Driving Transparent Reporting in the Democratic Republic of the Congo

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The past decade has seen a proliferation of tin, tantalum, tungsten and gold (3TGs) due diligence programmes in the Democratic Republic of the Congo (DRC)’s supply chains. In this webinar, Jared Connors, Senior Subject Matter Expert, Corporate Social Responsibility at Assent Compliance speaks with Antoine Heuty, Founder and CEO of Ulula to discuss the current market conditions driving more transparent reporting from upstream mineral suppliers. In this webinar, you will learn about: - Current efforts to evaluate the social and economic situation in the DRC. - The impact of due diligence programs in the eastern DRC. - Upstream risks to be aware of for the 2019 reporting cycle. - How Ulula’s work with the International Peace Information Service informs due diligence programs. Don’t miss this opportunity to learn about the DRC’s responsible minerals landscape from two experts in the field!
  • 1. © Assent Compliance 2019 1 We recommend you use either ear phones or a headset to listen to the webinar through your computer’s audio. If you prefer to call in to the webinar, click here and call in using the details provided in the confirmation email you received from GoToWebinar. You will be muted during the presentation, but able to submit your questions via the chat box. The presenter(s) will go through questions at the end of the presentation. If your question is not answered, someone will follow up with you directly following the webinar. You will receive a follow-up email with a copy of the recording and slides. If you have any questions about this webinar, please contact us at info@assentcompliance.com. Your feedback is important to us — please share with us how the webinar went at the end of the broadcast. Thank you for your patience and we hope you enjoy the webinar! Driving Transparent Reporting in the Democratic Republic of the Congo Thank you for registering for today’s webinar! The presentation will begin shortly.
  • 2. © Assent Compliance 2019 Driving Transparent Reporting in the Democratic Republic of the Congo
  • 3. © Assent Compliance 2019 FIRST NAME, LAST NAME COMPANY NAME TITLE/POSITION INSERT HEADSHOT IMAGE OVER THIS IMAGE © Assent Compliance 2019 3 Alana Hendry Assent Compliance Compliance Specialist Today’s Moderator
  • 4. © Assent Compliance 2019 Introduction
  • 5. © Assent Compliance 2019© Assent Compliance 2019 5 Our Market-Leading Platform Assent Products Vendor Management Corporate Social Responsibility Product Compliance Audits & Inspections
  • 6. © Assent Compliance 2019 Assent Works with 75% of Fortune 500 Manufacturers 6 Overview 75% 300k 300,000 Supplier Companies Market-Leading Supply Chain Data Management Platform Global Footprint
  • 7. © Assent Compliance 2019 7 To register, visit supplychaininsight.com. NOVEMBER 19-20, 2019 Arizona Grand Hotel Phoenix, Arizona
  • 8. © Assent Compliance 2019 FIRST NAME, LAST NAME — COMPANY NAME TITLE/POSITION INSERT HEADSHOT IMAGE OVER THIS IMAGE FIRST NAME, LAST NAME — COMPANY NAME TITLE/POSITION INSERT HEADSHOT IMAGE OVER THIS IMAGE © Assent Compliance 2019 Antoine HeutyJared Connors Assent Compliance Senior SME - Corporate Social Responsibility 8 Ulula Founder & CEO Today’s Presenters
  • 9. © Assent Compliance 2019 Feature Presentation
  • 11. TORONTO | NEW YORK | - 185 SPADINA AVE. TORONTO, CANADA - INFO@ULULA.COM Simple Mobile Technology + Artificial Intelligence Transparent & Responsible Supply Chains About Ulula
  • 12. Purpose of the Study ● What is the human rights and labor rights landscape upstream -at mine site- from the perspective of miners and communities? ● How due diligence programmes are affecting the social, environmental and human rights conditions in upstream mining communities in areas of eastern Democratic Republic of the Congo (DRC) ? ● Can technology help collect more robust human rights and labor impact in last mile/upstream supply chain? INTRODUCTION
  • 13. METHODOLOGY ● Individuals living in mining communities not under the control of armed groups in South Kivu, North Kivu, Maniema, Ituri and Tanganyika. ○ Mine site data from field surveys (2016–2018) ○ Mobile survey data (September to November 2018). ● Due diligence programmes in E. Congo: ITSCi (3T), Just Gold by IMPACT, BGR ● Field Survey Approach ○ Visit to mine sites (623) + points de vente ○ Interviews with key figures in community ○ Collection of local phone contacts ● Mobile Surveys ○ 7,172 valid contacts ○ 1,583 responses (22 %) ○ 84 % male vs. 16 % female ○ 74 % respondents in DDP zones vs. 26 % in non DDP zones [Place additional media here]
  • 14. METHODOLOGY SAMPLING Selection of DDP & Non-DDP Zones ● Using GIS and IPIS database maps to select 19 mining zones ● 11 DDP zones and eight non-DDP zones ● DDP for 3T and non-DDP for gold ● Participation of women: 16% of total responses. ● Focus on sampling areas where women work (markets, church groups, mine sites).
