Power & tech companies do not understand conflict mineral rules

The issue looks set to get worse over the coming weeks as the EU is due to require importers to voluntarily self-certify that they do not use conflict minerals.

A recent survey showed In total 52% of power and tech companies said they were ‘not at all confident’ they understand these new rules, or the existing OECD guidelines which underpin them. In addition 65% of power and tech businesses also said that they do not have a policy on conflict minerals.

The market survey was carried out by Achilles. A total of 104 manufacturing organisations, which were not part of any Achilles conflict minerals programme, took part in the survey. Most were involved with:

• The manufacture or provision of engineering parts or mechanical components;
• Electrical components and electronics;
• Plant sub-systems and equipment;
• Services and IS; and
• Raw materials and semi-finished products.

Emma McDonald, Global Programme Director, Achilles, said: “To the uninitiated, every aspect of conflict minerals seems complex – from understanding the rules, to identifying one’s involvement with the specific elements, mines and smelters; to recording and reporting data in the correct way. What this survey shows is that suppliers are falling at the first stage, communicating loud and clear that they do not understand the rules."

In the survey, half of power and tech companies said they did not understand conflict minerals rules. In contrast, 98% of Achilles conflict minerals customers said they were clear on regulations as well as their customers’ code of conduct on conflict minerals. In the market survey, only one fifth of suppliers had identified the smelters they rely on.

“Buying organisations could lead by example and take steps to educate the supply chain about the Dodd- Frank Act and the new upcoming EU rules on conflict minerals. There is no ‘competitive advantage’ in having a compliant supply chain; it’s the law,” added McDonald.