Asia Society Policy Institute

Guidelines for companies involved in mineral supply chains.

Offers specific guidance to help identify, prevent, and mitigate risks that could contribute to conflict, severe human rights violations, and serious misconduct.

Mineral Companies should: 

• Adopt and clearly communicate to suppliers and the public the company’s policies for activities tied to conflict-affected and high-risk areas. 

Mineral Companies should: 

• Categorize risks for due diligence according to the China Chamber of Commerce of Metals, Minerals, and Chemicals Importers & Exporters (CCCMC) risk categories.
  • Type 1 risks contribute to conflict and serious human rights abuses in conflict-affected and high-risk areas.
  • Type 2 risks include risks that involve serious misconduct in environmental, social, and ethical issues.
• Utilize the Organisation for Economic Co-operation and Development’s (OECD) 5-STEP due diligence framework.
  • Establish strong company risk management systems.
  • Identify and assess risk in supply chains.
  • Design and implement strategies to respond to risks.
  • Carry out independent third-party audits at choke points in supply chains.
  • Report on the process and results.
  • Incorporate the standards against which due diligence is to be conducted into their policies. 
• Engage with suppliers to identify risks and confirm basic source information of materials and potential warning signs in supply chains. 
  • For downstream companies, use best-faith efforts to identify key upstream actors.
• Devise and implement risk management plans to respond to identified risks. 
• Publicly report on supply chain due diligence policies and practices, including identified risks and mitigation measures.