conflict minerals - form sd and conflict minerals reports

i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4

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c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]

SECTION 1502CONfLICT MINErALS

Step 3 – FORM SD & COnFliCt MineRalS RepORtS

assenT compliance

Jonathan hughes613.290.8044

[email protected]


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c u s T o m s o l u T i o n s f o r c o m p l i a n c y [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]

agenda•AssentComplianceCorporateOverview

•BriefrecapofDodd-FrankActSection1502

•AssentComplianceinvolvementwithDodd-FrankAct

• FormSD

•WhatdoestheLawState?

• SampleForm

•ConflictMineralsReport

•WhatdoestheLawState?

•DifferentConflictMineralReportStatuses

•ApplicationofOECDDueDiligence

• LessonsLearned

•AssentComplianceServices

•Q&A



ASSENTCOMPLIANCE

AbOuT ASSENTAssentCompliancedeliversSaaSEnvironmentalComplianceServices tocompanieswhomustcomplywithlocal,nationalandglobalenvironmentalregulations.Assentalsosupportsitssoftwaredivisionwithateamofhighlyexperienced industry consultants to provide our clients with turnkeycompliance solutions. Industry experts atTier 1 companies rankAssentComplianceamongst thetopenvironmentalcompliancesolutions intheworldandoneoftheonlyglobalsolutionproviderstoofferafullservicesolutionfromendtoend.

Our MISSIONIstohelpourclientscomplywithenvironmentalregulationsinthemostefficientandcosteffectivemannerpossible.Thisisachievedthrough SaaS automation of processes andworkingwith clientstobuildefficient internal complianceprograms thatmeetglobalcompliancerequirements.



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HOw THE ASSENT COMPLIANCE MANAgEMENT SySTEM wOrkS

inTegraTes wiTH major erp/plm

sysTems

BuilT-in crm for compliance Tasks, due diligence reporTing

and audiT Trails

modules To comply wiTH all major environmenTal

regulaTions

pulls Bill of maTerial (Bom) inTo a cenTralized compliance

daTa Base or operaTes as a sTand-alone sysTem.

Build ipc 1752-a forms. imporT/exporT via xml

allows inTernal sTaff To make engineering override

assessmenTs

communicaTes wiTH supply cHain in Bi-direcTional fasHion

To procure environmenTal informaTion from suppliers

Homogenize proprieTary supplier doc formaTs in xml

acTs as a reposiTory for any compliance relaTed maTerial



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ComplianceAssessmentServicesForEnvironmentalRegulations

InternalStandardOperatingProcedureConsulting

CompliancePlanDevelopment

ComplianceStrategyConsulting

ConflictMineralCompliance

ITSystemIntegration

CONSuLTINg SErvICES



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OTTAwA, ONTArIO CAN-AdA (HQ)

NEw yOrk, NEw yOrk

TAIPEI, TAIwAN

MuNICH, gErMANyLONdON, uk

kENyA(CONfLICT MINErALS)

bANgALOrE, INdIA

Our OffICES



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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTTHe Basics•The Conflict Minerals (3TGs)

•Tin(CassiteriteOre)

•Tungsten(Wolframite)

•Tantalum(ColtanOre)

•Gold

•The Countries

•DemocraticRepublicofCongo

•CentralAfricaRepublic

• SouthSudan

•Zambia

•Angola

•CongoRepublic

•Tanzania

•Burundi

•Rwanda

•Uganda



ASSENTCOMPLIANCE

•Conflict Minerals Definition:

•Minedinconditionsofarmedconflictandabusesofhumanrights

Asper17CFRParts229and249“TheConflictMinerals”Rule:

“It is the sense of the Congress that the exploitation and trade of conflict minerals originat-ing in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual – and gender-based violence, and contributing to an emergency humanitarian situ-ation therein”

