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Removing Conflict Minerals from 
Global Supply Chains 
Using OpenText™ Active Community
OpenText Confidential. ©2014 All Rights Reserved. 2 
Agenda 
 Introduction to the Dodd-Frank Act 
 Which Minerals are Af...
Today’s Supply Chains Face Many 
Regulatory, Risk & Compliance Issues 
OpenText Confidential. ©2014 All Rights Reserved. 3...
OpenText Confidential. ©2014 All Rights Reserved. 4 
What is the Dodd-Frank Act? 
 U.S Congress passed the Dodd-Frank Wal...
EU Mandates Optional Compliance 
 EU Commission to allow companies to self-certify their 
OpenText Confidential. ©2014 Al...
OpenText Confidential. ©2014 All Rights Reserved. 6 
Which Minerals are Affected? 
 Tantalum: regarded as the first confl...
Where are 3TG Minerals Sourced From? 
OpenText Confidential. ©2014 All Rights Reserved. 7 
 The Democratic Republic of th...
Where are Conflict Minerals Used ? 
OpenText Confidential. ©2014 All Rights Reserved. 8
Industry Readiness for Dodd-Frank 
OpenText Confidential. ©2014 All Rights Reserved. 9 
High Tech 
Electronics Industry Ci...
Intel Vows to Stop Using Conflict 
Minerals 
OpenText Confidential. ©2014 All Rights Reserved. 10 
Intel announced at the ...
Recent Conflict Minerals Survey of the 
Automotive Industry by PwC 
Top 5 Most Difficult Challenges – (1=Greatest Challeng...
What Strategy Should be Adopted for 
Eradicating Conflict Minerals? 
OpenText Confidential. ©2014 All Rights Reserved. 12
How Will the OECD Framework be 
Implemented? 
EICC and GeSI joint working group aims to help 
companies deploy the OECD fr...
What Does the Process Look Like? 
“The complexity of today’s supply chains combined with lack of visibility into 
sourcing...
How Will You Assess Your Supply Chain? 
OpenText Confidential. ©2014 All Rights Reserved. 15 
 From a Supply Chain Manage...
Conflict Minerals Reporting Template 
Spreadsheet based reporting tool needs to be emailed 
to every supplier across a sup...
S&P500 Company Responses for 2014 
 Of the S&P500, only 184 needed to file an exhibit and of these 
OpenText Confidential...
Challenges Faced by Respondents 
OpenText Confidential. ©2014 All Rights Reserved. 18 
Many companies who filed to the SEC...
Introducing OpenText™ Active Community 
Aligning People and Process with Transactional B2B 
OpenText Confidential. ©2014 A...
B2B Community Management 
Automating Both Your Data Network and People Network 
GXS B2B Community Management 
B2B Communit...
OpenText™ Active Community 
Improving Collaboration Across the Supply Chain 
OpenText Confidential. ©2014 All Rights Reser...
Using Active Community to Deploy the 
Conflict Mineral Reporting Template 
OpenText Confidential. ©2014 All Rights Reserve...
CFSI Reporting Tool Demonstration 
OpenText Confidential. ©2014 All Rights Reserved. 23 
 To see a short demonstration of...
Benefits of Using 
OpenText™ Active Community 
OpenText Confidential. ©2014 All Rights Reserved. 24 
 Provides an effecti...
OpenText Confidential. ©2014 All Rights Reserved. 25 
Conclusions 
 Today’s global supply chains need to adhere to 
incre...
Mark Morley | mmorley@opentext.com 
Copyright © OpenText Corporation. All rights reserved. 
twitter.com/opentext 
facebook...
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Removing Conflict Minerals from Global Supply Chains

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This presentation provides an introduction to the Dodd Frank Conflict Minerals Law and how it is likely to impact global supply chains. The law was introduced to help remove conflict minerals from global supply chains and to adhere to this law companies will need to assess their supply chains before they can submit their SEC filings. This presentation highlights how OpenText Active Community can be used as part of this assessment process.

