AIAG Update and OHCL Activities Overview
A
I
A
G
U
p
d
a
t
e
B
.
B
.
B
a
n
e
y
A
p
r
i
l
2
0
1
5
A
g
e
n
d
a
•
AIAG Chemical Management & Reporting Overview (OHCL)
–
Subgroups
–
2014 activities
–
2015 plans
•
AIAG Conflict Minerals Overview
–
Subgroups
–
Conflict Minerals Cross-Industry Benchmark Report
–
Due Diligence Framework
–
Smelter or Refiner (SOR) Engagement Process
–
Smelter Engagement Teams
–
2014 Company Survey on Reporting Challenges
–
2015 plans
AIAG Board Companies
Caterpillar
Dana
Delphi
Denso
Eaton
Federal Mogul
Fiat Chrysler
Ford
Freudenberg-NOK
General Motors
Honda
IBM
Infor
JCI
Magna
Nissan
Robert Bosch LLC
Specialty Products
Toyota
TRW Automotive
3
O
H
C
L
S
u
b
g
r
o
u
p
s
&
2
0
1
4
A
c
t
i
v
i
t
i
e
s
•
Recommendation and Documentation
–
Main interface with IMDS Steering Committee on:
•
IMDS Recommendations
•
New IMDS business design input & testing
–
New co-chairs
•
Chris Harden, RJS
•
Scott Morris, Honda
•
Supports REACH TF efforts
•
Supports AIAG Conflict Minerals Workgroup
4
O
H
C
L
2
0
1
4
A
c
c
o
m
p
l
i
s
h
m
e
n
t
s
•
Interface with IMDS Steering Committee to maintain,
improve reporting processes, tools and related
customer feedback, while helping NA users
•
Rec & Doc subgroup evaluated, tested, and provided
valuable support for IMDS 9.0 release
•
The Globally Harmonized System (GHS) project team
progressed well
•
Held successful 2014
IMDS & Product Chemical
Compliance Conference
5
O
H
C
L
F
u
t
u
r
e
T
a
s
k
s
&
F
o
c
u
s
•
Support model office testing and feedback for IMDS
10.0 business design
•
Support Supplier Alliance activities
•
Understand and enhance awareness/communication
of NA new regulations, timing, & impact
•
Enhance communications between members and
other industrial organizations, e.g. CLEPA, REACH TF,
JAMA, KAMA, JAPIA, ACEA
6
C
o
n
f
l
i
c
t
M
i
n
e
r
a
l
s
S
u
b
g
r
o
u
p
s
–
A
c
t
i
o
n
s
a
n
d
S
t
a
k
e
h
o
l
d
e
r
I
n
v
o
l
v
e
m
e
n
t
C
o
n
f
l
i
c
t
M
i
n
e
r
a
l
s
S
u
b
g
r
o
u
p
s
–
A
c
t
i
o
n
s
a
n
d
S
t
a
k
e
h
o
l
d
e
r
I
n
v
o
l
v
e
m
e
n
t
B
e
n
c
h
m
a
r
k
o
f
C
o
m
p
a
n
y
S
E
C
f
i
l
i
n
g
s
•
This has been a cross industry effort
•
Benchmarking reports submitted between May 23,
2014 and June 2, 2014
•
Currently 307 submissions have been reviewed
•
The work continues on…
•
Raw data will be made available to IPC, Automotive
Industry Action Group (AIAG), Association of
Equipment Manufacturers (AEM), Aerospace Intl Assoc
(AIA), CFSI, and the Cross Industry Group
*
Very Important – the data is only meant for
benchmarking and education
9
I
n
d
u
s
t
r
i
e
s
C
F
S
I
C
M
R
T
(
f
o
r
m
e
r
l
y
E
I
C
C
/
G
e
S
I
T
e
m
p
l
a
t
e
)
Of the 19% that did not use
the CMRT,
7%
used a company
internal survey and
93%
did
not state a resource
Software
Of the 307,
14%
identified a
software solution,
86%
did
not identify software
C
o
u
n
t
r
y
o
f
O
r
i
g
i
n
D
a
t
a
0.33%
of companies provided names of the mines
5.54%
of companies listed the country of origin
D
u
e
D
i
l
i
g
e
n
c
e
F
r
a
m
e
w
o
r
k
P
r
e
s
c
r
i
b
e
s
R
o
l
e
o
f
F
i
l
i
n
g
C
o
m
p
a
n
i
e
s
S
E
C
F
i
n
a
l
R
u
l
e
f
o
r
C
o
n
f
l
i
c
t
M
i
n
e
r
a
l
s
3
T
G
(
T
i
n
,
T
u
n
g
s
t
e
n
,
T
a
n
t
a
l
u
m
,
G
o
l
d
)
S
t
e
p
s
t
o
I
d
e
n
t
i
f
y
P
o
t
e
n
t
i
a
l
A
u
d
i
t
C
a
n
d
i
d
a
t
e
s
C
F
S
I
M
e
m
b
e
r
s
G
a
i
n
a
c
c
e
s
s
t
o
C
F
S
I
S
m
e
l
t
e
r
D
a
t
a
P
a
r
t
i
c
i
p
a
t
e
i
n
v
a
r
i
o
u
s
w
o
r
k
g
r
o
u
p
s
P
a
y
M
e
m
b
e
r
s
h
i
p
F
e
e
S
m
e
l
t
e
r
D
i
s
p
o
s
i
t
i
o
n
T
e
a
m
E
x
p
e
r
t
s
m
a
k
e
f
i
n
a
l
d
e
t
e
r
m
i
n
a
t
i
o
n
o
f
t
r
u
e
s
m
e
l
t
e
r
s
P
r
e
-
A
u
d
i
t
V
i
s
i
t
T
e
a
m
E
x
p
l
a
i
n
C
F
S
I
p
r
o
g
r
a
m
,
a
u
d
i
t
e
x
p
e
c
t
a
t
i
o
n
s
a
n
d
b
e
n
e
f
i
t
s
e
.