•This situation attracts Media attention

•ChildSoldiers

• Sexualassaultonamassscale

• Intimidationandabuseoflocalpopulace

•Armedcontrolofmines,tradingroutes,andotherstrategicareas

More Media attention = More Consumer attention



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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTscope•CompaniesthatregisterwiththeSEC

• 10K(US)

• 20F(Foreign)

• 40F(Canadian)

LegalWording:Issuers that File Reports Under Sections 13(a) and 15(d) of the Exchange Act

•ConflictMinerals“necessarytothefunctionality or production”ofitsproductsmanufactured(orcontractedtobemanufactured)

• SupplierstoimpactedSECfilingcompaniesareaffectedbytheprocess,eveniftheyarenotanSECfilingcompanythemselves



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PrINCIPAL rEQuIrEMENTS (AS PArT Of ANNuAL rEPOrTINg TO SEC) – fINAL ruLES•ReasonableCountryofOriginInquiry

•Tracebackofall3TGstocountryoforigin

•Determineif3TGsarefromscraporrecycledsources

POSSIbLE SCENArIOS ANd rEQuIrEMENTS STEMMINg frOM THE rCOI:Scenario 1:• IftheIssuerknows all3TGsdidnotoriginateinDRCCountriesorarefromscraporrecycled

sources

OR

• IftheIssuer has no reason to believe thatthe3TGs may have originatedinthecoveredcoun-triesand may not be fromscraporrecycledsources.



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Requirements:•DisclosureoftheRCOIonIssuerInternetwebsite

• FileFormSDwiththeSECaspartofannualfilings:

» Disclosethedetermination

» Disclosetheprocess

» DisclosetheinternetaddressofthesitewiththeRCOIInformation

•Maintenanceofreviewablebusinessrecordstosupportareasonablecountryoforiginconclusionisnotrequiredbutitismentionedinthefinalrulesthatmaintenanceofappropriaterecordsmaybeusefulindemonstratingcompliancewiththefinalrule.

AdditionalNotefromtheFinalRules:Thesereviewablerecordsmayberequiredbyanynation-allyorinternationallyrecognizedduediligenceframeworkappliedbyanissuer.



ASSENTCOMPLIANCE

PrINCIPAL rEQuIrEMENTS (AS PArT Of ANNuAL rEPOrTINg TO SEC) – fINAL ruLES CONT’dScenario 2:• IftheIssuerknows or has reason to believethatthe3TGsmay haveoriginatedinthecoveredcountries.

OR

• IftheIssuerknows or has reason to believethatthe3TGsmay notbefromscraporrecycledsources.

Requirements:•Alltheabovetasksplus

•CreateConflictMineralsReport

• FiledasexhibittotheFormSD

•MakereportavailableontheInternetwebsite

•Same as proposed –Alloftheabovemustbeauditedbya3rdparty

• 10K/20FauditedasapartofoverallSECfiling

• Independent Private Sector Audit -Required for theConflictMineralsReport (exceptionssurroundingthe“UndeterminableStatus”exist)



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fINAL ruLES fLOwCHArTdoes THe issuer file re-

porTs wiTH THe sec under secTions 13(a) or 15(d) of THe

excHange acT?

does THe issuer manufacTure or

conTracT To manufacTure producTs?

is iT less THan Two years afTer THe effecTiveness of THe rule (four years

for smaller reporTing companies)?

on a reasonaBle counTry of origin inquiry (rcoi), does THe issuer know or Have reason To Believe THaT THe conflicT minerals may Have originaTed in THe drc

or an adjoining counTry (THe covered counTries)?

exercise due diligence on THe source and cHain of cusTody of iTs conflicT minerals follow-ing a naTionally or inTernaTionally recognized due diligence framework, if sucH framework is availaBle for a specific conflicT mineral.

in exercising THis due diligence does THe issuer deTermine THe conflicT minerals are noT from THe covered counTries or are from scrap or recycled.

file a form sd wiTH a conflicT minerals reporT as an exHiBiT, wHicH includes a descripTion of THe measures THe issuer Has Taken To exercise due diligence.

in exercising due diligence, was THe issuer aBle To deTermine wHeTHer THe conflicT minerals financed or BenefiTTed armed groups?

