Conflict Minerals Disclosure: A Progress Report

It's been about a year since the Securities and Exchange Commission began imposing its rule on the disclosure of conflict materials from the Democratic Republic of Congo in manufactured products. Are companies up to speed? Mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the rule applies to tin, tantalum, tungsten and gold sourced from mines in the DRC that are controlled by armed gangs. Companies are now required to reveal the presence of those commodities in their products, despite the difficulties of making that assessment in complex, multi-tier supply chains. On this episode, we speak with Paul Noel, senior vice president of procurement solutions with Ivalua, a vendor of software for procurement and spend management, about how far global businesses have come in complying with the rule. Noel also provides advice on what they must do to fall into line. While the rule lacks teeth – there are no monetary penalties for non-compliance – it nevertheless poses a substantial challenge to global supply chains. And it could get tougher in years to come. Consider it ''fair warning,'' says Noel.