Chain of Custody/Traceability/Transparency System (Step 1.C.1)
About the data
In 2020, the Organisation for Economic Cooperation and Development (OECD) launched a project to develop a methodology to evaluate the extent to which companies embrace the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, including how they align with its core elements, the 5-Step framework and the Annex II Model Policy. This metric belongs to that methodology.
The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance) was developed to provide recommendations to help companies respect human rights and avoid contributing to conflict through their mineral purchasing decisions and practices. The OECD Guidance is for use by any company potentially sourcing minerals or metals from conflict-affected and high-risk areas.
Formula
if alignment.includes "No" "No" else "Yes"
Methodology
If the company mentions or describes implementing either a traceability system, a chain of custody system, or a supply chain transparency system the answer will be 'Yes'.
Include the description of the system in the Comments field.
For upstream companies, look for a chain of custody or traceability system.
For downstream companies, look for a transparency system that is used to identify SoRs, countries of origin, and transport and transit of the minerals for each of their SoRs.
Key search words include: Certificate, Transport, Mine, Origin, Export, Import, Record, Trace, Chain.
A Traceability System will have the ability to follow the trail of minerals along the supply chain by monitoring and tracking chain of custody.*
A Chain of Custody system refers to all steps in a supply chain that take possession of the product, including miners, transporters, exporters, processors and manufacturers. It provides record of the sequence of entities that have custody of minerals as they move through a supply chain that allows the ability to trace a material back to its origin. Chain of custody will include documentation such as mine origin certificate, transport documentation, export and import records and factory*
A transparency system should identify and track Smelters or Refiners (SoRs), all countries of origins, and transport and transit of the minerals of each SoR.
*see OECD Due Diligence Guidance for more detail http://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf