On Aug. 22, 2012, the final rule regarding sourcing of conflict minerals under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was approved by the U.S. Securities and Exchange Commission (SEC). The rule requires companies such as Garmin that are listed on U.S. stock exchanges to make reasonable inquiries, and depending on the circumstances, undertake further due diligence to try to determine the source and chain of custody of conflict minerals that may be used in their products, and to publicly report on an annual basis whether any such conflict minerals originate and finance armed groups in the Democratic Republic of the Congo (DRC) or adjoining countries. The conflict minerals are tin, tantalum, tungsten and gold (also known as 3TG). Although Garmin does not directly purchase any minerals from its suppliers, Garmin purchases component parts from its suppliers that could include 3TG derived from mines in the DRC or adjoining countries.
Taking Social Responsibility
Garmin supports an industry-wide approach to addressing social responsibility issues throughout the supply chain. As part of this approach, Garmin is a paying and active member of the Electronic Industry Citizenship Coalition (EICC). Garmin collaborates with others in industry through its participation in the Conflict Free Sourcing Initiative (CFSI), which evolved from the EICC-Global e-Sustainability Initiative (EICC-GeSI).
The CFSI is an industry-wide initiative to develop control systems regarding smelters and refiners through independently validated audits under CFSI’s Conflict-Free Smelter Program (CFSP). Through the CFSP, the CFSI identifies smelters and refiners that produce conflict-free materials. In order to confirm that status, CFSI uses specially trained independent third-party auditors to verify that these smelters and refiners can be deemed conflict-free. CFSI publishes online a list of smelters and refiners that meet the standards of the audit. In addition, CFSI developed the Conflict Minerals Reporting Template (CMRT) to standardize the collection of conflict minerals information from suppliers throughout the industry’s supply chains.
Garmin is sending the CMRT to our suppliers and asking them to provide information regarding the smelters/refineries in their supply chains. In addition, we are incorporating in our standard supplier contracts and our supplier guidelines provisions that require our suppliers to adopt a policy on the responsible sourcing of minerals; implement due diligence processes to support that policy; and complete and return the CMRT to Garmin.
Copies of our conflict minerals reports may be found in the left sidebar.
Our Expectations for Suppliers
Specifically, Garmin expects each of our suppliers to do all of the following:
- Adopt a policy of responsible sourcing of minerals and pass this requirement through its supply chain;
- Implement due diligence processes and mitigation plans to support that policy;
- Comply with our Supplier Code of Conduct;
- Utilize the Garmin Conflict Minerals Training Program to train and instruct their applicable employees
- Source materials from socially responsible suppliers; and
- Complete and return to us the CMRT in a timely manner and provide us all other information we may request regarding the sourcing of minerals in products supplied to Garmin.
Conflict Minerals Policy
The Conflict Minerals Policy from Garmin is incorporated into our Supplier Code of Conduct which is provided to our suppliers and which articulates our commitment to ethical business principles, promotes human rights and environmental protection.
Garmin is committed to the principles of the Universal Declaration of Human Rights and United Nations' Global Compact and we expect our suppliers and business partners to share these values. In line with this principle, Garmin expects suppliers to source materials only from socially and environmentally responsible sources. Garmin complies with applicable laws and participates in industry initiatives to support human rights and to mitigate the risk that 3TG used in our products contribute to conflict in the DRC or adjoining countries.
Our senior management reviews material impacts of its suppliers. If Garmin becomes aware of a supplier who is not in compliance with the supplier expectations set forth in this policy, then we will follow our escalation process and take the appropriate actions to remedy the situation, including possible discontinuance of the supplier relationship.
Suppliers and other external parties are encouraged to contact their regular sourcing channel or Garmin representative if they wish to seek guidance on the application of this approach or if they wish to report suspected abuse. Suppliers, other external stakeholders and employees may also report problems or concerns to the Garmin conflict minerals team and chief compliance officer by emailing firstname.lastname@example.org or by mail to Chief Compliance Officer, Garmin Ltd., Mühlentalstrasse 2, CH-8200, Switzerland.