13, 2011)
By Faris Natour, Director, Human Rights, BSR
BSR Insight article: A chief continuing challenge for business and human rights is the issue of “corporate complicity” in human rights violations. But what does “complicity” mean in this context, and where is the line between legal and illegal activity? For more context, check out our video on human rights management.
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Regulating Supply Chain Sustainability
(September 13, 2011)
BSR blog: With a swath of recent sustainability-related regulatory initiatives adopted in the U.S. and Europe, companies must now begin to incorporate regulatory requirements in their approach to managing ethical, social, and environmental risks in the supply chain. Here is a snapshot of the most important initiatives.
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Answering the Call for Mandatory Sustainability Reporting
(April 5, 2011)
By Chhavi Ghuliani, Manager, Advisory Services, BSR
BSR Insight article: There has been global momentum toward integrated and mandatory reporting for companies on issues related to environmental, social, and governance performance. To help company managers stay ahead of this trend, BSR has put together a few key points for managers to consider in developing reporting strategies for the next several years.
Read more →
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