Conflict Minerals

Tin, tantalum, tungsten, and gold (3TG) are considered conflict minerals because they are often mined in conditions of armed conflict. 

As of 2010, publicly traded U.S. companies are required to report annually to the U.S. Securities and Exchange Commission (SEC) if the products that they manufacture or contract to manufacture contain conflict minerals. These minerals are used in numerous automotive components with various applications.

This requirement is intended to increase supply chain transparency of minerals sourced from the Democratic Republic of the Congo, adjoining countries, and other high-risk regions shown to fund armed groups violating human rights. The U.S. legislation requires companies to conduct due diligence to verify the information they report in accordance with a recognized international framework (i.e., the Organization for Economic Cooperation & Development (OECD) Due Diligence Process), and recent European Union and Chinese regulatory actions reinforce these expectations.

EU legislation has expanded the scope of conflict mineral reporting to all global conflict-affected high-risk areas (CAHRAs), which is voluntary for downstream companies currently, but could become mandatory. While these broader materials are not currently legislated directly, responsible sourcing of raw materials has gained the attention of media, external stakeholders, and automotive companies themselves, and both the U.S. and E.U. regulations include provisions for expanded material reporting as deemed necessary.

Accordingly, many automotive OEMs have expanded their scope and established responsible sourcing requirements for other minerals. Developing responsible sourcing policies for your supply chain has become an essential part of conducting business in the automotive industry.