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

122 Pages·2013·3.511 MB·English

by  OECD

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isbn 978-92-64-18501-2 -:HSTCQE=V]ZUVW:
20 2012 08 1 P

OECD Due Diligence
Guidance for Responsible
Supply Chains of Minerals
from Conflict-Affected
and High-Risk Areas
Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof
orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand
boundariesandtothenameofanyterritory,cityorarea.
Pleasecitethispublicationas:
OECD(2013),OECDDueDiligenceGuidanceforResponsibleSupplyChainsofMinerals
fromConflict-AffectedandHigh-RiskAreas:SecondEdition,OECDPublishing.
http://dx.doi.org/10.1787/9789264185050-en
ISBN978-92-64-18501-2(print)
ISBN978-92-64-18505-0(PDF)
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Secondeditionnovember2012
©OECD2013
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FOREWORD
Foreword
T
heOECDDueDiligenceGuidanceforResponsibleSupplyChainsofMinerals
fromConflict-AffectedandHigh-RiskAreas(“theGuidance”)isthefirstexample
of a collaborative government-backed multi-stakeholder initiative on responsible
supplychainmanagementofmineralsfromconflict-affectedareas.Itsobjectiveisto
helpcompaniesrespecthumanrightsandavoidcontributingtoconflictthroughtheir
mineral sourcing practices. The Guidance is also intended to cultivate transparent
mineral supply chains and sustainable corporate engagement in the mineral sector
with a view to enabling countries to benefit from their mineral resources and
preventing the extraction and trade of minerals from becoming a source of conflict,
human rights abuses, and insecurity. With its Supplements on Tin, Tantalum,
TungstenandGold,theOECDGuidanceprovidescompanieswithacompletepackage
tosourcemineralsresponsiblyinorderfortradeinthosemineralstosupportpeaceand
developmentandnotconflict.
TheGuidancewasdevelopedthroughamulti-stakeholderprocesswithin-depth
engagement from OECD and eleven countries of the International Conference on the
Great Lakes Region (Angola, Burundi, Central African Republic, Republic of Congo,
Democratic Republic of Congo, Kenya, Rwanda, Sudan, Tanzania, Uganda and
Zambia),industry,civilsociety,aswellastheUnitedNationsGroupofExpertsonthe
DRC.Fivemulti-stakeholderconsultationswereheldtodeveloptheGuidanceandits
twoSupplements,with fourinParisinDecember2009andApril2010aswellasMay
and November 2011. A joint ICGLR-OECD consultation was held in Nairobi in
September2010whereBrazil,MalaysiaandSouthAfricawerealsorepresented.Asa
result,theGuidanceispractically-oriented,withemphasisoncollaborativeconstructive
approachestocomplexchallenges.
TheUnitedNationsSecurityCouncilresolution1952(2010)[S/RES/1952(2010)]
supported taking forward the due diligence recommendations contained in the final
reportoftheUnitedNationsGroupofExpertsontheDemocraticRepublicoftheCongo,
designedtobeconsistentwiththeOECDDueDiligenceGuidance.
The Guidance has been approved by the OECD Investment Committee and the
OECD Development Assistance Committee, and has been endorsed by the eleven
memberstatesoftheInternationalConferenceontheGreatLakesRegion(ICGLR)in
theLusakaDeclaration,adoptedon15December2010.AnOECDRecommendationon
the Due Diligence Guidance was adopted by Council at Ministerial level on
OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013 3
FOREWORD
25May2011andsubsequentlyamendedon17July2012toincludeareferencetothe
Supplement on Gold. While not legally binding, the Recommendation reflects the
common position and political commitment of OECD members and non-member
adherents.
4 OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013
TABLEOFCONTENTS
Table of Contents
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
SupplementonGold ............................................. 61
Introductionandscope....................................... 62
Definitions.................................................. 65
OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013 5
TABLEOFCONTENTS
STEP1:Establishstrongcompanymanagementsystems.......... 72
STEP2:Identifyandassessrisksinthesupplychain.............. 78
STEP3:Designandimplementastrategytorespondtoidentifiedrisks 99
STEP4:Carryoutindependentthird-partyauditofrefiner’sdue
diligencepractices........................................... 106
STEP5:Reportannuallyonsupplychainduediligence............ 111
Appendix Suggestedmeasurestocreateeconomicanddevelopment
opportunitiesforartisanalandsmall-scaleminers ...... 114
Figure
1. Risksinthesupplychainoftin,tantalumandtungsten
fromconflict-affectedandhigh-riskareas................... 35
2. Risksinthesupplychainofgoldfromconflict-affectedand
high-riskareas........................................... 71
6 OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013
RECOMMENDATIONOFTHECOUNCILONDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLY…
Recommendation of the Council on Due Diligence
Guidance for Responsible Supply…
Recommendation of the Council on Due
Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and
1
High-Risk Areas
Asamendedon17July2012
THECOUNCIL,
Having regard toArticle 5(b) of the Convention on the Organisation for
EconomicCo-operationandDevelopmentof14December1960;
HavingregardtotheGuidelinesforMultinationalEnterpriseswhichform
part of the Declaration on International Investment and Multinational
Enterprises;
Recalling that the common aim of governments recommending the
observance of the Guidelines for Multinational Enterprises and the
development community is to promote principles and standards for
responsiblebusinessconduct;
Observingthatresponsiblesourcingofmineralshasdevelopmentaland
businessdimensions;
Having regard to the Policy Framework for Investment adopted in2006
which aims to mobilise private investment in a way which supports steady
economicgrowthandsustainabledevelopment;
RecallingtheworkoftheDevelopmentAssistanceCommitteeinthefield
of international engagement in fragile states, aimed at avoiding harm when
engaging in fragile and conflict-affected environments, including the
1. Atthetimeofadoption,Brazilmadethefollowingstatement:“Inadheringtothe
presentRecommendationBrazilunderstandsthattheDueDiligenceGuidancehas
beendevelopedonthebasisoftheexperienceintheGreatLakesRegioninAfrica.
Brazilisoftheviewthatcompaniesshouldtakedueaccountofrelevantdecisions
by the United Nations, including resolutions of the UN Security Council, in
determiningifotherzonesofoperationcanbeconsideredtobeconflict-affectedor
high-riskareas.”
OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013 7
RECOMMENDATIONOFTHECOUNCILONDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLY…
PrinciplesforGoodInternationalEngagementinFragileStatesandSituations
endorsedatitsHighLevelMeetingon3-4April2007;
Recallingtheeffortsoftheinternationalcommunitytocooperateinthe
fight against corruption, including through the OECD Convention on
Combating Bribery of Foreign Public Officials in International Business
TransactionsandtheUnitedNationsConventionAgainstCorruption;
Recognising that governments, international organisations and
companies can each draw on their respective competences and roles to
contribute to ensuring that trade and investment in natural resources is
beneficialtosocietyatlarge;
Consideringtheeffortsoftheinternationalcommunity,inparticularthe
International Conference on the Great Lakes Region, to combat illegal
exploitationofnaturalresourcesinconflict-affectedandhigh-riskareas;
Recognising that there is significant exploitation of natural mineral
resources in conflict-affected and high-risk areas and that companies
sourcing from or directly operating in those areas may face higher risk of
contributingtoconflict;
Notingthatduediligenceforresponsiblesupplychainsofmineralsfrom
conflict-affected and high-risk areas is an on-going, proactive and reactive
processthroughwhichcompaniescanensurethattheyrespecthumanrights
anddonotcontributetoconflict;
Having regard to the OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
(hereafter “the Guidance”), developed in cooperation with the International
Conference on the Great Lakes Region and approved by the Investment
CommitteeandtheDevelopmentAssistanceCommittee;
HavingregardtotheSupplementonTin,TantalumandTungstenandthe
SupplementonGold,whichareanintegralpartoftheGuidance,andnoting
that supplements on other minerals may be added to the Guidance in the
future;
Noting that this Guidance sets out the steps companies should take to
identify and address actual or potential risks in order to prevent or mitigate
adverse impacts associated with their activities or relationships, while
recognising that flexibility is needed in its application depending on
individual circumstances and factors such as the size of the enterprise, the
locationoftheactivities,thesituationinaparticularcountry,thesectorand
natureoftheproductsorservicesinvolved;
Recognising that the serious abuses associated with the extraction,
transport or trade in minerals listed in Annex II to this Recommendation,
8 OECDDUEDILIGENCEGUIDANCEFORRESPONSIBLESUPPLYCHAINSOFMINERALSFROMCONFLICT-AFFECTED…©OECD2013