Governance of Mineral Supply Chains of Electronic Devices - PDF Document

Presentation Transcript

  1. THINK TANK & RESEARCH STUDY Governance of Mineral Supply Chains of Electronic Devices Discussion of Mandatory and Voluntary Approaches in Regard to Coverage, Transparency and Credibility Johanna Sydow and Antonia Reichwein

  2. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Brief Summary This paper analyses the current governance framework concerning mineral supply chains of electronic devices. This is about ten years after leading IT companies began in 2007 to fund research to investigate the impact of mineral sourcing for IT devices, which established a connection between their products and human rights abuses. The paper provides an over- view of mandatory frameworks and voluntary approaches that address social, human rights, and environmental risks. Moreover, it analyses a selection of voluntary approaches in terms of credibility and transparency of implementation. We conclude by drawing upon our findings to make recommendations regarding the implementation of EU regulation on re- sponsible mineral sourcing. Imprint Authors: Johanna Sydow and Antonia Reichwein Editors and Contributions: Josephine Valeske, Cornelia Heydenreich, Michele Faguet Layout and Editing: Hanna Fuhrmann Publisher: Germanwatch e.V. Office Bonn: Kaiserstr. 201 D-53113 Bonn Phone +49 (0)228 / 60 492-0, Fax -19 Office Berlin: Stresemannstr. 72 D-10963 Berlin Phone +49 (0)30 / 28 88 356-0, Fax -1 Internet: www.germanwatch.org E-mail: info@germanwatch.org June 2018 Purchase order number: 18-4-04e This publication can be downloaded at: www.germanwatch.org/en/15418 This publication is financially supported by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety and Hamburger Stiftung für Wirtschaftsethik: Germanwatch is responsible for the content of this publication. 2

  3. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Content 1 The IT Sector and Its Mineral Supply Chain .................................................................. 5 2 Methodology to Assess the Coverage of Risks .............................................................. 6 3 Mandatory Frameworks .............................................................................................. 9 4 Voluntary Approaches ................................................................................................ 14  4.1 Selection of Voluntary Approaches .................................................................................................... 14 4.2 Overview of Thematic Coverage of Initiatives .................................................................................. 16 4.3 Credibility of Voluntary Approaches .................................................................................................. 23 4.3.1 Explanation of Criteria Used .................................................................................................... 24 4.3.2 Guidance to the Tables Concerning the Overall Credibility of Voluntary Approaches ................................................................................................................................ 26 4.3.3 Evaluation of Voluntary Approaches Regarding Credibility ............................................... 30 5 Overall Conclusion ..................................................................................................... 36 6 Annex ......................................................................................................................... 40 7 Sources for the approaches ........................................................................................ 42 3

  4. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Index of Abbreviations 3TG Tin, Tantalum, Tungsten, Gold ASM Artisanal and Small-Scale Mining CAP Corrective Action Plan CCCMC China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters CoC Chain of Custody CoP Code of Practices CorA Corporate Accountability Network CS Certification-Based Standards CTC Certified Trading Chains EITI Extractive Industry Transparency Initiative EU European Union FAQ Frequently Asked Questions FPIC Free, Prior, and Informed Consent GRI Global Reporting Initiative HR Human Rights ICMM International Council on Mining and Metals ILO International Labour Organisation IRMA Initiative for Responsible Mining Association IT Information Technology iTSCi International Tin Supply Chain Initiative LBMA London Bullion Market Association MNE Multinational Enterprises OECD Organisation for Economic Co-operation and Development PS Principles-Based Standards RS Reporting Standards SA 8000 Social Accountability Standard 8000 UK United Kingdom UN United Nations US United States of America 4

  5. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 1The IT Sector and Its Mineral Supply Chain IT has become a crucial element of our everyday life and of nearly all working processes. The amount of minerals and metals used by IT is huge and continually increasing. Electronic devices like smartphones contain more than thirty different minerals, including tin, tantal, gold, platinum, copper, cobalt, and rare earth metals. The role of tin, tantal, tungsten, and gold (3TGs) in the fi- nancing of conflicts has been the object of significant political debate. Legislation has been draft- ed to curb the financing of conflicts by these minerals. The effectiveness of such legislation is still limited and there are more minerals implicated in conflicts than those mentioned. Moreover, there are far more ethical risks within the mineral supply chain that have not been addressed. Such ethical risks include the loss of livelihood of communities located near mines, general violence by military and security forces, the deprivation of access to clean water, and severe impacts on work- ers’ health and safety. For a long time, IT companies rejected their responsibility for the impact of their sourcing of min- erals. But after many years of campaigning by NGOs, this situation has changed; in 2007, leading IT companies began to fund research to investigate the impact of the sourcing of minerals for IT products.1 Some ten years later, this paper will examine the current governance framework con- cerning the environmental, human rights, and social risks of mineral extraction within the IT sup- ply chain. It asks what regulatory frameworks exist to hold IT companies accountable for their mineral supply chain, which risks these frameworks address, and how far they reach. There are a few new mandatory frameworks in this context that we consider relevant for our anal- ysis to better understand strengths and weaknesses of the current governance system concerning the ethical risks of the IT sector’s mineral supply chain. Given the existing human rights, social, and environmental problems of the IT sector, we conclude that the existing mandatory frameworks are not sufficient to target all risks.2 Therefore, we have also analysed voluntary approaches, as differ- ent actors perceive them as supplementing mandatory approaches. Moreover, a new partly man- datory framework of the EU regulation on responsible mineral sourcing specifically focusing on the mineral supply chain makes it necessary to assess voluntary approaches. This directive counts on industry-led initiatives as an important means to implement due diligence. Various European NGOs fear that these initiatives will replace a thorough human rights due-diligence assessment of individual companies.3 The assessment of these approaches seems moreover especially relevant at the moment, as many voluntary approaches have emerged in recent years. This mushrooming of initiatives makes it difficult to know what individual approaches intend and how they are differ- ent from one another. Often there is little assurance that the stated intentions of voluntary ap- proaches are actually implemented. This makes it difficult, not only for informed consumers, but also for manufacturers of IT products to know what environmental, human rights, or social risks they face when they source specific minerals. 1 EICC (now Responsible Business Alliance, 2008): "Social and Environmental Responsibility in Metals Supply to the Elec- tronic Industry". http://www.responsiblebusiness.org/media/docs/publications/SERMetalsSupplyreport.pdf 2For instance, see: Amnesty international (2016) “This is what we die for.”: https://www.amnesty.org/download/Documents/AFR6231832016ENGLISH.PDF; and Friends of the Earth Europe (2012): "Mining for smartphones: the true cost of tin". 3 Global Witness et al. (2018) “Civil Society Note on Implementation on EU- Responsibly Minerals Sourcing Regulation” https://www.globalwitness.org/en-gb/campaigns/conflict-minerals/conflict-minerals-shaping-eu-policy/ 5

  6. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH With this research, we aim to give an overview of the coverage of existing mandatory frameworks and the coverage and credibility of voluntary approaches. In Chapter Two, we will outline how we developed our comparison and how we assessed the mandatory frameworks as well as the volun- tary initiatives concerning their coverage of ethical risks. In Chapter Three, mandatory frameworks focusing on issues specifically related to mining are compared in a table and assessed in regard to their coverage. Moreover, more general legislation is assessed in terms of regulatory contribution to the IT sector regarding the scope and coverage of risks. Consequently, in Chapter Four we as- sess the voluntary approaches more thoroughly. First, we lay out our criteria for the selection of voluntary initiatives and the way we grouped them into different categories. Then we assess them according to their thematic coverage outside the mandatory frameworks and develop criteria that we subsequently use to assess the overall credibility of the voluntary initiatives. In conclusion, we summarise our results and formulate recommendations for the successful implementation of the EU regulation on responsible mineral sourcing. 2 Methodology to Assess the Coverage of Risks In order to assess the scope of binding regulatory frameworks and voluntary approaches, we started by identifying ethical risks concerning resource extraction in the IT supply chain. For this, we looked at various case studies4 related to mining in different countries, as well as additional literature,5 and grouped the different human rights, social, or environmental impacts to identify which risks occur. To enable a certain comparability of the content and scope of voluntary approaches and regula- tions, we created a table with the different approaches in the columns as well as the different ethi- cal risks and other content of the initiatives deemed relevant in the rows. To analyse the content of the different initiatives, we apply a simple grading scheme to each ethical risk as well as the indi- vidual contents of the audit procedure: ‘yes’, ‘(yes)’, ‘(no)’, and ‘no’. These are the answers to the question, ‘Does the approach cover this?’ ‘Yes’ means that the approach covers the point explicitly, while ‘(yes)’ and ‘(no)’ indicates that the point is covered only to a certain degree. Given that ambiguous expectations in approaches can result in weak implementation, we chose a qualitative approach for grading and considered the specific content of each approach for each criterion. 4For example, cf. "Gold mining in Honduras" in DPLf (2014): "The impact of Canadian Mining in Latin America and Canada's Responsibility".: http://www.dplf.org/en/news/press-release-report-impact-canadian-mining-latin-america-and- responsibility-canada; for the impact of the Grasberg mine in Indonesia cf. Umweltbundesamt (2015): "Fallstudie zu den Umwelt- und Sozialauswirkungen der Kupfergewinnung in Grasberg, Indonesien": https://www.umweltbundesamt.de/dokument/fallstudie-zu-den-umwelt-sozialauswirkungen-der; for copper and gold mining in Eritrea cf. The Guardian (2015): "Canadian mining company accused of exploiting Eritrea's forced labour".: https://www.theguardian.com/global-development/2015/aug/19/eritrea-mining-nevsun-forced-labour. These are a few selected examples. 5For example cf. BGR (2016): "Human Rights Risks in Mining. A Baseline Study".: https://www.bgr.bund.de/DE/Themen/Zusammenarbeit/TechnZusammenarbeit/Downloads/human_rights_risks_in_mi ning.html 6

  7. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 1 Risk Covered by Explicit Expectations We gave a point a ‘yes’ if it is explicitly mentioned. Clear, precise language is important to the effectiveness of an approach.6 Ideally the approach also includes a detailed description. One example would be the ethical risk to the environment. While this already covers many risks like water pollution, deforestation, and so on, the precise mention of water pollu- tion, for example, is necessary for a ‘yes’ grade. There are numerous other details not covered by these ethical risks, many of which are not covered in detail in the tables. Water pollution could be further broken down to the breaking of tailing dams or the contamination of drinking water. As far as the table is concerned, the grades always refer to the stated risk. This also includes, to some degree, key phrases like facilitating ‘collective bargain- ing’ for workers or demanding that the mining company work with ‘FPIC’. When key phrases were used, the approach received a ‘yes’ in the table, indicating that it aims to cover the risk associated with this phrase. In Table marked as yes yes When an approach refers to another approach (mostly guidelines), its content is included if it is mentioned as a mandatory aspect and not only as a mere reference. Often there are multiple sources to consider for the content of an approach, for example the text of an approach, information on the website of the approach and/or the FAQs, as well as in auditor guidelines and audit example protocols. Important for our classification is the condition that the sources used for the content of an approach needs to be accessible. Risk Covered by Rather Unclear/ Unspecific Expectations or Regionally Limited Expectation For these categories the word environment, for example, is accepted as a sufficient key word, as opposed to terms like ‘human rights’ or ‘social rights’. Environment could implicitly be understood to include the damag- ing and pollution of water, air, and soil. Thus water pollution gets a ‘(yes)’ or ‘(no)’ if the key word environment is mentioned. Likewise, ‘hazardous substances’, is treated in this category, which implicitly refers to mercury and cyanide. Both key words would, if used in an approach, lead to a ‘(yes)’/‘(no)’ for the more specific risks. In table marked as (yes) (yes) / (no) (no) On the contrary, the terms ‘human rights’ or even ‘social rights’ are per- ceived as being too vague even for this grading. A general mention of the approach covering ‘human rights’ does not immediately imply the more detailed human right risks such as ‘forced labour’ or ‘rape and forced prostitution’ thus this risk does not earn a ‘(yes)’ or ‘(no)’. At the same time, especially for assigning the grades ‘(yes)’ and ‘(no)’, it matters how the risk is included in the text of the approach and where. A general listing in the introduction of an approach as it covers the ‘workers’ rights’ is a ‘(no)’, while a sub-category head-lined as ‘workers’ rights’ with a few brief words, is a ‘(yes)’. We made this differentiation because it is cru- cial that an approach makes clear to its users which risk it should address. 6Behnam, M./MacLean, T. (2011): "Where Is the Accountability in International Accountability Standards? A Decoupling Perspective" in: Business Ethics Quarterly 21:1 7

  8. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH In summary, ‘(yes)’ refers to the general mention of a risk or to a re- striction, for example, if the approaches only covers the risks in a conflict region even if it is an approach without a regional focus while ‘(no)’ is assigned to a more implicit mention. The line between the grades ‘(yes)’ and ‘(no)’ is fluid, party subjective, and depends on the category and how precise the point is referred to in the table. Risk Not Addressed ‘No’ as a grade is given to risks/categories that are not mentioned in an approach, as well as to points where no information could be found, ei- ther because it does not exist or because it has not yet been published. In Table marked as no no Concerning the process of considering the approaches’ data: first, we assessed the documents generated by the approaches; second, if possible and when necessary—for example, when the approach was very vague—we examined auditor guidelines; finally we looked at information on the website or from other sources. We contacted the initiative to allow them to review our analysis (see Annex detailing which initiatives responded to us and which did not). The categories ‘action against water scarcity’ (see Tables 3, 4, and 5) and ‘permanent grievance mechanism’ were added afterwards. Consequently, this information is based on our research and has not been reviewed by the initiatives. Some initiatives, like the Responsible Aluminium Standard or the approach by IRMA, are still in the drafting process and changes are being made to the initiative and audit drafts. This limits the in- formative value of the data found and the resulting categorisation. With a thematic overview, we would first like to show which ethical risks are addressed and which part of the supply chain is covered. We also included the initiatives’ work with suppliers and whether these approaches are suitable to being integrated in the artisanal mining sector. This information is based on the approaches’ own claims. 8

  9. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 3 Mandatory Frameworks In our analysis, we focus on legislation and conventions that follow a supply chain approach or are international in character, which are often cited by literature focusing specifically on ethical risks in mineral extraction. Table 2 gives a comparative overview of the coverage of risks of those man- datory regulatory frameworks that specifically focus on mining issues. Moreover, we look at more general regulatory frameworks that could contribute to disclosing or addressing certain ethical risks in the mineral supply chain but do not specifically focus on mineral extraction. We consider them relevant but cannot claim to provide a comprehensive overview. More general frameworks we consider are the EU Non-Financial Reporting Directive, the French Loi de Vigilance, the UK Modern Slavery Act, and the California Transparency in Supply Chains Act. As they are oriented toward processes like due diligence or reporting, we chose not to compare them in a table but instead describe them in the paragraphs following Table 2 Mandatory Frameworks Focusing Specifically on Mineral Supply Chain and Extraction Especially relevant for the mineral supply chains of electronic devices are the US-Dodd Frank Wall Street Reform and Consumer Protection Act (paragraph 1502) (US Dodd-Frank Act) and the EU regulation on responsible mineral sourcing. Both include a binding element about the financing of conflicts and are specifically related to the mineral supply chain. Thanks to the US-Dodd Frank Act, as of 2014 companies listed on the New York Stock Exchange must report on the sourcing for conflict minerals. The EU regulation on responsible mineral sourc- ing requires that smelters and union importers of 3TGs above a certain threshold assess the supply chain according to risks of financing conflicts, child labour, forced labour, violence inflicted by state and private security personnel, rape and forced prostitution, and to take measures to pre- vent these risks. While the US Dodd-Frank Act addresses only 3TGs from the Great Lakes Region, the EU regulation on responsible mineral sourcing is international in scope. However, the EU regu- lation does not require the same commitment from the general downstream sector. This means that almost all IT companies that are not listed on the New York Stock Exchange are encouraged, but not obliged, to make sure that the minerals they import do not finance conflicts or contribute to the risks mentioned above. Only a few manufacturers of components that directly import minerals into the EU fall under the scope of the EU regulation. Moreover, IT companies listed on the New York Stock Exchange only need to check the supply chains of minerals sourced from the Great Lakes region. Unlike the EU Regulation, the US-Dodd Frank Act focuses on the out- come of the due diligence process rather than the process itself.7 In summary, many of the envi- ronmental, social, and human rights risks prevalent in resource extraction for the IT sector are not addressed by these two pieces of legislation; furthermore, the potential to finance conflicts by other minerals and metals are also not addressed. 7 Flohr, Annegret (2014) „Vertane Chance.Warum die EU-Regulierung nicht freiwillig bleiben darf“ HSK-Standpunkt Nr.2. Frankfurt.:https://www.hsfk.de/fileadmin/HSFK/hsfk_downloads/standpunkt0214.pdf 9

  10. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH As Table 2 shows, the three mandatory frameworks related to mineral extraction that we looked at address only a few very specific issues, and the International Conference on the Great Lakes Region Regional Certification Mechanism is limited to a regional focus. Moreo- ver, the ILO Indigenous and Tribal People Convention 169 includes important and specific aspects but focuses on indigenous and tribal people only, which neglects the infringement of the rights of non-indigenous people by mining. Table 2 Mandatory Frameworks Focusing on Mining or Indigenous Peoples Inter- national Conference on the Great Lakes Region Regional Certification Health in Mines Convention ILO C176/R183 Minamata Conven- tion on Mercury ILO EU Dodd Frank 15029 Indigenous and Tribal People Convention 169 regulation on responsible mineral sourcing8 Year 2017 2010 2010 1995 2013 1989 governmen- tal initiative that de- mands certification scheme Type of Framework law law convention convention convention Regional Focus no no yes yes yes yes no no no no no no no focus on specific minerals no focus on specific minerals Which Minerals? 3TGs 3TGs 3TGs mercury Environment Water Pollution (no) (no) (no) (no) (no) (no) yes yes yes yes (no) (no) Air Pollution (no) (no) (no) (no) (no) (no) yes yes yes yes (no) (no) Soil Pollution (no) (no) (no) (no) (no) (no) yes yes yes yes (no) (no) Mercury (no) (no) (no) (no) (no) (no) (no) (no) yes yes (no) (no) Cyanide (no) (no) (no) (no) (no) (no) (no) (no) yes yes (no) (no) Abandoned/Closed Mines no no no no no no no no yes yes no no Human Rights yes Forced Labour yes yes yes yes yes no no no no yes yes Human Trafficking no no no no no no no no no no no no 8 The framework itself does not mention any criteria but obliges the respective companies to adhere to the criteria covered by the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Therefore, the information provided here corresponds to these guidelines. 9 The framework itself does not mention any criteria but obliges the respective companies to adhere to the criteria covered by the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Therefore, the information provided here corresponds to these guidelines. 10

  11. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Child Labour yes yes yes yes yes yes no no no no no no Violence by State or Private Security Forces Rape and Forced Prostitution yes yes yes yes yes yes no no no no no no yes yes yes yes yes yes no no no no (no) (no) Financing of Armed Groups yes yes yes yes yes yes no no no no no no Additional Workers’ Rights Health and Safety no no no no no no yes yes yes yes yes yes Fair Payment no no no no (no) (no) no no no no yes yes Health Insurance After Accidents Social Impact on Local Population Livelihood of Local Population Mining by Locals / Contracting of Local no no no no no no yes yes no no (no) (no) (no) (no) (no) (no) (no) (no) no no no no yes yes (no) (no) (no) (no) (no) (no) no no no no yes yes Cultural Rights (no) (no) (no) (no) (no) (no) no no no no yes yes Forced Resettlement (no) (no) (no) (no) (no) (no) no no no no yes yes Compensation for Resettlement Participation and Remedy no no no no no no no no no no yes yes FPIC no no no no no no no no no no yes yes Access to Remedy no no no no no no no no yes yes (yes) (yes) Grievance Mechanism yes yes yes yes yes yes no no no no no no yes Corruption yes yes yes yes yes no no no no no no Supplier Training yes yes yes yes no no no no no no no no System of Incentives no no no no no no no no no no no no Long-Term Relations yes yes yes yes no no no no no no no no Supply Chain Monitoring Focus Mine/Smelt Manufactures Export Mine Mine Mine Upstream yes yes yes yes yes yes yes yes no no no no Downstream no no yes yes no no no no no no no no yes Applicable to ASM yes yes yes yes yes yes yes yes yes (yes) (yes) General Frameworks Apart from the frameworks directly related to mining, there are more process-oriented mandatory frameworks that are also important to consider, as they are also meant to require companies to 11

  12. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH meet human rights, social, and environmental standards. There is the EU Non- Financial Reporting Directive, the French Loi de Vigilance, the UK Modern Slavery Act, and the California Transparency in Supply Chains Act. Under the EU Non-Financial Reporting Directive (2014), 8,000 EU companies and financial corpora- tions with more than 500 employees are required to publish annual reports on their main impacts and risks as well as the policies and due diligence processes they implement regarding environ- mental protection, social responsibility, treatment of employees, human rights, anti-corruption and anti-bribery, and corporate board diversity. IT-producing EU companies like Nokia and Phil- lips or net providers like Telekom and Vodafone must consequently adhere to these requirements. However, the requirements are very vague, and companies can choose what to report at their own discretion. When companies choose to not implement certain policies, they must explain why. However, the directive does not require them to actually implement any specific policies or measures, and allows significant flexibility regarding the form and elaborateness of reporting. The French Loi de Vigilance (2017) requires the largest French companies to exert due diligence. The companies must establish, publish, and implement a vigilance plan that includes appropriate measures to identify and prevent risks of serious infringements of human rights and fundamental freedoms, serious bodily injury, health risks, or environmental damage resulting directly or indi- rectly from a company’s activities and those of its business relations (as defined by the French commercial code). The vigilance plans, as well as the reports on their implementation, have to be made public and included in the company’s annual report. Under certain circumstances, compa- nies can be held liable for severe human rights violations and environmental damages inflicted by supply chain business partners. It could be a framework that could considerably contribute to closing governance gaps as it is a more holistic approach, but at the moment it has only been implemented in France and only addresses an estimated 150 large companies. Section 54 of the UK Modern Slavery Act (2015) requires companies domiciled or doing business in the UK with an annual turnover of more than £36 million to report annually on which steps they have taken to prevent human trafficking and modern slavery in their supply chain. But it is im- portant to note that the act does not prescribe any forms of due diligence, so that companies abide by the law even if they merely report that they have not taken any actions against modern slavery and trafficking. Under the California Transparency in Supply Chains Act (2010), large retail sellers and manufactur- ers doing business in California must disclose their efforts to eradicate slavery and human traffick- ing from their direct supply chain in relation to specific categories. The law applies to those com- panies that produce tangible goods for sale. Most important electronics companies, such as Apple, Samsung, Intel, Motorola, and Panasonic, have already provided statements.10 However, compa- nies are only required to disclose their efforts without necessarily realizing any. Furthermore, the names of the companies that fall under the scope of the law have not been officially published, making it difficult for civil society actors to examine whether all those affected abide by the law. All of these pieces of legislation pursue different approaches to corporate accountability and deal with some aspects relevant for the sourcing of minerals. However, except for the UK Modern Slav- ery Act and the California Transparency in Supply Chains Act, they are more general in wording and concerning the coverage of risks. This allows companies great discretion in terms of which risks to report or monitor. 10cf. Business and Human Rights Resource Centre (2014): "Know the Chain".: https://business-humanrights.org/en/know- the-chain-%E2%80%93-see-which-companies-do-and-do-not-have-statements-under-the-california-transparency-in- supply-chains-act 12

  13. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH General Coverage of Risks In general this overview shows that many risks are not covered by mandatory measures. For ex- ample, the social impact on local populations and local environmental issues are barely ad- dressed. Moreover, even when covered by any of these mandatory approaches, it is unclear whether or not the risk is addressed, as contracts like ILO 169 are not always enforced. This is par- ticularly problematic in countries where national law is not enforced. However, our focus on man- datory frameworks provides only a thematic overview; it was not possible to assess the mecha- nisms for enforcement during our study. In addition, in cases like the EU regulation on responsible mineral sourcing, the surveillance mechanisms have yet to be developed. The Necessity of Looking at Voluntary Approaches Without looking at the enforcement of the laws, this thematic overview shows that, along with continued reports of human rights abuses, environmental impacts, and severe impacts on health and security, there are still huge governance gaps when it comes to ensuring corporate accounta- bility of ethical risks.11 This is why we have looked at voluntary initiatives that may fill these gaps or be tested as models for future binding regulations. A more detailed analysis of these voluntary approaches is especially important, as many new initi- atives have emerged in recent years. This is not only a result of the continuous critique of the hu- man rights abuses and environmental destruction committed by the extractive sector, but a con- sequence of the new voluntary—often industry-led—initiatives that have emerged in the wake of the Dodd-Frank Act. The huge variety of initiatives makes it very difficult to know what each indi- vidual initiative stands for and may foster greenwashing instead of better transparency. A thor- ough assessment is even more important because the EU regulation on responsible mineral sourc- ing considers the ‘supply chain due diligence scheme’ or ‘due diligence scheme’ as a useful means for companies to comply with regulations. They are defined as ‘a combination of voluntary supply chain due diligence procedures, tools and mechanisms, including independent third-party audits, developed and overseen by governments, industry associations, or groupings of interested organi- sations’.12 In the following section, we will continue to speak of ‘voluntary approaches’ when refer- ring to these schemes and guidelines and ‘voluntary initiatives’ when speaking generally about these schemes. We will use the word schemes when directly referring to the EU regulation on re- sponsible mineral sourcing. It is not our intention to discuss any of the approaches in detail; rather, we aim to provide a better picture of the issues covered by the schemes and, more importantly, we are interested in screen- ing existing voluntary initiatives in terms of their transparency about implementation and credibil- ity. Only when it is clear that certain issues are being implemented and not just addressed on pa- per, can we assess their contributions to the closure of governance gaps. We can then analyse to what extent individuals and companies that are not involved in the implementation of the initia- tive can actually trust the outcome. Thus, we have set up certain criteria concerning monitoring and enforcement. 11 For example, cf. Spohr, M. (2016): "Human Rights in Mining. A Baseline Study".: https://www.bgr.bund.de/DE/Themen/Zusammenarbeit/TechnZusammenarbeit/Downloads/human_rights_risks_in_mi ning.html 12 REGULATION (EU) 2017/821 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold orig- inating from conflict-affected and high-risk areas.: http://eur-lex.europa.eu/legal- content/EN/TXT/PDF/?uri=OJ:L:2017:130:FULL&from=EN 13

