Brussels, 27/02/2014 (Agence Europe) - The members of the European Parliament take the view that the EU's future rules to stem imports of minerals from conflict zones should bind all players in the supply chain by OECD due diligence standards.
Shortly ahead of next week's presentation of the Commission's legislative draft aiming to ensure that the exploitation and trade by European players in minerals from conflict-affected zones and high-risk areas do not go to fund conflict, the European Parliament argued in favour of binding rules, in a resolution drafted by Judith Sargentini (Greens/EFA, Netherlands) and adopted on 26 January.
The text argues the case for a European regulation obliging companies which use or trade in minerals or other natural resources from conflict-affected or high-risk areas to “show due diligence” in line with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, in addition to the revisions of the transparency and accounting directives on the disclosure of financial and non-financial information of large companies, as well as the provisions of the American Dodd-Frank Act.
This legislation should “create a legally binding obligation” for all upstream companies (those which use or trade natural resources from conflict-affected and high-risk areas) and all downstream companies (those which act as the first placer on the European market) in the supply chain to “undertake supply chain due diligence to identify and mitigate the risk of conflict financing and human rights abuse”.
It should be based on the relevant international instruments, apply to all segments of the supply chain and to all natural resources, without exception, and be founded on a risk-based approach, requiring companies to assess actual and potential adverse impacts arising from their operations and to mitigate the identified risks. It should also include an obligation for regular independent audits and public disclosure of company due diligence efforts, as well as a sanctions mechanism for cases of non-compliance with the risk-based supply chain due diligence obligations.
“MEPs have today delivered a clear and timely message on the need for robust binding EU rules to tackle the problem of conflict minerals (…). We hope that [the Commission] will heed today's vote and bring forward the strongest possible legislation. Voluntary projects will not do the trick; we need binding rules covering a comprehensive list of natural resources and not just a narrow list of minerals”, Sargentini said on Wednesday.
Leaks at the beginning of the month suggest that the Commission was only able to present a voluntary regime covering tantalum, tungsten, tin and gold, based on a certification system demonstrating that the minerals imported into the EU did not come from a conflict-affected area, which would be extended to conflict regions other than sub-Saharan Africa alone (see EUROPE 10915). (EH)