THe conflicT minerals reporT musT also include and independenT privaTe secTor audiT reporT, wHicH expresses an opinion or conclusion as To wHeTHer THe design of THe issuer’s due diligence measures is in conformiTy wiTH THe criTeria seT forTH in THe due diligence framework and wHeTH-er THe descripTion of THe issuer’s due diligence measures is consisTenT wiTH THe process under-Taken By THe issuer. also, include a descripTion of THe producTs THaT Have noT Been found To Be drc conflicT free, THe faciliTies used To process THe necessary conflicT minerals in THose prod-ucTs, THe counTry of origin of THe minerals and THe efforTs To deTermine THe mine or locaTion or

origin of THose minerals wiTH THe greaTesT possiBle specificiTy. END

were THe conflicT minerals ouTside THe sup-ply cHain prior To january 31, 2013?

file does noT apply.

END

file a form sd THaT discloses THe issuer’s deTerminaTion and Briefly descriBes THe rcoi and THe resulTs of THe inquiry.

END

file a form sd THe discloses THe issuer’s deTerminaTion and Briefly descriBes THe rcoi and due diligence measures Taken

and THe resulTs THereof.

END

THe conflicT minerals reporT musT also include a descripTion of producTs THaT are “drc conflicT undeTerminaBle” and THe sTeps Taken or THaT will

Be Taken, if any, since THe end of THe period covered in THe lasT conflicT minerals reporT To miTigaTe THe risk THaT THe necessary conflicT minerals BenefiT armed groups, including any sTeps To improve due

diligence. no audiT is required. END

are conflicT minerals necessary To THe funcTionaliTy or producTion of THe producT

manufacTured or conTracTed To Be manufacTured?

Based on THe rcoi, does THe issuer know or reasonaBly Believe THaT THe conflicT minerals come from scrap or

recycled?

Yes

Yes

no

Yes

no, if newlY mined

no, if potentiallY scrap or recYcled

no

Yes

no

Yes

no

no

no

no Yes

Yes

Yes

Yes

no



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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTassenT compliance’s involvemenT wiTH dodd-frank secTion 1502•MeetingwithSEC

•OverthecourseofMondayDecember12thandTuesdayDecember13th,AssentCompliancemetseparatelywithCommissionerParedes,CommissionerWalterandCommissionerAguilarfor1houreachtodiscussthefollowingitemsinrespecttoDoddFrankSection1502

» NAMandTulaneReports

» Compliancecosts

» Practicalcomplianceactivities

» Impactonindustry

» Impactonsupplychains

» Feedbackonproposedrules



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•OnWednesdayDecember14th,AssentComplianceparticipatedinConflictMineraldiscussionpanelwiththefollowingpanelists:

•GE

•AMD

•BrookingsInstitute

•RIM

•ClaiganEnvironmental

•KEMET

•Thepanel discussed various issues surroundingConflictMinerals andfielded questions fromtheaudience(whichwascomprisedofcongressstaff,journalists,industrygroupsandbusinessrepresentatives)

•Assent Compliance is included 4 times in the Final Rules from the SEC based on our input at the meeting and on a separate submitted letter we provided to the SEC.



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fOrM SdwHaT does THe law sTaTe?•AllcompaniesinscopeoftheConflictMineralsprovisionmustfileFormSD.

•ThiswillbedoneyearlyonMay31st,forthepreviouscalendaryear.•NOTE-Thisisdoneonayearlybasisandisindependentofyourcompany’sfiscalyear

•ThefirstreportisdueMay31st,2014forcalendaryear2013

• Undertheheading“ConflictMineralsDisclosure”,youmustprovidethefollowinginformation:

•RCOIDetermination» Doyouhavereasonbelieve...?

