| I. | Overview | ||||
| II. | Conflict Minerals Policy | ||||
| III. | Reasonable Country of Origin Inquiry Information | ||||
| IV. | Due Diligence Program Design and Execution | ||||
| 1. | OECD Guidance Step One: “Establish strong company management systems” | |||||||
| a. | We have a cross-functional working group charged with managing our 3TG compliance strategy that ultimately reports to the Chief Legal Officer. The following functional areas were represented on the working group: external reporting; legal; and procurement. We also appointed representatives from each business unit with potentially in-scope products. Selected internal personnel were educated on the Conflict Minerals Rule and our compliance plan. We also used specialist outside counsel to assist us with certain aspects of our compliance efforts. | |||||||
| b. | We communicate the Policy internally by reference in our Code of Conduct, and externally to suppliers by reference in our Supplier Standards. In addition, the Policy is available on our website at https://www.arconic.com/global/en/investors/pdf/Conflict-Minerals-Policy-FINAL-External.pdf. | |||||||
| c. | Arconic’s procurement function maintains a standard operating procedure (“SOP”) governing purchases of 3TG and materials or products containing 3TG. The SOP defines the processes that our procurement function uses to source 3TG and materials or products containing 3TG and to support the annual disclosure of country of origin information for those minerals. The SOP provides that we will only purchase 3TG or materials or products containing 3TG from suppliers that can provide acceptable certification that the minerals did not originate from sources that directly or indirectly financed or benefited armed groups in the Covered Countries. | |||||||
| d. | We used the Conflict Minerals Reporting Template (“CMRT”) developed by the Responsible Minerals Initiative (“RMI”) to identify SORs in our supply chain. We maintain business records relating to 3TG due diligence, including records of due diligence processes, findings and resulting decisions, in a structured computerized database, for at least five years. | |||||||
| e. | We have a grievance mechanism for employees, suppliers and other interested parties to report violations of our 3TG program compliance requirements. The URL is https://www.arconic.com/integrity-line/. | |||||||
| 2. | OECD Guidance Step Two: “Identify and assess risk in the supply chain” | |||||||
| a. | We determined which of our products were in-scope or potentially in-scope for purposes of our compliance with the Conflict Minerals Rule through product specifications, elemental composition limits, and other information known to us. | |||||||
| b. | We contracted with a third-party service provider (the "Service Provider") to request by email that the suppliers we determined to potentially be in-scope for purposes of our compliance with the Conflict Minerals Rule (the “Suppliers”) provide us with information, through the completion of a CMRT, concerning the usage and source of 3TG in their products, as well as information concerning the Suppliers’ related compliance measures. Some of the other actions described in this report were taken by the Service Provider on our behalf. The Service Provider followed up multiple times, if required, by email with the Suppliers that did not respond to the request within the specified timeframe. For 2021, our outreach included 89 Suppliers and our overall Supplier response rate was 80%. | |||||||
| c. | SOR information also was reviewed against the lists of Conformant and Active (as defined herein), or the equivalent, SORs published by the RMI. For 2021, the Suppliers identified 56 SORs as having processed the necessary 3TG contained in our in-scope products. Out of the 56 identified SORs, 49 SORs (or 87.5%) were listed as Conformant, 3 SORs (or 5.4%) were listed as Active, and 4 SORs (or 7.1%) were neither Conformant nor Active. | |||||||
| 3. | OECD Guidance Step Three: “Design and implement a strategy to respond to identified risks” | |||||||