  14. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 4 Voluntary Approaches In this section, we will take a closer look at voluntary initiatives and guidelines addressing mines as well as supply-chain approaches. We first outline our criteria for the selection of these ap- proaches. Then, we provide an overview of the thematic coverage of the different initiatives. Final- ly, we develop criteria in order to analyse the initiatives’ credibility. 4.1 Selection of Voluntary Approaches In order to create a basis for a useful overview and comparison of voluntary approaches, we first attempted to map out the most relevant approaches that aim to prevent human rights, social, and/or environmental risks in the supply chain. There is a wide range of research that affirms that standards are often only adopted superficially while the actual practice of the company remains the same.13 In this context, the standards can be categorized into different groups: ‘principles- based standards’ (PS), certification-based standards (CS), and reporting standards (RS)’. ‘Princi- ples-based standards’ are normative frames, like the UN Global Compact, whose implementation is not monitored. There are some sectorspecific norms that can also be added to these categories. ‘Reporting standards’ provide more comprehensive reporting via a standardised scheme. ‘Certifi- cation-based standards’ are approaches that are based on verification, either by an external audi- tor or the participants themselves.14 Different scientific studies have shown that approaches with ambiguous expectations, low adop- tion costs and high substantive compliance costs, a lack of assurance structures, and weak en- forcement mechanisms all predict that the initiative is likely to be adopted but not implemented.15 This would specifically relate to principles-based standards like the UN Global Compact. This is why we do not consider most of these initiatives in our comparison. One exception is the Interna- tional Council on Minerals and Metals, which is a principles-based initiative as well. We included it due to its specific focus on the extractive sector. In our analysis, we considered initiatives and guidelines targeting the mining site or the supply chain, which led to a categorization of the approaches into the following groups: 1) Guidelines: Often they serve as a reference for initiatives or even legislation like the OECD Due Diligence Guid- ance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Due Diligence serves for the EU regulation on responsible mineral sourcing) 2) Initiatives for mines (approaches mainly targeting the mine site that do not include the supply chain) 3) Initiatives that focus on 3TGs and primarily consider the supply chain 4) Initiatives that deal with more or different minerals and metals than 3TGs pursuing a supply chain approach. 13 DiMaggio, P J./Powell, W. W. (1991): "The iron cage revisited: Institutional isomorphism and collective rationality" in W. W. Powell & P J. DiMaggio (Eds.): "The New Institutionalism in Organizational Analysis", pp 63-82. Chicago: University of Chi- cago Press Behnam, M./MacLean, T. (2011): "Where Is the Accountability in International Accountability Standards? A Decoupling Perspective" in: Business Ethics Quarterly 21:1, pp. 45-72 14 The categories overlap and a different categorisation could be used, based on content or a focus on audits. 15 Edelman, L. B. (1992): Legal Ambiguity and Symbolic Structures: Organizational Mediation of Civil Rights Law" in: Ameri- can Journal of Sociology 97, pp. 1531–76. Elbannan, M./McKinley, W. (2006): " A Theory Of The Corporate Decision to Resist FASB Standards: An Organization Theory Perspective" in: Accounting, Organizations and Society, 31: pp. 601–22. Kalev, A./Dobbin, F./Kelly, E. (2006): "Best Practices or Best Guesses? Assessing the Efficacy of Corporate America’s Affirm- ative Action and Diversity Policies" in: American Sociological Review, 71: pp. 589-627. 14

  15. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Guidelines OECD Guidelines for Multinational Enterprises (OECD Guidelines for MNE) OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas (OECD Due Diligence) CCCMC (Guidelines for Social Responsibility in Outbound Mining Investments) Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains Initiatives for Mines Voluntary Principles on Security and Human Rights (Voluntary Principles Security and HR) International Council on Mining and Metals (ICMM) Global Reporting Initiative (GRI) International Cyanide Management Code SA 8000 Initiative for Responsible Mining Assurance (IRMA) Approaches Focusing on 3TG Minerals Better Sourcing Program Certified Trading Chains Standards Certification Conflict-Free Gold Mining Responsible Minerals Initiative (formerly Conflict Free Smelter Program)16 International Tin Supply Chain Initiative (iTSCi)17 Approaches Focusing on More or Other Than 3TG Fairtrade Gold Responsible Aluminium Standard (Aluminium Stewardship Initiative) Responsible Business Alliance (formerly Electronic Industry Citizenship Coalition) Fairmined Gold Standard London Bullion Market Association Responsible Gold Guidance (LBMA)18 Responsible Jewellery Council DMCC Rules for Risk Based Due Diligence in the Gold and Precious Metals Supply Chain19 16 Update of information because of OECD alignment process 16th of april. Based on documents as listed in Annex. 17 Update of information because of OECD alignment process 16th of april. Based on documents as listed in Annex. 18 Update of information because of OECD alignment process 16th of april. Based on documents as listed in Annex. 19 Added to analysis in April 2018 because of OECD alignment process 15

  16. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 4.2 Overview of Thematic Coverage of Initiatives Table 3 Guidelines Approaches at The Mine OECD MNE OECD Due Dili- gence SA 8000 IRMA Chinese Due Diligence International Cyanide Chinese Guide-lines for International Council on Mining and Metals Voluntary Principles on Security and HR Social Responsibility Management Code Global Reporting Guidance Initiative Regional Focus no no yes yes no no no no no no no no no no no no no no no no Which Minerals? any 3TG any any any any any Gold any any 20 20 Environment Water Pollution (no) (no) (no) (no) yes yes yes yes no no (yes) (yes) yes yes yes yes no no yes yes Actions Against Water Scarcity21 (yes) (yes) (no) (no) no no no no no no yes yes yes yes no no no no yes yes Air Pollution (no) (no) (no) (no) yes yes yes yes no no (no) (no) yes yes yes yes no no yes yes Soil Pollution (no) (no) (no) (no) yes yes yes yes no no (yes) (yes) yes yes yes yes no no yes yes Mercury (no) (no) (no) (no) yes yes yes yes no no yes yes yes yes no no no no yes yes Cyanide (no) (no) (no) (no) yes yes yes yes no no yes yes yes yes yes yes no no yes yes Abandoned/Closed Mines no no no no yes yes yes yes no no yes yes yes yes (yes) (yes) no no yes yes Human Rights ‘Human Rights’ mentioned yes yes yes yes yes yes yes yes yes yes yes yes yes yes no no yes yes yes yes Forced Labour yes yes yes yes yes yes yes yes no no yes yes yes yes no no yes yes yes yes Human Trafficking no no no no no no no no yes yes no no yes yes no no yes yes yes yes Child Labour yes yes yes yes yes yes yes yes no no yes yes yes yes no no yes yes yes yes Violence by Security Forces no no yes yes (yes) (yes) (yes) (yes) yes yes (yes) (yes) yes yes no no yes yes yes yes Rape and Forced Prostitution no no yes yes no no no no no no no no (yes) (yes) no no yes yes (yes) (yes) Financing of Armed Groups no no yes yes yes yes yes yes no no no no no no no no yes yes yes yes 20Assessment of environment harm is mentioned but not requirements to address these kinds of risks. 21 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 16

  17. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Additional Workers’ Rights Health and Safety yes yes no no yes yes no no no no yes yes yes yes yes yes yes yes yes yes Fair Payment yes yes no no yes yes no no no no yes yes yes yes no no yes yes yes yes Collective Bargaining yes yes no no yes yes no no (no) (no) yes yes yes yes no no yes yes yes yes Health Insurance After Accidents Social Impact on Local Population Livelihood of Local Population Mining by Locals / Contracting of Local no no no no (no) (no) no no no no (yes) (yes) yes yes no no yes yes yes yes no no (no) (no) (no) (no) no no no no yes yes yes yes no no yes yes yes yes no no (no) (no) yes yes no no no no no no yes yes no no yes yes (yes) (yes) Cultural Rights no no (no) (no) yes yes yes yes no no yes yes yes yes no no yes yes yes yes Forced Resettlement no no (no) (no) yes yes yes yes no no yes yes yes yes no no yes yes yes yes Compensation for Resettlement Participation and Remedy no no no no yes yes yes yes no no yes yes (yes) (yes) no no yes yes yes yes FPIC no no no no yes yes yes yes no no yes yes yes yes no no yes yes yes yes Access to Remedy no no no no no no no no (no) (no) yes yes yes yes no no yes yes (yes) (yes) Grievance Mechanism no no yes yes yes yes (yes) (yes) no no yes yes yes yes yes yes yes yes yes yes Corruption yes yes yes yes yes yes yes yes no no yes yes yes yes no no yes yes yes yes Supplier Training no no yes yes (no) (no) (yes) (yes) (no) (no) yes yes yes yes yes yes no no no no System of Incentives (no) (no) no no no no no no no no (yes) (yes) no no ( (yes) yes) no no no no Long-Term Contracts no no yes yes no no no no no no no no no no yes yes no no no no Supply Chain enter- prise/ supply chain (no) mine/ smel- ter supply chain Monitoring Focus none mine mine mine none mine mine yes yes yes no yes yes 22 no no22 Upstream (yes) (yes) yes yes yes no yes yes (no) no no yes yes yes no no yes no 23) ) (no (no23 Downstream (yes) (yes) yes yes yes no no yes no no no yes yes yes (yes) no yes (yes) (no) Applicable to ASM (yes) (yes) yes yes yes (yes) no yes (yes) (no) yes yes 22 According to the initiative, for a mine to be certified in compliance with the Cyanide Code, the mine must purchase its cyanide from a producer certified to be in compliance with the program, and all transportation elements (i.e. trucking companies, ports, ocean carriers, rail, and interim storage facilities) used to move the cyanide from the producer to the mine must also be certified or part of a certified transportation supply chain. The requirements of the Cyanide Code are detailed in our Mining Verification Protocol. While the initiative does include the upstream supply chain of cyanide, it focuses on the mine. Consequently, we do not rate the upstream part as ‘yes’ because our study considers the upstream portion of the IT supply chain. 23 SA 8000 focuses on producing companies and poses specific requirements for their supply chain but the focus is it does not imply the downstream part of minerals supply chains (Mine to the company placing the product on the market). 17

  18. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 4 Approaches concerning 3TG minerals Better Sourcing Program CTC Standards Certification Conflict-free gold mining Responsible Minerals Initiative24 iTSCi25 Regional Focus yes yes yes yes no no no no yes yes Which Minerals? 3T (no G) 3TG Gold 3TG 3T Environment Water Pollution yes yes yes yes (no) (no) (no) (no) (no) (no) Water Scarcity at the Place of Extraction26 (yes) (yes) no no no no (no) (no) (no) (no) Air Pollution (no) (no) yes yes (no) (no) (no) (no) (no) (no) Soil Pollution (no) (no) yes yes (no) (no) (no) (no) (no) (no) Mercury (no) (no) yes yes (no) (no) (no) (no) (no) (no) Cyanide (no) (no) yes yes (no) (no) (no) (no) (no) (no) Abandoned/Closed Mines yes yes yes yes no no (no) (no) (no) (no) Human Rights "Human Rights" mentioned yes yes yes yes yes yes yes yes yes yes Forced Labour yes yes yes yes yes yes yes yes yes yes Human Trafficking (yes) (yes) no no yes yes (no) (no) (no) (no) Child Labour yes yes yes yes yes yes yes yes yes yes Violence by Security Forces yes yes (yes) (yes) yes yes yes yes yes yes Rape and Forced Prostitution yes yes no no yes yes yes yes yes yes Financing of Armed Groups yes yes yes yes yes yes yes yes yes yes Additional Workers´ Rights (no) Health and Safety yes yes yes yes (no) (no) (no) (yes) (yes) Fair Payment yes yes yes yes no no no no no no Collective Bargaining yes yes yes yes no no no no no no Health Insurance After Accidents no no (no) (no) no no no no no no 24 Formerly, Conflict-Free Smelter Program. 25 According to information on the website of ITSCI, iTSCI has a detailed audit checklist with more than 300 criteria. Unfor- tunately iTSCI does publish the checklist, hence this criteria are not reflected in this evaluation. As the criteria are not published it is not possible for the public to assess whether the 300 criteria are implemented as they are not even pub- lished. 26 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 18