•RCOIResults» Stats,Ex:1,500surveyed,1400responses,125statedsourceunknown,etc

•DescriptionofyourRCOImethodology» Howwasitcarriedit,whatareyourpolicies,how&whereisthedatastoredetc.

• Linktoyourwebsitewherethisdisclosureismadepublicallyavailable» www.yourcompanyname.com/conflict_minerals_disclosure



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fOrM SdwHaT does THis mean?• Youneedtohaveaclear,transparentprocessthatcaneffectivelymeettherequirementsoftheRCOI

•RememberthatitisaReasonableCOUNTRYofOrigin,notaReasonabledirectsuppliersurvey–IE:YoumusthaveanRCOImethodologyinplacethatallowsyoutomapyoursupplychaintodetermine sourcewherenecessary

• Youwillneedtocoherentlyexplainthecompliancecheckingprocessthatleadtoyourdetermination.•Asimple“WehavenoConflictMineralsbecausewegotaspreadsheetfromalloursuppliers”

isnotgoingtocutitwiththeSECorthepublic

•Thekeytermsusedare“reasonable”and“goodfaithexecution”

• Yourplanshouldaccountforallowforanenableaccountableandtraceableimprovementsinthelongterm.

•ThisinformationisPUBLICandmustbedisclosedonyourwebsite•KeepinmindthatallyourpoliciesregardingConflictMineralswillbeonyourwebsite.

•Thinkofyourbrandimage

•Donotcontradictyourself

» Yourwebsite statementsmustmatch upwith your SEC disclosures as well asstatementsyouhavegiventoyourcustomers!



ASSENTCOMPLIANCE

fOrM SdexampleA. Acme Corporation’s Conflict Minerals Disclosure (Reasonable Country of Origin Determination)AcmeCorporationhasreasontobelievethatsomeoftheConflictMineralsusedinitsproductsmayhaveoriginatedfromDRCoradjoiningcountries.

B. Description of Acme Corporation’s Reasonable Country of Origin InquiryAcmeCorporationhasenlisted theassistanceofa3rdpartyConsultant–AssentCompliance - tohelpdesignandimplementaConflictMineralsCompliancePlanthatwillenablecompliancewithDodd-FrankSection1502.Inordertoordertoachievethesegoals,AcmeCorporationhastakenthefollowingsteps:

1. Conflict Minerals PolicyAcmeCorporationhasinstitutedaDRCConflictFreesourcingpolicy.AcmeCorporationdoesnotaccepttheuseofConflictMineralsinitsproducts.AllAcmeCorporationsuppliersarerequiredtosigntheConflictMineralspolicystatementaspartofthetermsandconditionsofdoingbusinesswithAcmeCorporation.AcmeCorporation’sConflictMineralsPolicystatementcanbefoundhere:www.acme.com/conflict_minerals_policy.html

Inaddition,AcmeCorporationsupportsitssuppliersinseekingamutuallysustainablesolu-tionforitsentiresupplychain,includingitsindirectsuppliersbyprovidingConflictMineralseducationalmaterials,guidanceandflow-downcontractclausesforusebyitssuppliers.



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2. Internal Standard Operating ProceduresAcmeCorporationhascreatedinternalstandardoperatingprocedures(SOPs)foralldepart-mentsandbusinessunitsthatareaffectedbyConflictMinerals.

TheseSOPsprovideastepbystepprocessthateachbusinessunit,departmentandemployeemustfollowinordertogenerateandmaintainthenecessaryinformationneededforAcmeCorporation’scompliancewithDodd-FrankSection1502.

3. Risk Assessment & Risk MitigationAspartofAcmeCorporation’sCompliancePlandesign,allproductsandsupplierswereas-sessedinordertoidentifyConflictMineralsscopeandrisk.HighrisksuppliersandproductswereflaggedinAssentCompliance’sDatabaseforprioritizationofduediligenceandsupplychainsourcingactivities.

