The issue

HP requires its suppliers to conduct their worldwide operations in a manner that respects labor and human rights, including sourcing minerals that do not directly or indirectly finance armed groups. (See the HP Supplier Code of Conduct .) We have, therefore, been deeply concerned by human rights violations related to the trade in minerals from conflict zones in the Democratic Republic of Congo (DRC).

The "conflict minerals" of concern are those used to produce tantalum, tin, tungsten, and gold. Global supplies of these metals come from many sources, including mines in the DRC, which are estimated to provide approximately 18% of global tantalum production, 4% of tin, 3% of tungsten, and 2% of gold.1 Some of the mines in the DRC are controlled by militias responsible for atrocities that have been committed in that country's decades-long civil war. The background of the Congolese conflict is complicated and its resolution requires action on multiple fronts—but it's clear that promoting legitimate trade in minerals in the region can help.

HP’s engagement with

nongovernmental organizations

HP collaborates with stakeholder and nongovernmental organizations (NGOs) to understand their perspectives and to work towards ending the link between minerals trade and the funding of armed conflict.
For example, HP was one of a select group of corporations to join socially responsible investment (SRI) organizations and NGOs in providing recommendations to the U.S. Securities and Exchange Commission (SEC) regarding rulemaking in this area. (See Influencing policy and legislation below.)

“As one of the key organizers of the multi-stakeholder comments on conflict minerals submitted to the SEC, I can say that it was valuable having HP involved in the process. HP was genuine and pragmatic in our consensus negotiations, and was realistic about what can actually be implemented by electronics companies while striving to do the most possible to ensure armed groups are not benefiting from mineral sales.”

Patricia Jurewicz
director, Responsible Sourcing Network (RSN)

HP also received recognition for its efforts within the industry to address the DRC conflict minerals issue from Enough, a campaign project of the NGO, Center for American Progress, to end genocide and crimes against humanity. Founded in 2007, Enough focuses on crises in Sudan, eastern Congo, and areas of Africa affected by the Lord’s Resistance Army. In its 2010 report, Getting to Conflict-Free: Assessing Corporate Action on Conflict Minerals,  Enough credits HP with being the leader in the electronics sector.

Why HP is involved

Tantalum, tin, tungsten, and gold are used to varying degrees in components commonly found in electronic products,2 although all are used extensively by other industries as well. Perhaps the most significant is tantalum, as more than half of its consumption relates to capacitors for electrical equipment. Tin is also used extensively, primarily in solder (which represents about a third of total tin use across all industries).

The minerals supply chain is long, complex, and involves several layers: from mining, through in-country traders and exporters, to smelters, refiners/metal exchanges/alloy producers, and finally to component and other manufacturers (see graphic). The smelter is a critical control point, because it is the stage where minerals from many sources are processed to produce a refined metal.  

Illustration of global tin supply chain*

Illustration of global tin supply chain

  • * The supply chain varies significantly for each of the minerals/metals discussed in this section. This graphic is designed to illustrate the complexity of the tin supply chain and the relative number of the types of organizations involved, but not to provide precise information. Approximately 20% of the world's production of tin comes from recycled and scrap sources. This is not represented in this graphic.

The vast majority of refined metals used in HP products are sourced by companies within our multi-tier supply chain, typically several stages removed from HP. We are setting clear expectations with our suppliers regarding DRC conflict-free mineral sourcing, as described in our Supply Chain Social and Environmental Responsibility Policy. 

HP's leadership

Our approach to establishing validated DRC conflict-free sources of these metals has four components:

  • Tracing the metal to the source
  • Developing a conflict-free smelter validation program
  • Establishing an in-region mineral certification system
  • Influencing policy and legislation

Tracing the metal to the source

HP was instrumental in establishing the Electronic Industry Citizenship Coalition (EICC) -Global e-Sustainability Initiative (GeSI)  Extractives Work Group in 2007 and has helped to develop the common industry supplier survey tool supplier survey tool as a part of a sub-team of the work group. HP and the industry are using the tool to obtain the names of smelters used and information about how this requirement is communicated to sub-tier suppliers. We have made progress in identifying smelters in our supply chain and are working to pinpoint the mines that supply each smelter.

