Conflict Minerals Compliance

Welcome to the PTC Conflict Minerals Resource Center

The Conflict Minerals rule is the latest in an ever expanding list of material focused government regulations that are driving new customer requirements and supply chain concerns. Keeping current with the increasing pace of change in regulations, product designs, and suppliers, while ensuring that deadlines are met and costs are reduced is an enormous challenge.

Assess Risk, Collect Supplier Data, and Accurately Report to SEC

The United States Dodd-Frank Act, Section 1502, is landmark legislation that requires manufacturing companies to understand and disclose the use of minerals mined in or around the war-torn region of the Democratic Republic of the Congo (DRC).

Companies listed on the U.S. stock market have until May 31, 2014 to make their first disclosure about whether the minerals they use are “conflict free.” And companies not directly regulated by the SEC will be impacted too as audit requirements are pushed down through the entire supply chain including privately-held and international companies.

  • Introduction
  • Expert Perspectives
  • Solution Overview
  • Customer Success
  • News

What You Need to Do

NACD BoardVision: Compliance and Conflict Minerals

In this video, Motorola Mobility, Ernst & Young, and PTC discuss the best practices for Conflict Minerals compliance.

Watch the video ›

The United States Dodd Frank Act, Section 1502, requires manufacturing companies to identify and disclose to the U.S. Securities and Exchange Commission (SEC) the source of 3TG minerals (tin, tantalum, tungsten and gold) used in their products when those minerals originate from or around the war-torn region of the Democratic Republic of the Congo (DRC).

The five critical requirements of the conflict minerals reporting process are:

  1. Determine Applicability - Do products and parts contain 3TG minerals?
  2. Perform RCOI - Determine if the country of origin of the 3TG minerals is in the DRC region
  3. Conduct Due Diligence - For 3TG minerals sourced from the DRC region, conduct due diligence over the chain of custody
  4. Determine Status – Assess supplier, part and product level conflict mineral status
  5. Report – Fulfill SEC and customer reporting requirements

How PTC Can Help

PTC provides the technology solutions and best practices expertise to address these requirements, enabling manufacturers to easily identify and report on any 3TG minerals in their supply chain.

The conflict minerals reporting deadline of May, 2014 is rapidly approaching. Our solution, the PTC Conflict Minerals Module, can be quickly configured and implemented to address your immediate reporting needs, enabling your organization to:

  • Identify the presence of 3TG in parts, products and supply chain
  • Automate the collection and validation of reasonable country of origin inquires (RCOI)
  • Systematically perform due diligence and determine the source of 3TGs from the DRC
  • Assess and report on conflict minerals status of parts, products and suppliers
  • Provide evidence of due diligence and a data-rich audit trail

In addition to these immediate reporting benefits, the PTC solution also enables your organization to integrate conflict free initiatives with critically impacted product development processes, such as new part introduction, supplier authorizations and change requests.

Contact PTC to find out how the PTC Conflict Minerals Module can be quickly and easily implemented to help you reduce reporting costs, protect revenue and mitigate brand risk.

The impact of Section 1502 of the 2010 Dodd-Frank Act will be felt across a wide range of industries. What can your organization do to prepare? And, what are the challenges and opportunities that this regulation presents for your supply chain strategy and overall brand image? As auditors and manufacturers alike prepare for the first wave of Conflict Minerals submissions to the SEC, some early key findings and best practices are emerging.

The CIMdata Analyst Commentary “Conflict Minerals: The Tipping Point for Compliance?” outlines the need for a holistic materials compliance strategy that will meet current requirements and scale to address future regulations. In this commentary, CIMdata reviews SEC requirements, the role of technology in supporting Conflict Minerals compliance, and the leading solutions available in today’s market. Read the full report.

