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Conflict Minerals

October 29, 2014 | Written by GreenSoft Technology, Inc.

EU Receives Pressure on Conflict Minerals Ahead of December Decision

October 29, 2014|Written by GreenSoft Technology, Inc.

The European Union is scheduled to discuss draft Conflict Minerals regulation in December, and this month it received pressure regarding that regulation from both a group of Catholic bishops and a group of investors representing more than €855 billion in assets.

Catholic Bishops Request Mandatory Compliance
CIDSE, a group of about 70 Roman Catholic bishops from 17 member organizations in Europe and North America, urged the EU in an October 9th 
statement to make compliance with its conflict minerals regulations mandatory for manufacturers rather than voluntary. 

Currently the drafted regulations from the EU extend the scope of regulated companies beyond that of the U.S. Dodd-Frank Act, but makes compliance voluntary. 

The statement praised the EU for the wide scope of the draft regulation, but suggested the regulation could be strengthened in the following ways:

- Consistency in the range of natural resources covered

- Shared responsibility by companies along the entire supply chain

- A mandatory due diligence system that follows best practices

Investors Request More Compatibility Between EU and US Regulations
Meanwhile, on October 21st a group of global sustainable and responsible investors and investment organizations representing more than €855 billion in assets under management issued a statement via the Responsible Sourcing Network urging the EU to adopt regulations that are compatible with the Dodd-Frank Act.

The group suggests creating a single international standard that will "promote companies' broad adoption of robust conflict minerals due diligence and reporting" by amending the proposed EU regulations to align with the Dodd-Frank Act in two ways:

- The reporting mechanism should be mandatory

- The rule should apply to any European country that manufactures or contracts to manufacture products containing 3TG that is necessary to product functionality or manufacture.

EU Commission to Discuss in December
A new European Commission will be inaugurated in November and the proposed conflict minerals regulations are scheduled to be discussed by the European Parliament in December. We will continue to post updates as the global conflict minerals legal landscape continues to change.

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