The Government Accountability Office published a report earlier this month that found the Securities and Exchange Commission’s 2012 rule requiring companies to disclose their use of conflict minerals has not reduced violence in the Democratic Republic of the Congo.
From the report highlights on What GAO Found:
The rule requires certain companies to file reports on their use of tantalum, tin, tungsten, and gold, which are mined in the DRC. GAO found no empirical evidence that the rule has decreased the occurrence or level of violence in the eastern DRC, where many mines and armed groups are located. GAO also found the rule was associated with a spread of violence, particularly around informal, small-scale gold mining sites. This may be partly because armed groups have increasingly fought for control of gold mines since gold is more portable and less traceable than the other three minerals. Further, GAO found that the number of violent events in the adjoining countries did not change in response to the SEC rule. …
The number of companies filing conflict minerals disclosures in 2023 increased for the first time since 2014, but many companies continued to report being unable to determine their minerals' origins. Companies comply with the SEC rule by submitting a disclosure describing their “reasonable country-of-origin inquiries” about the origin of conflict minerals in their products. In certain circumstances, companies must then conduct due diligence to determine their conflict minerals' source and custody. In 2023, an estimated 63 percent of companies made preliminary determinations, based on their inquiries, about their conflict minerals' origins. Of those that then performed due diligence, an estimated 62 percent reported being unable to determine the minerals' source.
And in the section Most Companies Used Standard Tools and Programs in 2023 to Support Due Diligence Efforts, but Limitations Persisted:
To collect information about the presence and source of conflict minerals in their products, some companies survey the suppliers in the downstream portion of their supply chains. According to our analysis, an estimated 95 percent of companies reported surveying suppliers. Among companies that reported using a supplier survey, 93 percent indicated using the Conflict Minerals Reporting Template.