Various consumer products such as mobile phones, DVD players and computers include a component made from columbite-tantalite, commonly known as Coltan. But sourcing of the mineral can often be a contributor to human rights atrocities and cause detrimental environmental impacts.
Conflict minerals
Coltan, as well as other minerals such as tin, tungsten and gold, are often sourced from The Democratic Republic of Congo (DRC). Revenues from the mining of Coltan and other so-called conflict minerals in the DRC, have been used to fuel an extremely violent civil conflict there. The ongoing tension, mainly located in the eastern part of the country, began in the late 1990’s and has claimed millions of lives. Although mining may be essential for the DRC’s economy, some mines are controlled by militant groups that are responsible for serious human rights abuses, cause violence over control and taxation of mineral resources, oversee child and forced labour, as well as deforestation.
What’s being done about it
Following the increasing public attention in the last decade, some electronics manufacturers stopped sourcing Coltan or products containing Coltan from the DRC.
Various new regulations have been introduced. One such example is in the United States, which requires all companies listed on stock-exchanges in the US to report on the use of conflict minerals from the DRC and neighbouring conflict regions. The new regulation has resulted in a de facto boycott of the region, but also in increased poverty and it has not reduced the conflict.
Electronic industry representatives, such as the Electronic Industry Citizen Coalition (EICC) in collaboration with the Global e-Sustainability Initiatives (GeSI), have accelerated a joint development of the Conflict-Free Smelter Program (CFS). This programme has an independent third party evaluate a smelter’s procurement activities to determine if materials originated from conflict-free sources. Local non-governmental organisations, civil society, governments as well as industry representatives have welcomed the programme.
What Triodos Bank thinks
Triodos acknowledges the CFS as a serious and broadly supported programme that will help companies to source conflict-free minerals. It is considered current best practice with regard to conflict minerals. Although it is still in its infancy, the CFS provides a level playing field for different stakeholders to tackle the problem in a constructive way. Triodos Bank is closely following the initiative and anticipates that it will evolve because it is not yet a waterproof guarantee for conflict free minerals due to smuggling out of the Eastern DRC and the Great Lakes Region (GLR).
Companies that ban conflict minerals from their supply chain by using the results of the CFS programme or that totally ban sourcing from the DRC or GLR meet Triodos requirements on this issue as they improve traceability of minerals and ensure that raw materials used are not contributing to the conflict.
Industry leaders, such as Nokia and STMicroelectronics that were all part of the CFS process from the beginning are selected for inclusion in the Triodos Sustainable Investment Universe.
Note: The issues explored in this article are relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.