Conflict Minerals and the Importance of Transparency in Supply Chain ManagementCategories: Chemical Data Management and Regulatory Compliance Software, Conflict Minerals Platform, Supply Chain Risk Management, UL Supply Chain Network, White Papers Jan 20, 2017
Original Publication Date: Feb 1, 2013
In today’s global economy, products on the shelves of local retailers are often manufactured, assembled or produced in factories thousands of miles away and built with materials and components sourced from virtually anywhere in the world. The globalization of manufacturing has played a significant role in the economic development of developing countries and regions and has led to more efficient and cost-effective manufacturing, resulting in lower prices for many consumer goods. This UL white paper provides readers with an overview of the issues and challenges related to the use of conflict minerals in manufactured products. The paper begins with background information on the origins and sources of conflict minerals and discusses the consequences stemming from the use of conflict minerals. The paper then briefly reviews regulations recently enacted by the U.S. Securities and Exchange Commission (SEC) applying to manufacturers and other companies that potentially use conflict minerals in their products, and details a due diligence process that can aid in the identification of conflict minerals and other potential issues in the supply chain. The paper concludes by discussing compliance with conflict mineral rules in the context of responsible supply chain management and the potential benefits of increased supply chain transparency.