We have established an executive steering committee, led by our vice president of supply
chain management, and supported by subject matter experts from operations, supply chain management, finance and legal, to oversee the due diligence process. We have established a centralized database and document repository of supplier responses in
support of our due diligence measures.
Due to the complexity of our supply chain, we utilized a risk-based approach that focused on our
major suppliers. Suppliers identified through this risk-based approach represented approximately 94% of our purchases of raw materials and components in 2023, compared to approximately 90% in 2022.
We requested that these suppliers provide information to us regarding their 3TG and corresponding smelters and refiners using the template
developed by the Responsible Minerals Initiative (RMI), known as the Conflict Minerals Reporting Template (the Template). The Template is designed to facilitate disclosure of information regarding smelters and refiners that
provide material to a manufacturers supply chain, and it includes questions regarding a direct suppliers conflict-free policy, due diligence process, and supply chain, including the names and locations of smelters and refiners as well as
the origin of 3TG used by those facilities.
We received responses from approximately 60% of the surveyed suppliers in 2023 and 59% in
2022. We reviewed the responses received from these suppliers for completeness and worked with them in an effort to obtain revised responses where information initially provided was incomplete. We also communicated with unresponsive suppliers to
encourage them to provide us with the requested information.
As discussed above, we do not have direct relationships with smelters or
refiners, and we do not perform direct audits of these entities supply chains. However, we support the development and implementation of independent third party audits of smelters and refiners sourcing, such as the RMIs
Responsible Minerals Assurance Process.
We intend to continuously improve our due diligence process to further mitigate risks by
(i) increasing the number of suppliers requested to provide us with 3TG information, (ii) engaging with suppliers and directing them to information and training resources in an attempt to increase the response rate and improve the content
of supplier responses, and (iii) working with relevant trade associations to define best practices and encourage responsible sourcing of 3TG.
Based on the due diligence described in this Report, we do not have sufficient information regarding the smelters and refiners that processed
the necessary 3TG in the covered products to determine whether the 3TG originated in the Democratic Republic of the Congo or adjoining countries or came from recycled or scrap sources, or to determine the countries of origin of that 3TG or the
facilities used to process that 3TG. Our efforts to determine the mine or location of origin of the 3TG in the covered products consisted of the due diligence measures described in this Report, including our efforts to seek information from
suppliers using the RMIs Template.
This Report is publicly available at
http://phx.corporate-ir.net/phoenix.zhtml?c=70735&p=irol-sec