  19. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Social Impact on Local Population Livelihood of Local Popula- tion Mining by Locals/Contracting of Local Population (yes) (yes) yes yes (no) (no) no no no no (no) (no) (no) (no) (no) (no) no no no no Cultural Rights no no (no) (no) (no) (no) no no no no Forced Resettlement no no (yes) (yes) (no) (no) no no no no Compensation for Resettlement Participation and Remedy no no (no) (no) no no no no no no no no FPIC yes yes yes yes no no no no (yes) (yes) 27 27 Access to Remedy yes yes no no no no no no Grievance Mechanism yes yes (yes) (yes) yes yes yes yes yes yes Corruption yes yes yes yes yes yes yes yes yes yes Supplier yes yes Trainings no no no no (no) (no) yes yes System of Incentives no no no no (no) (no) (yes) (yes) no no Long-term Contracts no no no no no no (yes) (yes) yes yes Supply Chain mine to smelter mine to smelter smelter Monitoring Focus mine mine Upstream yes yes yes yes yes yes yes yes yes yes Downstream no no no no no no (no) (no) no no Applicable to ASM yes yes (yes) (yes) (yes) (yes) yes yes yes yes 27 At the moment of our update we could not find any more information on this issue. 19

  20. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 5 Approaches concerning more than 3TG or other minerals Fairtrade Gold Standard Respon- sible Aluminium Steward- ship Respon- sible Business Alliance28 Fairmined Gold Standard Respon- sible Gold Guidance (LBMA) Respon- sible Jewellery Council DMCC Regional Focus no no no no no no no no no no no no no no gold, platinum group metals gold, platinum group metals gold, platinum, palladium, rhodium Gold and precious metals no specific focus gold, (silver) Which Minerals? aluminium Environment Water Pollution yes yes yes yes yes yes yes yes (no) (no) yes yes (no) (no) Water Scarcity at Place of Extraction29 no no yes yes no no yes yes (no) (no) yes yes (no) (no) Air Pollution (yes) (yes) yes yes yes yes (yes) (yes) (no) (no) yes yes (no) (no) Soil Pollution yes yes yes yes (yes) (yes) yes yes (no) (no) yes yes (no) (no) Mercury yes yes no no (yes) (yes) yes yes (no) (no) yes yes (no) (no) (no) (no)30 30 Cyanide yes yes no no (yes) (yes) yes yes yes yes (no) (no) Abandoned / Closed Mines yes yes yes yes no no yes yes (no) (no) yes yes (no) (no) Human Rights ‘Human Rights’ Mentioned yes yes yes yes yes yes yes yes yes yes yes yes yes yes Forced Labour yes yes yes yes yes yes yes yes yes yes yes yes no no Human Trafficking yes yes yes yes yes yes yes yes no no yes yes no no Child Labour yes yes yes yes yes yes yes yes yes yes yes yes (yes) (yes) Violence by Security Forces no no (yes) (yes) no no no no yes yes yes yes (yes) (yes) Rape and Forced Prostitution yes yes yes yes no no yes yes yes yes no no no no Financing of Armed Groups yes yes yes yes (yes) (yes) yes yes yes yes yes yes yes yes 28Formerly, Electronic Industry Citizenship Coalition. 29 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 30 The companies are asked if they are using mercury or cyanide but we cannot see that the approach demands not to use it. 20

  21. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Additional Workers´ Rights Health and Safety yes yes yes yes yes yes yes yes no no yes yes (yes) (yes) Fair Payment yes yes yes yes yes yes yes yes no no yes yes no no Collective Bargaining yes yes yes yes yes yes yes yes no no yes yes no no Health Insurance After Accidents Social Impact on Local Population Livelihood of Local Population Mining by Locals/Contracting of Local yes yes no no (yes) (yes) yes yes no no no no no no yes yes yes yes no no yes yes (no) (no) yes yes no no yes yes (yes) (yes) no no yes yes (no) (no) yes yes no no Cultural Rights yes yes yes yes no no yes yes (no) (no) yes yes no no Forced Resettlement (yes) (yes) yes yes no no (yes) (yes) (yes) (yes) yes yes no no Compensation for Resettlement Participation and Remedy (yes) (yes) yes yes no no (yes) (yes) no no yes yes no no FPIC (yes) (yes) yes yes no no (yes) (yes) no no yes yes no no Access to Remedy no no yes yes no no yes yes no no yes yes no no Grievance Mechanism yes yes yes yes yes yes yes yes yes yes yes yes yes yes Corruption yes yes yes yes yes yes no no yes yes yes yes (yes) (yes) Supplier Trainings yes yes yes yes (yes) (yes) yes yes yes yes yes yes yes yes System of Incentives yes yes no no no no yes yes (no) (no) no no (yes) (yes) (no) (no)31 31 Long-term Contracts yes yes no no no no yes yes no no (yes) (yes) Supply chain ASM mining supply chain ASM mining supply chain supply chain Monitoring Focus enterprise mine Upstream yes yes yes yes yes yes yes yes yes yes yes yes yes yes Downstream no no yes yes yes yes yes yes no no yes yes no no Applicable to ASM yes yes no no yes yes yes yes yes yes yes yes yes yes Comparative Result of Coverage The comparison of the different approaches shows that the voluntary approaches indeed cover more ethical risks than the legally binding approaches. While the approaches are difficult to com- pare because of their different scope and focus, the analysis can provide a general overview. Some ethical risks are covered more extensively than others across the initiatives. Child labour and 31 Only mentioned as desired in the voluntary Chain of Custody Standard 21

  22. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH forced labour are two risks that almost every approach includes, while environmental issues are rarely covered by approaches focusing specifically on 3TG minerals. There are also very few initiatives that cover all ethical risks. Often, there is a specific focus on one issue or one area. The SA 8000, for example, covers all ethical risks in the area of human and social and workers’ rights; however, because it is an approach meant for social certification, it does not include any of the environmental risks. A few initiatives chose a specific focus to target an area or specific risk more efficiently. The limited scope of the initiatives can be explained this way. Other approaches, such as the Global Reporting Initiative, the Responsible Jewellery Council, and the Initiative for Responsible Mining Assurance (IRMA) cover almost all ethical risks with their broader scope and general focus. Even when the voluntary approaches individually and collectively cover more ethical risks than the legally binding approaches, there remains the question of implementation.32 A critical precondi- tion for reliable implementation is an explicit and unambiguous expectation by the initiatives to address a certain risk. As mentioned before, weak monitoring mechanisms can also hint at weak enforcement. Little transparency over implementation inhibits a verification of implementation. This is why we will take a closer look at these aspects. The tables above give an overview of the risks addressed by the initiatives. The following tables and analysis will focus on the transparency of implementation. 32 Global Initiative Against Transnational Organised Crime (2016): "‘Organized Crime and Illegally Mined Gold in Latin Amer- ica".: http://globalinitiative.net/documents/organized-crime-and-illegally-mined-gold-in-latin-america/ Bloomberg (2017): "‘Gold Company Manager Charged in Vast Peruvian Smuggling Plot": https://www.bloomberg. com/news/articles/2017-03-16/gold-company-manager-charged-in-vast-peruvian-smuggling-scheme; Bullion Directory (2017): "LBMA (Quietly) Removes Elemetal’s Good Delivery Status.: https://bullion.directory/lbma-quietly-removes- elemetal-good-delivery-status; List of LBMA refiners on the former Good Delivery list: http://www.lbma.org.uk/refiners- gold-former 22

  23. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 4.3 Credibility of Voluntary Approaches Transparency of implementation is crucial in order to distinguish between an initiative that actual- ly makes sure that membership means that each member implement the initiative’s stated ambi- tions and those initiatives that are ambitious but fail at implementation. As stated above, scientific studies have shown that approaches with ambiguous expectations, low adoption costs and high substantive compliance costs, a lack of assurance structures, and weak enforcement mechanisms are only adopted on paper and not implemented in practice.33 Thus, in the area of mineral extrac- tion where supply chains are complex and considerable effort is needed to ensure that ethical risks are addressed and a thorough monitoring of implementation is important. Consequently, we may argue that the better the implementation of an approach is monitored, the higher the trans- parency of the results of this monitoring, and the stronger the enforcement mechanisms, the high- er is its credibility. It is important to note that audits alone, even independent and high-quality ones, are not sufficient to ensure that an approach is credible. Other criteria are also important, for example a grievance mechanism through which local inhabitants and workers can contact the approach organisation in case any rights violations occur between audits. Additionally, follow-up of a corrective action plan (CAP) and sanctions are necessary to ensure implementation of the criteria. Additional and independent information about a company or mine can be obtained via grievance mechanism and the consideration of local population at the place of extraction. These factors we consider in our assessment. Moreover important but not considered in our assessment is that the initiative proactively considers additional information on the company such as media reports, NGO reports and scientific studies and executes spot checks. To assess the credibility of the selected voluntary approaches in this chapter, we developed a set of criteria. These criteria were based on recommendations about labels and standards established by the German Corporate Accountability Network (CorA);34 four interviews with experts involved in auditing processes, and multi-stakeholder dialogues within different sectors (including mining, textile, and cocoa);35 feedback from a working session of the civil society network Arbeitskreis Rohstoffe (November 2016) working on raw material issues; and discussions at the conference “Electronics Goes Green” in 2016. 33 Edelman, L. B. (1992): "Legal ambiguity and symbolic structures: Organizational mediation of civil rights law". American Journal of Sociology, 97, pp. 1531-76. and Elbannan, M./McKinley, W. (2006): "A theory of the corporate decision to resist FASB standards: An organization theory perspective". Accounting, Organizations and Society, 31, pp. 601-22. and Kalev, A./ Dobbin, F./ Kelly, E. (2006): "Best practices or best guesses? Assessing the efficacy of corporate America's affirmative action and diversity policies". American Sociological Review, 71, pp. 589-627., quoted after Behnam, M./MacLean, T. (2011): "Where Is the Accountability in International Accountability Standards? A Decoupling Perspective". Business Ethics Quarterly 21:1, p. 50. 34 CorA (2015): "Siegel, Standard–Systeme und gesetzliche Regelungen zur Durchsetzung von Arbeits- und Menschenrech- ten": https://www.cora-netz.de/cora/wp-content/uploads/2015/10/CorA_Positionspapier_Labels_2015-09.pdf 35 Heidi Feldt (mining), Gisela Burckhardt (textile sector), Berndt Hinzmann (textile sector), and Friedel Hütz-Adams (cacao). 23

  24. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 4.3.1 Explanation of Criteria Used In the following section, we will elaborate why we chose specific criteria for evaluating an ap- proach’s credibility, illustrate what an initiative required in order to receive a ‘yes’ for each criteri- on, and evaluate and compare all initiatives in terms of credibility (Table 6). Independence of Results: Role of initiative We consider it a minimum requirement that either the initiative checks the (audit) report of the company (criterion 1) or organises the audit itself (criterion 2) to ensure quality management of the audit. Independence of audit (criterion 3) Moreover, the independence of an audit is crucial, yet not very easy to define and operationalize. Many initiatives have third-party audits (criterion 3.1), but they are not necessarily independent. Examples from the textile industry show that audits paid for by the company audited are often equivalent to simply buying a good image, with more expensive audits yielding better assessment results than inexpensive ones.36 Thus, as the financing structure already reveals to a certain degree how prone an audit is to falsification, we included the independence of finance into our criteria (criterion 3.3). Furthermore, it is essential to not always have the same auditor analysing a mine or supply chain, as this can lead to personal dependency. Thus, we added the requirement of a rota- tion system of auditors(criterion 3.2) into our criteria.37 Independence of finance means that, ideally, a multi-stakeholder group—including state-actors, companies, organisations, and civil society—is created to organise and pay for the audit.38 This inhibits a direct financial relationship between auditor and auditee or other interested parties. Cases in which a multi-stakeholder group only organises or finances the audit are considered less independent, similar to those cases in which the initiative organises or pays for the audit. The initiative is seen to be least independent in cases where independently financed audits only exist as a voluntary option. Transparency of the implementation process and identified challenges Moreover, it is important to publish a complete audit report—not only in summary (criterion 4). A summarized or abbreviated audit report can potentially allow auditees to leave out crucial details. Moreover, if audit reports are not published, it is difficult for downstream companies to manage risks in their supply chain as the audit reports might not inform them about risks within the supply chain. For the sake of transparency, a complete audit report should be published, so that the pub- lic, as well as other stakeholders, can understand the auditing process and the result. 36Burckhardt, G. (2014): "Todschick: Edle Labels, billige Mode – unmenschlich produziert". München. pp. 107ff. 37 An auditor rotation system can prove problematic for smaller certification agencies and can lead to different auditors interpreting criteria differently if the criteria are not precise enough or if the auditors are unfamiliar with the initiative they are auditing. 38 By ‘organizing’ an audit we mean that the initiative offers a list of qualified auditors (for the sake of transparency) and arranges their visits. 24

