Conflict Minerals Compliance Basics: Dodd-Frank 1502, What Is The Rule And Why Does It Matter
Breaking down the basic terminology of conflict minerals compliance
Today in “Conflict Minerals Compliance Basics” we will be breaking down Dodd-Frank 1502 with out legalese, and explain why it matters.
In a nutshell, the rule requires public companies to conduct supply chain diligence and make disclosures concerning specified minerals and their derivatives contained in their products. In 2010, Congress passed the Dodd-Frank Act, which directs the SEC to issue rules requiring certain companies to disclose their use of conflict minerals if those minerals are “necessary to the functionality or production of a product” manufactured by those companies. Under the Act, those minerals include tantalum, tin, gold or tungsten.
The rule is intended to reduce a significant source of funding for armed groups that are committing human rights abuses in the eastern Democratic Republic of the Congo (DRC) and specific adjoining countries. By enacting the Conflict Minerals Statutory Provision, Congress intended to further the humanitarian goal of ending the violent conflict in the eastern Democratic Republic of the Congo (DRC), which has been partially financed by the exploitation and trade of conflict minerals originating in the DRC. The SEC final rule explains that the exploitation and trade of conflict minerals by armed groups is helping to finance the conflict, which is characterized by extreme levels of violence, particularly sexual- and gender-based violence.
If you wish to learn more about the law and why it is important, you can send specific questions to Source Intelligence.