Highrisksuppliersandproductsarerequiredtoprovideagreaterlevelofproof,inordertodemonstrateareasontobelievethattheirconflictmineralsdonotoriginateinthecoveredcountries.

Inaddition,AcmeCorporationhasestablishedaseparateRiskMitigationcommitteewhichwill specificallyaddresshigh risk suppliers andproductswhodonotmeet theminimumrequirementsofAcmeCorporation’sConflictMineralcomplianceprogram.Thiscommitteeisresponsibleforresolvingthesesupplychainissuesbyassistingthesupplier,mappingmine



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oforiginorchangingthesourceofthematerialsinquestion.

4. Supplier Corrective ActionsAcmeCorporationhascreatedalistofSupplierCorrectiveactionstobetakenwithvendorswhocannotprovidesufficientcomplianceinformation.Thespecificsuppliercorrectiveac-tionsdependonfactorssuchasvendorsize,risklevelandvendorcapabilities.

SupplierswhodonotimprovetheirresponsesinatimelyfashionareremovedfromAcmeCorporation’ssupplychain.

AcmeCorporationwillassistsupplierswiththeirsourcemappingeffortsandprovideflow-down contract clauseswhere appropriate in the effort to support amutually sustainableprogramforallofitssuppliers.

5. Reasonable Country of Origin MethodologyAcmeCorporationwill be utilizingAssentCompliance’sConflictMinerals software andservicestoconduct itsreasonablecountryoforigin inquiry.Thiswill involvesendingtheEICC-GESIConflictMineralsReportingtemplatetoallofAcmeCorporation’sdirectsup-pliers.Thisformmustbecompletedandsignedbyanappropriatesuppliersignatory.

AllresponsesarereviewedandsentbacktosupplierforanycorrectivemeasuresasprescribedinAcmeCorporation’sConflictMineralscomplianceplan.

Highriskresponsesaresenttotheriskmitigationcommitteeforreviewandfurtheraction



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asperAcmeCorporation’sConflictMineralscomplianceplanandSOPs.

6. Maintenance of Reviewable Business recordsAcmeCorporationusesAssentCompliance’sdatabaseinordertomaintainreviewablebusi-nessrecords.Thisincludes,supplierresponses,suppliercorrectiveactionsandriskmitiga-tionprocesses.

Althoughno longerpartof themandatory requirementsunderfinal rules, the storageofthesemetricsisanimportantpartofdemonstratingtransparencyandisinaccordancewithcompliancetorecommendedOECDduediligence.

ThiswillalsoallowAcmeCorporationtoshowthelong-termevolutionandimprovementofitsprogramtoitsshareholders.

C. Results of Acme Corporation’s Reasonable Country of Origin InquiryBasedontheprocessdescribedabove,AcmeCorporationreceivedthefollowingresultsfromitsReasonableCountryofOriginInquiry:

InitialAssessmentandSurvey:Total number of Acme Corporation Suppliers: 1,750Suppliers in Scope of Conflict Minerals requirements: 1,500Suppliers surveyed: 1,500Responses received: 1,500



ASSENTCOMPLIANCE

Approximately85%ofAcmeCorporation’ssuppliersweredesignatedasbeinginscopeofAcmeCorporation’sConflictMineralsComplianceProgram.

SupplierResponses

No Conflict Minerals in materials provided to Acme Corporation: 200

Conflict Minerals do not originate from DRC or adjoining countries: 1200

Conflict Minerals source is unknown: 100

ThroughitsConflictMineralsComplianceProgram,AcmeCorporationwasabletodeter-minethatover94%ofallitssupplierseitherdonotprovidematerialsthatcontainConflictMineralsordonotprovideanyreasontobelievethattheirConflictMineralsoriginateinthecoveredcountries.

