Section 1502 on conflict minerals of the doddfrank wall street reform and consumer protection act is a transparency measure, and one part of a comprehensive approach to congos challenges. This could occur at different stages whether through mining or trading in the democratic republic of congo or in an adjoining country or further down the sustainable procurement. A csr assessment is an evaluation of how well a company has integrated the principles of csr into their business. Securities and exchange commission sec rules mandate assessment and reporting requirements for public companies to disclose the extent to which the products they manufacture or contract to manufacture contain so called conflict. Trade in conflict minerals congolese warlords, mncs. Doddfrank act conflict minerals reporting requirements.
Dodd frank act conflict minerals responsible jewellery. Expected in the first half of 2018, the eu commission will publish guidelines to help enterprises identify these high risk areas. Embedded in the doddfrank act signed by president obama is a truly historic regulatory provision, one targeted at eliminating funding for armed groups in. Public law 111203july 21, 2010 doddfrank wall street reform and consumer protection act anorris on dsk5r6shh1prod with public laws verdate nov 24 2008 00. This section requires all companies traded and listed on the usamerican stock exchange market to disclose information on the use of conflict minerals, notably. Learn about assent compliance can help with your conflict mineral compliance needs. Conflict minerals could be present knowingly or unknowingly in the sustainable procurement and contaminate it. A view of the doddfrank act based on regulating wall street. Doddfrank act conflict minerals reporting requirements as of september 2012 section 1502 of the doddfrank wall street reform and consumer protection act doddfrank act, passed in july 2010, is an attempt to stop rebel groups in the democratic republic of the congo drc.
Conflict minerals back to social impact keytronic statement of conflict minerals overview of the conflict minerals issue the doddfrank wall street reform and consumer protection act, passed into law in july of 2010 requires that u. This act may be cited as the doddfrank wall street reform and consumer protection. Oct 03, 2011 melvin ayogu and zenia lewis examine the provision in the dodd frank act that addresses the trade of conflict minerals originating in the democratic republic of the congo, arguing that while the. Pdf doddfrank wall street reform and consumer protection act. Social assessment and management of conflict minerals. 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.
Doddfrank act section 1502 regarding drc conflict minerals. Doddfrank and the impact on internal audit the path. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, section 1. Section 1502 of the us law known as the doddfrank act includes a requirement that companies using gold, tin, tungsten and tantalum make efforts to determine if those materials came from the democratic republic of congo drc or an adjoining country and, if so, to carry out a. Securities and exchange commission sec rules mandate assessment and reporting requirements for public companies to disclose the extent to which the products they manufacture or contract to manufacture contain so. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules. The conflict minerals reporting template cmrt is a free, standardized reporting template developed by the responsible minerals initiative rmi that facilitates the transfer of information through the supply chain regarding mineral country of origin and the smelters and refiners being utilized. Section 1502 of that act addresses the international trade and use of conflict minerals. Doddfrank act, of preventing the exploitation of conflict minerals for the purpose of financing. In 2010, president obama signed the doddfrank consumer protection act into law. On august 22, 2012, the sec adopted the final rule on conflict minerals pursuant to the doddfrank act section 1502. But what are these minerals and how do they affect our everyday lives.
Conflict minerals policy the company developed a policy statement to support the goals expressed by congress in enacting section 1502 of the doddfrank wall street reform and consumer protection act. Conflict minerals doddfrank act conax technologies. The announcement the sec would no longer enforce the conflict minerals reporting rule of the dodd frank act centers around the role of the agency in. Jan 23, 2018 by the us doddfrank act 2010 that entered into force in 2014. Wolframite gold others determined by the secretary of state to be financing conflict in drc examples of industries affected electronics and communications. What laws and rules govern conflict minerals in the united states.
Section 1502 requires persons to disclose annually whether any conflict minerals that are necessary to the functionality or production of a product of the person, as defined in the provision, originated in the. Overview of section 1502 of df act the doddfrank act, signed into law on july 21, 2010, includes a little known section 1502. Mar 04, 2019 the necessity to assess and manage supply chains to be free from social problems such as human and labour rights abuses has become particularly apparent since the introduction of conflict minerals regulations in the united states dodd frank act and the european union. We do not purchase raw ore or unrefined conflict minerals, and we conduct no purchasing activities directly in the drc or adjoining countries. Conflict minerals rule within the doddfrank wall street reform and. The proposed rules would affect the annual reporting requirements of issuers that file reports pursuant to sections a or 15d of the securities exchange act of 1934 the exchange act and would require any such issuer for which conflict minerals are necessary to the functionality or production of a product manufactured, or contracted. Title xv of the doddfrank wall street reform and consumer protection act contains several specialized disclosure provisions. Conflicminerals disclosure provisions of the doddfrank. The eu conflict minerals regulation will target minerals. Implementation of us dodd frank act rule on conflict minerals. The new eu conflict minerals regulation 2017821 will target minerals originating from conflictaffected or high risk areas without being limited to specific geographical locations. Securities and exchange commission 17 cfr parts 240 and 249b. Securities and exchange commission sec adopted final rules to implement reporting and disclosure requirements related to conflict minerals, as directed by the doddfrank wall street reform and consumer protection act of 2010. In august 2012, the united states securities and exchange commission sec approved the final rule regarding the sourcing of conflict minerals as defined in the doddfrank wall street reform and consumer protection act, section 1502.
