Automotive Companies Respond to SEC Conflict Minerals Rule as First Deadline Approaches
Automotive manufacturers and suppliers are facing near-term compliance deadlines as conflict minerals reporting requirements put into law Section 1502 of the Dodd-Frank Act. The rule requires public companies to publicly disclose whether the sourcing of conflict minerals in their products benefited armed groups responsible for human rights violations. Some businesses view the rule as a compliance exercise, while others view it as an opportunity to strengthen their supply chains and brands.
According to a recent PwC survey, “Conflict minerals survey,” 42 percent of respondents have started to develop or already have an agreed-upon conflict minerals policy, while one-third of respondents have not yet discussed developing one. Thirty-one (31) percent of respondents indicated that one of the greatest challenges to achieving conflict minerals compliance will be obtaining accurate and complete information from relevant suppliers. In addition, 33 percent of respondents are willing to consider opportunities to enhance supply chain in the process of compliance, mostly provided that the incremental costs are low.
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Kristin McCallum RitterGlobal&US AutoSector Mkt. Dir.United Stateskristin.email@example.com 313 394 6349