『Supply Chain ESG Management Policy』 stipulates basic matters that a partner company shall comply as a supplier/ vendor of products and services to HD HYUNDAI INFRACORE or enters into an agreement with us for other dealings. This Code of Conduct is based on global standards such as the UN Guiding Principles on Business and Human Rights (UNGPs), the OECD Guidelines for Multinational Enterprises and the ILO Fundamental Conventions. HD HYUNDAI INFRACORE intends that this Code of Conduct will create an opportunity for a partner company to duly fulfill their social responsibility and further strengthen win-win partnerships.
Background of Conflict Minerals Regulation
Definition of conflict minerals
Conflict Minerals refer to the 4 major minerals(tin, tantalum, tungsten, and gold) produced in the conflict region of Democratic Republic of Congo(DRC) and the 9 surrounding nations of Sudan, Rwanda, Burundi, Uganda, the Congo, Zambia, Angola, Tanzania, and the Central African Republic.
Necessity of regulating conflict minerals
Armed forces in these regions secure funds through the mining and distribution of minerals to continue their conflicts, giving rise to social problems such as casualties, human rights violations, exploitation of child labor, sexual violence, and environmental pollution. As a result, there has been continuous demand to disclose the origin of minerals used in corporate products and to stop using conflict minerals.
Legal basis for conflict minerals regulation
Enacted in the U.S. in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act contains restrictions on the use of conflict minerals. As the first step, companies listed on the U.S. stock exchange should determine whether they are subject to the conflict minerals regulation. Those companies should determine the country of origin at a reasonable level as the second step. Lastly, those companies are required to conduct due diligence on the supply chain and report the use of conflict minerals to the U.S. Securities and Exchange Commission.
Conflict Minerals Policy of HD HYUNDAI INFRACORE
As a responsible corporate citizen, HD HYUNDAI INFRACORE endeavors to ensure that conflict minerals associated with armed forces in conflict areas are not included in the supply chain for the production of our products. To this end, all partners doing business with us should strive not to use conflict minerals in the manufacture of goods and, if necessary, submit a certificate of origin to prove this. HD HYUNDAI INFRACORE will actively participate in international efforts to prohibit the use of conflict minerals with our partners and customers, thereby fulfilling our social responsibility for protecting the human rights of the Democratic Republic of Congo and neighboring countries.
HD HYUNDAI INFRACORE's response status
HD HYUNDAI INFRACORE is operating the conflict minerals management process it has established based on collaboration between procurement, ESG, CMS organizations. HD HYUNDAI INFRACORE is trying to improve our understanding of conflict minerals by establishing a conflict minerals response system, surveying its use status, managing partner risks, and guiding partners.