Raise Hope for Congo

A Step Forward: The SEC Releases Rules on Conflict Minerals and Transparency

In the fall of 2008, I met for the first time with my local member of Congress, Representative Spencer Bachus of Alabama. As a sophomore at Samford University, I was nervous and far from an expert on the topic of discussion: transparency of companies in the extractive industries. Little did I know, after four years of advocacy efforts with activists across the country that I would be sitting in the U.S. Securities and Exchange Commission, or SEC, last Wednesday to hear the commissioners release and implement two monumental rules from the 2010 Dodd-Frank Financial Reform Act.  Read More »

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SEC Rules on Conflict Minerals: Positive Step but Threat of Lawsuit Lingers

The rule, which requires companies to publicly disclose their use of conflict minerals that originated in eastern Congo or neighboring countries, should have an overall positive effect on promoting peace and stability in Congo—but a slow one.  Read More »

SEC Adopts Conflict Minerals Rules as Chamber Threatens Lawsuit

Date: 
Aug 22, 2012

FOR IMMEDIATE RELEASE: August 22, 2012

Contact: Jonathan Hutson, +1.202.386.1618, jhutson@enoughproject.org

WASHINGTON – The Securities and Exchange Commission, or SEC, voted on August 22 to adopt conflict minerals regulations required by section 1502 of the Dodd-Frank Financial Reform Act, despite industry pressure and the threat of a lawsuit by the U.S. Chamber of Commerce.

"After a more than one-year delay in issuing the rule, it is disappointing that the SEC has added an unnecessary two-year phase-in period to implement these conflict minerals regulations," said Enough Project Executive Director John C. Bradshaw. "We still need to analyze the final rules to assess their impact on companies sourcing minerals from Congo and its neighboring countries, but such an extended phase-in period clearly caters to corporate interests over the people of eastern Congo."

The conflict minerals regulations require that companies disclose whether they use conflict minerals—gold, tin, tungsten, or tantalum sourced from eastern Congo or its neighboring countries—to reveal whether their products fund armed groups in eastern Congo. The Dodd-Frank legislation required the SEC to release regulations for companies using conflict minerals by April 17, 2011. However, delays caused by companies, bureaucratic processes, and the threat of a lawsuit by the Chamber of Commerce have pushed back the release for a full year.

“The Chamber of Commerce continues to threaten a lawsuit against the SEC, asserting the cost for cleaning up supply chains is too high for companies,” said Enough Project Senior Government Affairs Manager Darren Fenwick. “The reality is that major companies such as Microsoft, General Electric, and Motorola Solutions have rejected the Chamber of Commerce’s stance against section 1502 regulations, and industry leaders such as Intel, HP, Motorola Solutions and Apple have already established conflict-free programs ahead of the required SEC regulations, proving that clean supply chains are possible, and profitable.”

In response to growing consumer demand, over the past 18 months electronics companies have significantly stepped up efforts to use and invest in conflict-free minerals, according to Enough Project’s 2012 Company Rankings on Conflict Minerals.

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The Enough Project’s Raise Hope for Congo campaign aims to build a permanent and diverse constituency of activists who will advocate for the human rights of all Congolese citizens and work towards ending the ongoing conflict in eastern Congo. For more information, please visit www.raisehopeforcongo.org.

Enough is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, the Enough Project focuses on crises in Sudan, eastern Congo, and areas of Africa affected by the Lord’s Resistance Army. Enough’s strategy papers and briefings provide sharp field analysis and targeted policy recommendations based on a “3P” crisis response strategy: promoting durable peace, providing civilian protection, and punishing perpetrators of atrocities. Enough works with concerned citizens, advocates, and policy makers to prevent, mitigate, and resolve these crises. For more information, please visit www.enoughproject.org.

Breaking News: SEC Votes to Adopt Conflict Minerals Rules

The U.S. Securities and Exchange Commission voted (3-2) on the final reporting requirements for U.S. companies potentially dealing in conflict minerals from the Democratic Republic of Congo. The Enough Project’s Raise Hope for Congo Campaign Organizer Jayme Cloninger will be live-tweeting from the SEC this morning with the latest on the vote. Follow her @RaiseHope4Congo or right here on Enough Said.  Read More »

Gathering Around the Peace Table

Earlier this summer, Lynne Hybels traveled to eastern Congo with World Relief’s Ten for Congo to visit with women and men actively working to promote reconciliation in their local communities. For years Lynne has been a strong voice in raising awareness about the conflict in eastern Congo, especially through faith networks. Below is an article she wrote about her time engaging with the Congolese churches in local Village Peace Committees.  Read More »

HuffPo Oped: Creating Conflict-Free Companies for the 21st Century

Conflict minerals from eastern Congo, found in our cell phones, computers and jewelry, are mined in conditions of armed violence and human rights abuse. Mining in Africa doesn't have to be this way. Dialogue and engagement between consumers, miners and civil society leaders in Africa is needed to find real, sustainable solutions.  Read More »

Intel, HP Rank Highest on Conflict Minerals, Nintendo, HTC Lag Behind

Date: 
Aug 16, 2012

FOR IMMEDIATE RELEASE

Contact: Jonathan Hutson, +1.202.386.1618, jhutson@enoughproject.org

WASHINGTON – In response to growing consumer demand for electronics products free of conflict minerals from eastern Congo, the Enough Project issued its second company rankings report, “Taking Conflict Out of Consumer Gadgets: Company Rankings on Conflict Minerals 2012,” which assesses consumer electronics companies on their progress toward responsible and conflict-free supply chains.

