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. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules. This section requires all companies traded and listed on the usamerican stock exchange market to disclose information on the use of conflict minerals, notably. Global trade news alert new eu conflict minerals regulation. New compliance management system aims to help companies report on conflict minerals under us doddfrank act. Section 1502 of the doddfrank act and the conflict minerals rule were intended to discourage public companies from using those materials in their products. 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.
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. Section 1502 of the us dodd frank act global witness global. Kg is not subject to reporting under the dodd frank act. 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. Our company is watching the american efforts to ban and monitor exploitation and. 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.
Doddfrank wall street reform and consumer protection act, section 1502. Dodd frank wall street reform and consumer protection act relating to the use of conflict minerals. Public law 111203july 21, 2010 doddfrank wall street reform and consumer protection act anorris on dsk5r6shh1prod with public laws verdate nov 24 2008 00. 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. 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. 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. Securities and exchange commissions sec conflict minerals rule have. Securities and exchange commission 17 cfr parts 240 and 249b. However, centuries of colonization, imperialism, and civil strife has scarred what should be a thriving society. 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. We rely on a thorough content analysis conducted by the.
Doddfrank wall street reform and consumer protection act the doddfrank act. 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. The list includes all known processing facilities that process the minerals tin, tantalum, tungsten, or gold. Securities and exchange commission rules adopted in connection.
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. For decades the trade in minerals, precious stones. Understanding your obligations under sec 1502 of the dodd frank act. Dodd frank act conflict minerals responsible jewellery. 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. Overview of section 1502 of df act the doddfrank act, signed into law on july 21, 2010, includes a little known section 1502.
Doddfrank act conflict minerals reporting requirements. 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. Securities and exchange commission sec approved the final conflict minerals rule under the doddfrank act, to implement reporting and disclosure. Pdf doddfrank wall street reform and consumer protection act.
Section 1502 of the us dodd frank act global witness. 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. Overview this is the conflict minerals report for under armour, inc. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules requiring issuers with conflict minerals that are necessary to the functionality or production of a product manufactured. Section 1502 of the doddfrank wall street reform and consumer protection act. Dodd frank wall street reform and consumer protection act, section 1502. 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. 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. 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. In the case of conflict minerals, the form asks whether 3tgs are present in the products composition and, if they are, if. 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.
The conflict minerals disclosure rules, issued by the u. Thank you for your inquiry regarding the obligations concerning the american bill h. 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. Nov 18, 20 a form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the dodd frank 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. Conflicminerals disclosure provisions of the doddfrank act. The democratic republic of congo drc is a vast country with a diverse groups of peoples and an immense wealth of natural resources. Sec to issue a conflict minerals disclosure rule that requires issuers. 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 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.
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. 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. Uganda to improve law enforcement related to trafficking and smuggling. Supporters of the doddfrank conflict minerals statute and the sec. 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. 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. 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. Building on insights from deloitte experts in the us, the below outline draws comparisons and provides valuable insights regarding the 2010 doddfrank acts. Rittal, as a leading manufacturer of enclosures worldwide, is also a supplier to u. Combating conflict minerals through regulation samantha poon. Determinants of conflict minerals disclosure under the doddfrank. 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. 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. 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.
Conflict minerals 2 by section 1502 of the doddfrank wall street reform and consumer protection act short. We not procure conflict minerals or any of their derivatives directly from smelters, steel works, or other sources located in the conflict region. Pdf determinants of conflict minerals disclosure under the. Kg is not subject to reporting under the doddfrank act.
Pdf determinants of conflict minerals disclosure under the dodd. Doddfrank wall street reform and consumer protection act. Conflict minerals 101 disclaimer obligations under sec 1502. Conflict minerals resource center to help company compliance. Sec adopts rules under doddfrank requiring disclosure. 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. Summary of conflict minerals rule squire patton boggs. Preparation underway for doddfrank conflict mineral disclosures. This paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. Under the act, those minerals include tantalum, tin, gold or tungsten. A form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the doddfrank act. The trade in natural resources finances conflict and human rights abuses all over the world.
The doddfrank act thus aims to increase the disclosure of corporate information about supply chain practices regarding conflict minerals in agreement with the information inductance principle in prakash and rappaport, 1977, rather than simply prohibiting companies from sourcing 3tg minerals from the drc ochoa and keenan, 2011. Companies that file with the united states securities and exchange. Doddfrank wall street reform and consumer protection act relating to the use of conflict minerals. 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. The dodd frank acts section 1502 on conflict minerals. Conflict minerals doddfrank act conax technologies. Conflict minerals compliance statement section 1502 of the dodd. 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. Sec adopts rules under doddfrank requiring disclosure regarding use of conflict minerals.
These actions range from completion of new form sd to due diligence and completion of an audited conflict minerals report. The conflict minerals provisioncommonly known as section 1502 of the dodd frank actrequires u. We rely on a thorough content analysis conducted by the responsible sourcing network on a sample of 122. 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. Section 1502 of the doddfrank wall street reform and consumer protection act, and the. The relevant rule is included in section 1502 of the doddfrank wall street reform and consumer protection act.
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 suspends conflict mineral rule enforcement supply chain. Form sd2 under the securities exchange act of 1934 exchange act. Securities and exchange commission sec approved the final conflict minerals rule under the dodd frank act, to implement reporting and disclosure. 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. New compliance management system aims to help companies report on conflict minerals under us dodd frank act.
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. In this spirit, section 1502 of the doddfrank wall street. Determinants of conflict minerals disclosure under the dodda. Scope of conflict mineral disclosure requirements doddfrank. Doddfrank act, of preventing the exploitation of conflict minerals for the purpose. 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. Doddfrank act section 1502 regarding drc conflict minerals. 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. Pdf this paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. In accordance with our ethical and social responsibility, and our commitment to the. Implementation of us doddfrank act rule on conflict minerals.
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