  25. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Unannounced audits versus involvement of affected communities (criterion 5) In some situations, unannounced audits are important for preventing a company from preparing for an audit. This is especially relevant for audits in factories, in the textile sector, but they are also relevant for audits in the mines themselves. In cases of announced audits, companies may tempo- rarily hide certain practices, such as child labour, or advise workers to wear protective clothing that is generally not used. However, in a mining context, not only the perspective of workers but the perspective and concerns of local communities need to be prominently taken into account. Thus, it is important that audits be announced to ensure that local communities have sufficient time to organise their involvement. An additional factor is that mining sites are often difficult to access. It is then important that the auditor agrees on one or several dates with the company or mine to ensure that travel to the mine will successfully result in an audit. As these special conditions of the mining sector make unannounced audits hard to execute, a crucial issue is the competence of the auditors. A competent auditor is an auditor who might also notice if a measure shown in the audit is not being implemented and integrated in the actual pro- cedure. For example, a good auditor would notice that the helmets worn by workers do not look used and were only provided for the audit. However, as it is difficult for us to measure the compe- tence of the auditor, we did not include this criterion in our evaluation. But it remains an im- portant factor in the verification of results. Grievance mechanisms (criteria 6 and 7) As already noted, audits alone cannot guarantee that the practices presented to an auditor con- form to reality—for instance, it might be hard for an auditor to judge whether child labour usually exists in a mine or not. Consequently, two separate grievance mechanisms are required to ensure that the affected com- munity can voice their concerns. The first is a permanent grievance mechanism directed to the initiative (criterion 6), separate from any such mechanism established by the company itself. This mechanism assures that affected communities or other observers, like civil society organisations, may contact the approach organisation between audits to address any rights violations or other problems. The second is a grievance mechanism directed at the audit itself (criterion 7): workers or affected communities or other observers may voice their concerns if audits are not being conducted thor- oughly, or auditors have been influenced by the company or mine being audited. Moreover important but not considered in our assessment is that the approach proactively con- siders additional information on the company such as media reports, NGO reports and scientific studies and executes spot checks. Follow-up processes and exclusion in case of non-compliance (criteria 8 and 9) To safeguard that ecological, human rights, and social risks, as well as specific problems identified within the supply chains, are actually addressed, a corrective action plan is necessary, along with a follow-up process (criterion 8). Sanction mechanisms (criterion 9) are necessary to ensure that the corrective measures identified are actually being implemented, and that companies are not just participating in initiatives with- 25

  26. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH out making any improvements.39 The last possible sanction should be the exclusion of a company from the initiative. The establishment of a timeline is important to specify the date by which cor- rective action must be implemented in order to prevent exclusion from the initiative. As different ethical risks require different amounts of time to be addressed, we have not rated the sanction mechanism according to specific timeframes but in relation to the existence of a timeline more generally. We have decided to focus on the existence of a follow-up of corrective action plans and sanction mech- anisms as a long-term means of addressing the shortcomings identified by audits. We have not includ- ed the frequency of audits in our credibility rating, but have used it as an informative criterion. The frequency of audits can be indicative of the actuality of a result, but the follow-up of the corrective ac- tion plan along with a timeline seem more relevant, as they guarantee improvements and imply contin- ued monitoring. Overall Credibility of the Initiative After analysing all the criteria described above, we have summarized them and generated a final result. We call this the ‘overall credibility of the approach’, which describes to what extent the public can trust the published outcome of a mine’s activities. Specific factors are especially im- portant when it comes to reviewing the overall credibility of the approaches. First, reports should be reviewed by the initiative, or the initiative should conduct the audit itself, and they should be fully published. Even just a summary of the full audit report must be made available to assure at least partial credibility and transparency. Especially important is a follow-up corrective action plan; this is needed even to achieve partial credibility. Additionally, sanctions for non-compliance with a timeline are important to ensure that corporations adhere to the approach and that com- panies or smelters cannot retain membership of an initiative or certification without demonstrat- ing that problems discovered during an audit have not been addressed. This is one minimum requirement for earning a ‘largely credible and transparent’ rating. Moreover, we have determined that the inclusion of complaints and opinions from communities or other observers are crucial even for a ‘partially credible’ rating. Guidelines like the OECD Guidelines for Multinational Enterprises (see Table 10) cannot be as- sessed in the same way as schemes, initiatives, and voluntary approaches. We can only evaluate how they expect companies to implement their guidelines. Many of the initiatives or certification schemes already mentioned refer to one of the guidelines or even mandatory frameworks de- scribed in Chapter 3. In some cases, they even function to specify the implemention requirements of mandatory frameworks. Given their different characters, we have listed guidelines in a separate table. 4.3.2 Guidance to the Tables Concerning the Overall Credibility of Voluntary Approaches The following table sums up the criteria we used to assign ‘yes’, ‘(yes)’, ‘(no)’, and ‘no’ to the differ- ent credibility requirements. 39As companies sometimes already include the fines into their annual budget, monetary sanctions should be reasonably sized. See for example the case of a tailings dam in Hungary: WWF (2011): "Little action apparent on toxic tailings six months after Hungary red mud disaster".: http://wwf.panda.org/?199897/Six-months-after-the-red-mud-tragedy-in- Hungary-tailings-dams-in-region-still-major-threat 26

  27. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 6 Credibilty Criteria Credibilty Criteria Explanation 1) Report Reviewed by Approach Organisation yes yes: the initiative reviews the report made by the com- pany and/or audit report (yes) (yes): the initiative may review the report made by the company and/or audit report (no): (no): the initiative reviews the process of the report made by the company and/or audit report but not the content. Alternatively, only a limited audit report, for example, a summary, is reviewed, or the compa- ny report is reviewed by an external assurance pro- vider 2) Initiative Sets Up Audit at Mine, Smelter, or Company the initiative contracts the auditor (no information on who is hired or how they are paid) 3) Independence of Audit an independent audit is defined here as a third-party audit, with an auditor-rotation system, and independent financing yes yes: if all three of these are yes (yes) (yes): if two of the criteria are reached with at least (yes) (no) (no): if one of the criteria is at least (yes) 3.1) Third-Party Audit yes yes: mandatory third-party audit for everyone (yes) (yes): the use of a third-party auditor is restricted 3.2) Auditor Rotation System yes yes: some kind of auditor-rotation system exists 3.3) Independent Financing yes yes: a multi-stakeholder group is in place to organize and finance the audit (yes) (yes): a multi-stakeholder group exists, but only organizes or finances the audit, or the initiative invoices the auditor instead of the company (no): (no): a possibility for more independent financing exists, for example, through the supply chain 4) Transparency of Report (audit report published) yes yes: the full audit report is published (yes) (yes): a summary or a shortened version of the report must be published 27

  28. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 5) Consideration of External and Independent Opinions (local populations—not just repre- sentative of the surrounding communities and NGOs) yes: yes: consideration is mandatory for all companies (yes) (yes): there is some restriction of what must be consid- ered or certain phrasing is vague 6) Permanent Grievance Mecha- nism40 yes yes: there is a permanent grievance mechanism and companies can be excluded if communities or other observers issue verified complaints of severe viola- tions (yes) (yes): there is a permanent grievance mechanism, but no possibility of exclusion no no: there is no permanent grievance mechanism 7) Grievance Mechanism Concern- ing the Audit yes yes: a grievance mechanism is in place (yes) (yes): grievance mechanism included in permanent griev- ance mechanism (no) (no): grievance mechanism is mentioned but not applied 8) Follow-Up of Corrective Action Plan/Control of Implementation of Proposed Improvements following confirmation of a company’s non-conformance, it is offered a Follow-Up Corrective Action Plan (CAP) that de- tails steps for mitigating risks and achieving compliance yes yes: a CAP is issued in every case of non-conformance 9) Sanctions for Non- Improvement yes yes: there is a possibility of excluding a company for non-improvement within an established timeline 10) Overall Credibility 10) Overall Credibility fully credible and transparent: there are considerable monitoring mechanisms in place to ensure transparency and credibility of implementation at least (yes) tion) or for 2 (approach organisation initiates audit); (yes) for 1 (report reviewed by approach organisa- at least (yes) (yes) for 3 (independent audit); yes yes for 4 (audit report published); yes yes for 5 (consideration of external and independent opin- ions); yes yes for 6 (permanent grievance mechanism); yes yes for 7 (grievance mechanism concerning audit); yes yes for 8 (follow-up of CAP/control of implementation); 40This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 28

  29. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH yes yes for 9 (sanctions) largely credible and transparent: there is a monitoring mechanism in place that provides a certain transparency and limited credibility of implementation at least (yes) tion) or 2 (approach organisation initiates audit); (yes) for 1 (report reviewed by approach organisa- at least (yes) (yes) for 3 (independent audit); at least (yes) (yes) for 4 (audit report published); at least (yes) ent opinions); (yes) for 5 (consideration of external and independ- at least (yes) (yes) for 6 (permanent grievance mechanism); at least (yes) (yes) for 7 (grievance mechanism concerning audit); at least yes tion); yes for 8 (follow-up of CAP/control of implementa- yes yes for 9 (sanctions) partly credible and transparent: there is a rudimental monitoring mechanism in place that lacks considerable credibility and transparency of implementation at least (no) (no) for 3 (independent audit); at least (yes) (yes) for 4 (audit report published); at least (yes) ent opinions); or for 7 (grievance mechanism concerning the audit); (yes) for 5 (consideration of external and independ- at least (yes) (yes) for 8 (follow-up of CAP) not credible or transparent: there is either highly insuffi- cient monitoring in place or none at all: any ratings be- low ‘partly credible’ 29

  30. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 4.3.3 Evaluation of Voluntary Approaches Regarding Credibility Table 7 Approaches at the Mine/Addressing Mining Companies Voluntary Principles on Security and Human rights Internatio- nal Council on Mining and Metals Global Reporting Initiative Inter- national Cyanide Manage- ment Code SA 8000 IRMA Year 2000 ICMM: 2001 1997 2005 1997 2016+ code of conduct code of conduct approach for reporting code of conduct Type of Initiative certification certification What is Expected? report report report report compliance report countries/ enterprises mining companies mining enterprises mining enterprises Type of User enterprise enterprises company required/ supply chain (optional) no audit required no audit required company Audit in Place/Focus of Audit company company 3–5 years, possibility of mid-cycle audits no Frequency of Audits41 none annually none 3 years information Report Reviewed by Standard Organisation Audit Initiated by Standard Organisation/Approach no no (yes) (yes) no no yes yes (no) (no) (yes) (yes) no no (yes) (yes) no no no no no no yes yes Independent Audit no no (no) (no) (no) (no) (yes) (yes) (no) (no) (no) (no) no no yes yes yes yes yes yes yes yes yes yes Third-Party Auditor no no no no no no yes yes no no no no Auditor-Rotation System no no no no no no no no no no no no Independent Financing Audit Report Published no no yes yes no no (yes) (yes) no no (yes) (yes) Consideration of External and Independent Opinions Permanent Grievance Mechanism42 Grievance Mechanism Concerning the Audit no no no no no no yes yes yes yes yes yes no no no no no no yes yes no no no no no no no no no no yes yes yes yes yes yes 41 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 42This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 30

  31. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Follow-Up of Corrective Action Plan Sanctions for Non- Improvement no no yes yes no no yes yes yes yes yes yes no no no no no no yes yes yes yes no no not credible or trans- parent not credible or trans- parent not credible or trans- parent largely credible and transparent not credible or trans- parent Overall Credibility Concerning Implementation partly credible 31

