Conflict Minerals Supply Chain Workshop IX

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1 Conflict Minerals Supply Chain Workshop IX Philadelphia, PA April 11 and 12 Photo by Jay Celorie

2 Conflict Minerals Supply Chain Workshop IX Welcome Philadelphia, PA Mike Loch, Motorola Solutions, GeSI Bob Leet, Intel, EICC April 11, 2012

3 GeSI Members (As of 6 January 2012)

4 EICC Members As of 27 February 2012

5 Extractives WG Partners ( As of February 1, 2012 )

6 GeSI and EICC Conflict-Free Sourcing Approach Finished Product MINE SMELTER/REFINERY OEMS In-Region Schemes Conflict Free Smelter Program (CFS) Company Assurance

7 2011 Extractives WG Achievements Delivered 11 CFS-compliant Tantalum Smelters Built out the Conflict Free Smelter website with indicators and content Released all four audit protocols for Tantalum, Gold, Tungsten and Tin Held two successful, Conflict Minerals Supply Chain conferences Entered EICC & GeSI into OCED Due Diligence Guidance pilot, and are thus far successfully shaping the pilot for useful results Commissioned a conformance analysis of the CFS relative to the OECD Guidance and the itsci bag/tag scheme (the in-region sourcing scheme) Assisted developing the Public-Private Alliance, and drove awareness and emphasis to EICC, GeSI and companies leading to a huge initial investment (US $800k) Expanded the Extractives WG membership towards multi-sector, attracted 3 partner industry associations, and 4 new non-member companies Kicked off work to develop the self-sustaining governance model Due Diligence survey of members and partners Member/Partner smelter list consolidation process developed

8 2012 Extractives Workgroup Goals 1. Institutionalize the Conflict-Free Smelter (CFS) Program a. Continue the CFS program rollout to producers of all four conflict metals (tantalum, tin, tungsten, and gold) b. Continue to enhance and improve the CFS website and overall process 2. Develop a common industry approach to support the disclosure and due diligence expectations of the U.S. SEC1, OECD2 and UN3; consider other models as they are developed a. Participate in the OECD Due Diligence Guidance Pilot project b. Continue improvement, proliferation, and standardization of the Conflict Minerals Reporting Template tool 3. Begin development and implementation of a self-sustaining, multi-industry Conflict-free Mineral Supply Chain program

9 2012 Extractives Workgroup Goals cont. 4. Support the implementation of a verifiable traceability scheme for the DRC and neighboring countries for conflict-free minerals a. Support programs related to the Public Private Alliance for Responsible Minerals Trade, such as itsci, ICGLR Certification, BGR Certified Trading Chains, Solutions for Hope, etc. b. Engage stakeholders regarding the sourcing efforts in the DRC and neighboring countries (e.g. nongovernmental organizations, governments, and other industry sectors) c. Drive convergence and harmonization of in-region traceability schemes 5. Build and maintain strong relationships and increase transparency and efficiency to enhance credibility in the Extractives Work Group activities a. Communicate with stakeholders on our positions and initiatives related to metals derived from conflict minerals b. Encourage multi-industry and multi-stakeholder support for responsible sourcing in the DRC and neighboring countries for conflict-free minerals c. Continue to communicate to interested government entities on the progress of our initiatives

10 Options for Extractives Workgroup Participation EICC or GeSI Membership Full Membership provides access to all WGs ( ) ( ) EICC & GeSI Non-Member WG Participation ( ) $5K fee annually No voting rights, or access to general membership meetings Extractives WG and sub-wg activities participation and info EICC & GeSI Partner Association ( ) $20K fee annually Up to two participants per Workgroup or Task Force responsible for disseminating all information

11 GeSI and EICC Conflict-Free Sourcing Approach Finished Product MINE SMELTER/REFINERY OEMS In-Region Schemes Conflict Free Smelter Program (CFS) Company Assurance