For over a decade, the trade in conflict minerals has fueled human rights abuses and promoted insecurity in eastern democratic republic of the congo drc. Under the act, those minerals include tantalum, tin, gold or tungsten. The list includes all known processing facilities that process the minerals tin, tantalum, tungsten, or gold. 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. A form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the doddfrank act. In august 2012, in response to violations of human rights related to mining of certain minerals from the conflict region in the eastern part of the democratic republic of congo drc, the u.
Doddfrank act conflict minerals reporting requirements. Section 1502 of the doddfrank wall street reform and consumer protection act. Mar 31, 2014 after the dodd frank act was signed into us federal law in 2010, demand for 3t minerals from congolese mines slowed right down, according to fidel bafilemba, who works as a field researcher for. The dodd frank act requires that all publicly traded companies subject to sec rules report annually on the presence of certain minerals, characterized as conflict minerals, including tin, tantalum, tungsten or gold, in the. Apr 11, 2017 recent reports show conflict mineral reports are not only costly, but may also be ineffective as such minerals exist worldwide, and not just in the drc as the dodd frank rule suggests.
Section 1502 of the us dodd frank act global witness. Summary of conflict minerals rule squire patton boggs. 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. New compliance management system aims to help companies report on conflict minerals under us dodd frank act. This paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. We rely on a thorough content analysis conducted by the. In 2010, congress legislated section 1502 of the dodd frank act, which requires companies to disclose whether any of the products manufactured or contracted to be manufactured by the company contains conflict minerals that originate in the democratic republic of congo drc or any of the adjoining parties. The conflict minerals are gold, columbitetantalite. Companies that file with the united states securities and exchange. The rules apply to issuers that i file reports with the sec under section a or section 15d of the securities exchange act of 1934 the exchange act and ii manufacture or. It is the sense of congress that the exploitation and trade of conflict minerals originating in the democratic republic of the congo is helping to finance conflict characterized by extreme. Rittal, as a leading manufacturer of enclosures worldwide, is also a supplier to u. Securities and exchange commission 17 cfr parts 240 and 249b. Determinants of conflict minerals disclosure under the doddfrank.
Dodd frank wall street reform and consumer protection act, section 1502. Jun 23, 2014 in 2010, congress legislated section 1502 of the dodd frank act, which requires companies to disclose whether any of the products manufactured or contracted to be manufactured by the company contains conflict minerals that originate in the democratic republic of congo drc or any of the adjoining parties. Doddfrank wall street reform and consumer protection act. Form sd2 under the securities exchange act of 1934 exchange act. The dodd frank acts section 1502 on conflict minerals. Conflict minerals an evaluation of the doddfrank act and. To help mitigate violence in the congo, the us congress has passed legislation which is designed to force companies to disclose whether or not their products contain conflict minerals. Implementation of us doddfrank act rule on conflict minerals.
The doddfrank act requires that all publicly traded companies subject to sec rules report annually on the presence of certain minerals, characterized as conflict minerals, including tin, tantalum, tungsten or gold, in the. On august 22, 2012, the sec adopted the final rule implementing section 1502 of the doddfrank act, the conflict minerals rule, aimed at reducing a significant source of funding for armed groups that are committing human rights abuses and contributing to the conflict in. 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. The trade in natural resources finances conflict and human rights abuses all over the world. Doddfrank act conflict minerals congress enacted section 1502 of the doddfrank act because of concerns that the exploitation and trade of conflict minerals by armed groups is helping to finance conflict in the drc region and is contributing to an emergency humanitarian crisis. Of course, like rohs and reach and any number of other regulations, you may not be subject to the regulations specifically, but you will be involved in supply chain. The conflict minerals disclosure rules, issued by the u.
Section 1502 of the doddfrank act, known as the conflict minerals rule, requires publicly traded companies to report annually the presence of conflict minerals in manufactured products. The democratic republic of congo drc is a vast country with a diverse groups of peoples and an immense wealth of natural resources. Kg is not subject to reporting under the dodd frank act. Conflict minerals resource center to help company compliance. Section 1502 of the doddfrank wall street reform and consumer protection act, and the. Our company is watching the american efforts to ban and monitor exploitation and. Pdf determinants of conflict minerals disclosure under the. Contrary to the dodd frank act, covering only minerals sourced in the democratic republic of congo and adjacent countries, the european rules will be global in. In this spirit, section 1502 of the doddfrank wall street. The relevant rule is included in section 1502 of the doddfrank wall street reform and consumer protection act. Conflict minerals compliance statement section 1502 of the dodd. How conflict minerals funded a war that killed millions, and. Dodd frank wall street reform and consumer protection act relating to the use of conflict minerals. The eu conflict minerals regulation, which will apply across the eu on 1 january 2021, has been largely inspired by the us doddfrank act 2010, which itself entered into force in 2014.
Overview this is the conflict minerals report for under armour, inc. The good news is the commerce department published a list of all known conflict mineral processing facilities worldwide as required by section 1502d3c of the doddfrank wall street reform and consumer protection act. Public law 111203july 21, 2010 doddfrank wall street reform and consumer protection act anorris on dsk5r6shh1prod with public laws verdate nov 24 2008 00. Kg is not subject to reporting under the doddfrank act. In accordance with our ethical and social responsibility, and our commitment to the. New compliance management system aims to help companies report on conflict minerals under us doddfrank act.