  • 15. Province Number of mine sites Number of workers Ituri 59 10,486 Maniema 99 1, 130 Nord-Kivu 102 17,595 Sud-Kivu 269 53,870 Tanganyika 67 11,083 Mine site data Due diligence Percentage Gold mines with female workers Percentage 3Ts mines with female workers All mines 55% 36% DDP 48 % 38% Non-DDP 56 % 29%
  • 16. Mobile survey Survey 1 Survey 2 Survey 3 Demographics • Occupation • Residential proximity to the mine • Length of residence in the area • Gender • Occupation • Gender • Occupation Conditions of extraction • Income • Well-being • Awareness of due diligence • Effects of governance by state agencies Impact of mining • Mine accidents • Environmental impacts Serious abuses • Violence • Gender violence • Corruption • Discrimination • Child labor • Forced labor ● Voice calls (IVR) ● 8-12 questions per survey ● 1,000 CF ($.60) for completing the survey
  • 18. FINDINGS Perception of Effect of Mining on Personal Life Incomes ● 76 % support a family with their income. ● Among those, 62 % said their income is not sufficient to feed, clothe and house their family. ● Similar proportion in DDP and non DDP zones (60-65%) Table: How do you compare your income from last year to your income this year? Due Diligence Made life better No change Made life worse In DDP zones 45% 36% 14% In non-DDP zones 48% 34% 8% Due Diligence Increased Remained the same Decreased Don’t know / skip All respondents 19% 21 % 45 % 15 % In DDP zones 20 % 21 % 46 % 13 % In Non-DDP zones 16 % 21 % 44 % 19 % ● What is the effect of mining on your life? ● Marginal differences between DDP and non-DDP zones
  • 19. Field data: Mines With Armed Actor Present Mines With Armed Actor Interfering Mobile Data: State Support Corruption & Bribery Due diligence Percentage of mines where at least one armed actor is present Percentage of workers working in a mining site where at least one armed actor is present All mines 35 % 35 % (N = 115,539) DDP 21 % 19 % (N = 40,202) Non-DDP 48 % 43 % (N = 75,337) Due diligence Presence state services Feels supported by state services All respondents 71 % 50 % In DDP zones 71 % 51 % In Non-DDP zones 70 % 43 %
  • 20. FINDINGS — Serious Abuses Child Labor ● 39 mining sites (16 %) had the presence of children under 15 working in mineral exploitation activities (digging, carrying, washing). ● Strong difference between DDP mines (5 %) and non-DDP mines (26 %). ● Out of those 39 sites, only three were not a gold producing site, which indicates that the presence of child labor is far more prevalent in the gold supply chains. ● In mobile surveys we asked people to report what they saw in the past six months. The chart below shows their perceptions: Forced Labor? ● 21 % of the respondents are not working for themselves. When this is the case, most of them are working for a “négociant” (mineral trader) or another miner (not statistically significant). ● 20 % of respondents reported they are not free to leave the mine they work at any time. Comparable proportions in DDP and non-DDP (19-23 %). ● 41 % said that they are not paid for their work. Comparable in DDP and non-DDP. Among those who are not paid for their work, about half of them (51 %) reported they were working to pay a debt (data did not investigate if debt is mining-related).
  • 21. Violence Discrimination Based on Origin Due Diligence Seeing or hearing of violence Experiencing violence All respondents 47 % 28 % In DDP zones 46 % 28 % In Non-DDP zones 49 % 29 % Type of Violence
  • 22. Safety in Mines ● 42 % of people living in artisanal mining communities reported experiencing or hearing about a mining accident. ● People in DDP areas reported witnessing or hearing about accidents at mine sites slightly less often (41 %) than their counterparts in non-DDP areas (47 %). ● Outcomes of mines accidents: Environmental Degradation ● 55 % of respondents view deforestation and/or bush meat consumption as a concerns in their local areas with a slightly larger proportion of respondents in DDP zones (56 %) than in non-DDP zones (48 %) ● 55 % of the respondents reported the use of mercury and/or pollution of waterways as an important concern. A slightly larger proportion of respondents reported mercury use in DDP zones (57 %) compared to non-DDP zones (48 %) Due Diligence Deforestation and/or bush meat Mercury and/or water pollution All respondents 55 % 55 % In DDP zones 56 % 57 % In Non-DDP zones 48 % 48 %
  • 23. NEXT STEPS ● Ongoing complementary project on human rights grievance across mining provinces in partnership with IPIS. ● 2nd phase in 2019–2020 focusing on comparable mining areas to address selection bias presented at next OECD Forum. ● Download full report: www.ulula.com/stay-in-the-loop. ● Meet us at Assent’s Supply Chain Insight Conference Nov 19–20!
  • 24. © Assent Compliance 2019 25 Responsible Minerals State Of Affairs Unique Customer Expectations Sanctions Risk New Upstream Due Diligence Schemas Additional Due Diligence Expectations CARHAs on the Horizon Voluntary Initiatives
  • 25. © Assent Compliance 2019 26 Responsible Minerals Compliance: Leveraging OECD Due Diligence Guidance THURSDAY, SEPTEMBER 26 // 2 PM ET REACH Updates: Understanding the Authorisation List THURSDAY, OCTOBER 3 // 11 AM ET Conferences RBA & RMI Annual Conferences 2019 OCTOBER 21-23 // Santa Clara, CA Supply Chain Insight NOVEMBER 19 & 20 // Phoenix, AZ Upcoming Events Webinars Learn more about Assent events: www.assentcompliance.com/events
  • 26. © Assent Compliance 2019 27 Subscribe to our newsletter and get webinar invitations, news and content delivered to your inbox. As a subscriber, you’ll be the first to hear about the latest in regulatory and supply chain data management, including product compliance, corporate social responsibility, vendor management and more. Never miss an update again! Subscribe at info.assentcompliance.com/subscribe Stay Updated on Supply Chain Data Management News
  • 27. © Assent Compliance 2019 Questions /Discussion Conclusion
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