Mining the Disclosures 2015 is now available!
Mining the Disclosures 2015: An Investor Guide to Conflict Minerals Reporting in Year Two

RSN Updates

Read our updates to learn more about RSN’s work.

Wednesday
Jul202016

Mining for Human Rights Performance in 2016

Companies, consultants, and human rights advocates are actively using the thought leadership and accountability in Mining the Disclosures, an annual evaluation of conflict minerals disclosure from Responsible Sourcing Network (RSN). Mining the Disclosures has been used in an array of academic, political, and economic investor analyses of how human rights performance can be measured.

Although many stakeholders use Mining the Disclosures, the primary audience is responsible investors. Through our work with conflict minerals, we continue to push for clearer links between investor decisions and human rights impacts.

Shareholders and stakeholders play a key role in changing the way business understands human rights performance. Companies can motivate suppliers to make sourcing decisions that leave the DRC and other conflict-affected regions more peaceful, free, and prosperous.

Mining the Disclosures 2016 will evaluate over 250 companies, from 25 different industry groups including Medical Devices, Aerospace & Defense, and Farm & Construction Equipment. It is scheduled for released in early October 2016.

Are most companies sourcing conflict-free?

Defining conflict-free is tricky, because we don’t want to incentivize companies to avoid sourcing from conflict-affected regions. In 2016, RSN will introduce a binary indicator of conflict-free: companies must detail efforts to eliminate conflict-affected minerals from their supply chain, while also continuing to source from within the region.

Even companies acting in good faith often struggle to trace minerals to where the raw ores are smelted or refined. Supply chains can be very complex and likely include enormous geographic, language, and regulatory gaps. By understanding the supply chain of each industry better in 2016, we hope to give credit where it is due.

Conflict Minerals show the tip of a human rights iceberg

Human rights don’t have borders. While the SEC’s Conflict Minerals Rule does not require companies to report on conflict-affected minerals beyond the DRC, or other human rights risks such as child labor within the DRC, it does bring the OECD’s risk-based due diligence approach to mainstream U.S. companies. In our expectations and analysis, we will continue to push companies to offer responsible investors more of the information they need — and help investors act on that information so that we can champion human rights together. 

Wednesday
Jul062016

Forward, not Backward on Conflict Minerals and Human Rights

Section 1502 of the Dodd Frank Act, has helped to shed light on global supply chains, helping investors understand whether their investments are fueling human rights abuse in the DRC. Now is NOT the time to defund the conflict minerals rule, but to build on it.

We must tell members of Congress who want to defund Section 1502: We want to go forward, not backward.

  • When they called a hearing in December, their own expert witness, Jeff Schwartz, instead of testifying against 1502 actually recognized the success of the private-sector driven Conflict Free Sourcing Initiative, called for closing loopholes and better enforcement of Section 1502, and argued for strengthening rather than repealing the reporting requirement.
  • Per-Olof Loof, the CEO of KEMET Corporation, testified that the law had brought about positive outcomes for both business and society.
  • Responsible Sourcing Network submitted a letter reiterating the importance of Section 1502 to major SRI investors.

Ongoing efforts to defund Section 1502 disregard the evidence that Section 1502 is highly valuable to investors, and a critical part of disrupting human rights abuses around the world.

As investors and consumers, we must tell Congress we want to go forward, not backward, on human rights due diligence.

Do your part for a more peaceful, prosperous world and call one or more of the following members of Congress who will vote TODAY on defunding 1502 and tell them NO to defunding 1502, and YES to guidance and oversight on human rights risk in investment decisions.

You can use this link to find your member’s twitter handle. Here are sample tweets you can use to tweet at members of Congress:

.@[insert representatives’ twitter handle here] #conflictminerals rule reduced $ to armed groups in DRC & improves transparency. Vote NO on Huizenga’s amendment to HR 5485 

 

Thursday
Jun302016

USG and ILO Reprimand Turkmenistan and Uzbekistan for Slave-Cotton

As the country with the smallest population in Central Asia, Turkmenistan has rarely been in the spotlight on the global stage. This changed today, when the U.S. State Department downgraded Turkmenistan for using forced labor in its cotton sector in the annual Trafficking in Persons report. (RSN has written extensively about forced labor in the cotton sector of Uzbekistan, and over the last two years has worked in an increasing capacity with the Cotton Campaign to end forced labor in Turkmenistan, as well. Our partner Alternative Turkmenistan News (ATN) has documented the Turkmen government’s use of systematic forced labor throughout its cotton sector since the 2013 harvest.

ATN’s reporting, conducted with a network of informants throughout Turkmenistan, details the state-orchestrated, forced mobilization of farmers and public and private sector workers. The mobilization is a remnant of the former Soviet Republic’s centralized command economy. Since the collapse of the USSR, the authoritarian Turkmen government has exacerbated the issue, orchestrating a system in which citizens are exploited to meet yearly cotton quotas. In ATN’s report, public-sector workers detailed being threatened by their superiors with dismissal, docked pay, or forced to pay a fee if they refused to participate in the harvest. This state system of forced labor violates the fundamental human and labor rights of tens of thousands of Turkmen citizens each year.