Doddfrank wall street reform and consumer protection act the doddfrank act. Combating conflict minerals through regulation samantha poon. Section 1502 of the doddfrank act and the conflict minerals rule were intended to discourage public companies from using those materials in their products. We rely on a thorough content analysis conducted by the responsible sourcing network on a sample of 122. 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. Securities and exchange commission sec approved the final conflict minerals rule under the dodd frank act, to implement reporting and disclosure. With the repeal of the dodd frank act 2010 imminent, it is an opportune time to reflect on whether consumerdriven governance initiatives such as the conflict minerals provision have a role to play in reducing armed conflict. Pdf this paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. We not procure conflict minerals or any of their derivatives directly from smelters, steel works, or other sources located in the conflict region.
On august 22, 2012, the sec adopted its final rule implementing section 1502 of the doddfrank wall street reform and consumer protection act, which we refer to as the conflict minerals rule or the final rule. Section 1502 of the us dodd frank act global witness global. Thank you for your inquiry regarding the obligations concerning the american bill h. Preparation underway for doddfrank conflict mineral disclosures. On august 22, 2012, the sec adopted the final rule implementing section 1502 of the dodd frank act, the conflict minerals rule, aimed at reducing a significant source of funding for armed groups that are committing human rights abuses and contributing to the conflict in the democratic republic of the congo. In the case of conflict minerals, the form asks whether 3tgs are present in the products composition and, if they are, if.
Doddfrank act section 1502 regarding drc conflict minerals. Disclosures on conflict minerals background section 1502 of the dodd frank act is intended to make transparent the finances derived from mining that support illegal armed groups in central africa. Under armour, the company or we, us or our for calendar year 2016 in accordance with section 1502 of the doddfrank wall street reform and. Doddfrank wall street reform and consumer protection act, section 1502. Under armour is committed to compliance with all applicable laws and regulations, ethical and responsible conduct in its operations and respect for the rights of all individuals. In the case of conflict minerals, the form asks whether 3tgs are present in the products composition and, if they are, if the 3tgs are from known safe or conflict free origins. Understanding your obligations under sec 1502 of the dodd frank act. Sec adopts rules under doddfrank requiring disclosure regarding use of conflict minerals. For decades the trade in minerals, precious stones.
Sec adopts rules under doddfrank requiring disclosure. Dodd frank act conflict minerals reporting requirements as of september 2012 section 1502 of the dodd frank wall street reform and consumer protection act dodd frank act, passed in july 2010, is an attempt to stop rebel groups in the democratic republic of the congo drc. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules. Conflicminerals disclosure provisions of the doddfrank act. These actions range from completion of new form sd to due diligence and completion of an audited conflict minerals report. Determinants of conflict minerals disclosure under the dodda. Securities and exchange commission sec approved the final conflict minerals rule under the doddfrank act, to implement reporting and disclosure. Doddfrank act, of preventing the exploitation of conflict minerals for the purpose. Aug 22, 2012 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. 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. Sec to issue a conflict minerals disclosure rule that requires issuers. Conflict minerals 101 disclaimer obligations under sec 1502. This section requires all companies traded and listed on the usamerican stock exchange market to disclose information on the use of conflict minerals, notably. Nov 18, 20 a form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the dodd frank act.
Yet, media reports and business examples show the rule has been effective in stemming the flow of funds at least to armed groups in the drc, while increasing. Building on insights from deloitte experts in the us, the below outline draws comparisons and provides valuable insights regarding the 2010 doddfrank acts. Implications and lessons learned from the us doddfrank act introduction on 17 may 2017, the eu parliament and eu council adopted new import regulations on conflict minerals under regulation 2017821. The dodd frank wall street reform and consumer protection act, passed by the us congress in july 2010, includes a provision section 1502 aimed at stopping the national army and rebel groups in the drc from illegally using profits. 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. Determinants of conflict minerals disclosure under the dodd. Securities and exchange commission rules adopted in connection. Pdf checklist for company compliance with us conflict minerals rules. 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. Securities and exchange commissions sec conflict minerals rule have.
With the repeal of the doddfrank act 2010 imminent, it is an opportune time to reflect on whether consumerdriven governance initiatives such as the conflict minerals provision have a role to play in reducing armed conflict. Global trade news alert new eu conflict minerals regulation. Overview of section 1502 of df act the doddfrank act, signed into law on july 21, 2010, includes a little known section 1502. Conflict minerals 2 by section 1502 of the doddfrank wall street reform and consumer protection act short. Supporters of the doddfrank conflict minerals statute and the sec. Summary of conflict minerals rule overview section 1502 of the doddfrank wall street reform and consumer protection act the doddfrank act addressed concerns that proceeds from the trade and exploitation of certain minerals originating in several central african countries were helping to finance extraordinary violence in the. Dodd frank act conflict minerals responsible jewellery. Securities and exchange commission sec under the doddfrank act, require public companies to disclose certain information annually if they manufacture or contract to manufacture products and minerals specified in the rules. The conflict minerals provisioncommonly known as section 1502 of the dodd frank actrequires u. On august 22, 2012, pursuant to the doddfrank act, the sec adopted final 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.
Scope of conflict mineral disclosure requirements doddfrank. Uganda to improve law enforcement related to trafficking and smuggling. Recent reports show conflict mineral reports are not only costly, but may also be ineffective as such minerals exist worldwide, and not just in the drc as the dodd frank rule suggests. Pdf doddfrank wall street reform and consumer protection act. Conflict minerals doddfrank act conax technologies. Disclosures on conflict minerals background section 1502 of the doddfrank act is intended to make transparent the finances derived from mining that support illegal armed groups in central africa. Pdf determinants of conflict minerals disclosure under the dodd.
511 271 1293 904 498 1040 116 389 198 143 454 148 985 230 1159 1345 368 28 1285 1245 641 824 698 1340 1335 530 802 305 1140 73 762 1488 435 1219 162 37 107 1041 1205 782