Conflict Minerals Filings Show Challenges for Companies Without Global Database, Independent Verification Systems
CARLSBAD, Calif., July 21, 2015 /3BL Media/ - The world's largest brands in the electronics, retail, apparel, oil and gas and manufacturing sectors counted on global leader Source Intelligence for comprehensive supply chain data management to trace the source of raw materials (3TG) used in their products for conflict minerals reporting to the SEC.
Under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies based in the United Statesmust report whether they use conflict minerals – gold, tungsten, tantalum and tin (3TG) – from the Democratic Republic of the Congoand neighboring war-torn countries.
Source Intelligence® (SI), the "LinkedIn" of Supply Chain, was the most listed third-party investigative and verification resource in conflict minerals SEC filings by publicly traded companies. This represents close to 40% of all filings listing third-party vendors by name.
"Brands utilizing our proprietary verification system and robust network of suppliers are now able to make definitive declarations about conflict minerals sourcing and provide additional transparency to their stockholders, customers and regulatory agencies," said Jess Kraus, CEO of Source Intelligence.
To date, over 1,260 of the approximately 6,000 companies required to file for reporting year (RY) 2014 with the SEC have actually done so. Only 47% percent of filers mentioned their supplier response rates, 32% listed smelters and 6 completed an Independent Private Sector Audit (IPSA), indicating challenges in assembling and verifying supplier information, and more importantly, suggesting a need for improvement across the remaining filers. Additionally, the grace period for "undeterminable" reporting expires for large companies in RY 2015 which will likely lead to increased scrutiny of filings by government officials and NGO's.
The conflict minerals issue has prompted thousands of companies to investigate other areas of their supply chain to ensure they are meeting ever-expanding social and environmental standards worldwide. Source Intelligence, for instance, is assisting companies in ensuring suppliers are providing materials and products without political corruption or slavery issues.
About Source Intelligence® (www.sourceintelligence.com):
Source Intelligence® (SI) is a global network of businesses linked together to expedite the exchange and validation of compliance information. The company's analytics platform provides customers with visibility into supply chains in order to comply with the law, minimize operational and brand risk, and improve efficiency.
Contact:
Lina Ramos, Chief Business Officer
760-232-4087
lramos@sourceintelligence.com