  32. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 8 Approaches concerning 3TG only Better Sourcing Program CTC Standards Certification Conflict-free gold mining iTSCi Responsible Minerals Initiative43 Year 2014/2015 2009/2011 2012 2008 2011 Type of Initiative certification standard standard programme standard What is Expected? no information report report report compliance mining enter- prise mining enter- prises smelter and refiners Type of User enterprise enterprises Audit in Place/Focus of Audit mine company company mine mine Frequency of Audits44 1-3 years 3 years 1-3 years no information 1-3 years Report Reviewed by Approach no no yes yes no no (yes) (yes) yes yes Audit initiated by Initiative yes yes yes yes no no yes yes yes yes Independent Audit (no) (no) (no) (no) (no) (no) (no) (no) (yes) (yes) yes yes yes yes yes yes (yes) (yes) yes yes Third-party Auditor no no no no no no no no yes yes Auditor Rotation System (no) (no)45 45 no no no no no no no no Independent Financing Audit report published (yes) (yes) (yes) (yes) no no (yes) (yes) (yes) (yes) Consideration of External and Independent Opinions Permanent Grievance Mecha- nism46 Grievance Mechanism Con- cerning the Audit Follow-Up of Corrective Action Plan Sanctions for Non- Improvement yes yes no no no no (yes) (yes) no no no info no info no no no no (yes) (yes) (yes) (yes) no no no no (no) (no) (yes) (yes) yes yes yes yes yes yes yes yes yes yes yes yes no no no no yes yes no no yes yes partly credible and transpar- ent not credible and transpar- ent not credible and transpar- ent partly credible and transpar- ent Overall credibility concern- ing implementation partly credible47 43 Formerly, Conflict Free Smelter Program. 44 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 45 Funded by the auditee except for the first audit 46This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 47 Within our grading scheme we did not include the frequency of audits. Consequently, following our grading scheme iTSCI obtains a partly credible. But an OECD study states that in 2016 only 5 audits for 159 members have been conducted. This does point to a rather weak management concerning the implementation. 32

  33. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 9 Approaches concerning more and/or other than 3TG minerals Respon- sible Alumini- um Standard Respon- sible Business Alliance48 Fairmined Gold Standard Respon- sible Gold Guidance (LBMA) Respon- sible Jewellery Council Fairtrade Gold Standard DMCC Code of Practice: 2009/2010; Chain of Custody Certifica- tion: 2012 2010-2013; 2013 Year 2012+ 2004 2014 2012 2012 Mandatory rules for all DMCC members certifica- tion code of conduct certifica- tion certifica- tion certifica- tion Type of Initiative standard compli- ance compli- ance What is Expected? report report report report report miners, refiners, retailers, traders, manu- factures refinery enter- prises Refinery enter- prises enter- prises enter- prises Type of User ASMOs ASMOs supply chain, company supply chain, company supply chain supply chain supply chain Audit Place/Focus of Audit company company One audit to become member, review of audit after 3 years, no public info about further audits annually, every three years if fully compliant no infor- mation 2 years or more Frequency of Audits49 3 years 1-3 years annually Audit Report Reviewed by Ap- proach yes yes yes yes yes yes yes yes yes yes no no no no Audit Initiated by Approach no no yes yes yes yes no no no no yes yes no no Independent Audit (no) (no) (no) (no) (no) (no) (no) (no) (no) (no) (no) (no) (no) (no) yes yes yes yes yes yes yes yes yes yes yes yes yes yes Third-party Auditor no no no no no no no no no no no no no no Auditor Rotation System no no (no) (no) (no) (no) no no no no (no) (no) no no Independent Financing Audit Report Published (yes) (yes) (yes) (yes) no no (yes) (yes) no no no no (yes) (yes) 48 Formerly, Electronic Industry Citizenship Coalition. 49 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 33

  34. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Consideration of External and Independent Opinions Permanent Grievance Mecha- nism51 Grievance Mechanism Concern- ing the Audit Follow-Up of Corrective Action Plan (no) (no)50 50 yes yes (yes) (yes) (yes) (yes) (yes) (yes) (yes) (yes) no no no no52 52 (yes) (yes) no no (yes) (yes) (yes) (yes) no no (yes) (yes) (yes) (yes)53 53 yes yes no no yes yes (yes) (yes) no no no no yes yes yes yes yes yes yes yes yes yes yes yes yes yes Sanctions for Non-Improvement yes yes yes yes no no yes yes yes yes no no (yes) (yes) partly credible and trans- parent partly credible and trans- parent not credi- ble and trans- parent partly credible and trans- parent not credi- ble and trans- parent not credi- ble and trans- parent not credi- ble and trans- parent Overall credibility concerning implementation 50 Recommended but not required. 51 This category was added after the review of our analysis by the initiatives; thus, it is the result of our assessment without a review by the initiatives. 52 The standard establishes measures to deal with third-party allegations but does not set a procedure for making such allegations. 53 E-mail adress on the website. 34

  35. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Table 10 Guidelines OECD Guidelines for MNE OECD Due Diligence Guidance Chinese Guidelines for Social Responsi- bility Chinese Due Diligence Guidance Year 1976, update 2011 2010 2014 2015 Type of Approach guideline guideline guideline guideline What is Expected? compliance compliance compliance report Type of User countries/enterprises enterprises enterprises enterprises supply chain, com- pany supply chain, com- pany Focus of Audit supply chain none Frequency of Audits annually none none no information Independent Audit (no) (no) (no) (no) no no (no) (no) (yes) (yes) yes yes no no yes yes Third-Party Auditor no no no no no no no no Auditor-Rotation System no no no no no no no no Independent Financing Audit Report Shall Be Published (yes) (yes) yes yes no no yes yes Consideration of External and Independent Opinions Grievance Mechanism Concern- ing the Audit no no yes yes no no no no no no yes yes no no yes yes These guidelines have to be treated differently than the initiatives above. This table only illustrates what the guidelines ask from com- panies specifically. It also shows that the guidelines are not always very specific about implementation and leave individual companies room for their own interpretations. Generally there is an absence of transparency when it comes to implementation, verification, and enforcement mechanisms. We see considerable need for improvement in several categories, for example: consideration of external and independent opinion, independence of audits, publication of full audit reports, grievance mechanisms between audits, and sanctions for non-improvement. In fact, none of the approaches or guidelines fully meets our criteria because they fail to demand sufficient monitoring and enforcement. Consequently, an interested public cannot judge whether risks are addressed by specific initia- tives, and it can be difficult for IT or other downstream companies to ensure that the minerals they buy do not contribute to human rights abuses or avoidable environmental damage. 35

  36. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 5 Overall Conclusion The first investigative report of the IT sector in 2008 marked the moment the IT sector began ac- cepting responsibility for ethical risks generated by its mineral supply chain. Ten years later, new legislation has been passed, and the number of voluntary approaches addressing the mineral supply chain has largely increased. Yet there continue to be reports about serious human rights violations and environmental destruction caused by the mining sector, and we can identify huge governance gaps. Another general finding is that new mandatory frameworks draw from voluntary approaches for the definition of risk or for the execution of due diligence, giving voluntary ap- proaches a new standard-setting power. Mandatory frameworks We can distinguish between frameworks that focus on mining-related issues and those that pur- sue more general approaches. The US Dodd-Frank Act (1502) and the EU regulation on responsible mineral sourcing are relatively new frameworks that focus on mineral supply chains and are the most far reaching in this regard, but both have considerable shortcomings. Only IT companies listed on the New York Stock Exchange are required to ensure that minerals sourced only from the Great Lakes region do not finance conflicts. Companies that bring in IT-products on the European market are not required to do DD, or are subject to any checks. Moreover, these frameworks fail to address numerous environmental, human rights, and social risks. We identified several more general pieces of legislation that could contribute to filling existing governance gaps. These include the EU Non-Financial Reporting Directive, the French Loi de Vigi- lance, the UK Modern Slavery Act, and the California Transparency in Supply Chains Act. All of these pursue different approaches to corporate accountability and deal with certain aspects rele- vant for the sourcing of minerals. However, except for the UK Modern Slavery Act and the California Transparency in Supply Chains Act, they are more general in wording and concerning the coverage of risks. This allows companies great discretion in terms of which risks to report or monitor. With- out even looking at the monitoring of implementation, we may conclude that there are considera- ble governance gaps concerning the ethical risks posed by mineral supply chains present in the IT sector. At the same time, the EU regulation on responsible mineral sourcing addresses European smelters and importers of primary materials. Thus, it may be easier for European downstream companies to source responsibly, in line with the international OECD standard, once the EU regulation on responsible mineral sourcing is properly implemented. One precondition is that due diligence is pursued by smelters and union importers. Currently, industry schemes are seen to play an im- portant role in this sense. However this study supports the view that this is insufficient and a due diligence practice cannot be based on industry schemes alone. Voluntary Approaches The recent boom in voluntary approaches is not merely product of the establishment of Dodd Frank Act and the EU regulation on responsible mineral sourcing. For some years now, a large number of voluntary approaches that address far more risks than do mandatory frameworks have emerged. While many approaches focus on specific issues, there are some that cover nearly all identified risks. However, there are considerable insufficiencies regarding the initiatives’ transpar- ency of implementation as well as their overall credibility. Consequently, neither an interested public nor downstream companies can be sure that environmental, human rights, and social risks addressed by the initiatives are actually being addressed by the certified company or member. 36

  37. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH None of the assessed initiatives or guidelines sufficiently met the criteria we developed concerning credibility. There is considerable room for improvement in several categories, for example: consid- eration of external and independent opinion, independence of audits, sanctions for non- improvement, publication of full audit reports, and grievance mechanisms between audits. When looking at the weaknesses of different voluntary initiatives’ monitoring mechanisms, it is evident that affiliation (membership or certification) with these initiatives does not alone serve as proof that minerals were sourced in a way that addressed ethical risks. As a result, legislation that draws upon voluntary approaches, like the EU regulation on responsible mineral sourcing must ensure that the EU Commission closely monitors these schemes and sets specify and high requirements before accrediting them. Moreover Member states and the Commission can never transfer their responsibility to regulate corporation and to ensure that they execute a proper due diligence to industry schemes. All in all, we must conclude that many ethical risks in the supply chain are not sufficiently addressed by current mandatory frameworks and voluntary approaches. Further Aspects That Need to Be Addressed Clearly, monitoring and enforcement are not the only critical issues involved in effective imple- mentation. Further categories that should be assessed are cost and burden-sharing along the supply chain. Current reports state that the certification costs are mainly absorbed by the miner. This may severely impact who can afford the certification and who cannot, which, in turn, may have a harmful effect on the livelihoods of artisanal miners. Additionally, our interviews have re- vealed that the risk of exclusion of important local experts from civil society at the extraction site is another important issue to consider in relation to implementation.54 Local experts can provide important knowledge about local dynamics and act as agents for peace. Their knowledge can be crucial for a successful due diligence practice. But often local dynamics resulting from conflict and corruption in the mining sector result in their exclusion from the important implementation pro- cess. Not accessible via desk research, understanding power relations is crucial for the success of implementation. More impact research at the extraction site is needed to better understand the relationship between transparency of results and the actual impact on the ground. An additional factor that can provide insides about the implementation practice and potential gaps between claims of the initiatives and the actual implementation is whether the initiatives proactively con- ducts additional spot checks of the mine side or supply chain as well as proactively considers independent sources of information like media reports, scientific studies and NGO reports. Conclusions Towards the Implementation of the EU Regulation on Responsible Mineral Sourcing As the EU regulation on responsible mineral sourcing, whose implementation is currently being concretised, is currently the most important mandatory framework regulating the mineral supply chain, we suggest a number of recommendations based on our assessment. Because there are many stakeholders in this implementation, we address our recommendations to the respective actors. EU Commission:  The lack of transparency and credibility of voluntary initiatives’ implementation of measures demonstrated in the present analysis, and considering reports of human rights abuses of 54 Gesine Ames, Ökomenischen Netzwerk Zentralafrika 37