| a. | Our 3TG compliance team reported its findings to our Chief Legal Officer. | |||||||
| b. | Under our risk mitigation strategy, we take such risk mitigation efforts as we deem to be appropriate based on the findings of our supply chain risk assessment. Our risk mitigation efforts are determined by the particular facts and circumstances and risks identified. | |||||||
| c. | To mitigate the risk that our necessary 3TG finance or benefit armed groups, for 2022, we also intend to engage in the additional measures discussed under “Additional Risk Mitigation Efforts” below. | |||||||
| 4. | OECD Guidance Step Four: “Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain” | |||||||
| 5. | OECD Guidance Step 5: “Report on supply chain due diligence” | |||||||
| V. | Product, Smelter and Refiner and Country of Origin Information | ||||
| VI. | Additional Risk Mitigation Efforts | ||||
| 1. | Continue to encourage Suppliers that provided company level or user defined information for 2021 to provide product level information for 2022. | |||||||
| 2. | Request Suppliers that provided incomplete responses or that did not provide responses for 2021 to provide requested information for 2022. | |||||||
| 3. | Communicate to new in-scope suppliers our sourcing expectations through the Policy and in the conflict minerals clause in our standard terms and conditions. | |||||||
Metal | Smelter Name | Smelter Country | Status | ||||||||
Tin | Metallo Belgium N.V. | BELGIUM | Conformant | ||||||||
Tin | EM Vinto | BOLIVIA | Conformant | ||||||||
Tin | Operaciones Metalurgicas S.A. | BOLIVIA | Conformant | ||||||||
Tin | Estanho de Rondonia S.A. | BRAZIL | Conformant | ||||||||
Tin | Magnu's Minerais Metais e Ligas Ltda. | BRAZIL | Conformant | ||||||||
Tin | Melt Metais e Ligas S.A. | BRAZIL | Active | ||||||||
Tin | Mineracao Taboca S.A. | BRAZIL | Conformant | ||||||||
Tin | Resind Industria e Comercio Ltda. | BRAZIL | Conformant | ||||||||
Tin | Soft Metais Ltda. | BRAZIL | Conformant | ||||||||
Tin | White Solder Metalurgia e Mineracao Ltda. | BRAZIL | Conformant | ||||||||
Tin | Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Chifeng Dajingzi Tin Industry Co., Ltd. | CHINA | Conformant | ||||||||
Tin | China Tin Group Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Gejiu Kai Meng Industry and Trade LLC | CHINA | On Smelter Look-up Tab List Only | ||||||||
Tin | Gejiu Non-Ferrous Metal Processing Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Gejiu Zili Mining And Metallurgy Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Guangdong Hanhe Non-Ferrous Metal Co., Ltd. | CHINA | Conformant | ||||||||
Tin | HuiChang Hill Tin Industry Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Jiangxi New Nanshan Technology Ltd. | CHINA | Conformant | ||||||||
Tin | Ma'anshan Weitai Tin Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Yunnan Chengfeng Non-ferrous Metals Co., Ltd. | CHINA | Conformant | ||||||||
Tin | Yunnan Tin Company Limited | CHINA | Conformant | ||||||||
Tin | Yunnan Yunfan Non-ferrous Metals Co., Ltd. | CHINA | On Smelter Look-up Tab List Only | ||||||||
Tin | CV Venus Inti Perkasa | INDONESIA | Active | ||||||||
Tin | PT Aries Kencana Sejahtera | INDONESIA | On Smelter Look-up Tab List Only | ||||||||
Tin | PT Artha Cipta Langgeng | INDONESIA | Conformant | ||||||||
Tin | PT ATD Makmur Mandiri Jaya | INDONESIA | Conformant | ||||||||
Tin | PT Babel Inti Perkasa | INDONESIA | Conformant | ||||||||
Tin | PT Bangka Serumpun | INDONESIA | Conformant | ||||||||
Tin | PT Bukit Timah | INDONESIA | Conformant | ||||||||
Tin | PT Menara Cipta Mulia | INDONESIA | Conformant | ||||||||
Tin | PT Mitra Stania Prima | INDONESIA | Conformant | ||||||||
Tin | PT Panca Mega Persada | INDONESIA | On Smelter Look-up Tab List Only | ||||||||
Tin | PT Prima Timah Utama | INDONESIA | Conformant | ||||||||
Tin | PT Refined Bangka Tin | INDONESIA | Conformant | ||||||||
Tin | PT Sariwiguna Binasentosa | INDONESIA | Conformant | ||||||||
