Tracing a Path Forward: A Study of the Challenges of - Resolve

April 2, 2010
Dear Colleague:
RESOLVE is pleased to announce the publication of Tracing a Path Forward: A Study of the
Challenges of the Supply Chain for Target Metals Used in Electronics. The report was
commissioned by the Global e-Sustainability Initiative (GeSI) and the Electronics Industry
Citizenship Coalition (EICC).
The context for the report is that many companies, nongovernmental organizations, and agencies
are working to address environmental, labor rights, health and safety, displacement and
resettlement, and other social and sustainability issues throughout the supply chain for minerals.
One particular area of recent focus has been the link between mineral extraction and trading and
conflict and human rights abuses, particularly in areas such as the Democratic Republic of
Congo (DRC) and the surrounding Great Lakes region of Central Africa.
Minerals originating in conflict regions can end up in electronics and many other products such
as jewelry, airplanes, and automobiles. Greater awareness of these issues has prompted leading
companies in the electronics sector to investigate their supply chains to determine steps to
promote responsible sourcing of specific minerals. However, these companies face significant
challenges due to lack of transparency and the complex structure and relationships in parts of
these supply chains.
Seeking greater understanding of the challenges and potential solutions, GeSI and EICC asked
RESOLVE to research the supply chain for electronics products starting with three metals: tin,
tantalum, and cobalt.
RESOLVE’s research included an effort to trace the supply for these metals beginning with
direct suppliers to GeSI and EICC member companies and then pursuing upstream suppliers (in
the direction of the mine). The tracing research was expected to be challenging due to the nature
of the supply chains for these metals. As such, the research strategy was to learn from the
discontinuity in the flow of information in each supply chain, in order to inform potential
solutions.
RESOLVE also undertook a desk-based review of supply chain initiatives relevant to the
electronics sector. RESOLVE reviewed initiatives that addressed transparency in the supply
chain as well as human rights, social and environmental issues.
We worked from the premise that a research project designed with stakeholders was likely to
improve results. Therefore RESOLVE organized and sought input from a Stakeholder Advisory

Group of diverse organizations including GeSI and EICC members, international and local
NGOs, mining companies, investors, and trade associations.
Our findings highlight the challenges that result from the complex nature of minerals processing,
the informality of the sector in some instances, and the complexity and composition of most
electronics products. These products typically contain a variety of metals as part of numerous
subcomponents. Minerals in each subcomponent can then originate from multiple sources. The
supply chain, as it existed at the start of our research, was not organized to provide any degree of
assurance as to minerals source, much less the conditions at the source.
Our research also yielded both cooperation from companies in the supply chain and significant
non-cooperation. Interestingly, while we were only able to establish supply chain relationships
through tracing (from product to mine) in four fairly limited cases, there is now a correlation
between those who cooperated in our study and those who are working actively with GeSI and
EICC members, and other stakeholders, to explore and design news systems to enhance supply
chain transparency. This conforms to our finding that alterations in current supply chain
relationships and systems will be needed to promote transparency.
Our research also shows that progress will likely happen in a stepwise fashion and require testing
new approaches, particularly with regard to sources from regions in or near conflict zones. Based
on lessons from this supply chain research and the desk study of related initiatives, the following
is useful guidance:
Explore multi-industry approaches and efficiencies: As many industries share common
metals supply chains and challenges, end-use companies and suppliers from multiple sectors
can achieve efficiencies by working across industry sectors to explore and design solutions.
There is value in multi-stakeholder collaboration: To achieve credible systems and utilize
local information sources and on-the-ground capacity (especially in regions of conflict),
active engagement and consultation with nongovernmental organizations and international
and local governments from the earliest stages of design to testing can be beneficial. Through
the multi-stakeholder advisory group we are aware of this capacity and interest on the part of
numerous stakeholders.
Tackling complex challenges on multiple levels can yield results. For example, for these
metals a two-track approach of smelter-based certification plus in-region pilots could be
beneficial. For both gold and diamonds, we found evidence that both validation systems
targeting supply chain actors and community-based projects supporting source development
are beneficial.
As we complete our work on this report, a number of these recommendations are already being
considered, including exploration of smelter validation and a trial, or pilot, to identify
responsible, localized sources from commercial and small-scale mining sites in the Great Lakes
region of Central Africa.
Moving forward, there could be significant value in linking some related initiatives in an effort to
focus and maximize the impact of available resources; this research consistently highlighted the

need for, and an interest in, a coordinated effort to integrate civil society, government and
industry efforts. RESOLVE is hopeful that this analysis, combined with lessons from research
undertaken by other organizations, can provide information and impetus for stakeholders to
jointly define activities and identify solutions to conflict and environmental and social issues.
We appreciate that the many social, environmental, political, economic, and other issues of
interest surrounding the metals supply chain continue to evolve, as does our joint understanding
of these factors. This report represents a snapshot of what we have learned to date, as well as an
effort to understand and balance the many perspectives and observations we have come across in
the course of our research. The report can be downloaded, along with additional supporting
documents, past interim reports, and other background information at RESOLVE’s project wiki.
We are also discussing this report online at www.resolvblog.blogspot.com and encourage you to
join the conversation.
We welcome your feedback on this report.
Sincerely,
Jen Peyser
RESOLVE
ABOUT RESOLVE
RESOLVE builds strong, enduring solutions to environmental, social, and health challenges. We
help community, business, government, and social leaders get results and build lasting
relationships through collaboration. RESOLVE is an independent non-profit organization
founded in 1977, RESOLVE’s services and programs are designed to help parties engage in factfinding,
information sharing, dialogue, decision making, solutions discovery, and action. Jen
Peyser led the project for RESOLVE, with support from Steve D’Esposito and Jason
Gershowitz. For more information on RESOLVE, please see www.resolv.org. Jen Peyser can be
reached at jpeyser@resolv.org or +1 202 965 6215.
ABOUT GeSI and EICC
The Electronic Industry Citizenship Coalition (EICC) is a group of companies working together
to create a comprehensive set of tools and methods that support credible implementation of the
Code of Conduct throughout the Electronics and Information and Communications Technology
(ICT) supply chain.
The Global e-Sustainability Initiative (GeSI) is a global partnership of ICT companies that
promotes technologies for a sustainable development.

The mission of the GeSI/EICC Extractives Workgroup is to positively influence the social and
environmental conditions in the metals extractives supply chain as it connects to the EICC/GeSI
member companies by supporting transparency while continuing to investigate additional
opportunities. The EICC (www.eicc.info) and GeSI (www.gesi.org) membership represent a
large proportion of companies in the electronics sector.