The Dodd-Frank Act (Section 1502) is intended to improve transparency and global social responsibility in conflict minerals sourcing by requiring companies to provide a Special Disclosure (Form SD) every year (Section 1502).
Companies are affected by this regulation if they are listed on the US stock exchange. And if the company uses components or raw materials in their products which contain Tin, Tantalum, Tungsten or Gold (3TG), a detailed due diligence program is required to ensure compliance.
Even companies which are not publicly traded are affected by the Conflict Minerals regulation, as the entire supply chain of an SEC regulated company will be asked to provide Conflict Minerals reports using the CMRT template, and this mandate can trickle down the supply chain multiple levels.
An SEC listed company has to file a Form SD (Special Disclosure) annually, and the purpose of the Form SD is for the company to demonstrate that it has implemented ethical sourcing practices of raw materials, specifically, Tin, Tantalum, Tungsten or Gold (3TG).
The process of collecting and analyzing conflict minerals compliance data is quite time-consuming, and can take weeks to months to complete, depending on the number of suppliers. The task becomes even more challenging if you have been sourcing from new suppliers who are unaware of the importance of CMRTs.
What needs to be filed in a summary of Form SD?
The Form SD (Special Disclosure) has to cover multiple elements around how the company went about meeting the reporting requirements and what they discovered in the analysis, covering key elements such as:
The Compliance Specialists at ComplianceXL have many years of experience managing conflict minerals programs, and we can provide end to end turnkey solutions that include software, supplier CMRT collection, analysis and reporting.
Once the company level CMRT is created, if you need assistance with drafting the Form SD; or if you need an internally drafted Form SD to be reviewed, we can provide support from our legal experts who can work with your team to complete the filing process as well.
Learn how ComplianceXL can assist your responsible mineral sourcing program and help you stay compliant at all times.