A recent survey conducted by PwC indicates indicates that most companies are just beginning or haven’t started gathering the proper information to meet all of the requirements of the Securities and Exchange Commission’s conflict minerals reporting law that takes effect in May 2014. The SEC rule requires stock issuing companies to file reports documenting the use in their products of tin, tantalum, tungsten, gold or derivative compounds of these minerals. The mining and trade of these “3TG” substances helps finance the ongoing conflict in the Democratic Republic of the Congo.
At this point it is safe to believe that even privately held manufacturers will have to comply to this new law. The report shows that of the 900 companies surveyed, only 5 percent have gathered most of the information necessary to comply and nearly one-third of those companies are still trying to figure out if these requirements apply to their businesses.
“I don’t think we expected to see this level of companies saying they haven’t really done much yet,” Bobby Kipp, partner in PwC’s risk assurance practice, says. “But I think companies are beginning to realize they can’t wait forever.”
According to the PwC survey, the respondents mention that the major challenges to meeting these requirements were getting accurate and complete information from suppliers, establishing an enterprise-wide conflict minerals policy and identifying relevant suppliers. The full survey depicts the different percentages of companies that don’t know if their suppliers use raw materials or how much they are willing to spend to comply with these new requirements.
To read more about the outcome of the survey, go to TheWallstreetJournal.com.
To read what ACMA’s Government Affairs team had to say about this new law, go to CM Online.
At a loss about what to do next? Explore strategies for compliance and responding to information requests from your customers ACMA’s first Policy Spotlight LIVE webinar focusing on Conflict Minerals Reporting on Thursday, July 18, 2013, at 11:00 am EDT. Register today! (ACMA members only!)
Becoming a member of ACMA allows you to enjoy exclusive perks such as the upcoming conflict minerals webinar. For more information on becoming a member, email ACMA Membership or call Paul Hirsh at 703-525-0511.