EX-1.01 2 tm2516823d1_ex1-01.htm EXHIBIT 1.01

Exhibit 1.01

 

Conflict Minerals Report

 

I. Introduction

 

This Conflict Minerals Report (this “Report”) of Digi International Inc. (“Company,” “we,” “us” or “our”) has been prepared pursuant to Rule 13p-1 and Form SD (the “Rule”) promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period from January 1, 2024 to December 31, 2024.

 

The Rule requires disclosure of certain information when a company manufactures or contracts to manufacture products that contain the minerals specified in the Rule, which are necessary to the functionality or production of those products. The specified minerals, which we refer to in this report as the “conflict minerals,” are gold, columbite-tantalite (coltan), cassiterite and wolframite, or their derivatives, which are limited to tantalum, tin and tungsten. The “covered countries” for the purposes of the Rule and this Report are the Democratic Republic of the Congo (the “DRC”), the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola.

 

We are a leading provider of machine-to-machine networking hardware and solutions that enable the connection, monitoring and control of local or remote physical assets by electronic means. These networking products and solutions can connect communication hardware to a physical asset, convey information about the asset’s status and performance to a computer system and then use that information to improve or automate one or more processes. As described in this Report, certain of the products we manufacture or contract to manufacture contain components that include conflict minerals that are necessary to the functionality or production of those products. In this Report, we refer to such products which were manufactured during calendar year 2024 as the “covered products.” The covered products are hardware products that generally include: embedded modules, gateways, adapter cards and device and terminal servers. Neither the software nor the services we sold to customers during calendar year 2024 are considered covered products as these products contain no conflict minerals.

 

Covered products contain components we purchased from third parties that use tin, tantalum, tungsten and/or gold. We do not source these conflict minerals directly. Due to the depth of our supply chain, we are far removed from the sources from which these conflict minerals are produced and the smelters or refiners that process them. Our efforts undertaken to identify the countries of origin of those conflict minerals reflect our circumstances and position in the supply chain. The amount of information available globally on the traceability and sourcing of the conflict minerals is extremely limited at this time. We have taken steps to identify the applicable smelters or refiners of such conflict minerals in our supply chain; however, we believe that the smelters and refiners of the conflict minerals contained in the covered products are best situated to identify the sources of the conflict minerals.

 

II. Reasonable Country of Origin Inquiry

 

We have conducted a good faith reasonable country of origin inquiry (“RCOI”) regarding the conflict minerals that may be contained in our products. This inquiry was reasonably designed and conducted in good faith to determine whether any of the conflict minerals originated in the covered countries and whether any of the conflict minerals may have been from recycled or scrap sources.

 

We group components and materials included in our products based on whether they might contain a conflict mineral. In this manner, we determined the scope of our covered products. We asked direct suppliers who provide us with materials and components for our covered products that might contain a conflict mineral to make a reasonable determination if raw materials, consumables or purchased components they provide to us contain conflict minerals. Where appropriate, we also asked direct suppliers to make similar inquiries among their direct suppliers to further inform their responses to our request. We asked these suppliers to complete a supply chain compliance questionnaire based on the Conflict Minerals Reporting Template developed by the Responsible Minerals Initiative (“RMI”) reflecting our position on the supply chain.

 

We received statements or responses from 5% of the direct suppliers who supply us with materials or components that we believe may contain conflict minerals, which represents greater than 90% of our supply chain spend during the applicable calendar year. We reviewed the statements and responses we received for completeness and consistency of answers and, as appropriate, asked certain suppliers to provide corrections and clarifications.

 

 

 

 

III. Design and Performance of Due Diligence Measures

 

Our due diligence measures have been designed to conform in all material respects to the five-step framework in the Organization for Economic Co-Operation and Development Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High-Risk Areas (the “OECD Guidance”).

 

To address the first step of the OECD Guidance, we have established strong company management systems by adopting a policy relating to conflict minerals that incorporates the OECD Guidance. The policy is found on our website at the following url:https://www.digi.com/company/environment/conflict-minerals. This policy has also been communicated directly to our direct suppliers.

 

We have advanced the second step of the OECD Guidance related to identifying risks in our supply chain by analyzing the responses from our suppliers. Certain responses from our direct suppliers pursuant to the RCOI process described above contained names of smelters and refiners who processed conflict minerals contained in our products. We reviewed the locations of these smelters and refiners in light of the covered countries and compared them against the conflict-free compliant smelters and refiners list of the RMI.

