Measuring Performance in Conflict Minerals Reporting
By June 2, 2015, the second round of conflict minerals disclosures will be filed with the Securities and Exchange Commission. These filings mark the second set of social disclosures related to human rights mandated for the first time in history by the Dodd-Frank Act Section 1502. Despite industry arguments that the supply chain due diligence to measure social risk mandated in 1502 is impossible and unachievable, the 1,315 disclosures filed last year prove the opposite to be true.
These disclosures represent a rich data set that provides a baseline from which to base expectations of future disclosures. In order to help standardize the methodology for evaluating filings related to company performance in creating social value and mitigating social risk in the supply chain related to conflict minerals, RSN has developed the Indicators Shortlist: Measuring Performance in Conflict Minerals Reporting. This Shortlist is an update to our 2014 Expectations Shortlist for Companies Conflict Minerals Reporting. Far more detailed than the initial shortlist, this indicator set provides a measurement tool to track and compare activities with a clear and easily replicable methodology that can be used by investors.
The information summarized in our Indicators Shortlist will be followed by a comprehensive investor guide to conflict minerals reporting, coming later this month.
Company Conflict Mineral Reporting and Activities
With the inaugural round of conflict minerals disclosure reports submitted to the Securities and Exchange Commission (SEC), Responsible Sourcing Network and a coalition of NGOs and sustainable and responsible investors have released a list of criteria to assist in evaluating the reports. Expectations Shortlist: Company Conflict Mineral Reporting and Activities features information that stakeholders expect to see in the SEC filings, on the issuers’ websites, or in sustainability reports.
In 2013, together with the Enough Project, RSN released a white paper, Expectations for Companies’ Conflict Minerals Reporting. The new Expectations Shortlist offers more guidance to companies in order to advance and improve the hopes of advancing corporate due diligence activities and improving the scope and quality of information that will be disclosed in future reports.