1. Conflict Minerals Update
B Cubed Consulting
Conflict Minerals Update
Brenda B. Baney
B Cubed Consulting, Inc
May 17th, 2017

2. Agenda CFSI/AIAG Outreach update CMRT 5.0 Latest News
Connection to IPC 1755 Standard
Updates from 4.x Versions
Timing
Latest News

3. AIAG Set Team members AIAG Smelter Engagement Team &
collaborate towards a common set of goals 3

4. Process Flow from Alleged to Compliant Smelter
CFSI Compliant (passed audit)
Active (signed up for audit)
Alleged Smelters
Compiled from CFSI member company smelter lists
Confirmed
Probable Smelters
AIAG outreach
CFSI smelter confirmation
CFSI research
Not a Smelter
Not a Smelter
Not Participating in audit program

5. AIAG SET Accomplishments
Current CFSI or CFSI SET Member Activity:
Outreach
Probable Smelter Confirmation
Research
Purpose: Encourage known smelters to participate in Conflict Free-Audit & become Conflict-Free certified
Purpose: Disposition alleged smelters as probable or not a smelter
Purpose: Confirm probable smelters in order to include in Smelter Reference List
AIAG has researched over 600 alleged smelters
AIAG reached out to nearly 70 probable smelters
AIAG has contacted over 132 known smelters
On-line research, calls, letters
Letters, calls, visits
Letters, calls

6. CMRT 5.0 The Conflict Minerals Reporting Template or CMRT
Updating from last years Revision 4.20 to 5.0 to be released by CFSI (Conflict Free Sourcing Initiative). AIAG has been a strong industry partner of CFSI since 2011.
CFSI administers the audit program which uses the OECD global standards to determine which smelters and refiners can be validated as “conflict-free”. See CFSP on the CFSI site.

7. CMRT vs. IPC 1755 Standard
EICC-GeSI first created the Conflict Minerals Reporting Template (CMRT), then formed the Conflict Free Sourcing Initiative (CFSI), which worked with the IPC 2-18H Standards committee to create the IPC-1755 standard
CMRT: primary method of data collection, conforms to IPC (Excel)
IPC-1755 XML: standard protocol for CM data transmission
IPC 2-18H committee defines the IPC-1755 data entry fields & questions, while CFSI provides formatting, explanations, instructions, and smelter lists including Smelter IDs, names, etc. E-30 committee for white paper, guidance doc, etc…
IPC Standards committee participation is open to all, with no membership requirement, but you must often attend major (voting) meetings in person
Companies are beginning to experiment with sending CM Declarations directly computer-to-computer, without human intervention ( ing)

8. Proposed changes Impacts CMRT Declaration Tab - Company Information Section
Contact Information Country
Current: Country names are used, not according to a standard.
New: Use ISO country names and 2-character codes for the country where contact is located.
Contact Information State
Current: State/province names are used, not according to a standard.
New: Use ISO state/province names and codes for state or province where contact is located.

9. Proposed changes Impacts CMRT Declaration Tab - Due Diligence Section
Q1: Current: Is the 3TG intentionally added to your product? New: Is any 3TG intentionally added or used in the product(s) or in the production process? Q2: Current: Is the 3TG necessary to the production of your company’s products and contained in the finished product that your company manufactures or contracts to manufacture? New: Does any 3TG remain in the product(s)? Q5: Current: Have you received data/information for each 3TG from all relevant suppliers? New: What percentage of relevant suppliers have provided a response to your supply chain survey? Current:  100%  > 75%  > 50% < 50%  <25%  None New:  100%  > 90%  > 75%  > 50%  <50%  None

10. Proposed changes Impacts CMRT Declaration Tab - Policy Section
Question A Current: Do you have a policy in place that addresses conflict minerals sourcing?
New : Have you established a conflict minerals sourcing policy?
Question F Current: Do you collect conflict minerals due diligence information from your suppliers which is in conformance with the IPC-1755 Conflict Minerals Data Exchange standard [e.g., the CFSI Conflict Minerals Reporting Template]?
New: Does your company conduct Conflict Minerals survey(s) of your relevant supplier(s)?
Question G Current: Do you request smelter names from your suppliers?
New: {Question has been removed}
Question J Current: Are you subject to the SEC Conflict Minerals rule?
New : Is your company required to file an annual conflict minerals disclosure with the SEC?

