Conflict minerals refer to minerals such as tin, tantalum, tungsten, gold, and cobalt produced in disputed countries such as the Democratic Republic of the Congo or its neighboring countries.
Funds generated by conflict minerals are not only flowing into armed forces in the country, slaughtering their citizens, but human rights such as child and forced labor and women’s abuse that can occur during the mining process are being violated.
Amid growing international concerns, the U.S. Congress mandated reporting on the use of disputed minerals in 2010 (Dod-Frank Financial Regulatory Reform Act: a broad financial reform bill announced in 2010 to prevent the recurrence of the 2008 financial crisis.
The bill calls for stricter regulations and supervision of major financial companies and reorganization of financial supervisory bodies. According to Article 1502, companies listed on the U.S. stock market must investigate the use and origin of disputed minerals, conduct due diligence on supply chains, and report the results to the U.S. Securities and Exchange Commission.
EV Advanced Materials Co., Ltd. will ensure that conflict minerals related to armed forces in the disputed area are not included in the supply chain for the production of its products.
※ By applying international standards regulating conflict minerals, we will establish a dispute mineral business process for compliance, and actively support conflict mineral prohibition activities promoted by the EICC and the Global e-Sustainability Initiative (GeSI).
※ We will follow the dispute mineral usage report provided by EICC-GeSI to determine the names and locations of all smelters used in our products.
※ We also will request the submission of a dispute mineral use report and written confirmation from our partners that we are not using the conflict mineral.
Due diligence procedures will be established in accordance with the OECD Due Diligence Guide, and if necessary, due diligence will be conducted on procedures and data conducted by partners to report the use of conflict minerals.
※ In accordance with the Conflict Minerals Act, we will disclose the use status of our conflict minerals to the outside world every year.
The Procedure of the partner company
EV Advanced Materials Co., Ltd. requires all partners to be fully familiar with the U.S. Conflict Minerals Act and strictly comply with its Conflict Mineral Management Policy so that its dispute mineral management policy can be applied consistently within the sub-supply chain. To this end, partners of EV Advanced Materials Co., Ltd. must perform the following procedures.
※ Subcontractor shall establish documented conflict mineral management policies and procedures to ensure that products delivered to EV Advanced Materials do not include conflict minerals that benefit armed forces in the Democratic Republic of Congo or its neighboring countries
※ Partner companies should make good efforts to determine the names and locations of all smelters where conflict minerals have been purchased in the supply chain.
※ At the request of EV Advanced Materials Co., Ltd., the partner company must fill out a dispute mineral use report and submit it in a timely manner.
※ If a risk is found in the supply chain, the partner company should take corrective action in a timely manner.
EV Advanced Materials Co., Ltd. may stop trading with its partners if they do not receive enough information from their partners to check the use of conflict minerals, or if they provide information that is different from the facts, and if risks are found in the supplier chain but do not take action.
EV Advanced Materials Co., Ltd., along with its partners and customers, will actively participate in international efforts to ban the use of conflict minerals, thereby fulfilling its social responsibility to protect the human rights of the Democratic Republic of Congo and neighboring countries.