The International Tin Supply Chain Initiative or ITSCI plays a crucial role in responsible mineral sourcing. ITSCI ensures that minerals sourced from conflict-affected and high-risk areas or CAHRAs needs to align with ethical requirements. The Organization for Economic Cooperation and Development or OECD has set recommendations for responsible sourcing. ITSCI’s OECD Alignment Assessment Report evaluates how well the ITSCI program aligns with these standards. This blog explores the details of the record, highlighting its significance, methodology, findings, and implications for the future of responsible mineral sourcing.
The Recognition Process Of RMI For ITSCI’s Report:
On 8 June 2023, the RMI obtained ITSCI’s OECD Alignment Assessment Report with the request for recognition. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas affords a complete framework for organizations to evaluate the risks of their supply chains. It outlines a 5-steps:
- Establish strong enterprise control structures.
- Identify and check risks in the delivery chain.
- Design and implement a strategy to respond to recognized risks.
- Implementation of third-party audits and annual report for supply chain due diligence.
The RMI will review the reports and share the outcomes per the prescribed timelines. The RMI will also share these updates to help the auditors and smelters in the Responsible Minerals Assurance Program (RMAP) ensure they are aware of the upcoming implications and schedules.
ITSCI Application Status:
As the RMI waits for ITSCI to respond to the recognition terms sent in September, the additional information to inform supply chain participants and stakeholders affected by ITSCI’s RMI recognition status and responsible sourcing in the African Great Lakes Region needs to be shared for the 2024’s RMAP assessments.
The RMI knows the effects of uncertainty in the ITSCI recognition process and has repeatedly tried to reduce these effects by giving smelters extra time and transition periods over the past two years. RMI is worried about more delays in this process over the last six months and wants a clear solution so that supply chain actors can plan for the following year.
However, the following are the highlights concerning ITSCI recognition status from RMI:
- The RMI will keep supporting smelters affected by ITSCI’s recognition status.
- Between July and September, the RMI shared the full terms of recognition with ITSCI and made many efforts to get a response. However, ITSCI has not approved or disapproved the terms or offered the required time for a response.
- The RMI’s recognition terms are based on ITSCI alignment assessment results, the other OECD publications, January 2023 RMI-ITSCI agreement, material and reputational risk factors.
The ITSCI’s OECD Alignment Assessment Report marks a critical step forward in pursuing responsible mineral sourcing. As stakeholders eagerly await the ITSCI decision to recognize this report, the industry faces a pivotal moment. The outcomes will influence the transparency and credibility of mineral supply chains and shape future strategies in conflict-affected and high-risk areas. As we navigate these deliberations, it’s clear that continued collaboration and adherence to international standards are essential. Hence, to uphold these guidelines, partner with Sunstream for conflict mineral compliance for a sustainable and ethical global mineral trade ecosystem.