g
.
A
p
p
l
e
,
I
n
t
e
l
:
>
3
5
i
n
t
e
r
n
a
t
i
o
n
a
l
v
i
s
i
t
s
/
y
e
a
r
3
r
d
P
a
r
t
y
A
u
d
i
t
o
r
C
o
n
d
u
c
t
s
i
t
e
a
u
d
i
t
,
c
r
e
a
t
e
a
u
d
i
t
r
e
p
o
r
t
f
o
r
r
e
v
i
e
w
b
y
C
F
S
I
A
u
d
i
t
R
e
v
i
e
w
C
o
m
m
i
t
t
e
e
(
A
R
C
)
C
F
S
I
-
3
0
C
o
m
p
a
n
i
e
s
A
I
A
G
-
1
0
C
o
m
p
a
n
i
e
s
~
1
0
C
o
m
p
a
n
i
e
s
3
r
d
P
a
r
t
y
A
u
d
i
t
2
0
0
+
C
o
m
p
a
n
i
e
s
C
F
S
I
S
t
a
f
f
&
5
C
o
m
p
a
n
i
e
s
S
m
e
l
t
e
r
E
n
g
a
g
e
m
e
n
t
T
e
a
m
(
S
E
T
)
C
o
n
f
i
r
m
P
r
o
b
a
b
l
e
S
m
e
l
t
e
r
s
-
v
e
r
i
f
y
s
m
e
l
t
e
r
p
r
o
d
u
c
t
O
u
t
r
e
a
c
h
–
e
n
c
o
u
r
a
g
e
a
u
d
i
t
p
a
r
t
i
c
i
p
a
t
i
o
n
A
I
A
G
S
E
T
A
c
t
i
v
i
t
i
e
s
Letters,
calls, visits
•
Purpose
: Confirm
probable smelters in
order to include in
standard smelter list
Probable Smelter Confirmation
Outreach
Research
Two Main Areas of Focus for AIAG SET team:
CFSI Activity:
•
Purpose
:
Disposition
alleged smelters
as probable or not
a smelter
On-line
research,
calls,
emails
•
Purpose
: Encourage
known smelters to
participate in Conflict
Free Audit & become
Conflict Free certified
Letters,
calls
I
m
p
a
c
t
o
f
C
F
S
I
&
A
I
A
G
S
E
T
e
f
f
o
r
t
s
Active and Compliant Smelters / Total Legitimate Smelters*
50 additional compliant
smelters in 5 months
*As published by CFSI
A
I
A
G
S
m
e
l
t
e
r
E
n
g
a
g
e
m
e
n
t
T
e
a
m
&
collaborate towards a common set of goals
2
0
1
4
C
o
m
p
a
n
y
S
u
r
v
e
y
o
n
R
e
p
o
r
t
i
n
g
C
h
a
l
l
e
n
g
e
s
•
Sub-Tier Supplier Survey conducted in July-August, 2014 to better
understand challenges of conflict minerals reporting and to
inform CMWG’s 2015-2016 strategy
•
29-question survey developed by the CMBP subgroup
•
Request distributed to AIAG, OESA, & request to distribute down
•
Received responses from
466 suppliers
•
Survey data was analyzed in a partnership with Grand Valley State
University Statistical Consulting Center.