The100 suppliers thatwere unable to provide sufficientConflictMinerals source infor-mationaspartoftheinitialReasonableCountryofOrigininquiryunderwentadditionalOECDDueDiligenceactivitieswhicharedescribeinAcmeCorporation’sConflictMineralsreport.

Providedbelowisa linktoAcmeCorporation’s internetdisclosureforConflictMinerals:www.acme.com/conflict_Minerals_Disclosure



ASSENTCOMPLIANCE

CONfLICT MINErALS rEPOrTpreface• Firstweshouldexaminewhattriggers the requirementforaConflictMineralsreport:

• “requires an issuer that, after its reasonable country of origin inquiry, had reason to believe that its minerals may have originated in the Covered Countries and may not have come from recycled or scrap sources and, after the exercise of due diligence, still has reason to believe that its minerals may have originated in the Covered Countries and may not have come from recycled or scrap sources, to provide a Conflict Minerals Report that includes a description of the measures the issuer has taken to exercise due diligence on the source and chain of custody of those conflict minerals.” (Pg. 182-183)

•Thisisanimportantandoftenoverlookedchangebetweentheproposedandfinalrules.

• BeforeyoujumptoconclusionsandrushrightintoaConflictMineralsReport,youmustfirstdetermineifyouhave“reason to believe”.

•MakesureyourRCOIissetuptoallowyourcompanytomakethatdetermination.



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CONfLICT MINErALS rEPOrTconflicT mineral reporT sTaTus•DiffersfromyourRCOIdetermination

•RCOIDetermination=“reasontobelieve”» BasedonoutcomeofyourRCOI

•ConflictMineralsreport=DRCConflictMineralstatus» BasedonoutcomeofyourDueDiligencemeasures

•Oneofthreestatuses» “DRC Conflict Free”

» “donotcontainmineralsthatdirectlyorindirectlyfinanceorbenefitarmedgroupsintheCoveredCountries”(Pg.185)

» “Not DRC Conflict Free” » “The Conflict Minerals Statutory Provision does not define “Not DRCConflictFree”butinsteadonlydefines“DRCConflictFree””(Pg.183)

» “DRC Conflict Undeterminable”» Temporarystatusforissuersthatare“unabletodeterminethattheirconflictminerals did not originate in the Covered Countries” (Pg. 186)

» Onlypermittedfor2yearsforlargerissuersand4yearsforsmallerissuers

» Smallerissuersdefinedasissuerswithlessthan $25,000,000inrevenueasperRule12b-2[17CFR240.12b-2]undertheExchangeAct.(Pg.29)



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CONfLICT MINErALS rEPOrTprincipal requiremenTs – “noT drc conflicT free” •ConflictMineralsReportmustincludesomeofthefollowingitems(Pg.167oftheFinalRules):

• “description of the measures taken by the issuer to exercise due diligence on the source and chain of custody of its conflict minerals”

• Thesemeasuresmustinclude“an independent private sector audit”oftheConflictMineralsReport

• Entitythatconductedtheaudit

• “provide a description of the products “manufactured or contracted to be manufactured that are not ‘DRC conflict free’”

• “facilities used to process the conflict minerals”

• “the country of origin of the conflict minerals”

• “efforts to determine the mine or location of origin with the greatest possible specificity”



ASSENTCOMPLIANCE

CONfLICT MINErALS rEPOrTprincipal requiremenTs – “drc conflicT undeTerminaBle” •ConflictMineralsReportmustincludesomeofthefollowingitems(Pg.167oftheFinalRules):


• “provide a description of the products “manufactured or contracted to be manufactured that are not ‘DRC conflict free’” – If known

• “facilities used to process the conflict minerals” – If known

• “the country of origin of the conflict minerals” – If known

• “efforts to determine the mine or location of origin with the greatest possible specificity” If Applicable

• “the steps it has taken or will take, if any, since the end of the period covered in its most recent prior Conflict Minerals Report to mitigate the risk that its necessary conflict minerals benefit armed groups, including any steps to improve its due diligence” (Pg. 186)