The report found that four leading electronics companies—Intel, HP, Motorola Solutions[i], and Apple[ii]—have established conflict minerals programs that pave the way for the rest of the industry. Six other companies—SanDisk, Philips, Sony, Panasonic, RIM, and AMD—significantly improved their conflict free efforts by tracing back into their supply chains, piloting due diligence, and joining a smelter audit program. On the other end of the spectrum, Nintendo remains at the bottom of the list and has yet to make any known effort to trace or audit its supply chain, despite growing public awareness.

“HP and Intel have gone above and beyond the call of duty on conflict minerals,” said Sasha Lezhnev, co-author of the report and Enough Project Senior Policy Analyst. “It is now time to level the playing field for all companies, and the Securities and Exchange Commission has a key role to play in its upcoming vote on the rules for the conflict minerals law on August 22. The SEC should ensure that retailers and all firms that use the minerals are covered by the rules and that there is not a long phase-in period. Otherwise, the Intels and HPs will be left unfairly holding the bag for a problem that belongs to thousands of companies that have been turning a blind eye to this problem for years.”

The report builds on the Enough Project’s first company rankings report that was released in December 2010. The report’s objective is to rate consumer electronics companies on their efforts to positively invest in the region, as well as their efforts to remove conflict minerals—tin, tantalum, tungsten, and gold—that fund armed groups in eastern Congo from their supply chains. The minerals are used in electronic devices and are a key driver to the war, which has claimed 5.4 million lives. The rankings are designed to help provide consumers with information to make responsible and informed choices when purchasing electronics products.

“Moving forward, we need to ensure that conflict-free mining does not equate to Congo-free mining,” said actor and ethical mining entrepreneur Jeffrey Wright, who is featured in a new Enough Project video about conflict-free mining. “Companies sourcing minerals from eastern Congo can invest in a way that serves both their own interests and the interests of local communities. To help achieve this, more firms should join the Public-Private Alliance for Responsible Minerals Trade, invest in projects to source clean minerals in eastern Congo, and support social development initiatives in mining communities to foster sustained economic growth and long-term stability.”

The 2012 rankings show an overall trend of improvement among electronics companies to address conflict minerals in their supply chains, but less progress in other industries, including jewelry, automotive, and industrial machinery. The progress has been spurred by the conflict minerals provision in the Dodd-Frank financial reform legislation, as well as by growing consumer activism.

"Much of the progress that has been made by electronics companies on conflict minerals can be attributed to direct consumer action. We are witnessing a mass consumer movement for the creation of a clean minerals sector in Congo. Not surprisingly, college students have emerged as the leading activists on this issue. Students from more than 100 college campuses across the U.S. and U.K. are advocating for their university's purchasing and investment policies to reflect company action on conflict minerals," said co-author of the report and Enough Project Student Coordinator Alexandra Hellmuth.

In addition to assessing electronics industry leaders and laggards, the report identifies three main areas of progress that have been made industry-wide—tracing, auditing, and certification—as well as significant gaps in conflict minerals policies that must be addressed.

“The progress made by the electronics companies in the Enough Project’s rankings now needs to be duplicated by companies in other sectors,” said Enough Project Executive Director John C. Bradshaw. “Companies in the jewelry, automotive, industrial machinery, and aerospace industries should join the Public Private Alliance for Responsible Minerals Trade and begin direct sourcing programs to help Congo develop a clean minerals trade.”

Read the full report: “Taking Conflict Out of Consumer Gadgets: Company Rankings on Conflict Minerals 2012.” URL: http://www.enoughproject.org/files/CorporateRankings2012.pdf

View a slideshow of images from the report and eastern Congo. Photos are free for media use. Please credit the Enough Project. URL: http://www.flickr.com/photos/enoughproject/sets/72157631066700188/

View a new Enough Project video about conflict-free mining that features actor and ethical mining entrepreneur Jeffrey Wright. URL: http://www.youtube.com/watch?v=ZuBYxMsckfY&feature=youtu.be

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Enough is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, the Enough Project focuses on crises in Sudan, eastern Congo, and areas of Africa affected by the Lord’s Resistance Army. Enough’s strategy papers and briefings provide sharp field analysis and targeted policy recommendations based on a “3P” crisis response strategy: promoting durable peace, providing civilian protection, and punishing perpetrators of atrocities. Enough works with concerned citizens, advocates, and policy makers to prevent, mitigate, and resolve these crises. For more information, please visit www.enoughproject.org.

[i] Motorola Solutions was not ranked in the Enough Project’s 2012 survey because the company split and is no longer producing one of the five key products included in the rankings. However, Motorola Solutions has been a prominent leader on tracing, auditing, and certification.

[ii] Although Apple ranked number eight in the Enough Project’s 2012 company rankings report, Apple has been an industry leader by being the first company to identify the number of its smelters and to require its suppliers to use only certified conflict-free smelters once audits are complete.

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U.K., Netherlands Suspend Millions in Aid to Rwanda

Two major European donors have announced suspension or delay of aid disbursements to the government of Rwanda, marking the first financial indication that Rwanda may be losing some of its European allies. The Dutch government announced today its suspension of 5 million euros, or approximately $6.18 million, in aid to Rwanda. The United Kingdom has also decided to delay 16 million pounds, or approximately $25.16 million, originally earmarked for Kigali, pending a decision about whether Rwanda has met aid conditions.  Read More »

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