 

The results of our due diligence were reviewed with members of our senior management team and summarized for our Board of Directors to enable us to design a strategy to respond to risks in our supply chain.

 

This Report is also publicly available on our website at the address identified above to meet the final step of the OECD Guidance to report annually on our supply chain due diligence.

 

IV. Product Determination

 

Many of our hardware products contain materials or components that include one or more of the conflict minerals. Notwithstanding our efforts described above, we have been unable to determine, after exercising due diligence, whether all of the conflict minerals in our hardware products are DRC conflict-free. We are therefore not able to determine whether these products originated in the covered countries and whether all of the conflict minerals in our hardware products may have been from recycled or scrap sources. We received no information from our direct suppliers indicating that the tin, tantalum, tungsten or gold in our products originated in the covered countries, although we have been unable to confirm the sourcing status of these minerals for each of the smelters and refiners listed below in Schedule A.

 

V. Product Description

 

Our suppliers also provided us with the names of approximately 237 smelters and refiners, along with the smelter or refiner facility location, that our direct suppliers have identified as processing the necessary conflict minerals in our hardware products. These smelters and refiners are listed on Schedule A. Of these smelters and refiners, 233 were identified as “conformant” and 4 were reported to be “active” in the process of conforming to the assessment protocols of the Responsible Minerals Assurance Process (“RMAP”) as of April 1, 2025. The remaining smelters or refiners were not defined as either conformant or active by the RMI as of the same date. While our suppliers identified smelters or refiners they have utilized in the production of components on company-wide basis in many cases they were unable to confirm whether any particular smelter or refiner was actually used in the production of components provided to us.

 

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VI. Steps to Improve Due Diligence

 

We will continue to communicate our expectations and information requirements to our direct suppliers. We will also continue to monitor changes in circumstances that may impact the facts or our determination. Over time, we anticipate that the amount of information globally on the traceability and sourcing of conflict minerals will likely increase and improve our knowledge. We will continue to make inquiries to our direct suppliers and undertake additional fact and risk assessments where potentially relevant changes in facts or circumstances are identified. Accordingly, we will continue to encourage our direct suppliers to improve their own due diligence programs as well as encourage smelters and refiners in the supply chain to engage with or conform to the assessment protocols of the RMAP or another independent, third-party audit program. If we become aware of a supplier whose due diligence needs improvement, we intend to continue the trade relationship while that supplier improves its performance. We expect our direct suppliers to take similar measures with their suppliers to ensure alignment throughout the supply chain.

 

VII. Independent Private Sector Audit

 

An independent private sector audit is not required for calendar year 2024.

 

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Schedule A
to Conflict Minerals Report

 

 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Gold Advanced Chemical Company UNITED STATES OF AMERICA
Gold Aida Chemical Industries Co., Ltd. JAPAN
Gold Agosi AG GERMANY
Gold Almalyk Mining and Metallurgical Complex (AMMC) UZBEKISTAN
Gold AngloGold Ashanti Corrego do Sitio Mineracao BRAZIL
Gold Argor-Heraeus S.A. SWITZERLAND
Gold Asahi Pretec Corp. JAPAN
Gold Asaka Riken Co., Ltd. JAPAN
Gold Aurubis AG GERMANY
Gold Bangko Sentral ng Pilipinas (Central Bank of the Philippines) PHILIPPINES
Gold Boliden Ronnskar SWEDEN
Gold C. Hafner GmbH + Co. KG GERMANY
Gold CCR Refinery - Glencore Canada Corporation CANADA
Gold Chimet S.p.A. ITALY
Gold Chugai Mining JAPAN
Gold DSC (Do Sung Corporation) KOREA, REPUBLIC OF
Gold Dowa JAPAN
Gold Eco-System Recycling Co., Ltd. East Plant JAPAN
Gold LT Metal Ltd. KOREA, REPUBLIC OF
Gold Heimerle + Meule GmbH GERMANY
Gold Heraeus Metals Hong Kong Ltd. CHINA
Gold Heraeus Germany GmbH Co. KG GERMANY
Gold Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. CHINA
Gold Ishifuku Metal Industry Co., Ltd. JAPAN
Gold Istanbul Gold Refinery TURKEY
Gold Japan Mint JAPAN
Gold Jiangxi Copper Co., Ltd. CHINA
Gold Asahi Refining USA Inc. UNITED STATES OF AMERICA
Gold Asahi Refining Canada Ltd. CANADA
Gold JX Nippon Mining & Metals Co., Ltd. JAPAN
Gold Kazzinc KAZAKHSTAN
Gold Kennecott Utah Copper LLC UNITED STATES OF AMERICA
Gold Kojima Chemicals Co., Ltd. JAPAN
Gold LS MnM Inc. KOREA, REPUBLIC OF
Gold Materion UNITED STATES OF AMERICA
Gold Matsuda Sangyo Co., Ltd. JAPAN
Gold Metalor Technologies (Suzhou) Ltd. CHINA
Gold Metalor Technologies (Hong Kong) Ltd. CHINA
Gold Metalor Technologies (Singapore) Pte., Ltd. SINGAPORE
Gold Metalor Technologies S.A. SWITZERLAND
Gold Metalor USA Refining Corporation UNITED STATES OF AMERICA

