Enough Project on Historic Dodd-Frank Conflict Mineral Disclosures to SEC
US Companies Reveal Today If Products Fund Atrocities
Today is the deadline for companies to disclose any conflict minerals in their product supply chains to the Securities and Exchange Commission in compliance with Section 1502 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
“It’s an historic day in the fight against corporate abuses in supply chains,” said Sasha Lezhnev. “For the first time ever, electronics and other companies are disclosing whether or not rape and mass killing are part of their supply chains. But the conflict in Congo is not over, and we still need to see more action from jewelers and the U.S. government to fight against conflict gold.”
“For years, electronics, jewelry, and other companies turned a blind eye to what was inside their supply chains. With today’s filings to the SEC, they can no longer do that,” said Enough Project co-founder John Prendergast. “From now on, consumers can look under the hood and judge for themselves whether the maker of their smart phone or necklace is getting rid of blood minerals from Congo and make an informed choice when they go shopping.”
“The Dodd-Frank law on conflict minerals has already had a major impact on deadly armed groups in eastern Congo, helping demilitarize 67% of mines for 3 out of 4 conflict minerals and take away lucrative revenue sources from warlords such as ‘The Terminator’ and ‘Cobra’, added Lezhnev. “Today’s disclosures by electronics and other companies help move that process forward. Electronics and jewelry companies now need to move forward and make fully conflict-free products that include certified minerals from Congo.”
As a part of the U.S. Government's Dodd-Frank Act, signed into law in July 2010, Section 1502 requires companies listed on U.S. stock exchanges to trace the sources of their tin, tungsten, tantalum, or gold minerals and disclose whether or not they are sourcing conflict minerals from the Democratic Republic of Congo or neighboring countries. The reporting requirements mandate the auditing and disclosure of mineral supply chains, relating to products that use those minerals, and provides the commercial leverage to catalyze reform.
PREDICTED COSTS TO BUSINESSES WERE OVERSTATED
“As companies file, we are finding that their actual costs of implementing Dodd-Frank are much lower than what lobbyists estimated. For a $1 billion company, the real cost of filing is approximately $150,000, according to industry experts Claigan Environmental, continued Lezhnev.” This is in large part due to the fact that most companies can use the industry-wide systems set up by Intel, Motorola Solutions, and industry leaders, particularly the Conflict-Free Smelter Program.”
The Enough Project introduced a new consumer action to demand that electronics and other companies work to build fully conflict-free products and source clean minerals from Congo. Enough publishes conflict mineral company rankings and has worked with companies like Intel and others to rid their product supply chains of conflict minerals fueling the deadly decades-old conflict in the Congo.
Additional Enough Project Resources:
- Dodd-Frank FAQ: Understanding Conflict Minerals Provisions
- VIDEO: Conflict Minerals Legislation – View from Eastern Congo
- Conflict Minerals and U.S. Policy Reform
- VIDEO: Conflict Gold 101
The Enough Project is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, Enough focuses on the crises in Sudan, South Sudan, eastern Congo, and areas affected by the Lord’s Resistance Army. Enough conducts intensive field research, develops practical policies to address these crises, and shares sensible tools to empower citizens and groups working for change. To learn more: www.enoughproject.org.