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OECD Due Diligence Guidance for Responsible Supply Chains of Mineralsfrom Conflict-Affected and High-RiskAreas G» OECD OECD Due Diligence Guidance for Responsible Supply Chains ofMinerals from Conflict-Affected and High-Risk Areas OECD Pleasecitethispublicationas: OECD(2011),OECDDueDiligenceGuidanceforResponsibleSupplyChainsofMinerals fromConflict-AffectedandHigh-RiskAreas,OECDPublishing. http://dx.doi.org/10.1787/9789264111110-en ISBN978-92-64-11118-9(print) ISBN978-92-64-11111-0(PDF) Photocredits:Cover©Hemera/Thinkstock. CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/publishing/corrigenda. RevisedversionJanuary2012 ©OECD2011 YAptlueolbaulcrihceciaaqntnugieocsmnoatspts,ye,rfdioadartolawspb,unablpsloreiaoscvdaoirnodredcdpomrtumihlmnatettirOsmcuEeiidCatiDalablcupeosrneaotdceauknncnttdosfwtolirrneaydnyosgoulmuarretniootowwnnonfriudOgsoEhec,tCusDmasenahndsotyussol,oduuprrbcceeaesnesaniuntnbdacmtlciiuootdpnteyse,rdeibxglcthooetgrsrpo,[email protected].. Requestsforpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbeaddressed directlytotheCopyrightClearanceCenter(CCC)[email protected];aisd’exploitationdu droitdecopie(CFC)[email protected]. FOREWORD Foreword x OECDDueDiligenceGuidanceforResponsibleSupplyChainsofMinerals fromConflict-AffectedandHigh-RiskAreas("theGuidance")isthefirstexample ofacollaborativegovernment-backedmulti-stakeholderinitiativeonresponsible supplychainmanagementofmineralsfromconflict-affectedareas.Itsobjectiveisto helpcompaniesrespecthumanrightsandavoidcontributingtoconflictthroughtheir mineralsourcingpractices.TheGuidanceisalsointendedtocultivatetransparent mineralsupplychainsandsustainablecorporateengagementinthemineralsector withaviewtoenablingcountriestobenefitfromtheirnaturalmineralresourcesand preventingtheextractionandtradeofmineralsfrombecomingasourceofconflict, humanrightsabuses,andinsecurity. TheGuidancewasdevelopedthroughamulti-stakeholderprocesswithin-depth engagementfromOECDandelevencountriesoftheInternationalConferenceonthe GreatLakesRegion(Angola,Burundi,CentralAfricanRepublic,RepublicofCongo, DemocraticRepublicofCongo,Kenya,Rwanda,Sudan,Tanzania,Ugandaand Zambia),industry,civilsociety,aswellastheUnitedNations.Threemulti-stakeholder consultationswereheld,withtwoinParisinDecember2009andApril2010anda jointICGLR-OECDconsultationinNairobiinSeptember2010whereBrazil,Malaysia andSouthA/ricawerealsorepresented.Asaresult,theGuidanceispractically-oriented, withemphasisoncollaborativeconstructiveapproachestocomplexchallenges. TheUnitedNationsSecurityCouncilresolution1952(2010)fS/RES/1952(2010)J supportedtakingforwardtheduediligencerecommendationscontainedinthefinal reportoftheUnitedNationsGroupofExpertsontheDemocraticRepublicoftheCongo, whichendorsesandreliesontheOECDDueDiligenceGuidance. TheGuidancehasbeenapprovedbytheOECDInvestmentCommitteeandthe OECDDevelopmentAssistanceCommittee,andhasbeenendorsedbytheeleven memberstatesoftheInternationalConferenceontheGreatLakesRegion(ICGLR)in theLusakaDeclaration,adoptedon15December2010.AnOECDRecommendationon theDueDiligenceGuidancewasadoptedbyCouncilatMinisteriallevelon 25May2011.Whilenotlegallybinding,theRecommendationreflectsthecommon positionandpoliticalcommitmentofOECDmembersandnon-membersadheringto theOECDDeclarationonInternationalInvestmentandMultinationalEnterprises. OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED...©OECD2011 3 Copyrightedmaterial TABLEOFCONTENTS TableofContents RecommendationoftheCouncilonDueDiligenceGuidance forResponsibleSupplyChainsofMineralsfromConflict-Affected andHigh-RiskAreas 7 OECDDueDiligenceGuidanceforResponsibleSupplyChains ofMineralsfromConflict-AffectedandHigh-RiskAreas 11 Introduction 12 Whatisduediligenceinthemineralsupplychain andwhyisitnecessary? 13 Whoshouldcarryoutduediligence? 15 Structureoftheguidance 16 Natureoftheguidance 16 AnnexI. Five-StepFrameworkforRisk-BasedDueDiligence intheMineralSupplyChain 17 AnnexII. ModelSupplyChainPolicyforaResponsibleGlobal SupplyChainofMineralsfromConflict-Affected andHigh-RiskAreas 20 AnnexIII.SuggestedMeasuresforRiskMitigationand IndicatorsforMeasuringImprovement 25 SupplementonTin,TantalumandTungsten 31 Scopeanddefinitions 32 Redflagstriggeringtheapplicationofthissupplement 33 STEP1:Establishstrongcompanymanagementsystems 36 STEP2:Identifyandassessrisksinthesupplychain 41 STEP3:Designandimplementastrategytorespond toidentifiedrisks 44 STEP4:Carryoutindependentthird-partyaudit ofsmelter/refiner’sduediligencepractices 47 STEP5:Reportannuallyonsupplychainduediligence 52 Appendix.GuidingNoteforUpstreamCompanyRiskAssessment... 