After placing Turkmenistan on the Tier 2 Watch List for the fourth consecutive year in 2015, the State Department was forced to either upgrade or downgrade the country’s ranking in 2016. To our satisfaction, the State Department downgraded Turkmenistan from the Tier 2 Watch List to Tier 3. This downgrade allows the country to be sanctioned under the Trafficking Victims Protection Act for Tier 3 countries, which provides more incentive for the Turkmen government to take definitive action to end its use of forced labor in the cotton sector.

Independently determined but aligned with the State Department’s position, earlier this month the ILO’s Committee on the Application of Standards urged the government of Turkmenistan to take effective measures in law and in practice to ensure that no one, including farmers and public and private sector workers, is forced to work for the state sponsored cotton harvest.” The committee also stated that the Turkmen government should prosecute officials who participate in the forced mobilization of workers; seek the ILO’s assistance in applying international labor standards; and allow workers, employers, and civil society organizations to monitor the harvests without fear of repercussion.

We were also pleased to see that the State Department downgraded Turkmenistan’s neighbor Uzbekistan from the Tier 2 Watch List to Tier 3 as well. In Tier 3, similar to Turkmenistan, Uzbekistan can now be subject to sanctions, which places more international pressure on the government to combat forced labor in its cotton sector. The decision is also in line with the ILO’s recommendations to the Uzbek government, to take measures that ensure the complete elimination of the use of forced labor and achieve concrete results.

The State Department’s downgrade, in combination with the ILO’s recommendations, sends a strong message to global apparel and home goods brands that they should have rigorous processes to identify and eliminate Turkmen and Uzbek cotton from their value chains. Only by aligning trade practices with company commitments to fundamental labor conventions will we be able to end forced labor in Turkmenistan and Uzbekistan’s cotton sectors. If the international community builds on the pressure of the downgrades to Tier 3, the citizens of these Central Asian countries may have reason to hope for light at the end of the tunnel.

Thursday
Jun232016

Know the Chain’s First ICT Benchmark!

Know the Chain just released its first Information and Technology Communications (ICT) Benchmark on 20 companies’ efforts to prevent forced labor in their supply chains. This report is groundbreaking because it is the first public ranking of companies in regards to their anti-slavery efforts. This type of comparison is something investors, consumers and human rights activists have been waiting for.

The ICT Benchmark Findings Report shows that the majority of ICT companies reviewed are demonstrating a commitment to identifying forced labor in their own supply chains. However, there is still much more work to be done. The study found that the biggest area for improvement is giving workers at every level of the supply chain an avenue to voice their concerns. “Worker’s Voice” only had an average score of 16 out of 100 for the 20 companies reviewed. HP received the highest score across the seven categories with 72.

This ICT benchmark report is a great complement to RSN’s annual Mining the Disclosures report. It is no surprise that the areas of “Traceability and Risk Assessment” and “Monitoring” scored quite high due to the work ICT companies need to do regarding sourcing conflict minerals.

If you are interested in learning more about corporate due diligence in addressing conflict minerals’ risks, then be sure to keep an eye out for RSN’s Mining the Disclosure 2016 report, which will be released in early October.  

Wednesday
Jun152016

Change: It’s in Your Hands

The Body Shop, a UK based cosmetic company rooted in the belief that business can be a force for good, is entering the final month of its “Enrich not Exploit” campaign. Until the end of June, The Body Shop is selling a Limited Edition Hemp Hand Protector, where a portion of the proceeds goes toward a cause of your choice, allowing you to enrich the world with your pocketbook.  One of the organizations The Body Shop is donating money to through this campaign is Responsible Sourcing Network! When you purchase the Hemp Hand Protector, you will be instructed to vote for a type of cause that is closest to your heart.  The Body Shop gives you three options: Our Planet, Our Oceans, and Our People and Animals. Responsible Sourcing Network falls under the cause Our Planet. For RSN to receive the largest contribution from this campaign, please select the option Our Planet. This campaign allows you to protect not only your hands, but also our environment and those who inhabit it.

The money RSN raises through The Body Shop’s campaign will go towards transforming the cotton industry in Uzbekistan. Due to the mismanagement of water and exploitation of its citizens, the Aral Sea is now only about 10% of its original mass and nurses, teachers, and university students are forced to weed fields and harvest cotton. The depletion of the Aral Sea and Uzbekistan’s unethical labor practices are deeply intertwined. RSN is dedicated to understanding the complexities of the supply chains that are supporting these unfair and unsafe practices. Working side by side with retailers and companies, RSN is committed to ending forced labor and protecting the environmental health of the Aral Sea. By purchasing The Body Shop’s Hemp Hand Protector, you are choosing to support RSN’s efforts to bring transparency and tangible change to Uzbekistan.

In order to purchase The Body Shop’s Limited Edition Hemp Hand Protector and support RSN, follow these steps:

  1. Visit: http://www.thebodyshop-usa.com/change/
  2. Scroll down and Click “Add to Cart”
  3. Proceed to Checkout
  4. Either create an account with The Body Shop or continue as a guest 
  5. Complete shipping information and save address
  6. Proceed to payment
  7. After completing payment information, select “Our Planet” so a larger amount of proceeds will benefit RSN
  8. Ask your friends and family to do the same and promote on social media

Thank you for your purchase, your vote, your support of RSN, and for helping to enrich the planet and its people!