Conflict-Free Smelter (CFS) Program Update

AIAG’s continued participation in the Conflict-Free Smelter (CFS) program developed by the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI) provides several benefits to member companies:

• Provides downstream customers with verified information about the smelter’s/refiner’s sourcing activities;
• Helps smelters/refiners demonstrate conformance to the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance;
• Helps downstream companies meet reporting requirements;
• Enables downstream companies to source conflict-free minerals

The CFS program identifies and publishes a list of certified conflict-free smelters of tin, tantalum, tungsten, and gold. Auditing focuses on smelters/refiners because smelting/refining is the point where identifiable types of materials such as ore concentrates and secondary materials are transformed into a common product for all downstream consumers. In addition, the number of smelters and refiners is small compared to the number of upstream suppliers and downstream users.

The global, voluntary CFS program consists of an independent audit at a smelter’s or refiner's site(s). Auditors review company policies and codes of conduct and evaluate how the policies are incorporated into management and procurement procedures. A material analysis must show that sources of materials are conflict free, source locations are consistent with known mining locations, and material identified as recycled or scrap meets the definition of secondary material. 

Determination of compliance is unique to each metal, so a separate CFS-compliant list is maintained for each metal. The program publishes the lists at www.conflictfreesmelter.org. To maintain inclusion on the list, participants must complete an annual re-audit to verify continued compliance to the protocol.

In December 2012, EICC and GeSI announced Version 2.0 of the Conflict Minerals Reporting Template (Template), developed to facilitate the communication of information regarding smelters and refiners that provide material to a company’s supply chain. The updated version, now available in eight languages, offers several new features:

• Ability to indicate the scope of the disclosure as occurring at the company, division, product category, or product list level;
• Includes a drop-down list of smelter names to increase consistency and reduce duplication in supply chain reporting;
• Provides enhanced instructions and definitions to reflect technical changes in the template;
• Improved template questions to ensure clarity, accuracy, and relevance to supply chain disclosures;

Visit www.conflictfreesmelter.org/cfshome.htm for information on the Conflict Minerals Reporting Template, as well as CFS program indicators, audit protocols, training documents, and CFS lists.
 
For more information on AIAG’s Conflict Minerals activities, contact Program Development Manager Tanya Bolden at tbolden@aiag.org.

Learn more about how AIAG and the Auto Industry are addressing Conflict MIneral issues at the 2013 AIAG Corporate Responsibility Summit, April 24-25. 2013: http://bit.ly/aiagcr13