54 Figure 1. Risksinthesupplychainofmineralsfromconflict-affected andhigh-riskareas 35 OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED...©OECD2011 5 Copyrightedmaterial RECOMMENDATIONOFTHECOUNCILONDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLY... RecommendationoftheCouncilonDue DiligenceGuidanceforResponsibleSupply ChainsofMineralsfromConflict-Affected andHigh-RiskAreas1 THECOUNCIL, HavingregardtoArticle5(b)oftheConventionontheOrganisationfor EconomicCo-operationandDevelopmentof14December1960; HavingregardtotheGuidelinesforMultinationalEnterpriseswhichform partoftheDeclarationonInternationalInvestmentandMultinational Enterprises; Recallingthatthecommonaimofgovernmentsrecommendingthe observanceoftheGuidelinesforMultinationalEnterprisesandthedevelopment communityistopromoteprinciplesandstandardsforresponsiblebusiness conduct; Observingthatresponsiblesourcingofmineralshasdevelopmentaland businessdimensions; HavingregardtothePolicyFrameworkforInvestmentadoptedin2006 whichaimstomobiliseprivateinvestmentinawaywhichsupportssteady economicgrowthandsustainabledevelopment; RecallingtheworkoftheDevelopmentAssistanceCommitteeinthefield ofinternationalengagementinfragilestates,aimedatavoidingharmwhen engaginginfragileandconflict-affectedenvironments,includingthePrinciples 1.AdoptedbyCouncilatMinisterialLevelon25May2011.Atthetimeofadoption, Brazilmadethefollowingstatement:“InadheringtothepresentRecommendation BrazilunderstandsthattheDueDiligenceGuidancehasbeendevelopedonthebasis oftheexperienceintheGreatLakesRegioninAfrica.Brazilisoftheviewthat companiesshouldtakedueaccountofrelevantdecisionsbytheUnitedNations, includingresolutionsoftheUNSecurityCouncil,indeterminingifotherzonesof operationcanbeconsideredtobeconflict-affectedorhigh-riskareas”. OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED...©OECD2011 7 RECOMMENDATIONOFTHECOUNCILONDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLY... forGoodInternationalEngagementinFragileStatesandSituationsendorsedat itsHighLevelMeetingon3-4April2007; Recallingtheeffortsoftheinternationalcommunitytocooperateinthe fightagainstcorruption,includingthroughtheOECDConventiononCombating BriberyofForeignPublicOfficialsinInternationalBusinessTransactionsand theUnitedNationsConventionAgainstCorruption; Recognisingthatgovernments,internationalorganisationsand companiescaneachdrawontheirrespectivecompetencesandrolesto contributetoensuringthattradeandinvestmentinnaturalresourcesis beneficialtosocietyatlarge; Consideringtheeffortsoftheinternationalcommunity,inparticularthe InternationalConferenceontheGreatLakesRegion,tocombatillegal exploitationofnaturalresourcesinconflict-affectedandhigh-riskareas; Recognisingthatthereissignificantexploitationofnaturalmineral resourcesinconflict-affectedandhigh-riskareasandthatcompaniessourcing fromordirectlyoperatinginthoseareasmayfacehigherriskofcontributingto conflict; Notingthatduediligenceforresponsiblesupplychainsofmineralsfrom conflict-affectedandhigh-riskareasisanon-going,proactiveandreactive processthroughwhichcompaniescanensurethattheyrespecthumanrights anddonotcontributetoconflict; HavingregardtotheDueDiligenceGuidanceforResponsibleSupply ChainsofMineralsfromConflict-AffectedandHigh-RiskAreas(hereafter“the Guidance”),developedincooperationwiththeInternationalConferenceonthe GreatLakesRegionandapprovedbytheInvestmentCommitteeandthe DevelopmentAssistanceCommittee[C/MIN(2011)12/ADD1]; HavingregardtotheSupplementonTin,TantalumandILmgsten,which isanintegralpartoftheGuidance,andnotingthatsupplementsonother mineralswillbeaddedtotheGuidanceinthefuture; NotingthatthisGuidancesetsoutthestepscompaniesshouldtaketo identifyandaddressactualorpotentialrisksinordertopreventormitigate adverseimpactsassociatedwiththeiractivitiesorrelationships,while recognisingthatflexibilityisneededinitsapplicationdependingonindividual circumstancesandfactorssuchasthesizeoftheenterprise,thelocationofthe activities,thesituationinaparticularcountry,thesectorandnatureofthe productsorservicesinvolved; 8 OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED...©OECD2011

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OECD due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas PDF

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