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Removing Conflict Minerals from Global Supply Chains

  1. 1. Removing Conflict Minerals from Global Supply Chains Using OpenText™ Active Community
  2. 2. OpenText Confidential. ©2014 All Rights Reserved. 2 Agenda  Introduction to the Dodd-Frank Act  Which Minerals are Affected?  Industry Assessment Processes  Conducting a Supply Chain Assessment  How Community Management Tools can Manage the Assessment Process
  3. 3. Today’s Supply Chains Face Many Regulatory, Risk & Compliance Issues OpenText Confidential. ©2014 All Rights Reserved. 3 Increase Supply Chain Resilience Minimize Use of Conflict Minerals Improve CSR Related Compliance Strengthen Regulatory and Legal Compliance
  4. 4. OpenText Confidential. ©2014 All Rights Reserved. 4 What is the Dodd-Frank Act?  U.S Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, on 21 July’10  The intent of the provision is to deter the extreme violence and human rights violations in the Democratic Republic of Congo (DRC) and neighbouring countries  Section 1502 instructs the U.S Securities and Exchange Commission (SEC), in consultation with the U.S Department of State, to promote regulations requiring certain companies to submit annually a description of measures taken to exercise due diligence on the source and chain of custody of conflict minerals
  5. 5. EU Mandates Optional Compliance  EU Commission to allow companies to self-certify their OpenText Confidential. ©2014 All Rights Reserved. 5 supply chains for conflict minerals  EU ruling currently applies to importers of raw materials and does not include manufacturers and companies importing finished products  EU governments have already endorsed the use of the OECD framework, discussed later in this presentation  It is expected that over time the new regulation will become mandatory and may include a broader group of minerals  US and EU rules are intended to introduce more transparency into supply chains, companies will be ethically compelled to find out what is in their supply chains
  6. 6. OpenText Confidential. ©2014 All Rights Reserved. 6 Which Minerals are Affected?  Tantalum: regarded as the first conflict mineral and became popular on the back of growth across the mobile phone industry.  Tin: widely regarded as the primary funding source of rebel groups and used in alloys, tin plating, and solders for joining pipes and electronic circuits  Tungsten: used in metal wires, electrodes and contacts which are used in a multitude of electrical and electronic devices  Gold: due to its superior electric conductivity and corrosion resistance it is used in electronic, communications and aerospace equipment Combined, these minerals are commonly referred to as ‘3TG’
  7. 7. Where are 3TG Minerals Sourced From? OpenText Confidential. ©2014 All Rights Reserved. 7  The Democratic Republic of the Congo (DRC) is one of the most mineral rich countries in the world  The trade of minerals in this country is used to fund extreme levels of violence across the region  Mines are typically controlled by militant groups  All 3TG minerals should be “DRC Conflict Free”
  8. 8. Where are Conflict Minerals Used ? OpenText Confidential. ©2014 All Rights Reserved. 8
  9. 9. Industry Readiness for Dodd-Frank OpenText Confidential. ©2014 All Rights Reserved. 9 High Tech Electronics Industry Citizenship Coalition (EICC) and Global eSustainability Initiative (GeSI) - launched a joint initiative called the Conflict Free Smelter (CFS) program, a voluntary program aimed at tracing the supply chains of minerals used in electronics Automotive Automotive Industry Action Group (AIAG) – works to continuously improve business processes between trading partners across the supply chain. Developed a web based tool that can be used by companies to identify conflict minerals across their respective supply chain. Precious Metals World Gold Council (WGC) – developed a draft Conflict-Free Gold Standard which will ensure that companies producing, transporting and refining gold meet the standards in order to claim their products are conflict free.
  10. 10. Intel Vows to Stop Using Conflict Minerals OpenText Confidential. ©2014 All Rights Reserved. 10 Intel announced at the CES show in Las Vegas in January 2014 that they would remove conflict minerals from their global supply chains. All gold used in its circuitry is now conflict free, thus improving its brand reputation
  11. 11. Recent Conflict Minerals Survey of the Automotive Industry by PwC Top 5 Most Difficult Challenges – (1=Greatest Challenge 9=Least Challenge) OpenText Confidential. ©2014 All Rights Reserved. 11 Identifying relevant suppliers
  12. 12. What Strategy Should be Adopted for Eradicating Conflict Minerals? OpenText Confidential. ©2014 All Rights Reserved. 12
  13. 13. How Will the OECD Framework be Implemented? EICC and GeSI joint working group aims to help companies deploy the OECD framework to allow the sourcing of conflict free minerals by: OpenText Confidential. ©2014 All Rights Reserved. 13  Implementing conflict free smelter and due diligence programs to verify conflict free minerals down the supply chain from the OEMs  Supporting in region sourcing schemes to enable future legitimate trade from DRC and surrounding countries  Supporting OECD due diligence guidance and pilot  Engaging with stakeholders for collaboration and efficiency  Supporting individual company’s assurance processes through information sharing, standard tools and templates  For the high tech industry, the OECD defines upstream and downstream as follows…..
