COVID-19 and Conflict Minerals
We have been following this year’s conflict minerals filings to determine whether reporting companies have highlighted any impact of the COVID-19 shut-downs on their conflict minerals due diligence measures or results.
Based on our review of the 320 filings through May 27, 2020, 14 conflict minerals reports included references to “COVID-19,” “coronavirus” and/or the “pandemic. Four more reports mentioned “COVID-19” or “coronavirus” in their forward looking statements disclaimers. One report included a reference to the COVID-19 pandemic in the attached independent private sector audit letter. Of the 14 references included in the conflict minerals reports, 11 said that COVID-19 negatively impacted suppliers’ response rates or responsiveness, two indicated that their due diligence steps taken were limited by impacts of the COVID-19 pandemic on their businesses, and one explained that some Responsible Minerals Initiative audits of smelters and refiners were restricted by the COVID-19 outbreak. All of these references were included in the conflict minerals reports, and none were included in the Form SDs themselves.
Whether stated in the filings or not, the disclosures included in the conflict minerals reports for calendar year 2019 will, of course, be viewed against the backdrop of the COVID-19 pandemic and its effects on business and operations during the first five months of 2020.