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Promote peace and human rights with comprehensive conflict-mineral compliance by following OECD guidance
OIL & GAS: MINING AND OIL AND GAS SERVICES
Level of Effort
2
Determining Scale
1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.
2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).
3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)
UNSPC Code
Global Goal Alignment
71
14
0
SDG Target:
16.1
By 2030, significantly reduce all forms of violence and related death rates everywhere.
16.2 End abuse, exploitation, trafficking and all forms of violence against and torture of children.
16. Peace, Justice, and Strong Institutions
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Project Blueprint Steps
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Assessment
• Assess current efforts to avoid sourcing conflict minerals by reviewing internal policies and contracts with smelters.
• Using the Responsible Mining Initiative's conflict-mineral reporting template review smelter contracts to identify potential sources of tin, tantalum, tungsten, and gold (3TG) in technology or machinery. Track the amount of mined 3TG used in operations.
• Assess risk by evaluating current suppliers' due diligence efforts by reviewing available audit information. Determine the number of high-risk suppliers you are currently engaged with.
Opportunity Identification
Business:
Mitigate risk and supply chain disruptions by avoiding sourcing from unstable areas.
Stay ahead of potential business-disrupting regulation that may require reporting on conflict-mineral sourcing.
Avoid reputational harm by removing any association between your organization and one that is linked to torture, forced labour, child labour, sexual violence, and war crimes.
Sustainability: Tackle human rights abuses made worse by climate change, indirectly benefitting those under oppressive and violent regimes.
Strategy Build & Execution
•Pitch the importance of conflict-mineral reporting and due diligence to high-level management.
•Initiate a Reasonable Country of Origin Inquiry (RCOI) with high-risk suppliers that includes mechanisms for supplier confidentiality and a defined escalation process for non-responders.
•Implement a supply chain policy for minerals originating from conflict-affected and high-risk areas (CAHRAs). Use Annex II of the OECD Guidance to develop this policy.
•Identify high-risk suppliers using OECD red flags and implement a risk management strategy as outlined in Annex III of the OECD Guidance. This may include disengagement for some suppliers (e.g. non-state armed groups).
Identify sources of 3TGs that can be replaced with recycled materials.
•Directly source from “Responsible Minerals Assurance Process” (RMAP) certified smelter/refiners to ensure they follow due diligence measures according to OECD guidance.
Supplier Negotiation
& Contract
•Include conflict-mineral compliance in RFPs.
•If not certified already, encourage suppliers to participate in a RMAP assessment by the Responsible Mining Initiative for the mineral in scope. Explain the long-term benefits certification can have to their organization.
Supplier Performance
& Management
•Educate suppliers on conflict-mineral due diligence and risk mitigating strategies.
•Collaborate with suppliers to help with due diligence efforts. For example, build a template to better determine the health of the local community and surrounding environment in upstream conflict-mineral mines or source recycled materials.
Annually review performance to identify areas of opportunity.
•Annually report on all due diligence efforts, the number of high-risk suppliers currently engaged with, and the amount of mined 3TG procured.
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