BSP conformance with the OECD due diligence framework

By: Admin

The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance) is widely recognised as the international framework for due diligence measures undertaken by companies that wish to contribute to the responsible sourcing of minerals. In 2012, the US Securities and Exchange Commission endorsed the OECD Guidance as a framework for conducting due diligence towards compliance with Section 1502 of the Dodd–Frank Wall Street Reform and Consumer Protection Act.

BSP was developed to operationalise the OECD Guidance and assist collection and reporting of supply chain information in compliance with international regulatory expectations. We spent a lot of time researching existing standards to incorporate them as part of our own Better Sourcing Standard for the upstream portion of mineral supply chains. The OECD Guidance and its pragmatic, five-step framework stood out as the key reference document to develop procedures for implementation of the Better Sourcing Program.

For services provided by BSP to local mining operators and exporters to help secure their access to international conflict free markets, BSP has chosen to commission an independent review of its program approach and procedures. As part of  the Capacity Building for Responsible Mineral Trade (CBRMT) project funded by USAID, BSP selected Business for Social Responsibility (BSR), a leader in the field of sustainable business strategy and research, to conduct a gap analysis and conformance assessment of our program with the OECD Guidance.

The exercise was extremely helpful as BSR has provided honest feedback and signalled our weak points, meaning we were able to correct and further improve our procedures. BSP can now boast being the only due diligence services provider that has been independently assessed for its alignment with the OECD Guidance. We are proud to confirm that the conformance assessment was a success!

BSP is now working with the OECD Secretariat to align this exercise with OECD’s own assessment methodology (being finalised). More independent parties will also be invited to assess our implementation in the field.

Read BSR’s full report, or if you prefer the summary version.