 

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 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Gold Metalurgica Met-Mex Penoles S.A. De C.V. MEXICO
Gold Mitsubishi Materials Corporation JAPAN
Gold Mitsui Mining and Smelting Co., Ltd. JAPAN
Gold Nadir Metal Rafineri San. Ve Tic. A.S. TURKEY
Gold Navoi Mining and Metallurgical Combinat UZBEKISTAN
Gold Nihon Material Co., Ltd. JAPAN
Gold Ohura Precious Metal Industry Co., Ltd. JAPAN
Gold MKS PAMP SA SWITZERLAND
Gold PT Aneka Tambang (Persero) Tbk INDONESIA
Gold PX Precinox S.A. SWITZERLAND
Gold Rand Refinery (Pty) Ltd. SOUTH AFRICA
Gold Royal Canadian Mint CANADA
Gold SEMPSA Joyeria Plateria S.A. SPAIN
Gold Shandong Zhaojin Gold & Silver Refinery Co., Ltd. CHINA
Gold Sichuan Tianze Precious Metals Co., Ltd. CHINA
Gold Solar Applied Materials Technology Corp. TAIWAN, PROVINCE OF CHINA
Gold Sumitomo Metal Mining Co., Ltd. JAPAN
Gold Shandong Gold Smelting Co., Ltd. CHINA
Gold Tokuriki Honten Co., Ltd. JAPAN
Gold Umicore S.A. Business Unit Precious Metals Refining BELGIUM
Gold United Precious Metal Refining, Inc. UNITED STATES OF AMERICA
Gold Valcambi S.A. SWITZERLAND
Gold Western Australian Mint (T/a The Perth Mint) AUSTRALIA
Gold Yamakin Co., Ltd. JAPAN
Gold Yokohama Metal Co., Ltd. JAPAN
Gold Zhongyuan Gold Smelter of Zhongjin Gold Corporation CHINA
Gold Gold Refinery of Zijin Mining Group Co., Ltd. CHINA
Gold SAFINA A.S. CZECHIA
Gold MMTC-PAMP India Pvt., Ltd. INDIA
Gold KGHM Polska Miedz Spolka Akcyjna POLAND
Gold T.C.A S.p.A ITALY
Gold REMONDIS PMR B.V. NETHERLANDS
Gold Korea Zinc Co., Ltd. KOREA, REPUBLIC OF
Gold TOO Tau-Ken-Altyn KAZAKHSTAN
Gold Abington Reldan Metals, LLC UNITED STATES OF AMERICA
Gold Italpreziosi ITALY
Gold WIELAND Edelmetalle GmbH GERMANY
Gold Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH AUSTRIA
Gold Bangalore Refinery INDIA
Gold SungEel HiMetal Co., Ltd. KOREA, REPUBLIC OF
Gold Planta Recuperadora de Metales SpA CHILE

 