The National Association of Manufacturers (NAM) has posted an instructional template for companies that must submit a Form SD and a Conflict Minerals Report (CMR) to the SEC. The NAM template provides an outline of how each document should be organized, along with generic language that companies can customize to match the details of their own Conflict Minerals compliance program. View the Form SD and CMR template.

The Enough Project and Responsible Sourcing Network—two of the primary NGOs working on the challenge of responsible sourcing in the DRC region—jointly published a paper titled “Expectations for Companies’ Conflict Minerals Reporting” in September, 2013. The paper provides a detailed set of recommendations and measurements to guide manufacturers as they develop their conflict minerals filings for 2014. Read the full report.

The IDC Manufacturing Insights paper — “Taking a Technology-Based Approach to Meeting Changing Compliance Requirements”—answers five key questions with expert recommendations, to help your company establish a cost-effective compliance program that will address conflict minerals and scale to meet future requirements. Read the full report.

  • "The link between compliance and product strategy is very important and points to all activities associated with designing, sourcing, making, and delivering products."
  • "Ultimately, any investments that a company will make in compliance resources are less about the resulting report and more about ensuring the necessary transparency into the making of the products."
  • "Overall, IDC believes that a technology-based approach provides a way to address what's most important to the business — managing risk, protecting brand reputation, and bringing successful products to market."

Regulatory experts from the law firm Hunton & Williams review the possible outcomes of the U.S. Court of Appeals review of the Conflict Minerals rule in this recorded webcast from February, 2014. The legal presentation is then followed by PTC’s recommended best practices for manufacturers and 15 minutes of audience Q&A. View the webcast.

The ChainLink Research white paper “Turning Conflict Minerals Law Compliance into a Competitive Advantage” provides a holistic strategy that will enable discrete manufacturers to address the Conflict Minerals Rule requirements and build the organizational capabilities to efficiently respond to future regulatory challenges. Read the full report.

Pricewaterhouse Coopers (PwC) published its findings on the readiness of companies for the May 2014 filing deadline, and the anticipated challenges, in "Conflict minerals survey – How Companies are preparing." Read the full report.

PwC also provides information about the rules and their insights into ways in which companies are addressing the associated compliance requirement in “10 Minutes on Conflict Minerals.” Read the full report.

KPMG outlines the need for an auditable technology solution as part of the overall methodology, in “Dodd-Frank Act Conflict Minerals (Section 1502).” Read the full report.

Additionally, KPMG outlines the high-level governance structure that companies will need for the compliance process and highlights the obstacles to achieving supply chain transparency in "Conflict minerals and beyond - Part one: Developing a global compliance strategy." Read the full report.

Ernst & Young provides an in-depth review of the disclosure process for Conflict Minerals, and addresses some of the questions that have been answered in more recent SEC rulings, in “Conflict Minerals: New Rules and Next Steps.” Read the full report.

Deloitte addresses an extensive list of Conflict Minerals FAQs, and describes the best practices for achieving compliance, in “Conflict Minerals: understanding compliance challenges.” Read the full report.

IPC – Association Connecting Electronics Industries presents industry research on the estimated resource requirements and workload for compliance, in “Comments on SEC Proposed Rule on Conflict Minerals.” Read the full report.

Green Research presents research findings on the estimate costs, best practices, and potential business advantages associated with conflict minerals compliance in “The Costs and Benefits of Dodd-Frank Section 1502.” The key findings of the report are available here. You can also receive the full report by contacting Green Research.

How PTC’s Industry Leading Solutions Help

View a Detailed Demo Followed by Live Q&A!

Is your company exploring ways to overcome the challenges associated with Conflict Minerals compliance? Learn how PTC’s technology solutions can help you to reduce your risk and efficiently manage a holistic program for materials compliance!

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For over a decade, PTC’s dynamic solutions have enabled world leading manufacturers to holistically manage material, part, product and supplier compliance with numerous government regulations including, Conflict Minerals, Reach, ROHS and many others. To drive business value well beyond just minimizing the cost of compliance, our solutions are fully integrated into critically impacted product development processes.