•NOTES–Noauditrequired,butyoumuststillcarryoutOECDDueDiligenceandstateyourplantomitigateriskgoingforward



ASSENTCOMPLIANCE

CONfLICT MINErALS rEPOrTprincipal requiremenTs – “drc conflicT free” •ConflictMineralsReportmustincludesomeofthefollowingitems(Pg.167oftheFinalRules):


• Thesemeasuresmustinclude“an independent private sector audit”oftheConflictMineralsReport

• Entitythatconductedtheaudit

•NOTE–Noneedtolistproducts,processes,minewithgreatestspecificityetc.



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CONfLICT MINErALS rEPOrTwHaT does THis mean?•OECDhastheonlynationallyrecognizedduediligenceframework

• Itisde-factolegislatedthatyouusethisprocess

• YourinitialCompliancePlanshouldstartwithOECDDueDiligenceasabaseforyourmeth-odologies,processes,policies,etc.

•MakesureyourCompliancePlanandRCOIisin-linewithOECDDueDiligenceandyouwillnotneedtore-inventthewheel

•Canalsothenincorporatethoseinitialstepsasproofofyourduediligencemeasures

•Evolution–expectyourplantoimproveandevolveovertimeasmoreinfoandinfrastructureisavailabletosupportyourConflictMineralscomplianceprogram

•Thisinformationispublic–ifyoudohavetowriteaConflictMineralsReport,writeitasifeverycustomerandshareholderisreadingit.



ASSENTCOMPLIANCE

CONfLICT MINErALS rEPOrToecd - pracTical applicaTions•Thereare5stepsoutlinedundertheOECDframework:

1. Establish strong company management systems» CompliancePlan

» RCOIMethodology

» DueDiligencePlan

2. Identify and assess risks in the supply chain» Supplier&ProductProfiling

3. Design and implement a strategy to respond to identified risks» RiskMitigationCommittee

4. Carry out 3rd party audit of smelter/refiner’s due diligence practices» Notapplicableto99%

5. Report annually on supply chain due diligence» PartofConflictMineralsReporting



ASSENTCOMPLIANCE

LESSONS LEArNEd•Follow the rules

•Guidelines,formats,methodologiesandprocessesexist–usethem!

•Don’tre-inventthewheel

•Focus on Risk• FinalrulesandOECDbothrecommendariskbasedapproach

• Profileyourrisk1. Suppliers2. Products

•Mitigateyourrisk1. RiskCommittee2. SupplierCorrectiveActions

•GettinganEICCspreadsheetfrom100%ofyourdirectsuppliersisnotthesameasmiti-gating100%ofyourrisk.

•Make your life easy:•Giveyourselftimetodesignaneffectiveaplan

•Giveyoursupplierstimebutmakesureyourdeadlinesarefirm

• Setupamulti-departmentalRiskCommittee

• Startsoonerratherthanlater

1. Thelongeryouwait,themoreresourcesyouwillneedoverashorterperiodoftime



ASSENTCOMPLIANCE

HOw ASSENT CAN HELPAssent Compliance offers turnkey Conflict Mineral Compliance services including ConflictMineralsScopeAssessments, ConflictMineralsReasonableCountryofOriginInquiry, ConflictMineralsReportgenerationand ConflictMineralsSoftware.

AssentCompliancecanhelpyoucompleteyourFormSDorConflictMineralsReport.Insupportofthesereports,weofferthefollowingservices:

•ConflictMineralsScopeAssessments

•RCOIServices

•ConflictMineralsSoftware

•DueDiligenceSupport

•RiskProfiling&RiskMitigation

• SupplyChainMapping

•RiskCommitteeparticipation

Ifyou’dliketoknowmoreaboutourservices,contact [email protected]



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QuESTIONS?

conflict minerals - form sd and conflict minerals reports

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