Initial Conflict Minerals Filings Highlight Lack Of Supply Chain Transparency
CARLSBAD, Calif., June 2, 2014 /PRNewswire/ -- The deadline for public companies' first disclosure to the SEC on conflict minerals has finally arrived, and one thing is becoming very clear—there's still lots of work to be done to get to transparency.
Companies filings offer minimal transparency to where tin, tantalum, tungsten, and gold (3TG) are sourced. Source Intelligence gives companies a method to ensure their filings will be successful when filing indeterminable will no longer be an option.
At close of business on Friday May 30th there were approximately 255 Form SD's filed by public companies, or "in-scope issuers", with the SEC.
- 95% of these filing companies were unable to determine the conflict status of the tin, tantalum, tungsten, and gold (3TG) sourced from the Democratic Republic of Congo (DRC) in their supply chains. This group is composed of 75% that filed "No Determination" about the origin of their conflict minerals and another 20% that filed as "DRC Conflict Undeterminable".
- Only 5% of the SEC issuers reported a determination as to the conflict status of the 3TG sourced in the DRC.
This is indicative of the challenge companies faced engaging their suppliers as they attempted to trace 3TG through their supply chain during the first year of conflict minerals disclosures.
In 2012, the SEC adopted Section 1502 of the Dodd-Frank Act requiring public companies to disclose whether their products contain conflict minerals originating from the DRC or adjoining countries directly impacting 6000 public companies and an estimated 280,000 suppliers.
Source Intelligence offers global brands a safe and cost effective method of filing and developing the competencies needed when filing indeterminable is no longer an option. Source Intelligence provides a comprehensive conflict minerals compliance platform and educational resources that enhances the supplier engagement process, mitigating supplier resistance and providing great visibility into supply chains.
To learn more about how Source Intelligence enabled conflict minerals compliance, overcoming supplier resistance during the first reporting year, download the paper here.
About Source Intelligence (www.sourceintelligence.com)
Source Intelligence® is a value chain risk management company that helps customers make informed decisions about their business partners and suppliers, so they can offer products that meet legal, ethical, and environmental standards. Its cloud-based information and analytics platform provides customers with visibility into product supply chains and material sources.
Source Intelligence® Contact:
Adam Harriss, Business Development Director
(877) 916 6337
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SOURCE Source Intelligence
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