Sec suspends conflict mineral rule enforcement supply. The dodd frank act section 1502 requires publicly traded companies to ensure that the raw materials they use to make their products are not tied to the conflict in congo, auditing their supply chains. The 2010 doddfrank wall street reform and consumer protection act doddfrank act contains a sense of congress expressing that the exploitation and trade of conflict minerals originating in the drc was contributing to the humanitarian emergency in that country and directs several u. Overview of the act doddfrank act conflict minerals section 1502 metals and their minerals covered 3t metals tin. Jun 19, 20 the unitedstates dodd frank wall street reform and consumer protection act the dodd frank act, section 1502 on conflict minerals formerly known as the congo conflict minerals act, which. In july 2010, the united states enacted the doddfrank wall street reform and consumer protection act, which includes section 1502, a section which regulates disclosure of the use of any conflict minerals. Supporters of the doddfrank conflict minerals statute and the sec. Securities and exchange commissions sec conflict minerals rule. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules requiring issuers with. In response to customer inquiries regarding compliance with section 1502 of the doddfrank act, relating to conflict minerals also referred to in the marketplace as conflict metals originating from the democratic republic of congo drc and neighboring countries, advanced interconnections. Uganda to improve law enforcement related to trafficking and smuggling. On july 16, 2010, congress passed the dodd frank wall street reform and consumer protection act the doddfrank act. Doddfrank wall street reform and consumer protection act section.
Using data gathered from news sources, the memo first defines the term conflict minerals and identifies that the primary actors involved in the conflict mineral market are rebel militia groups and multinational corporations. Supply chain compliance made easy source intelligence. Sec final rule on conflict minerals section 1502 of doddfrank this presentation is intended to be a high level overview of the sec final rule and guidance to the conflict minerals section 1502 of the dodd frank wall street reform and consumer protection act pub. Although the oecd guidance applies to minerals from 1 as defined in 2010 united states legislation, dodd frank wall street reform and consumer protection act, section 1502e4. In 2010, congress passed the doddfrank act, which directs the commission to issue rules requiring certain companies to disclose their use of conflict minerals if those minerals are necessary to the functionality or production of a product manufactured by those companies. Apr 05, 2017 provisions in the 2010 dodd frank wall street reform and consumer protection act require that u. Section 1502 of the doddfrank wall street reform and consumer protection act. For example, the act requires, among other things, sec to promulgate regulations regarding the use of conflict minerals from the drc and adjoining countries. Protection act of 2010, which requires issuers of public securities to disclose their.
The necessity to assess and manage supply chains to be free from social problems such as human and labour rights abuses has become particularly apparent since the introduction of conflict minerals regulations in the united states doddfrank act and the european union. Regulating wall street was a joint effort of 40 faculty members and students at nyu stern and was edited by viral v acharya, thomas cooley, matthew richardson and ingo walter. Although the oecd guidance applies to minerals from 1 as defined in 2010 united states legislation, doddfrank wall street reform and consumer protection act, section 1502e4. Melvin ayogu and zenia lewis examine the provision in the doddfrank act that addresses the trade of conflict minerals originating in the democratic republic of. We rely on a thorough content analysis conducted by the. The doddfrank wall street reform and consumer protection act doddfrank act, which focuses on reforming u. Conflict minerals sourced from the covered countries are referred to as drc conflict minerals. Pdf this paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. Street reform and consumer protection act doddfrank act includes a provision for disclosures on conflict materials in or near the democratic republic of the congo 15 u. This could occur at different stages whether through mining or trading in the democratic republic of congo or in an adjoining country or further down the sustainable procurement companies either at the upstream or downstream end of. Pdf determinants of conflict minerals disclosure under the dodd. Doddfrank act required the securities and exchange commission sec to adopt rules to require certain sec registrants to publically disclose their use of conflict minerals. Despite the secs no action position which relaxed conflict minerals reporting obligations, many issuers continued to file conflicts minerals reports in accordance with previous sec guidance.