11. Proposed changes Impacts CMRT - Smelter List Tab
Smelter Reference Name: “Standard” Smelter Names must be English characters (extended ASCII ISO 8859 Latin-1)
Smelter Name: “Typed-In” Smelter Name may be in any language (UTF-8)
Smelter Country: The ISO two-character country name and code where the smelter for the 3TG is located. "Unknown" and “Not Listed” are also permitted. This field is mandatory.
Smelter State/Province: ISO state/province names and codes for state or province where the smelter is located. This field is optional.
Some fields will only be unlocked when data is needed for additional of new ‘Smelters not listed.’ Fields/Columns may be hidden unless needed.

12. Smelter List - new country dropdown

13. Timing for CMRT 5.0 release
Postponed 2 weeks to allow for continued testing of all new features
Planned May 2nd to send to service providers
May 12th public statement and release of new template on

14. U.S. Legislation
SEC is reviewing their enforcement activities as they try to resolve uncertainty
April 3rd ruling by the District Court upholding that the Dodd-Frank rule violates companies 1st amendment rights by forcing disclosure of ‘conflict-free’ or ‘not conflict-free’ status
Department of State seeking input on Responsible Conflict Mineral Sourcing. 
The comment period was open until April 28, 2017. 
Senate Hearing about continuation of Dodd-Frank took place April 5th, 2017 with input from industry, social societies, and a regional perspective. While attendees noted mixed results the group mostly supported a continuation of conflict minerals data gathering efforts with a focus on removing the portions of the rules that increased costs and burden.
Where will this end up?
Unknown at this time, although several global companies have committed to continued actions as part of their social responsibility initiatives.
AIAG has their Annual Conflict Minerals Industry Briefing June 7th,

15. Backup

16. AIAG Conflict Minerals Workgroups
Conflict Minerals Subgroups –
Actions and Stakeholder Involvement
AIAG Conflict Minerals Workgroups
AIAG Smelter Engagement Team (SET)
Conducts outreach encouraging smelters to participate in CFSI
CFSI Engagement
Participates in key Conflict Free Sourcing Initiative (CFSI) groups to foster cross-industry engagement on smelter audit certifications and other conflict mineral reporting processes
Communications/Events
Develops strategies for CMWG stakeholder outreach; identifies potential target audiences and communication opportunities(e.g., events, media, etc.)
Due Diligence
Creates/supports initiatives to develop tools & resources to assist companies in their reporting processes
Industry Best Practice
Recommendations/drafts information to communicate common process for the industry
Stakeholder engagement is a core element of the work group’s strategy.
This chart and the next one you will see, list the subgroups identified to focus on specific projects. The gray shaded areas highlight many of the activities in which we are currently engaged in or support.
Timing to cover: <1 minute

17. AIAG Conflict Minerals Workgroups
Conflict Minerals Subgroups –
Actions and Stakeholder Involvement
AIAG Conflict Minerals Workgroups
IPC Liaison
Conveys input on the cross-sector conflict minerals data exchange standard
iPCMP User Group
Focuses on due diligence data reporting activities from a user viewpoint
Minute-Takers
Captures CMWG meeting minutes and submits to AIAG for processing
Technical Information
Contributes industry expertise (materials composition, IMDS, etc.) for the enhancement of tools & resources
Training & Education
Supports CMWG on-going efforts to create awareness of conflict minerals reporting, and the resources available to assist the supply chain
The resources referenced are an example of the tools you can find on our website.
Timing to cover: <1 minute