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Source 44 Guarantees Compliance with New Conflict Mineral Rules
August 23rd, 2012
Source 44, a company specializing in supply chain sustainability data services, announced a new partnership with WNC Insurance Services to guarantee and monetarily insure that a company’s supply chain is free of conflict minerals, in compliance with new SEC rulings.
The SEC this week approved new guidelines to the Dodd-Frank Consumer Protection Act that require public companies to disclose their reliance on minerals mined in the Democratic Republic of Congo. According to The Washington Post, militias in the African nation have benefited from the trade of gold, tin, tungsten and tantalum, which are commonly used in the manufacture of appliances, jewelry, electronics and other consumer goods.
Source 44’s technology platform simplifies the process of tracing potential sources of conflict minerals throughout a supply chain. This Conflict Minerals Program provides companies impacted by the DFA insurance for supply chains – insuring the integrity of the data being presented by suppliers and certifying that they are in fact conflict-free.
“WNC, a Lloyd’s of London coverholder, will underwrite and provide conflict-free supply chain insurance as part of Source 44’s solution to those companies who utilize Source 44 to trace and document their supply chains,” Carl L. Herrmann III, Chief Executive Officer of WNC said.
The Conflict-Free Source 44 Guarantee will likely appeal to CEOs who are now required to approve their companies’ conflict mineral disclosure reports that will be submitted to the SEC. The guarantee gives corporations the confidence and knowledge to rest assured that their corporate brand is protected, Source 44 said. In addition, Source 44 said it is capable of leverage its supplier industry data to find ways to drive down costs during the due diligence process.
“As a Company, you buy insurance policies to mitigate potential risk in all aspects of your business.” Jess Kraus, President and CEO of Source 44 said, “Supply chain risk is no different. As the dust settles and diligence begins, companies will start to see the positive impact Dodd-Frank Section 1502 will have on the larger purpose of supply chain transparency and business performance. Insuring that your supply chain is conflict free is not just the right thing to do from a social responsibility perspective, it’s smart business.”
During the 2012 Sustainable Brands conference in San Diego a panel of industry executives and NGOs discussed ways to drive a “Revolution in Conflict-Free Minerals.” Presentation slides available here.
@Bart_King is a freelance writer and communications consultant.