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 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Gold Eco-System Recycling Co., Ltd. North Plant JAPAN
Gold Eco-System Recycling Co., Ltd. West Plant JAPAN
Gold Metal Concentrators SA (Pty) Ltd. SOUTH AFRICA
Gold WEEEREFINING FRANCE
Gold Gold by Gold Colombia COLOMBIA
Gold Coimpa Industrial LTDA BRAZIL
Gold GG Refinery Ltd. TANZANIA, UNITED REPUBLIC OF
Gold Impala Refineries – Base Metals Refinery (BMR) SOUTH AFRICA
Gold Impala Rustenburg SOUTH AFRICA
Gold Impala Refineries – Platinum Metals Refinery (PMR) SOUTH AFRICA
Gold Elite Industech Co., Ltd. TAIWAN, PROVINCE OF CHINA
Tantalum Changsha South Tantalum Niobium Co., Ltd. CHINA
Tantalum Guangdong Rising Rare Metals-EO Materials Ltd. CHINA
Tantalum F&X Electro-Materials Ltd. CHINA
Tantalum XIMEI RESOURCES (GUANGDONG) LIMITED CHINA
Tantalum JiuJiang JinXin Nonferrous Metals Co., Ltd. CHINA
Tantalum Jiujiang Tanbre Co., Ltd. CHINA
Tantalum AMG Brasil BRAZIL
Tantalum Metallurgical Products India Pvt., Ltd. INDIA
Tantalum Mineracao Taboca S.A. BRAZIL
Tantalum Mitsui Mining and Smelting Co., Ltd. JAPAN
Tantalum NPM Silmet AS ESTONIA
Tantalum Ningxia Orient Tantalum Industry Co., Ltd. CHINA
Tantalum QuantumClean UNITED STATES OF AMERICA
Tantalum Yanling Jincheng Tantalum & Niobium Co., Ltd. CHINA
Tantalum Telex Metals UNITED STATES OF AMERICA
Tantalum Ulba Metallurgical Plant JSC KAZAKHSTAN
Tantalum Hengyang King Xing Lifeng New Materials Co., Ltd. CHINA
Tantalum D Block Metals, LLC UNITED STATES OF AMERICA
Tantalum FIR Metals & Resource Ltd. CHINA
Tantalum Jiujiang Zhongao Tantalum & Niobium Co., Ltd. CHINA
Tantalum XinXing HaoRong Electronic Material Co., Ltd. CHINA
Tantalum Jiangxi Dinghai Tantalum & Niobium Co., Ltd. CHINA
Tantalum KEMET de Mexico MEXICO
Tantalum TANIOBIS Co., Ltd. THAILAND
Tantalum TANIOBIS GmbH GERMANY
Tantalum QSIL Metals Hermsdorf GmbH GERMANY
Tantalum Materion Newton Inc. UNITED STATES OF AMERICA
Tantalum TANIOBIS Japan Co., Ltd. JAPAN
Tantalum TANIOBIS Smelting GmbH & Co. KG GERMANY

 

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 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Tantalum Global Advanced Metals Boyertown UNITED STATES OF AMERICA
Tantalum Global Advanced Metals Aizu JAPAN
Tantalum Resind Industria e Comercio Ltda. BRAZIL
Tantalum Jiangxi Tuohong New Raw Material CHINA
Tantalum RFH Yancheng Jinye New Material Technology Co., Ltd. CHINA
Tantalum XIMEI RESOURCES(GUIZHOU) TECHNOLOGY CO., LTD. CHINA
Tantalum PowerX Ltd. RWANDA
Tantalum CMT Rare Metal Advanced Materials (Hunan) Co., Ltd. CHINA
Tin Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. CHINA
Tin Alpha UNITED STATES OF AMERICA
Tin PT Aries Kencana Sejahtera INDONESIA
Tin PT Premium Tin Indonesia INDONESIA
Tin Dowa JAPAN
Tin EM Vinto BOLIVIA (PLURINATIONAL STATE OF)
Tin Estanho de Rondonia S.A. BRAZIL
Tin Fenix Metals POLAND
Tin Gejiu Non-Ferrous Metal Processing Co., Ltd. CHINA
Tin Gejiu Kai Meng Industry and Trade LLC CHINA
Tin China Tin Group Co., Ltd. CHINA
Tin Malaysia Smelting Corporation (MSC) MALAYSIA
Tin Metallic Resources, Inc. UNITED STATES OF AMERICA
Tin Mineracao Taboca S.A. BRAZIL
Tin Minsur PERU
Tin Mitsubishi Materials Corporation JAPAN
Tin Jiangxi New Nanshan Technology Ltd. CHINA
Tin O.M. Manufacturing (Thailand) Co., Ltd. THAILAND
Tin Operaciones Metalurgicas S.A. BOLIVIA (PLURINATIONAL STATE OF)
Tin PT Artha Cipta Langgeng INDONESIA
Tin PT Babel Inti Perkasa INDONESIA
Tin PT Babel Surya Alam Lestari INDONESIA
Tin PT Bangka Tin Industry INDONESIA
Tin PT Belitung Industri Sejahtera INDONESIA
Tin PT Bukit Timah INDONESIA
Tin PT Mitra Stania Prima INDONESIA
Tin PT Prima Timah Utama INDONESIA
Tin PT Refined Bangka Tin INDONESIA
Tin PT Sariwiguna Binasentosa INDONESIA
Tin PT Stanindo Inti Perkasa INDONESIA
Tin PT Timah Tbk Kundur INDONESIA
Tin PT Timah Tbk Mentok INDONESIA
Tin PT Timah Nusantara INDONESIA