Developing a conflict-free smelter validation program

Through the EICC-GeSI Extractives Work Group, we have helped to develop stakeholder-approved audit protocols for smelters, and have visited smelters to gain a better understanding of their operations. HP was one of four companies on the Extractives Work Group Executive Audit Review Committee charged with reviewing audit results. Through March 2011, the audit team has audited 14 facilities for tantalum and is currently facilitating an external review of the tin audit protocol. (See www.eicc.info/extractives.htm .) As DRC conflict-free smelters are validated through this program, HP plans to direct our suppliers to use these smelters.

Perspective: Dikembe Mutombo

Dikembe Mutombo, the chairman and president of the Dikembe Mutombo Foundation, shares his thoughts about what steps are most critical in halting the conflict mineral trade, and how HP can help. Read what he has to say.

Establishing an in-region mineral certification system

Conflict-free smelters require access to DRC conflict-free minerals. HP has provided leadership in three distinct efforts to advance responsible sourcing of minerals from the DRC region.

  • Contributing financial and in-kind support to ITRI, formerly the International Tin Research Institute, and the Tin Supply Chain Initiative (iTSCi), aimed at developing a system to trace minerals between the mine and smelter.
  • Participating in the EICC-GeSI In-Region Sourcing panel which engages government, NGOs, and industry to advance due-diligence, transparency, and certification initiatives in the DRC. In 2010, this body communicated the urgent need for an in-region mineral certification system to the International Conference on the Great Lakes Region (ICGLR).
  • Developing a concept paper for a public-private partnership convening relevant stakeholders to advance a credible, market-driven, locally and internationally supported mineral development program in the African Great Lakes region. The mineral development operation would respect human rights and adhere to environmental principles, operate legally, and benefit people and communities as a path to peaceful economic development.

Dodd-Frank Wall Street Reform

and Consumer Protection Act

In the United States, new legislation is calling attention to the issue of DRC conflict minerals and requiring action by corporations to conduct and disclose due diligence on the source of these minerals used in products. The SEC has responsibility for administering Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law requires due diligence with respect to the sourcing of columbite-tantalite, cassiterite, wolframite, gold, or their derivatives, including a determination as to whether trade in these minerals directly or indirectly finances or benefits armed groups in the DRC or adjoining countries. Publicly traded companies must conduct due-diligence measures to determine the source of these minerals in their products, and must disclose a description of their due-diligence measures and findings if they source conflict minerals from the DRC or an adjoining country (or if they are unable to determine the source of the minerals they use). HP fully supports this legislation.

Influencing Policy and Legislation

Progress on addressing the DRC conflict minerals issue also requires appropriate regulatory frameworks, and HP has been a leader in this area. We supported the objectives and passing of recent U.S. legislation, the Dodd-Frank Wall Street Reform and Consumer Protection Act (see sidebar). We also contributed to the Organisation for Economic Co-operation Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, endorsed by the United Nations and ICGLR, and referenced by the SEC's proposed rule.

 

 

 

 

 

 

 

 

  1. 1 Gold usage from   http://minerals.usgs.gov/minerals/pubs/commodity/gold/myb1-2008-gold.pdf , tin usage from http://minerals.usgs.gov/minerals/pubs/commodity/tin/myb1-2008-tin.pdf , tantalum usage from   http://minerals.usgs.gov/minerals/pubs/commodity/niobium/mcs-2010-tanta.pdf , and tungsten usage from table 5 in   http://minerals.usgs.gov/minerals/pubs/commodity/tungsten/myb1-2008-tungs.pdf .
  2. 2 HP has taken steps to research and better understand the locations and quantities of these metals used in our products. We estimate that the average HP 2 kg notebook contains approximately 0.6g of tantalum, 10g of tin, 0.00009g tungsten, and 0.3g of gold.