Slides for "Conflict Minerals: Creating Industry-wide Solutions". Thousands of companies and their suppliers face a growing challenge: New laws and changing consumer expectations make it increasingly important to uncover “conflict minerals” such as gold and tin. Companies that normally compete are collaborating. Learn how and why consumer electronics and automotive companies and their suppliers are developing common tools and industry-wide solutions.
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GreenBiz Forum 2015 Workshop Slides: "Conflict Minerals: Creating Industry-wide Solutions"
1. San Diego, CA
Conflict Minerals
Creating Industry Solutions
to a Company Problem
GreenBiz Forum - February 18, 2015
2. About Us
Amon Rappaport, VP Brand Purpose, i.d.e.a.
Tanya Bolden, Corporate Responsibility Program
Development Manager, AIAG
Michael Oleksa, Senior Director of Regulatory
Affairs and Quality Compliance, STERIS
Jared Connors, Technical Sales Manager, iPoint
3. We move people, products
andculture.
PERSPECTIVE
Individual, Organizational, Industry
4. Globally recognized trade association founded in 1982
§ Unique open/neutral forum to collaborate on industry issues
§ OEM’s, Suppliers of all sizes, Service Providers, Government & Academia
§ 1,000+ Member companies & growing
§ 35+ full-time staff
§ Sr. Purchasing Executives ‘on loan’ from Chrysler, Ford and GM
§ Over 900 Industry ‘volunteers’ providing subject matter expertise at
any point in time
§ Over 60 active projects and committees
AIAG: at-a-glance
5. 3
Aluminum
-‐
Primary
Simulator
exposure
-‐approx
204M
pounds-‐
wheels
,
cooling
modules
Forecast
$
1.10
Brake
pads
Tin
addi'ves
Electronics
Solders
Fuses
Contacts
Glass
Conduc've
'n
coa'ngs
Radiator
Brass
alloys
Solders
Wiring
Tinned
copper
Seat
cushions
Tin
catalyst
BaHery
Tin
alloy
addi'on
Fuel
tank
Tin-‐zinc
coa'ng
Sealants
Tin
catalyst
Bearings
Tin
alloy
addi'on
Coa'ngs
PlasIcs
PVC
stabilisers
Examples of Tin Applications
6. Automotive Industry
“It is our intention to do what we can to ensure that the parts and
assemblies in our vehicles and products, regardless of where they are
assembled or sold, do not contain Conflict Minerals which have
contributed to the armed conflict in the DRC.”
These
companies
are
leading
change
throughout
the
supply
chain.
7. Healthcare
73%
Life
Sciences
15%
Isomedix
12%
STERIS Corporation Overview
• $1.9 billion in revenue
• 8,000 employees worldwide
– Direct sales and service
force of over 2,500
• A Global Leader in
infection prevention,
decontamination,
gastrointestinal and
surgical products
and services
• 77% of revenue in
United States
• 9 acquisitions in the last 3
years
• Infection
Prevention
• Surgical Solutions
• GI/Endoscopy
• Services
• Pharmaceutical
Manufacturing
• Research Labs
• Contract
Sterilization
2
8. Infection Prevention
(45% of revenue)
Surgical Solutions
(20% of revenue)
Service
(35% of revenue)
Healthcare Segment Overview
Washers
Steam and
Gas Sterilizers
Cleaning
Chemistries
Service
Skin
Care
GI/Endoscopy
Solutions
Specialty Services/
Instrument Repair
Surgical TablesIntegrated Operating Rooms
EBIT
60%
Revenue
73%
Lights
3
9. Risk of not being Socially Responsible ?
4
Stock Price:
Risk: STERIS inventor base
is largely institutional.
Divestment of shares for
nonfinancial reasons would
increase stock volatility.
Constraints:
• Depth of supply chain
• Multiple ERP systems
• Little influence with suppliers
• Regulated devices, changing
suppliers has regulatory
implications.
10. Depth of Supply Chain Example
STERIS
Supplier Supplie
r
Supplier
Supplier Supplie
r
SupplierSupplier Supplier
Supplier Supplie
r
SupplierSupplier SupplierSupplier Supplier
TraderTraderTrader
SupplierSupplie
r
Supplier SupplierSupplier
Smelters
Information
Needed
STERIS level
of direct
influence
STERIS has
no visibility
Level of the
supply chain
providing
smelter
names
Level of the supply
chain providing RCOI
information
13. We move people, products
andculture.
INFORMATION
What to Gather, and
How to Identify Sourcing
14. Due Diligence Framework Prescribes
Role of Filing Companies
Organization for Economic Cooperation and Development (OECD)
Due Diligence Guidance for Responsible Supply Chains of Minerals
From Conflict-Affected High-Risk Areas
Establish
Strong
Company
Management
Systems
Identify And
Assess Risk In
The Supply
Chain
Design And
Implement A
Strategy To
Respond To
Identified
Risks
Carry Out
Independent
Third-party
Audit Of
Smelter or
Refiner Due
Diligence
Report Out On
Supply Chain
Due Diligence
1 2 3 4 5
SEC Final Rule for Conflict Minerals
3TG (Tin, Tungsten, Tantalum, Gold)
17. We move people, products
andculture.
COLLABORATION
Value and Practice
18. Actions and
Multi Stakeholder Involvement
• AcIvely
generaIng
resources
to
communicate
industry
perspecIves
iniIaIve(s)
• ex.
FAQs,
Case
Studies,
PresentaIons,
Events
and
Documents
Awareness
and
EducaIon
• Commentary
and
collaboraIon
regarding
global
guidelines.
OECD
• Distributed
VP
leHers
to
AutomoIve
Supply
Chain
AutomoIve
LeHer
• CollaboraIon
with
EICC/GeSI
and
the
Conflict
Free
Sourcing
IniIaIve
(CFSI)
EICC/GeSI
and
CFSI
• Alignment
with
commiHee
for
standards
progress
IPC
1755
• Supplier
level
data
collecIon
• Trainings,
Regional
MeeIngs
iPoint
•
CoordinaIon
across
industries
and
supply
chains
for
common
best
pracIces
Next
Steps
23. • We are not a manufacturer of electronics parts and thus not
in a position to provide accurate information relating to
conflict Minerals….
• We distribute more than 555,000 products, it is our policy to
not distribute products from the DRC and under the terms
and conditions or our contracts our suppliers warrant they
are in compliance with this policy…
• We assume that our sub-suppliers purchase raw materials
from legal sources according to EU or national law. It is
not our part to investigate this fact….
• Dodd Frank is a US law, we have no plans nor obligations
to comply with this non EU law. We are in full compliance
with all EU laws…
Common Supplier Responses
24. Helpful Resources
• The CMRT (Conflict Minerals Reporting Template) 3.0x is the standard reporting format used
by the automotive and other industries. http://www.conflictfreesourcing.org/conflict-minerals-
reporting-template/
• The iPCMP (iPoint Conflict Minerals Platform) is a useful software reporting tool used by the
automotive and other industries. http://conflict-minerals.com/
• For an overview of conflict minerals and the automotive industry, and to take action on the
issue, visit: http://conflictminerals.aiag.org
• In March 2014, the EU published a draft proposal outlining their potential requirements for
Conflict Minerals regulations: http://trade.ec.europa.eu/doclib/docs/2014/march/
tradoc_152227.pdf
25. Contact Us
Amon Rappaport - (510) 435-2292
amonr@theideabrand.com
Tanya Bolden
tbolden@aiag.org
Michael Oleksa - (216) 272-6250
Michael_Oleksa@steris.com
Jared Connors - (503) 329-5767
jared.connors@ipointinc.com