CONFLICT MINERALS & RESPONSIBLE MATERIALS IN MOBILITY:

Driving Supply Chain Reporting

Scroll down to start the journey

Scroll down to start the journey
3TG

WHAT ARE

“CONFLICT

MINERALS"

DEFINITION

The minerals TIN, TANTALUM, TUNGSTEN and GOLD (also referred to as “3TG”) are considered “responsible materials” because they are often mined in conditions of armed conflict in the Democratic Republic of Congo (DRC) and surrounding countries.


The scope of conflict minerals has expanded to include non-legislated materials (eg., cobalt) and are now known as Responsible Materials.

WARLORDS
BENEFIT

Responsible materials provide a major source of funding for warlords in the DRC region, fueling the violence that has plagued the region for decades.

Warlords

PEOPLE SUFFER

These armed groups use violence to intimidate local populations and maintain control of mines, where workers endure extreme conditions with little or no pay. The atrocities in the region have created a massive humanitarian crisis and a death toll of 5.5 million that grows by the day.

Conflict Minerals Mined DRC region in Africa 3TG Path 3TG Path

HOW THEY

EFFECT US?

EVERYDAY USES

Responsible Materials are used in a wide range of products including mobile phones, computers, jewelry and vehicles.

1. ENGINE

  • Aluminium
  • Nickel
    (turbocharger)
  • Tungsten
    (crankshaft)

2. MICROPHONE/SPEAKER

  • Rare earth elements
  • Nickel
  • Iron
  • Cobalt

3. LED DISPLAY

  • Rare earth
    elements

4. WINDSCREEN
   & WINDOWS

  • Glass

13. BRAKES

  • Graphite
  • Steel/Iron
  • Tungsten

14. TRANSMISSION

  • Nickel
  • Steel/Iron

15. CLUTCH

  • Graphite

16. RADIATOR

  • Copper

That’s why automakers (also referred to as Original Equipment Manufacturers or OEMs) and their supply chain partners work together to make sure global vehicle production doesn’t support warlords or further the conflict in the DRC.

5. INTERIORS

  • Leather
  • Plastics

6. CATALYTIC
   CONVERTER

  • Palladium
  • Plastics
  • Rare earth
    elements

7. PAINT &
   PEARLESCENT
   FINISH

  • Mica
  • Cobalt

8. TIRES

  • Rubber
  • Cobalt

9. WHEELS

  • Graphite
    (bearings)
  • Steel/Iron
  • Tungsten
    (bearings &
    ball joints)

10. SUSPENSION

  • Steel/Iron

11. CHASSIS

  • Aluminium
  • Steel/Iron
  • Tungsten

12. BODY PANELS

  • Steel/Iron
Auto Industry Car 3TG Path
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ISSUES IMPACTING

THE SUPPLY CHAIN

JULY 2010
3TG 3TG
Congress Passes
Law on 3TG

Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act on Conflict Minerals: “It is the sense of Congress that the exploitation and trade of conflict minerals originating in the DRC is helping to finance conflict characterized by extreme levels of violence...”

APRIL 2011
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AIAG and OEMs
Issue Call to Action

AIAG works with six of its largest members—Chrysler, Ford, General Motors, Honda, Nissan and Toyota—to send a letter to thousands of suppliers encouraging them to join industry action on the conflict minerals issue: “It is our intention to do what we can to ensure that the parts and assemblies in our vehicles and products, regardless of where they are assembled or sold, do not contain conflict minerals which have contributed to the armed conflict in the DRC.”

AUGUST 2012
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AIAG Endorses Reporting Tools

AIAG endorses tools developed with partners to help the supply chain source responsibly and meet reporting requirements: the EICC/GeSI Conflict Minerals Reporting Template and the iPoint Conflict Minerals Platform.

AUGUST 2015
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US Court of
Appeals

On August 18, 2015, the U.S. Court of Appeals for the District of Columbia Circuit reaffirmed its initial 2014 judgement that the Securities and Exchange Commission's (SEC's) requirement for companies to publicly state in reports to the SEC and on their websites that their products “have not been found to be ‘DRC conflict free’” violates the First Amendment.

MAY 2017
3TG 3TG
EU Conflict
Minerals Legislation

In May 2017, the EU passed a new conflict minerals regulation to stop conflict minerals and metals from being exported to the EU, prevent global and EU smelters and refiners from using conflict minerals, and protect mine workers from abuse. This regulation requires EU companies to ensure they are importing these minerals and metals from responsible sources only.

MAY 1982
3TG 3TG
Auto Industry
Forms AIAG

OEMs and suppliers form the Automotive Industry Action Group (AIAG), whose 4,000+ member companies today collaborate to resolve global issues in the automotive supply chain.

