Tag Archives: conflict minerals report

Responses to Corp Fin’s Updated Statement on Conflict Minerals

by Cydney Posner

A number of NGOs have issued statements emphatically rejecting Corp Fin’s  Updated Statement on the Effect of the Court of Appeals Decision on the Conflict Minerals Rule and the Acting Chair’s separate Statement on conflict minerals (see this PubCo post) and calling for companies to disregard them and file their conflict minerals reports as usual. How will companies respond? Continue reading

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So what should we do about conflict minerals compliance for next year?

by Cydney Posner

As of now, Forms SD and conflict minerals reports are still due on May 31, 2017.  With all the discussion, in light of the election results, of rolling back legislation and regulations, through the Financial CHOICE Act and otherwise (see this PubCo post), many are wondering whether they should still plan to file those reports.  While there’s no way to be certain, our assessment at this point is that they should. Continue reading

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Consultants report on conflict minerals due diligence and disclosure for 2015. But has it made a difference for the DRC?

by Cydney Posner

Two consulting firms, Assent Compliance and Source Intelligence, have published their studies on conflict minerals (tin, tantalum, tungsten and gold) reporting for 2015, the third year of required SEC reporting.  For 2015, there were slightly over 1,200 filers, representing a decrease of about 50 filers from the prior year (reflecting business combinations, going-privates and other activity, offset in part by new filers). Both studies conclude that, while the level of transparency has increased, after three years of due diligence and reporting, the vast majority of reporting companies are still unable to determine the origin of the conflict minerals that were necessary to the functionality or production of their products, let alone whether they contributed to financing armed groups in the DRC or contiguous countries. Continue reading

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New study gives mixed reviews to companies filing conflict minerals reports

by Cydney Posner

A new study on conflict minerals compliance from Tulane University and Assent Compliance, a compliance software and services firm, revealed that about 90% of filers of conflict minerals reports indicated that they were unable to determine if their products were conflict free, the primary object of the conflict minerals due diligence effort. What’s more, for the second year of conflict minerals filings, affected  issuers expended a total of 6 million hours on their compliance and reporting, for an aggregate internal cost of $420 million, as well as additional millions on external costs.  The grand total was estimated to be $709.7 million, an average of half a million dollars per filing issuer.

The study looked at SEC compliance indicators for all filers of Form SD only and separately for all filers of Form SD together with conflict mineral reports (CMRs).  (A CMR is required if, after conducting a reasonable country of origin inquiry (RCOI),  the company knows or has reason to believe that its conflict minerals may have originated in the DRC or surrounding countries.) The study also analyzed good-practice indicators  drawn from Mining the Disclosures: An Investor Guide to Conflict Minerals Reporting from Responsible Sourcing Network/Sustainalytics. (See this PubCo post.) Continue reading

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