Investors show support for Conflict Minerals Rule 1502 and disagreement with lawsuit filed by business lobby groups
More than 50 sustainable, socially responsible, and faith-based investment groups representing $458.67 billion in assets under management released a statement today expressing their support for the SEC’s final rule for Conflict Mineral Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. They also reiterated their disagreement to the lawsuit filed against the Securities and Exchange Commission (SEC) by the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable.
To see the press release related to this investor statement please see the PR & Mentions page in the Media section of our website.
Highlights of the statement:
The group believes the SEC’s final rule of Section 1502 protects investors and has an effect on a significant public interest since the conflict in the Democratic Republic of Congo (DRC) has claimed more than five million lives and conflict mineral revenues are known to fund armed groups in the region.
As investors and fiduciaries with a long‐term view of capital appreciation that must meet the interests of multiple generations of beneficiaries, it is important to protect investors through improved disclosure and reporting on social risk factors such as labor practices and human rights.
Requiring disclosure within a company’s supply chain allows investors to evaluate supply chain policies and practices, to make company‐to‐company comparisons, to calculate the level of risk associated with conflict mineral sourcing, and to provide assurance that companies are not engaging in destabilizing activities.
The final 1502 rule from the SEC appropriately considered the costs and benefits involved with implementation. The process for determining the rule was highly consultative and included comments from many industry leaders.
Any stay in legislation would hinder a much needed leverage point to address one of the root causes of the ongoing violence that has plagued the Congo for many years.
To see the submissions by the investor group to the SEC regarding Dodd-Frank 1502 rule, see the Investors page in the Minerals section of our website.