Tin | PT Stanindo Inti Perkasa | INDONESIA | Conformant | ||||||||
Tin | PT Sukses Inti Makmur | INDONESIA | Active | ||||||||
Tin | PT Timah Tbk Kundur | INDONESIA | Conformant | ||||||||
Tin | PT Timah Tbk Mentok | INDONESIA | Conformant | ||||||||
Tin | PT Tinindo Inter Nusa | INDONESIA | Conformant | ||||||||
Tin | Dowa | JAPAN | Conformant | ||||||||
Tin | Mitsubishi Materials Corporation | JAPAN | Conformant | ||||||||
Metal | Smelter Name | Smelter Country | Status | ||||||||
Tin | Malaysia Smelting Corporation (MSC) | MALAYSIA | Conformant | ||||||||
Tin | Minsur | PERU | Conformant | ||||||||
Tin | O.M. Manufacturing Philippines, Inc. | PHILIPPINES | Conformant | ||||||||
Tin | Fenix Metals | POLAND | Conformant | ||||||||
Tin | Metallo Spain S.L.U. | SPAIN | Conformant | ||||||||
Tin | Rui Da Hung | TAIWAN | Conformant | ||||||||
Tin | O.M. Manufacturing (Thailand) Co., Ltd. | THAILAND | Conformant | ||||||||
Tin | Thaisarco | THAILAND | Conformant | ||||||||
Tin | Alpha | UNITED STATES | Conformant | ||||||||
Tin | Metallic Resources, Inc. | UNITED STATES | Conformant | ||||||||
Tin | Tin Technology & Refining | UNITED STATES | Conformant | ||||||||
Tin | Thai Nguyen Mining and Metallurgy Co., Ltd. | VIETNAM | Conformant | ||||||||
| a. | The SORs reflected above may not include all of the SORs in Arconic’s supply chain, since some Suppliers did not identify all of their SORs and because not all Suppliers responded to Arconic’s inquiries. | |||||||
| b. | The table only includes entities that were listed as SORs on the Smelter Look-up tab list of the CMRT. | |||||||
| c. | “Conformant” means that a SOR has successfully completed an assessment against the applicable Responsible Minerals Assurance Process (the “RMAP”) standard or an equivalent cross-recognized assessment. Included SORs were not necessarily Conformant for all or part of 2021 and may not continue to be Conformant for any future period. | |||||||
| d. | “Active” means that the SOR has committed to undergo an RMAP assessment, completed the relevant documents and scheduled the on-site assessment. These may be in the pre-assessment, assessment, or corrective-action phases of the assessment. | |||||||
| e. | “On Smelter Look-up Tab List Only” means that a SOR is listed on the Smelter Look-up tab list of the CMRT, but is not listed as Conformant or Active. The RMI notes on its website that the operational impacts of COVID-19 have led to postponements of some RMAP assessments. The RMI website also notes that, due to the eligibility criteria for an RMAP assessment, SORs are sometimes removed from the Conformant list because they are no longer operational and not because they are non-conformant to the standard. | |||||||
| f. | SOR status and location reflected in the table is based solely on information made publicly available by the RMI, without independent verification by Arconic. | |||||||
| Angola* | Egypt | Laos | Sierra Leone | ||||||||
| Argentina | Estonia | Luxembourg | Singapore | ||||||||
| Armenia | Ethiopia | Madagascar | Slovakia | ||||||||
| Australia | France | Malaysia | South Africa | ||||||||
| Austria | Germany | Mexico | South Sudan | ||||||||
| Belgium | Guyana | Mongolia | Spain | ||||||||
| Bolivia | Hong Kong | Morocco | Suriname | ||||||||
| Brazil | Hungary | Mozambique | Sweden | ||||||||
| Burundi* | India | Myanmar | Switzerland | ||||||||
| Cambodia | Indonesia | Namibia | Taiwan | ||||||||
| Canada | Ireland | Netherlands | Tanzania* | ||||||||
| Central African Republic* | Israel | Nigeria | Thailand | ||||||||
| Chile | Ivory Coast | Papua New Guinea | Uganda* | ||||||||
| China | Japan | Peru | United Kingdom | ||||||||
| Colombia | Jersey | Philippines | United States | ||||||||
| Congo (Brazzaville) * | Kazakhstan | Poland | Uzbekistan | ||||||||
| Czech Republic | Kenya | Portugal | Vietnam | ||||||||
| Djibouti | Korea, Republic of | Russian Federation | Zambia* | ||||||||
| DRC-Congo (Kinshasa) * | Kyrgyzstan | Rwanda* | Zimbabwe | ||||||||
| Ecuador | |||||||||||