  38. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH member companies in industry schemes underline what is stated in the OECD Guidelines Sec- tion 5, that it is crucial that the EU Commission does not consider the membership of smelters or any other company covered by the Regulation in current industry schemes alone as a means to comply with human rights due diligence. Whitelists of smelters and union importers foreseen within the EU regulation on responsible mineral sourcing that build on memberships within industry schemes alone will not enable for downstream industry to comply with human rights due diligence. Moreover they do not guarantee that the smelter/refineries in question is in fact responsible.  The EU Commission needs to execute proper and frequent checks of whitelisted individual smelters and union importers of primary minerals regarding their human rights due-diligence practices in order to ensure that they actually comply with the Regulation. This should be in addition to a standards review. The checks need to include spot checks and consider infor- mation provided by media, civil society organisations, and industry bodies.  The membership within an industry scheme may not be a requirement to be ranked as com- pliant with the regulation as due diligence is also possible to be executed without an industry scheme.  There is a need for a grievance mechanism based at the EU Commission for complaints re- garding the implementation, monitoring, and enforcement of industry schemes and whitelist- ed companies.  The EU Commission should establish high criteria for the monitoring and enforcement mech- anisms of industry schemes. These need to be at minimum aligned to the OECD Guidance OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas.  Considering the huge governance gap within the mineral supply chain of IT products and the exclusion of the companies placing IT products on the European market from the obligation to source responsibly, the downstream sector should be included in the mandatory frame of the EU regulation on responsible mineral sourcing. This would considerably broaden the lev- erage of the EU regulation and make IT companies accountable for financing specific con- flicts. Likewise, companies outside of the EU, such as Asian manufacturers, could be held ac- countable. This would increase the level playing field for EU companies. This should be taken up for review by the regulation scheduled for 2023. Until then, the EU Commission must im- plement the proposed measures to encourage the downstream sector to take responsibility for the sourcing of minerals. These include public procurement, transparency database and reporting tools.  Human rights due diligence is not the only solution in conflict areas. Accompanying measures as foreseen in the Joint Communication of the EU regulation on responsible mineral sourcing should empower civil society and implement mechanisms to ensure that local experts are in- cluded in the implementation process. Accompanying measures are needed for a longterm development strategy and to strengthen marginalised stakeholders on the ground. Industry-Schemes:  In order to increase the credibility of industry schemes, it is important that the initiatives’ requirements, at a minimum, align with the standards in the OECD Due Diligence Guidance; and that initiatives improve monitoring and enforcement mechanisms. Schemes should rely on audits only but proactively carry checks eg. spot checks of member companies’ due dili- gence practice and consider additional information provided by local NGO, media, scientific reports etc. 38

  39. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH IT-Industry:  The IT sector has become aware of the problems in its supply chain earlier than other sectors like, for example, the automobile sector, so it is slightly ahead of other sectors in its awareness of supply chain responsibility. Yet our assessment shows that existing voluntary initiatives that the IT sector currently depends on are only partly useful in addressing environmental, human rights, and social risks in the mineral supply chain. Consequently, IT companies should push for better monitoring and enforcement mechanism of these initiatives and moreover reduce the dependency on these schemes and conduct their own and additional due diligence of its supply chain. They should proactively engage with their supply chain. 39

  40. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 6 Annex Organisation/Approach Date of review Information reviewed by approach Guidelines OECD Guidelines for Multinational Enterprises (OECD Guidelines for MNE) No OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Due Diligence) 2016, no up- dates seen be- fore publishing No CCCMC (Guidelines for Social Responsibility in Outbound Mining Investments) 2016, no up- dates seen on the website before publish- ing No Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains 2016, no up- dates seen on the website before publish- ing No Approaches for mines Voluntary Principles on Security and Human Rights (Vol- untary Principles Security and HR) June 2017 Yes International Council on Mining and Metals (ICMM) June 2017 Yes Global Reporting Initiative (GRI) June 2017 Yes International Cyanide Management Code June 2017 Yes SA 8000 June 2017 Yes Initiative for Responsible Mining Assurance (IRMA) 2016 (version 2.0)/new version of standard expected by end of 2018 No 40

  41. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Approaches focusing on 3TG minerals Better Sourcing Programm 2016 No CTC Standards Certification June 2017 Yes Conflict-free gold mining June 2017, no changes ob- served since October 2012 No Responsible Minerals Initiative (former: Conflict Free Smel- ter Program) April 2018 No iTSCi April 2018 Information reviewed in June 2017, Up- date not re- viewed Approaches focusing on more or other than 3TG Fairtrade Gold June 2017 Yes Responsible Aluminium Standard (Aluminium Stewardship Initiative) June 2017 Yes Responsible Business Alliance (former Electronic Industry Citizenship Coalition) June 2017 Yes Fairmined June 2017 Yes LBMA Responsible Gold Guidance (LBMA) April 2018 No Responsible Jewellery Council April 2018 Review of in- formation in June 2017, Up- date of infor- mation not reviewed by approach DCCM April 2018 No 41

  42. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH 7Sources for The Approaches Organisation/Approach Better Sourcing Program Better Sourcing Program: "Powering ASM development and commerce", found at: https://bettersourcing.io/our-purpose/ last accessed on 07.05.2018 Rüttinger, L./ Scholl, C. (2016): "The Better Sourcing Program". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/better_sourcing_ Standard_final.pdf last accessed on 07.05.2018 Californian Transparency in Supply Chain Act State of California Department of Justice: "The California Transparency in Supply Chains Act", found at: https://oag.ca.gov/SB657 last accessed on 07.05.2018 CCCMC Guidelines for Social Responsibility in Outbound Mining Investments China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) (2014): "Guidelines for Social Responsibility in Outbound Mining Investments", found at: https://www.emm-network.org/wp con- tent/uploads/2015/03/Guidelines_for_Social_Responsibility_in_Outbound_Mining_Investments.p df last accessed on 07.05.2018 Emerging Market Multinationals Network for Sustainability: "Sustainable Mining in China", found at: https://www.emm-network.org/case_study/sustainable-mining-in-china/ last accessed on 07.05.2018 Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) (2015): "Chinese Due Diligence Guidance for Responsible Mineral Supply Chains", found at: http://www.cccmc.org.cn/docs/2016-05/20160503161408153738.pdf last accessed on 07.05.2018 Conflict-free gold mining World Gold Council (2012): "Conflict-Free Gold Standard", found at: https://www.gold.org/sites/default/files/documents/Conflict_Free_Gold_Standard_English.pdf last accessed on 07.05.2018 Rüttinger, L./Böckenholt, C./Griestop, L. (2015): "Conflict-Free Gold Standard". UmSoRess Steck- brief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_wgc_final.pdf last accessed on 07.05.2018 42

  43. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Conflict Free Smelter Program – Responsible Minerals Initiative Responsible Minerals Initiative (2017): "RMI Grievance and Complaints Mechanism", found at: http://www.conflictfreesourcing.org/media/docs/Grievance_Mechanism_10-March-2017_Web.pdf last accessed on 07.05.2018 Responsible Minerals Initiative: "Additional Minerals Training & Resources", found at: http://www.conflictfreesourcing.org/additional-training-and-resources/ last accessed on 07.05.2018 Responsible Minerals Initiative: "Responsible Minerals Assurance Process", found at: http://www.conflictfreesourcing.org/conflict-free-smelter-program/downstream-program/ last accessed on 07.05.2018 Rüttinger, L./Griestop, L. (2015): "Conflict-Free Smelter Program (CFSP)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_cfsp_final.pdf last accessed on 07.05.2018 Responsible Minerals Initiative: "Responsible Minerals Assurance Process", found at: http://www.conflictfreesourcing.org/conflict-free-smelter-program/audit-process-and-roles/ last accessed on 07.05.2018 Responsible Minerals Initiative: "Auditor Information", found at: http://www.responsiblemineralsinitiative.org/responsible-minerals-assurance-process/rmap- audit-firm-and-auditor-approval/ last accessed on 07.05.2018 Responsible Minerals Initiative: "Governance", found at: http://www.responsiblemineralsinitiative.org/about/governance/ last accessed on 07.05.2018 The Conflict-Free Sourcing Initiative (now: Responsible Minerals Initiative (RMI)) (2013): "Conflict- Free Smelter Program (CFSP). Supply Chain Transparency Smelter Audit Protocol for Tin and Tan- talum", found at: http://www.responsiblemineralsinitiative.org/media/docs/CFSI_CFSP_AuditProtocol_SnTa_ENG. pdf last accessed on 07.05.2018 Responsible Minerals Initiative: "Additional Minerals Training & Resources", found at: http://www.conflictfreesourcing.org/additional-training-and-resources/ last accessed on 07.05.2018 Responsible Minerals Initiative: "Corrective Action Plan (CAP)", found at: http://www.responsiblemineralsinitiative.org/media/docs/CFSP_CAP_2016.xlsx last accessed on 07.05.2018 Responsible Minerals Initiative (2013): "Conflict-Free Smelter Program (CFSP) Supply Chain Trans- parency Smelter Audit Protocol for Tin and Tantalum", found at: http://www.responsiblemineralsinitiative.org/media/docs/CFSI_CFSP_AuditProtocol_SnTa_ENG. pdf last accessed on 07.05.2018 Responsible Minerals Initiative (2012): "Conflict-Free Smelter Program Gold Supply Chain Trans- parency Smelter Audit Approach and Instruction", found at: http://www.responsiblemineralsinitiative.org/media/docs/CFSI_CFSP_StandardandInstruction_A u_ENG.pdf last accessed on 07.05.2018 Responsible Minerals Initiative (2017): "Audit Standards", found at: http://www.responsiblemineralsinitiative.org/standards-development/audit-standards/ last ac- 43

  44. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH cessed on 07.05.2018 Conflict Free Tin Initiative Jorns, A./Chishugi A., with contributions by Cook, R. and Levin E. (2015): "Assessment of Impacts of Closed-Pipe Supply Chains in DRC Public-Private Alliance for Responsible Minerals Trade", found at: http://www.resolv.org/site-ppa/files/2015/08/FinalReport- ELLClosedPipeAssessment_20150818.pdf last accessed on 07.05.2018 CTC Standards Certification Blore, Shawn with contributions from BGR: Dorner, U./Gebauer, H./Franken, G./Melcher, F./Schütte, P./Leckebusch, V (2011): "Implementing Certified Trading Chains (CTC) in Rwanda". Bundesanstalt für Geowissenschaften und Rohstoffe (BGR), found at: https://www.bgr.bund.de/EN/Themen/Min_rohstoffe/CTC/Downloads/CTC- Abschlussbericht.pdf?__blob=publicationFile&v=5 last accessed on 07.05.2018 Mining Ministry, Kinshasa – Gombe, DR Congo (2011): "Manual For The Certification Of Ores In The Gold Industry In The Democratic Republic Of The Congo - Principles, Guidelines And Standards". Hannover, found at: https://www.bgr.bund.de/EN/Themen/Min_rohstoffe/CTC/Downloads/kongo_manual_gold_en.p df?__blob=publicationFile&v=8 last accessed on 07.05.2018 DMCC Rules for Risk Based Due Diligence in the Gold and Precious Metals Supply Chain DMCC (2017): "Rules for Risk Based Due Diligence in the Gold and Precious Metals Supply Chain, Version 1.1" found at: https://www.dmcc.ae/application/files/8815/1254/6517/DMCC_Rules_RBD_GPM_-_CL_- _27_Nov_2017.pdf last accessed on 07.05.2018 EU Non-Financial Reporting Directive Rüttinger, L./Griestop, L. (2015): "EU Bilanz- und Transparenzrichtlinie". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_eu_bilanz-_und_transparenzrichtlinie_final.pdf last accessed on 07.05.2018 EU Regulation on Responsible Sourcing EU-Kommission (2014) “Proposal for a Regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict affected and high-risk areas.Commission Staff Working Document Impact Assessment.” {COM(2014) 111} {SWD(2014) 52}”.found at: http://trade.ec.europa.eu/doclib/docs/2014/march/tradoc_152229.pdf last accessed on 07.05.2018 Global Witness et al. (2018) “Civil Society Note on Implementation on EU- Responsibly Minerals Sourcing Regulation” found at. https://www.globalwitness.org/en-gb/campaigns/conflict-minerals/conflict-minerals-shaping-eu- policy/ last accessed on 07.05.2018 44

