BDI and Oeko-Institut present suggestions for the management of conflict minerals
The Federation of German Industries (BDI) and Oeko-Institut are jointly looking for solutions for how policy and companies in Europe can effectively tackle the problem of the conflict financing of resources such as gold, tantalum, tungsten and tin. Last Tuesday the President of the BDI, Ulrich Grillo, delivered the study commissioned by the BDI and carried out by Oeko-Institut to the EU Commissioner for Trade, Karel De Gucht, in Brussels.
Creating transparency about the origin of raw materials
“Based on the suggested options for action we, as industry, want to develop solutions jointly with the EU Commission to curb conflict financing in the Democratic Republic of the Congo and to improve the situation for the local population,” says Grillo. The BDI President pressed the Commission to take a “European approach”, which learns from the experiences made in the USA with Section 1502 of the Dodd-Frank Act. Since 2010 the Dodd-Frank Act has required all companies traded and listed on the US-American stock exchange market to disclose information on the origin of certain raw materials.
“Transparency is by all means useful,” says Andreas Manhart, author of the study. At least as important, however, is the responsible engagement of industry on the ground. “It is necessary, therefore, to strike a balance between the two approaches. Imposing extensive reporting requirements on the manufacturers of final products such as cars and aeroplanes doesn’t automatically bring about improvements for the people in the Congo,” says Manhart.
Policy and industry must promote responsible mining practices in a targeted manner
Oeko-Institut’s study arrives at the conclusion that the need to provide proof of compliance with the avoidance of conflict minerals often has undesirable side effects. The simplest option for meeting these requirements is to shun use of all raw materials from the region. “Boycotts are also a big problem for legal mining – which, alongside farming, often provides the only jobs for local people,” says Manhart. “European policy and industry should therefore be systematically promoting legal and responsible mining in the Congo instead of banning the use of materials from conflict-affected areas.”
Contact at Oeko-Institut:
Andreas Manhart
Researcher
Sustainable Products & Material Flows Division
Oeko-Institut, Freiburg head office
Phone: ++49 89 12590077
Email: a.manhart@oeko.de
Contact at BDI:
Alexander Mihm
Press and Public RelationBundesverband der Deutschen Industrie e.V.
Phone.: ++49 30 2028-1450
E-Mail: a.mihm@bdi.eu
Oeko-Institut is a leading independent European research and consultancy institute working for a sustainable future. Founded in 1977, the institute develops principles and strategies for ways in which the vision of sustainable development can be realised globally, nationally and locally. It has offices in three cities in Germany: Freiburg, Darmstadt and Berlin.
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