AUGUST 2010
3TG 3TG
AIAG Starts Collaborating on Industry Solutions

Drawing on cross-industry stakeholder engagement to identify best practices, AIAG member companies (OEMs and suppliers) begin collaborations to develop common solutions that the entire industry can adopt quickly and efficiently.

AUGUST 2012
3TG 3TG
SEC Issues Final
3TG Reporting Requirements

Section 1502 of the Dodd-Frank Act imposes U.S. Securities and Exchange Commission (SEC) requirements on publicly-traded companies to report the source of 3TG in their products made in 2013, and whether the 3TG are “conflict free.” This affects automotive OEMs and suppliers that report to the SEC, as well as private companies supplying to them, whether in the U.S. or elsewhere in the world.

MAY 2014
3TG 3TG
Conflict Minerals Reporting to SEC Began

Starting in 2014, companies must file a Conflict Minerals Report with the SEC each May 31, for the prior calendar year.

APRIL 2017
3TG 3TG
US Court of
Appeals

On April 3, 2017, the U.S. District Court for the District of Columbia entered final judgment in the case and remanded to the Commission.

3TG Path

DRIVERS FOR

EXPANSION

The Why

Responding to due diligence reporting requests for non-legislated minerals aligned and complementary expectations for practitioners and assessments that allow for mutual recognition of approaches.

Standardization & Key Stakeholders

Standardization of processes:

OECD standards were developed with stakeholders, including business, civil society and worker representatives, and backed by governments - are global best practice for identifying and addressing risks.

Organisation for Economic Co-operation and Development (OECD)

The OECD and its member countries work with other countries, organizations, and stakeholders worldwide to address the pressing policy challenges. They provide a unique forum and knowledge hub for data and analysis, exchange of experiences, best-practice sharing, and advice on public policies and international standard-setting.

Electronic Industry Citizenship Coalition (EICC) and Global Sustainability Initiative(GeSI)

In 2013, the EICC and GeSI launched the Conflict Free Sourcing Initiative (CFSI), which developed the first conflict free smelter assessment. This assessment eventually became the Conflict Minerals Reporting Template (CMRT).

Responsible Minerals Initiative (RMI)

RMI was founded in 2008 by members of Responsible Business Alliance (RBA) and Global Sustainability Initiative (GeSI). Today, they bring together representatives from industry, government, and civil society for discussions and guidance on best practices in responsible mineral sourcing.

External Factors

Various ESG factors including circular economy, growth of shareholder/investor/consumer expectations, human rights concerns and legislation are leading to increased reporting.

Drivers for Expansion 3TG Path

INDUSTRY ENDORSED

REPORTING TEMPLATES

July 2011

CMRT

Conflict Minerals Reporting Template

A free, standardized reporting template that facilitates the transfer of information through the supply chain regarding mineral country of origin and smelters and refiners being utilized. Launched by the Global e-Sustainability Initiative (GeSI) and electronic Industry Citizenship Coalition® (EICC®). Currently led by the Responsible Minerals Initiative (RMI) of the Responsible Business Alliance.

Mar 2018

CRT

Cobalt Reporting Template

Launched to collect due diligence information in the cobalt supply chain.

Oct 2021

EMRT

Extended Minerals Reporting Template

A free, standardized reporting template developed to identify pinch points and collect due diligence information in the cobalt and mica supply chains. (Replacing CRT & MRT)

Coming Soon

PRT

Pilot Reporting Template

A draft, standardized reporting template developed to offer companies a preferable alternative to creating their own templates for collecting pinch points and due diligence information in other materials supply chains.

Sept 2012

iPCMP

iPoint Conflict Minerals Platform

Launched by AIAG as the first web-based data management to identify products containing conflict minerals.

Apr 2014

CMRT version 3.0

Published in a collaborative effort by members of CFSI, JEITA and AIAG.

Oct 2020

MRT

Mica Reporting Template

Launched to collect due diligence information in the mica supply chain.

Mar 2022

CRT and MRT

Cobalt Reporting Template and Mica Reporting Template.

Phased out and replaced by the Extended Minerals Reporting Template (EMRT).

3TG Path

INDUSTRY

COLLABORATION

SHARED
RESPONSIBILITY

Innovation with electrified, connected, and autonomous vehicles has led to a shift and expansion from automotive to mobility more broadly. These and future advancements require supply chain partners to share best practices and business process knowledge across non-traditional automotive sectors. In recognition of this need, AIAG has established cross-sector collaborations with electronics, software, heavy equipment and aerospace industry associations and business consortia.

TOGETHER
WE CAN

  • Educate and engage our industry peers and stakeholders
  • Create common tools and solutions
  • Reduce the cost and complexity of reporting

AUTOMOTIVE

Automotive

AEROSPACE

Automotive

HEAVY-
EQUIPMENT

Automotive

SEMI-
CONDUCTORS

ELECTRONICS

Automotive
AIAG 3TG Path 3TG Path