This act may be cited as the doddfrank wall street reform and consumer protection act. Implementation of us doddfrank act rule on conflict minerals. An assessment program is a first step into an ongoing monitoring process. Doddfrank section 1502 ry2014 filing evaluation 2 executive summary this study systematically evaluates public company conflict mineral filings submitted to the sec for reporting year 2014 under doddfrank section 1502 a disclosure law requiring public. In 2010, the doddfrank wall street reform and consumer protection act was signed into law.
Building on insights from deloitte experts in the us, the following outline draws comparisons and provides insights on the implementation of the doddfrank act in the us. Facts on doddfrank 1502 june 2017 minerals and conflict. Companies that use conflict minerals from the democratic republic of the congo and adjoining countries. Understand your obligations under the doddfrank act section 1502. Doddfrank section 1502 ry2014 filing evaluation 6 companies in the u. Section 1502 of the us law known as the dodd frank act includes a requirement that companies using gold, tin, tungsten and tantalum make efforts to determine if those materials came from the democratic republic of congo drc or an adjoining country and, if so, to carry out a. Conflict minerals a law, referred to as the doddfrank act, passed by the united states congress requires us and certain foreign sec securities and exchange commission issuers to investigate and report on the sources of four minerals tin, tantalum, tungsten and gold referred to as conflict minerals in. Conflict minerals 2 by section 1502 of the doddfrank wall street reform and consumer protection act short. Pdf checklist for company compliance with us conflict minerals rules. Conflict minerals refers to minerals and other derivatives mined in the democratic republic of the congo drc and in the adjoining. Section 1502 added section p to the securities exchange act of. Navistar will engage in an additional risk assessment in an attempt to. The risk management implications of the doddfrank act. Conflict minerals an evaluation of the doddfrank act and.
In 2010, congress enacted the conflict minerals provisions of the doddfrank wall street reform and consumer protection act doddfrank act with the goals of eliminating the illegal trade in gold, tin, tantalum and tungsten conflict minerals and cutting the funding of armed groups in the democratic republic of the congo. Sec final rule on the conflict minerals section 1502 of. Determinants of conflict minerals disclosure under the doddfrank. Sec suspends conflict mineral rule enforcement supply chain.
We are adopting a new form and rule pursuant to section 1502 of the doddfrank wall street reform and consumer protection act relating to the use of conflict minerals. Be it enacted by the senate and house of representatives. Global trade news alert new eu conflict minerals regulation. Provisions in the 2010 doddfrank wall street reform and consumer protection act require that u. Cenveo worldwide limited, together with its subsidiaries collectively cenveo, is committed to providing the highest quality of service while at the same time utilizing responsible procurement practices. Implementation of us doddfrank act rule on conflict.
Trade in conflict minerals congolese warlords, mncs, and. Doddfrank conflict minerals provisions section 1502 of the doddfrank wall street reform and consumer protection act is an effort to help cut off financing to armed groups and members of the congolese national army that are making millions of. Conflicminerals disclosure provisions of the doddfrank act. In august 2012, the united states securities and exchange commission sec approved the final rule regarding the sourcing of conflict minerals as defined in the dodd frank wall street reform and consumer protection act, section 1502. Development international has released its annual survey of conflict minerals reports for the 2016 reporting period which were filed in 2017. This act may be cited as the doddfrank wall street reform and. Five practical steps to support sec conflict minerals. Apr 11, 2017 the announcement the sec would no longer enforce the conflict minerals reporting rule of the dodd frank act centers around the role of the agency in business. Dodd frank act conflict minerals section 1502 conflict minerals doddfrank act section 1502 of the dodd frank act was enacted to address he exploitation and trade of tin, tungsten and tantalum the 3ts and gold by armed groups, which is helping to finance conflict in the democratic republic of congo drc and contributing to an emergency humanitarian crisis. Another particularity about the law is it inverts the in dubio pro reo innocent until proven guilty principle.
In this paper i will elaborate on the issue of conflict minerals in the context of. Conflict minerals have fueled and continue to help sustain armed violence in eastern democratic republic of congo congo, linking them to the. Similarly, stakeholders demand that products are free from social problems. Five practical steps to support sec conflict minerals disclosure. The 2010 dodd frank wall street reform and consumer protection act dodd frank act contains a sense of congress expressing that the exploitation and trade of conflict minerals originating in the drc was contributing to the humanitarian emergency in that country and directs several u. Be it enacted by the senate and house of representatives of. Transition reserve ratio requirements to reflect new assessment base. Section 1502 of the us law known as the doddfrank act includes a requirement that companies using gold, tin, tungsten and tantalum make efforts to determine if those materials came from the democratic republic of congo drc.
535 1199 313 308 581 1071 844 907 1144 591 450 181 1315 168 987 789 211 216 137 1260 1654 793 1614 48 390 1409 165 1009 1413 994 1405 1354 51 1413 1366 922 999 1260 1428 1395