2
0
1
4
C
o
m
p
a
n
y
S
u
r
v
e
y
o
n
R
e
p
o
r
t
i
n
g
C
h
a
l
l
e
n
g
e
s
•
Example Hypothesis:
Greater management support decreases challenge in
collecting conflict minerals data from suppliers
–
Conclusion:
Complete management support was associated with significantly fewer
challenges in data collection
–
Interesting note:
No management feedback fared better than poor management
support (though neither did well)
•
More results available after AIAG CR Summit 4/29/15
•
Questions include:
•
Demonstrate continued improvement year over year
•
Improve smelter information accuracy and completeness
•
Consider obtaining assurances around your supply chain
process
•
2015 data gathering will be similar to 2014
•
CMRT 4.0 from CFSI will look very similar to 3.02a
•
Timing of requests/responses will be similar to 2014
L
o
o
k
i
n
g
F
o
r
w
a
r
d
2
0
1
5
F
u
t
u
r
e
Q
u
e
s
t
i
o
n
s
Workgroups latest public information & resources are available at
www.aiag.org/conflictminerals
Questions may be directed to Tanya Bolden at
conflictminerals@aiag.org
Provides insights into the updates and activities of the Automotive Industry Action Group (AIAG) and the Overview of Chemical Management & Reporting within the organization. It covers subgroups activities, future tasks, accomplishments, and conflict minerals initiatives. The content emphasizes stakeholder involvement, smelter engagement, and upcoming plans in compliance with regulations and industry standards.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
AIAG Update B.B. Baney April 2015
Agenda AIAG Chemical Management & Reporting Overview (OHCL) Subgroups 2014 activities 2015 plans AIAG Conflict Minerals Overview Subgroups Conflict Minerals Cross-Industry Benchmark Report Due Diligence Framework Smelter or Refiner (SOR) Engagement Process Smelter Engagement Teams 2014 Company Survey on Reporting Challenges 2015 plans
AIAG Board Companies Honda Caterpillar IBM Dana Infor Delphi JCI Denso Magna Eaton File:Magna logo.svg Nissan Federal Mogul Robert Bosch LLC Fiat Chrysler Bosch Specialty Products Ford Toyota Freudenberg-NOK TRW Automotive General Motors 3
OHCL Subgroups & 2014 Activities Recommendation and Documentation Main interface with IMDS Steering Committee on: IMDS Recommendations New IMDS business design input & testing New co-chairs Chris Harden, RJS Scott Morris, Honda Supports REACH TF efforts Supports AIAG Conflict Minerals Workgroup 4
OHCL 2014 Accomplishments Interface with IMDS Steering Committee to maintain, improve reporting processes, tools and related customer feedback, while helping NA users Rec & Doc subgroup evaluated, tested, and provided valuable support for IMDS 9.0 release The Globally Harmonized System (GHS) project team progressed well Held successful 2014 IMDS & Product Chemical Compliance Conference 5
OHCL Future Tasks & Focus Support model office testing and feedback for IMDS 10.0 business design Support Supplier Alliance activities Understand and enhance awareness/communication of NA new regulations, timing, & impact Enhance communications between members and other industrial organizations, e.g. CLEPA, REACH TF, JAMA, KAMA, JAPIA, ACEA 6
Conflict Minerals Subgroups Actions and Stakeholder Involvement AIAG Smelter Engagement Team (SET) Conducts research & outreach encouraging smelters to participate in CFSI Participates in key Conflict Free Sourcing Initiative (CFSI) groups to foster cross-industry engagement on smelter audit certifications and other conflict mineral reporting processes CFSI Engagement Develops strategies for CMWG stakeholder outreach; identifies potential target audiences and communication opportunities(e.g., events, media, etc.) Communications/Events Creates/supports initiatives to develop tools & resources to assist companies in their reporting processes Due Diligence Recommendations/drafts information to communicate common process for the industry Industry Best Practice
Conflict Minerals Subgroups Actions and Stakeholder Involvement Conveys input on the cross-sector conflict minerals data exchange standard IPC Liaison Focuses on due diligence data reporting activities from a user viewpoint iPCMP User Group Captures CMWG meeting minutes and submits to AIAG for processing Minute-Takers Contributes industry expertise (materials composition, IMDS, etc.) for the enhancement of tools & resources Technical Information Supports CMWG on-going efforts to create awareness of conflict minerals reporting, and the resources available to assist the supply chain Training & Education
Benchmark of Company SEC filings This has been a cross industry effort Benchmarking reports submitted between May 23, 2014 and June 2, 2014 Currently 307 submissions have been reviewed The work continues on Raw data will be made available to IPC, Automotive Industry Action Group (AIAG), Association of Equipment Manufacturers (AEM), Aerospace Intl Assoc (AIA), CFSI, and the Cross Industry Group *Very Important the data is only meant for benchmarking and education 9
