Does Not Cause or Contribute to Conflict Abroad

Does the company directly or indirectly support international conflict? According to our 2015 Survey, 78% of respondents said that determining whether companies support conflict in sourcing materials was important to measuring JUST supply chain impact.

METRICS

Commitment to Conflict-Free Sourcing

Description: Commitment to conflict-free sourcing, comprising assessments of:

  1. the extent to which companies are at risk of incurring regulatory compliance costs, reputational damage, or supply chain disruptions resulting from reliance on raw materials that originate in areas associated with severe human rights and labor rights abuses. The range of scoring depends on the material, with different materials relevant for different industries. In general, companies able to trace the origin of their raw materials and certify that they were obtained in a way that minimizes social harm (e.g. slave labor, funding for groups engaged in human rights violations) score higher on this key issue, while companies that do not work with their suppliers and use no certified materials score lower on this key issue.
  2. the quality of a company’s formal policy commitment to eliminate conflict minerals from its products and its supply chain (i.e. an internal strategy). The term “conflict minerals” refers to tantalum (coltan), tin (cassiterite), tungsten (wolframite) – the 3Ts – and gold, which have originated in the Democratic Republic of Congo (DRC) and have been linked to the illegal trafficking of these mineral ores, and to egregious human rights violations in the eastern conflict regions of the country.
  3. the strength of the company’s initiatives to eliminate conflict minerals from its products and its supply chain. The term “conflict minerals” refers to tantalum (coltan), tin (cassiterite), tungsten (wolframite) and gold (commonly referred to as the 3TG), which have originated in conflict-affected or high-risk regions and may be used to financially support the conflict or human rights abuses. The most prominent example is the Democratic Republic of Congo (DRC), where conflict minerals have been linked to the illegal trafficking of these mineral ores, and to egregious human rights violations in the eastern conflict regions of the country.

Data point 1 averaged with [(average of data points 2 and 3)/10]

Data Source(s): 

  1. MSCI
  2. Sustainalytics
  3. Sustainalytics

Metric Type: Management
Geography: Global
Unit of Measurement: Score (0-10)

Controversies in conflict regions

Description: Number of severe and very severe cases (major scandals or systematic risk incidents) in influential and highly influential news sources occurring globally over the past three years that pertain to conflict minerals.

Data Source(s): RepRisk
Metric Type: Controversy
Geography: Global
Unit of Measurement: Number