Global Investors Urge European Parliament to Adopt Stronger EU Conflict Minerals Legislation
On May 13, 23 global, sustainable and responsible investors and investment organizations have come together to urge Members of the European Parliament to seize the opportunity of their upcoming vote to adopt robust conflict minerals regulations for the European Union.
The European Parliament will vote on proposed regulation regarding the responsible sourcing of conflict minerals and associated requirements for European companies on May 20. However, in its current form, the proposed regulation would limit mandatory due diligence and disclosure requirements to EU smelters and refiners only, while opting for voluntary self-declaration for importers of 3TG established in the EU, as well as a vague voluntary European certification of responsibility for “downstream companies” (who are not defined).
Signatories to the statement, including Hermes, Boston Common Asset Management, Calvert, EUROSIF, and other prominent EU and U.S. investment groups, have asked Members of the European Parliament to strengthen this proposal by expanding the scope of the legislation to ensure that all companies placing minerals on the market, in raw form or contained in semi-finished or finished goods, are legally required to source responsibly.
The undersigned sustainable and responsible investors and investment organizations feel that a mandatory and inclusive approach will stimulate a level of robust supply chain due diligence and reporting that a narrow, voluntary opt-in scheme cannot achieve. A mandatory scheme applicable to companies throughout the entire supply chain can effectively generate adequate company reaction that will tangibly limit investor risk and increase legitimate extractive sector revenue streams in conflict-affected and high-risk areas, helping bring an end to resource-related conflicts around the world.