Presentation by the Better Sourcing Program on scaling up.
Day 3 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 15 November 2013.
Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm
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Better-Sourcing-Program-Day3-3TGKigali2013
1. Mineral Supply Chain
Due Diligence Assurance
The integrated traceability and due diligence alternative
The Better Sourcing Program – November 2013
2. Better Sourcing Program – Objectives
Offer an independent, integrated due diligence AND traceability program that is cost
effective, transparent and compliant.
Breaking the ‘scalability trap’ by helping local and regional producers obtain or regain access to
international conflict-free markets
• The BSP: fully implements the OECD DD Guidance and is compliant with the CFSP audit protocol
• CFSI has issued a letter of support in principle for the BSP approach
• The BSP also supports synergies with and conforms with the ICGLR’s RCM
Constructive and collaborative approach working with key partners and stakeholders
•
Particularly with a view to taking advantage of lessons learned from the implementation of incumbent schemes
to keep the BSP light and cost-effective.
Global-level outreach and transparent communication
•
Bridge transparently the current communication gap between upstream practices (and their improvement) and
downstream expectations. This generates greater business opportunities for BSP clients, but also informs
responsible sourcing and engagement decisions downstream.
The Better Sourcing Program – October 2013
4. Better Sourcing Program Supply Chain Actors
• Business to business approach, with an initial focus on closed pipes or reverse funnel trading chains
• Flexible implementation, tailored to each trading chain
• Implementation will be as light and cost effective as each trading chain permits
Independent
Audit
CFSP Validation
Better
Sourcing
Buyer
Better
Sourcing
Smelter
Better
Sourcing
Buyer
Better
Sourcing
Buyer
The Better Sourcing Program – October 2013
5. Pilot Implementation – with GeoTraceability and
local implementation partners in Congo B
• Due diligence implementation across a tantalum supply chain originating from a mine
located in Congo Brazzaville (country covered by DF 1502)
• Fully private sector financed pilot to test and ensure sustainability and scalability
• Pilot is to be third party audited and ready for export in Q2 of 2014.
• On-going engagement with stakeholders to establish and implement most optimal
approach
• Provision of all due diligence information necessary to support:
•
Validation of the receiving smelter by the CFSP Auditor
•
The ICGLR Regional Certification Mechanism
The Better Sourcing Program – October 2013
6. Better Sourcing Program: What’s new and adds
value?
Industry
Government
Both
Due Diligence,
traceability and
compliance as packaged
approach
Easy access to data
Ability to export and the
opening of new markets
and trading
opportunities.
Low cost and light
Transparency
Online, real-time data
Business to business
Reputational advantages
Flexible and tailored to
each chain
Efficiency
Source of capacity
Sustainable
Scalable
Communication –
bringing the upstream
and downstream closer
together
The Better Sourcing Program – October 2013