Claigan is the leading consulting company in conflict minerals compliance. In 2012, Claigan testified before Congress regarding the practical methods for conflict minerals compliance. Claigan's related work is quoted eighteen (18) times in the SEC final rules for compliance with Section 1502 of Dodd-Frank.
Claigan provides comprehensive solutions to enable companies to comply with the conflict minerals requirements of Section 1502 of the Dodd-Frank Act.
Claigan's services include:
- Reasonable Country of Origin Inquiry (RCOI) - Suppliers
- Reasonable Country of Origin Inquiry (RCOI) & Due Diligence - Smelters
- Conflict Minerals Disclosure & Report
- Consulting and Knowledge Support
Reasonable Country of Origin Inquiry (RCOI) - Suppliers
A key initial step in conflict minerals compliance is to perform a RCOI with suppliers. According to guidance by the SEC - a company that determines that conflict minerals are necessary to the functionality of a product manufactured or contracted to be manufactured by the company, is required to make a reasonable inquiry into the country of origin of the conflict minerals with affected suppliers.
Claigan provides solutions for completing the required country of origin inquiries, including:
- Development of affected suppliers list
- Data gathering from suppliers
- Review and correction of supplier data
- Development of an updated CMRT (EICC-GESI) form for the company
- Storage and maintenance of country of origin responses for audit and traceability
The principal goals of the project are to:
- Identify supplier commitment to conflict minerals compliance
- Communicate your company's conflict minerals policy
- Identify source smelters
- Provide an updated customer declaration based on supplier responses
Reasonable Country of Origin Inquiry (RCOI) & Due Diligence - Smelters
A supplier RCOI using the CMRT (EICC-GESI) form does not complete the RCOI requirement nor does it constitute due diligence under the SEC final rules. An issuer needs to perform an RCOI with identified source smelters. For those smelters sourcing from the DRC or surrounding countries, the issuer is required to conduct due diligence on the source and chain of custody of those minerals. If a smelter refuses to declare whether they source from the DRC or surrounding countries, the issuer is required to perform due diligence to determine if they have 'reason to believe' the smelter is sourcing from the DRC or surrounding countries.
The smelter phase of the RCOI includes:
- Verification of 'alleged' smelters provided by suppliers
- Gathering country of origin information from source smelters
- Risk assessment of supplier's statement against publicly available information
- Gathering conflict-free information from source smelters, as required
- Determination whether there is 'reason to believe' the smelter is sourcing from the DRC or surrounding countries
- Performing due diligence on smelters that are or may be sourcing from the DRC or surrounding countries
- Generate a technical document summarizing the conflict-free nature of a company and its source smelters
- Review of findings with internal stakeholders
The smelter phase of the RCOI is the most critical and difficult phase of conflict minerals compliance. Claigan is the leading expert in smelter RCOI and due diligence work, and has a wealth of data and experience that can be leveraged by its customers.
Conflict Minerals Disclosure and Report
Once a year, an issuer is to prepare a disclosure to the SEC and the related conflict minerals report (if sourcing from the DRC or surrounding regions.) The conflict minerals report needs to meet specific requirements which vary depending on tif the issuer is declaring some or all of their products DRC Conflict Free. Claigan provides conflict minerals disclosure and report on solutions that include:
- Draft SEC disclosure
- Draft SEC conflict minerals report including due diligence
- Education and consensus building among internal stakeholders
- Support during third-party audits and related corrective actions
Consulting and Knowledge Support
Claigan regularly supports companies with their corporate requirements, process development, conformity to the OECD Due Diligence Guidance, customer requirements, and related conflict minerals questions.
Typical support includes:
- Support of customer requirements
- Training and education
- Explanation of phases and steps
- Requirements of privately held companies
- Development of process and plan
- Development of improvement program
- Checklist approach to the OECD Due Diligence Guidance
- Development of initial documents
- Corporate policy
- Initial CMRT (EICC-GESI) form for customers
- Contract language
- General on-call support
Claigan has completed conflict minerals work for companies from diverse industries including consumer products, medical devices, industrial products, laboratory equipment, semiconductor devices and materials, and security and national defense equipment.
At Claigan, we believe in practical solutions to important problems. Contact us today for more information.