EU Conflict Minerals: Are We There Yet?

The Dodd-Frank Wall Street Reform and Consumer Protection Act was one of the most groundbreaking pieces of legislation to go through in recent years.  Section 1502 states that all SEC publicly traded companies must go through a mandatory due diligence process to confirm their manufacturing materials are sourced, conflict free.  With the third year of reporting upon us in the US, we are looking to the European Union to make their decision on Conflict Minerals.

The EU Conflict Minerals legislation has been in the works for the better part of two years.  Originally, the draft legislation called for a voluntary certification process.  On May 20th, 2015, the European Parliament voted in favor of a mandatory certification process that has the potential to affect 880,000 downstream EU firms.  We have been patiently waiting to hear a final position from the EU on this legislation.  According to an article written in the National Law Review, we are getting close to that decision.  The European Council aimed to have a position on the draft regulation by the end of 2015.  Once the council takes their position, trialogue negotiations (between the EU Parliament, Commission, and Council) will begin and the outcome will be the final decision on the EU Conflict Minerals Regulation.

It is extremely important for companies to stay on top of this legislation.  EU Conflict Minerals regulation has the potential to affect over 880,000 companies, especially manufacturers doing business globally.  If you would like to stay ahead of this crucial legislation, or believe your company may be affected, click here.