FFC Advocates For Corporate Responsibility On Conflict Minerals

June 3, 2013

Friends Fiduciary joined with more than 50 sustainable, socially responsible, and faith-based investor groups representing over $450 billion in assets in an Investor Statement in support of the Security and Exchange Commission (SEC) Rule 1502 on Conflict Minerals.  The SEC’s final rule for Conflict Mineral is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. FFC also advocated for this ruling last year which mandates that corporations must determine the origin of “conflict minerals” used in their products. However, since that time, the U.S. Chamber of Commerce and other business group have filed a lawsuit against the SEC on the section of the act. These minerals (tin, tantalum, tungsten, gold, etc.) are widely used in cell phones, laptops, and other electronic products.  The purpose of the final rules is to assess whether materials originating from or near the Democratic Republic of the Congo (DRC) are benefiting armed rebel groups and thereby financing extreme levels of violence in the eastern DRC and contributing to the humanitarian crisis in the region.  As values based investors, Friends Fiduciary believes that this is a step towards greater transparency and accountability in supply chain due diligence for U.S. companies on this important concern.