Conflict Mineral Smelter Data Program [Video]
Publisher: Assent Compliance
Date: 2015
Topics: Extractive Resources, Programming
Countries: Congo (DRC)
Assent Compliance helps companies comply with conflict mineral requirements and currently works with over 20% of S&P 500 companies in scope. One of the critical components of a conflict mineral program is sourcing smelter data. What’s the most effective way to do this? See how Assent manages conflict minerals smelters in the conflict mineral compliance process.
How Assent Handles Conflict Minerals Smelters
The following video created by Assent Compliance covers how Assent handles smelters in the conflict mineral compliance process.
The final rule of section 1502 of Dodd Frank requires companies to file a conflict minerals report to exercise due diligence on the source and chain of custody of their conflict minerals. Identifying and understanding the smelter of 3TGs is important to fulfilling this requirement.
The smelter has been identified as the pinch point in the supply chain. This is because the smelters are in the best position to know where the raw material is coming from and where the output product is going to.
Also, there are a relatively small amount of smelters compared to upstream suppliers and downstream users. Supplier provided information comes in at scale, and Assent uses a merge and purge model as smelter verification to efficiently deal with the size, complexity and dynamic nature of incoming data.
Assent relies on information provided from respective private and public stakeholders such as the Conflict Free Sourcing Initiative (FSI), the London Bullion Market Association (LBMA) and the US Department of Commerce. The Assent database is a constantly evolving warehouse, consolidating the most complete, and up-to-date information gathered from these sources.
So How Does Assent Do This With Conflict Minerals Smelters?
The first step is to cross reference incoming data against the Assent database for a match based on indicators such as unique smelter ID (or CID), metal, facility location, and name. If a match is found in the database the duplicate information is merged into one accurate profile. Entries that do not have a match or do not include a correct CID are purged for invalid data, such as the commonly seen question mark.
Also, commonly seen invalid smelters such as traders, pawnshops, banks and government bureaus are also eliminated. Once the known entries are either merged or purged, the resulting list contains data that needs to be investigated to determine whether or not it could be legitimate but undocumented smelting facilities.
Assent Compliance’s smelter team conducts a due diligence process that includes detailed research and native language outreach to locations around the globe to enhance the data gathering network, as well as educate on the benefits of conflict free sourcing certifications.
Assent uses indicators such as CFSI status, third party audit status, geographic location, and mine location to generate a smelter rick level to help clients understand the level of risk that a particular smelter has sourced from one of the covered countries associated with the DRC.
Assent’s interactive smelter location map is a unique feature enabling a visual tool where companies can view geographic proximity to high risk locations.
Successful execution of Assent’s smelter engagement and due diligence process will provide important information about mine location and potentially problematic sourcing.
Assent’s smelter verification program, including one of a kind database and experienced multilingual smelter team, can be an efficient and cost effective resource in this intensive information gathering requirement.
Successful smelter verification from Assent can provide a clean list of data that can confidently be submitted on a conflict minerals report.
For More Information About How Assent Handles Conflict Minerals Smelters, Contact Us!