Key Benefits

  • Ensure compliance - A holistic platform with fully automated and systematic processes helps manufacturers efficiently comply with today’s numerous, evolving regulations
  • Reduce reporting costs – Cutting-edge capabilities enable manufacturers to quickly extract and re-use relevant information for government and customer reporting requirements, dramatically reducing time and resources required
  • Protect revenue streams - Integrates into product development processes so that compliance issues can be identified and resolved before they become costly problems

The PTC Materials Compliance solution is a single system that integrates with multiple product lifecycle management (PLM) and enterprise resource planning (ERP) systems for the most complete visibility into part, material and supplier information.

Motorola's Innovative Approach to Conflict Minerals Management and Reporting

Best practice policies, a leading technology solution, and a strong philosophy of corporate responsibility come together in one forward-thinking strategy.

Motorola Mobility is setting a powerful example for other leading organizations by treating Conflict Minerals as more than a single compliance issue.

The exercise of developing a Conflict Minerals reporting framework for 2014 and beyond is a critical element of Motorola Mobility’s long-term supply chain strategy. This leading manufacturer is automating and streamlining its Conflict Minerals management program, using technology solutions from PTC. This will ensure that the company has a documented audit trail for its Conflict Minerals filings with the SEC, and a solid reporting system for future regulatory requirements.

Motorola Mobility has also made Conflict Minerals a component of its Corporate Responsibility platform, participating in two industry workgroups and a pilot program with AVX Corporation that aim to address the issue of Conflict Minerals and help support economic sustainability for the Democratic Republic of Congo and its neighboring countries.

Motorola Taps Product Compliance Capability for Conflict Minerals

In this eBook, the independent research team at Tech-Clarity, Inc. profiles Motorola’s holistic strategy for product compliance. Motorola approaches Conflict Minerals as a program, not a project, combining strong policies and a philosophy of social responsibility with the strategies for supplier data collection that the company has leveraged so well for other product regulations like REACH, RoHS, and WEEE. Download the eBook.

Conflict Minerals Management.

Best Practices and Proven Strategies for Compliance. In this recorded presentation, Motorola Mobility outlines its forward-thinking approach to the Conflict Minerals law and other compliance challenges, followed by an informative Q&A session. View the webcast now.

The Conflict Minerals issue is complex and rapidly evolving. Whenever possible, PTC will share its constantly growing knowledge base—derived from client engagements and active involvement in industry studies and working groups—through published commentaries, interviews, and presentations.


Companies Need to Step Up to Meet New Conflict Minerals Reporting Rule

Robert Bowman provides an overview of the Conflict Minerals law, highlighting the expected costs and other challenges that face manufacturers, with commentary by Howard Heppelmann of PTC and other industry experts. Read the article.

The Wall Street Journal

Conflict Mineral Deadline Looms for Electronics Makers

Joel Schectman interviews Bill Olson of Motorola Mobility and Howard Heppelmann of PTC about the challenges posed by the Conflict Minerals law. Mr. Schectman reports that many companies are not adequately prepared to deal with this obligation, while other are turning to supply chain management software to manage their compliance programs. Read the article.

NACD Directorship

Conflict Minerals: Scaling Your Program for 2015

A holistic compliance strategy that will scale from this year to 2015 and beyond will free up resources and capital that can  be used to improve corporate performance, product portfolio, and market position. In this Director Advisory for the National Association of Corporate Directors, Howard Heppelmann describes the practical considerations and specific benefits associated with such an approach. Read the article.

Manufacturing Leadership Journal

Keeping ‘Conflict Minerals’ Out of the Supply Chain

In this article, Howard Heppelmann, GM of Supply Chain Management, provides a detailed overview of the Conflict Minerals law and best practices for compliance, before describing how and why manufacturers can leverage this challenge to enhance their product strategies and achieve a competitive advantage. Read the article.