  14. 14. What Does the Process Look Like? “The complexity of today’s supply chains combined with lack of visibility into sourcing practices will be one of the key challenges of ensuring that Dodd-Frank can be adhered to” – Deloitte Conflict Minerals Report, January 2012 OpenText Confidential. ©2014 All Rights Reserved. 14
  15. 15. How Will You Assess Your Supply Chain? OpenText Confidential. ©2014 All Rights Reserved. 15  From a Supply Chain Management point of view there are two key challenges associated with the successful reporting of conflict minerals: 1. Ensuring that contact information for each supplier across a supply chain is up to date 2. Keeping track of every assessment completed by a community of suppliers  Efficient contact management is therefore critical to the success of this particular reporting process and hence ensure that a SEC filing is submitted on time
  16. 16. Conflict Minerals Reporting Template Spreadsheet based reporting tool needs to be emailed to every supplier across a supply chain….. OpenText Confidential. ©2014 All Rights Reserved. 16
  17. 17. S&P500 Company Responses for 2014  Of the S&P500, only 184 needed to file an exhibit and of these OpenText Confidential. ©2014 All Rights Reserved. 17 94% used the CFSI reporting template  Average number of suppliers surveyed was 2500, but ranged from just 5 to over 40,000 suppliers  49% of respondents came from the technology, industrial and CPG sectors  43% of respondents showed sourcing of some portion of minerals from the DRC  52% of companies did not disclose supplier response rates, of those that did respond only 15% of companies had supplier response rate greater than 90%  Only 27% were able to provide a list of smelters and refiners Source: Ernst & Young, June 2014
  18. 18. Challenges Faced by Respondents OpenText Confidential. ©2014 All Rights Reserved. 18 Many companies who filed to the SEC faced a number of specific challenges as part of the conflict minerals reporting process:  Ensuring that supplier contact information was up to date to allow reporting template to be sent  Some companies received no response from their direct and sub-tier materials suppliers, partly due to the complexity of their respective supply chains  Information provided by suppliers was often incomplete or inaccurate  Suppliers had to be chased up for report submissions to meet SEC’s May 31st deadline
  19. 19. Introducing OpenText™ Active Community Aligning People and Process with Transactional B2B OpenText Confidential. ©2014 All Rights Reserved. 19 Active Community is an enterprise community management platform that delivers people and process solutions across your supply chain….. As a highly scalable, cloud based application, it enhances OpenText™ Trading Grid™ beyond pure transactional B2B OpenText™ Active Community
  20. 20. B2B Community Management Automating Both Your Data Network and People Network GXS B2B Community Management B2B Community Management Active Community is Part of a Comprehensive Suite of Community Management Solutions OpenText Confidential. ©2014 All Rights Reserved. 20 Active Community
  21. 21. OpenText™ Active Community Improving Collaboration Across the Supply Chain OpenText Confidential. ©2014 All Rights Reserved. 21
  22. 22. Using Active Community to Deploy the Conflict Mineral Reporting Template OpenText Confidential. ©2014 All Rights Reserved. 22
  23. 23. CFSI Reporting Tool Demonstration OpenText Confidential. ©2014 All Rights Reserved. 23  To see a short demonstration of the CFSI template within Active Community, please contact OpenText via the details shown at the end of this presentation  The demonstration will provide:  Introduction to Active Community  Demonstration of CFSI Conflict Minerals Reporting Tool
  24. 24. Benefits of Using OpenText™ Active Community OpenText Confidential. ©2014 All Rights Reserved. 24  Provides an effective cloud based platform for distributing and tracking responses to conflict minerals based assessments  Offers a simple and efficient reporting environment to encourage 100% participation from trading partners  Ensures trading partner information is accurately maintained within a centralized environment  Allows a company to meet an important corporate social responsibility objective and allow a conflict minerals report to be filed on time OpenText™ Active Community
  25. 25. OpenText Confidential. ©2014 All Rights Reserved. 25 Conclusions  Today’s global supply chains need to adhere to increasing levels of regulatory & legal compliance  Embracing assessment initiatives, such as the example from the CFSI, requires a single and accurate view of all supplier related contact information  Keeping track of completed compliance assessments, especially for a globally diverse supplier community is time consuming  Removing conflict minerals from today’s supply chains should be on the agenda of every CEO
  26. 26. Mark Morley | mmorley@opentext.com Copyright © OpenText Corporation. All rights reserved. twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext W www.opentext.com

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