  45. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Flohr, Annegret (2014) „Vertane Chance. Warum die EU-Regulierung nicht freiwillig bleiben darf“ HSK-Standpunkt Nr.2. Frankfurt.: https://www.hsfk.de/fileadmin/HSFK/hsfk_downloads/standpunkt0214.pdf Fairmined The Alliance for Responsible Mining Foundation (2014): "Fairmined Standard For Gold From Arti- sanal And Small-Scale Mining, Including Associated Precious Metals", found at: http://www.responsiblemines.org/images/sampledata/EstandarFairmined/Fairmined%20Stnd%2 02%200_2014_.pdf last accessed on 07.05.2018 The Alliance for Responsible Mining Foundation (2016): Fairmined assurance system For Fairmined Authorized Suppliers and Fairmined Licensees, found at: http://www.fairmined.org/wp- content/uploads/2017/07/Fairmined-assurance-system-doc.pdf last accessed on 07.05.2018 IMO (2014): "IMO I 4.5.3. G-e Appeals and Complaints Procedures", found at: http://www.fairmined.org/wp-content/uploads/2017/06/IMO-I-4.5.3-G-e-Appeals-and-Complaints- Procedures-v08.pdf Rüttinger, L./Böckenholt, C./Griestop, L. (2015): "Fairtrade Standard for Gold and Associated Pre- cious Metals for Artisanal and Small-Scale Mining und Fairmined Standard for Gold from Artisanal and Small-Scale Mining, Including Associated Precious Metals". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_fmft_final.pdf last accessed on 07.05.2018 Fairtrade Gold Fairtrade international (2013): "Fairtrade Standard for Gold and Associated Precious Metals for Artisanal and Small-Scale Mining", found at: https://www.fairtrade- deutsch- land.de/fileadmin/DE/04_aktiv_werden/Aktuelle_Kampagnen/Traut_euch/Standard_gold_precio us_metals_2015.pdf last accessed on 07.05.2018 Fairtrade international (2015): "Fairtrade-Gold", found at: https://www.fairtrade- deutschland.de/fileadmin/DE/mediathek/pdf/fairtrade_gold_factsheet.pdf last accessed on 07.05.2018 Rüttinger, L./Böckenholt, C./ Griestop, L. (2015): "Fairtrade Standard for Gold and Associated Pre- cious Metals for Artisanal and Small-Scale Mining und Fairmined Standard for Gold from Artisanal and Small-Scale Mining, Including Associated Precious Metals". UmSoRess Steckbrief. Berlin: Adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_fmft_final.pdf last accessed on 07.05.2018 French Loi de Vigilance ECCJ (2017) “The French Duty of Vigilance Law - Frequently Asked Ques-tions“. http://corporatejustice.org/documents/publications/french-corporate-duty-of-vigilance-law- 45

  46. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH faq.pdf Kusch, Johanna und Valeske, Josephina (2018) “Unternehmen haftbar machen”. Found at: http://germanwatch.org/de/download/21378.pdf last accessed on 07.05.2018 Global Reporting Initiative The GRI Standards are available at: https://www.globalreporting.org/standards/gri-standards- download-center last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Heidegger, J. (2015): "Global Reporting Initiative (GRI)". UmSoRess Steck- brief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_gri_final.pdf last accessed on 07.05.2018 Health in Mines Convention ILO C176/R183 ILO (1995): "C176 - Safety and Health in Mines Convention, 1995 (No. 176)" found at: http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C176 last accessed on 07.05.2018 Rüttinger, L./Böckenholt, C./Griestop, L. (2015): "ILO Safety and Health in Mines Convention (C176) und Recommendation (R183), 1995". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_ilo176_finales_dokument.pdf last accessed on 07.05.2018 ILO Indigenous and Tribal People Convention 169 ILO Konvention 169 Koordinierungskreis: "Das ILO-Übereinkommen 169", found at: http://www.ilo169.de/konvention-169 last accessed on 07.05.2018 International Conference on the Great Lakes Region Regional Certification Mechanism ICGLR Regional Certification Mechanism (RCM): "Certification Manual" found at: http://www.oecd.org/investment/mne/49111368.pdf last accessed on 07.05.2018 Rüttinger, L./Heidegger, J./Griestop, L. (2015): UmSoRess Steckbrief zum Regional Certification Mechanism. Berlin: adephi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_rcm_final.pdf last accessed on 07.05.2018 International Council on Mining and Metals ICMM (2017): "Position statement on water stewardship", found at: https://www.icmm.com/water- ps last accessed on 07.05.2018 ICMM (2009): "Human Rights in the Mining & Metal Industry: Handling and Resolving Local Level Concerns and Grievances", found at: https://www.icmm.com/en-gb/publications/mining-and- communities/human-rights-in-the-mining-metals-sector---handling-and-resolving-local-level- concerns-grievances last accessed on 07.05.2018 46

  47. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH ICMM (2015): "Sustainable Development Framework: ICMM Principles", found at: https://www.icmm.com/website/publications/pdfs/commitments/2015_icmm-principles.pdf last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Heidegger, J. (2015): "International Council on Mining and Metals (ICMM)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_icmm_final_aktualisiert.pdf last accessed on 07.05.2018 International Cyanide Management Code International Cyanide Management Institute (2016): "The International Cyanide Management Code", found at: https://www.cyanidecode.org/sites/default/files/pdf/18_CyanideCode12- 2016.pdf last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Heidegger, J. (2015): "International Cyanide Management Code (ICMC). UmSoRess Steckbrief". Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_icmc_final.pdf last accessed on 07.05.2018 IRMA IRMA (2014): "Standard for Responsible Mining Draft v1.0", found at: http://www.responsiblemining.net/images/uploads/IRMA_Standard_Draft_v1.0(07-14).pdf last accessed on 07.05.2018 Rüttinger, L./Scholl, C./Böckenholt, C. (2015): "Initiative for Responsible Mining Assurance (IRMA)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_steckbr ief_irma_final.pdf last accessed on 07.05.2018 iTSCi iTSCi (2016): "iTSCi joint industry traceability and due diligence programme", found at: https://www.itri.co.uk/index.php?option=com_mtree&task=att_download&link_id=55411&cf_id=2 4 last accessed on 07.05.2018 iTSCi (2014): "Whistleblowing Policy", found at: https://www.tanb.org/images/iTSCi%20Whistleblowing%20Procedure_v1%20FINAL(1).pdf last accessed on 07.05.2018 iTSCi: "Summaries of incidents reports", found at: http://www.itsci.org/incident-summaries- public/ last accessed on 07.05.2018 iTSCi: "Summarized audit reports", found at: http://www.itsci.org/company-audits-public/ last accessed on 07.05.2018 iTSCi: "The iTSCi audit process", found at: https://www.oecd.org/investment/investmentfordevelopment/49104382.pdf last accessed on 07.05.2018 47

  48. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Nimmo, K./Burt, R. (2012): „iTSCi: contributing to minerals traceability and due diligence in Central Africa”, OECD Learning Session, found at: https://www.oecd.org/investment/investmentfordevelopment/50473045.pdf last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Heidegger, J. (2015): "ITRI Tin Supply Chain Initiative (iTSCi)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_itsci_final.pdfOECD (2018) “Alignment Assessment of Industry Programmes with the OECD Minerals Guidance”. found: http://mneguidelines.oecd.org/Alignment-assessment-of-industry- programmes-with-the-OECD-minerals-guidance.pdf last accessed on 07.05.2018 London Bullion Market Association Responsible Gold Guidance (LBMA) LBMA (2015): "LBMA Responsible Gold Guidance", found at: http://www.lbma.org.uk/assets/market/gdl/RGG%20v6.0%20201508014.pdf last accessed on 07.05.2018 Rüttinger, L./Böckenholt, C./Griestop, L. (2015): "LBMA Responsible Gold Guidance". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_steckbr ief_lbma_rgg_final.pdf last accessed on 07.05.2018 LBMA (2017): "LBMA Responsible Gold Guidance", found at: http://www.lbma.org.uk/assets/downloads/responsible%20sourcing/Responsible_Gold_Guidanc e_V7.pdf last accessed on 07.05.2018 LBMA (2017): "Third Party Audit Guidance", found at: http://www.lbma.org.uk/assets/downloads/responsible%20sourcing/LBMA_Third_Party_Audit_G uidance_Gold.pdf last accessed on 07.05.2018 Minamata Convention on Mercury Wittmer, D. (2015): "Übereinkommen von Minamata über Quecksilber". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_minamata_final.pdf last accessed on 07.05.2018 OECD Due Diligence OECD (2016): "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Con- flict-Affected and High-Risk Areas". Third Edition, OECD Publishing, Paris, found at: http://dx.doi.org/10.1787/9789264252479-en last accessed on 07.05.2018 Rüttinger, L./Wittmer, D./Scholl, C./Bach, A. (2015): "OECD-Leitsätze für multinationale Unterneh- men, OECD-Leitlinien für die Erfüllung der Sorgfaltspflicht zur Förderung verantwortungsvoller Lieferketten für Mineralien aus Konflikt- und Hochrisikogebieten". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/steckbrief_oecd_f inal.pdf last accessed on 07.05.2018 48

  49. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH OECD MNE OECD (2011): "OECD Guidelines for Multinational Enterprises". OECD Publishing, found at: http://dx.doi.org/10.1787/9789264115415-en last accessed on 07.05.2018 Rüttinger, L/Wittmer, D./Scholl, C./Bach, A. (2015): "OECD-Leitsätze für multinationale Unterneh- men, OECD-Leitlinien für die Erfüllung der Sorgfaltspflicht zur Förderung verantwortungsvoller Lieferketten für Mineralienaus Konflikt- und Hochrisikogebieten". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/steckbrief_oecd_f inal.pdf last accessed on 07.05.2018 Responsible Aluminium Standard / Aluminium Stewardship Initiative Aluminium Stewardship Initiative (2017): "ASI Performance Standard", found at: https://aluminium-stewardship.org/download/63860/ last accessed on 07.05.2018 Aluminium Stewardship Initiative (2017): "ASI Assurance Manual", found at: https://aluminium- stewardship.org/download/63868/ last accessed on 07.05.2018 Aluminium Stewardship Initiative (2017): "ASI Chain of Custody", found at: https://aluminium- stewardship.org/download/63864/ last accessed on 07.05.2018 Rüttinger, L./Scholl, C./Griestop, L/Böckenholt, C. (2015): "Aluminium Stewardship Initiative". Um- SoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_asi_finales_dokument.pdf last accessed on 07.05.2018 Responsible Business Alliance (formerly: Electronic Industry Citizenship Coalition) EICC (2016): "Code of Conduct 5.1", found at: http://www.eiccoalition.org/media/docs/EICCCodeofConduct5_1_English.pdf last accessed on 07.05.2018 RBA: "Validated Assessment Process", found at: http://www.eiccoalition.org/Standards/vap/ last accessed on 07.05.2018 RBA (2017): "RBA Auditor Guidebook", found at: http://www.eiccoalition.org/media/docs/EICCAuditorGuidebook.pdf last accessed on 07.05.2018 Responsible Jewellery Council Responsible Jewellery Council (2018): "Code of Practices Review, Round 2 Public Consultation, Comment period 16 April – 1 July 2018", found at https://www.responsiblejewellery.com/files/RJC- Code-of-Practices-proposed-changes-Round-2.pdf last accessed on 07.05.2018 Responsible Jewellery Council (2017): "Chain of Custody Standard", found at: https://www.responsiblejewellery.com/chain-of-custody-certification/chain-of-custody- certification-2017/ last accessed on 07.05.2018 Responsible Jewellery Council (2013): "Code of Practices", found at: https://www.responsiblejewellery.com/files/RJC_Code_of_Practices_2013_V.2_eng.pdf?dl=0 last accessed on 07.05.2018 49

  50. Governance of Mineral Supply Chains of Electronic Devices GERMANWATCH Responsible Jewellery Council (2012): "Complaints Mechanism", found at: https://www.responsiblejewellery.com/files/T007_2012_RJC_Complaints_Mechanism_v2.pdf last accessed on 07.05.2018 Responsible Jewellery Council (2018): "Assessment Manual", found at: https://www.responsiblejewellery.com/files/RJC_Assessment_Manual_2018_v1.pdf last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Böckenholt C. (2015): "Responsible Jewellery Council (RJC)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_rjc_final.pdf last accessed on 07.05.2018 SA 8000 Social Accountability International (2014): "Social Accountability 8000", found at: http://www.sa- intl.org/_data/global/files/SA8000Standard2014(3).pdf last accessed on 07.05.2018 Solutions for Hope Solutions for Hope: "‘Solutions for Hope’ Tantalum Project Offers Solutions and Brings Hope to the People of the DRC", found at: http://solutions-network.org/site-sfhtantalum/ last accessed on 07.05.2018 Rüttinger, L./Heidegger, J./Griestop, L. (2015): "Solutions for Hope Project (SfH)". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_steckbr ief_sfh_finale_version.pdf UK Modern Slavery Act, Sec.54 The National Archives: "Modern Slavery Act 2015" found at: http://www.legislation.gov.uk/ukpga/2015/30/section/54/enacted last accessed on 07.05.2018 Kusch, Johanna und Valeske, Josephina (2018) “Unternehmen haftbar machen”. Found at: http://germanwatch.org/de/download/21378.pdf last accessed on 07.05.2018 Voluntary Principles on Security and Human Rights Voluntary Principles on Security and Human Rights (2000): "What Are The Voluntary Principles?", found at: http://www.voluntaryprinciples.org/what-are-the-voluntary-principles/ last accessed on 07.05.2018 Rüttinger, L./Griestop, L./Böckenholt, C. (2015): "Die freiwilligen Grundsätze zur Wahrung der Si- cherheit und Menschenrechte". UmSoRess Steckbrief. Berlin: adelphi, found at: https://www.umweltbundesamt.de/sites/default/files/medien/378/dokumente/umsoress_kurzste ckbrief_voluntary_principles_finales_dokument.pdf last accessed on 07.05.2018 50