Industries 4% 2% 7% 8% Aerospace Apparel Automotive Chemical Component Manufacturer Consumer Products Electronics Food & Beverage Large Equipment Material Manufacturer Medical Devices Retail Various % of Industries Benchmarked Aerospace 4% Apparel 2%Automotive 7% 2% 7% 39% 3% 4% 3% 4% 8% 10% Various 10% Retail 8% Chemical 8% Medical Devices 4% Component Manufacturer 2% Material Manufacturer 3% Consumer Products 6% Large Equipment 4% Food & Beverage 3% Electronics 39%
Utilized the EICC/GeSI Template No 19% Yes CFSI CMRT (formerly EICC/GeSI Template) 81% Of the 19% that did not use the CMRT, 7% used a company internal survey and 93% did not state a resource Software Of the 307, 14% identified a software solution, 86% did not identify software
Companies that found 3TG in the covered countries May have <1.0% Not stated 21% No 24% Country of Origin Data Yes 7% Unknown 48% 0.33% of companies provided names of the mines 5.54% of companies listed the country of origin
Due Diligence Framework Prescribes Role of Filing Companies SEC Final Rule for Conflict Minerals 3TG (Tin, Tungsten, Tantalum, Gold) Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals From Conflict-Affected High-Risk Areas 1 2 3 4 5 Establish Strong Company Management Systems Identify And Assess Risk In The Supply Chain Design And Implement A Strategy To Respond To Identified Risks Carry Out Independent Third-party Audit Of Smelter or Refiner (SOR) Due Diligence Report Out On Supply Chain Due Diligence
Steps to Identify Potential Audit Candidates 200+ Companies CFSI - 30 Companies AIAG - 10 Companies CFSI Staff & 5 Companies ~ 10 3rd Party Audit Companies Pre-Audit Visit Team 3rd Party Auditor Smelter Disposition Team Experts make final determination of true smelters Smelter Engagement Team (SET) CFSI Members Explain CFSI program, audit expectations and benefits Conduct site audit, create audit report for review by CFSI Audit Review Committee (ARC) Confirm Probable Smelters - verify smelter product Gain access to CFSI Smelter Data Participate in various work groups Outreach encourage audit participation e.g. Apple, Intel: > 35 international visits/year Pay Membership Fee
AIAG SET Activities Two Main Areas of Focus for AIAG SET team: CFSI Activity: Research Probable Smelter Confirmation Outreach Purpose: Disposition alleged smelters as probable or not a smelter Purpose: Confirm probable smelters in order to include in standard smelter list Purpose: Encourage known smelters to participate in Conflict Free Audit & become Conflict Free certified On-line research, calls, emails Letters, calls, visits Letters, calls
Impact of CFSI & AIAG SET efforts Active and Compliant Smelters / Total Legitimate Smelters* February 15 March 15 Metal September 14 December 14 January 15 Tantalum 95% (35/38) 96% (44/46) 96% (44/46) 98% (45/46) 98% (45/46) Tin 58% (44/75) 57% (50/87) 62% (54/87) 64% (56/88) 64% (57/89) Tungsten 37% (12/33) 40% (17/42) 48% (20/42) 49% (21/43) 54% (23/43) Gold 50% (55/111) 57% (68/119) 57% (68/119) 56% (67/119) 60% (72/119) TOTAL 57% (147/257) 61% (178/294) 63% (186/294) 64% (189/296) 66% (197/297) 50 additional compliant smelters in 5 months *As published by CFSI
AIAG Smelter Engagement Team & collaborate towards a common set of goals
2014 Company Survey on Reporting Challenges Sub-Tier Supplier Survey conducted in July-August, 2014 to better understand challenges of conflict minerals reporting and to inform CMWG s 2015-2016 strategy 29-question survey developed by the CMBP subgroup Request distributed to AIAG, OESA, & request to distribute down Received responses from 466 suppliers Survey data was analyzed in a partnership with Grand Valley State University Statistical Consulting Center.
2014 Company Survey on Reporting Challenges Questions include: Example Hypothesis: Greater management support decreases challenge in collecting conflict minerals data from suppliers Conclusion: Complete management support was associated with significantly fewer challenges in data collection Interesting note: No management feedback fared better than poor management support (though neither did well) More results available after AIAG CR Summit 4/29/15
Looking Forward 2015 Demonstrate continued improvement year over year Improve smelter information accuracy and completeness Consider obtaining assurances around your supply chain process 2015 data gathering will be similar to 2014 CMRT 4.0 from CFSI will look very similar to 3.02a Timing of requests/responses will be similar to 2014
Future Questions Workgroups latest public information & resources are available at www.aiag.org/conflictminerals Questions may be directed to Tanya Bolden at conflictminerals@aiag.org