 

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 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Tin PT Tinindo Inter Nusa INDONESIA
Tin PT Tommy Utama INDONESIA
Tin Rui Da Hung TAIWAN, PROVINCE OF CHINA
Tin Soft Metais Ltda. BRAZIL
Tin Thaisarco THAILAND
Tin White Solder Metalurgia e Mineracao Ltda. BRAZIL
Tin Yunnan Chengfeng Non-ferrous Metals Co., Ltd. CHINA
Tin Tin Smelting Branch of Yunnan Tin Co., Ltd. CHINA
Tin CV Venus Inti Perkasa INDONESIA
Tin Magnu's Minerais Metais e Ligas Ltda. BRAZIL
Tin Melt Metais e Ligas S.A. BRAZIL
Tin PT ATD Makmur Mandiri Jaya INDONESIA
Tin O.M. Manufacturing Philippines, Inc. PHILIPPINES
Tin CV Ayi Jaya INDONESIA
Tin PT Rajehan Ariq INDONESIA
Tin PT Cipta Persada Mulia INDONESIA
Tin Resind Industria e Comercio Ltda. BRAZIL
Tin Super Ligas BRAZIL
Tin Aurubis Beerse BELGIUM
Tin Aurubis Berango SPAIN
Tin PT Bangka Prima Tin INDONESIA
Tin PT Sukses Inti Makmur (SIM) INDONESIA
Tin PT Menara Cipta Mulia INDONESIA
Tin HuiChang Hill Tin Industry Co., Ltd. CHINA
Tin Guangdong Hanhe Non-Ferrous Metal Co., Ltd. CHINA
Tin PT Bangka Serumpun INDONESIA
Tin Tin Technology & Refining UNITED STATES OF AMERICA
Tin Luna Smelter, Ltd. RWANDA
Tin Yunnan Yunfan Non-ferrous Metals Co., Ltd. CHINA
Tin PT Mitra Sukses Globalindo INDONESIA
Tin CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda BRAZIL
Tin CRM Synergies SPAIN
Tin DS Myanmar MYANMAR
Tin PT Putera Sarana Shakti (PT PSS) INDONESIA
Tin Mining Minerals Resources SARL CONGO, DEMOCRATIC REPUBLIC OF THE
Tin Takehara PVD Materials Plant / PVD Materials Division of MITSUI MINING & SMELTING CO., LTD. JAPAN
Tin Malaysia Smelting Corporation Berhad (Port Klang) MALAYSIA
Tin Woodcross Smelting Company Limited UGANDA
Tungsten A.L.M.T. Corp. JAPAN
Tungsten Kennametal Huntsville UNITED STATES OF AMERICA
Tungsten Guangdong Xianglu Tungsten Co., Ltd. CHINA

 

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 Metal    Smelter or Refiner Name Location of Smelter or
Refiner Facility
Tungsten Chongyi Zhangyuan Tungsten Co., Ltd. CHINA
Tungsten Global Tungsten & Powders LLC UNITED STATES OF AMERICA
Tungsten Hunan Chenzhou Mining Co., Ltd. CHINA
Tungsten Japan New Metals Co., Ltd. JAPAN
Tungsten Kennametal Fallon UNITED STATES OF AMERICA
Tungsten Wolfram Bergbau und Hutten AG AUSTRIA
Tungsten Xiamen Tungsten Co., Ltd. CHINA
Tungsten Ganzhou Jiangwu Ferrotungsten Co., Ltd. CHINA
Tungsten Jiangxi Yaosheng Tungsten Co., Ltd. CHINA
Tungsten Jiangxi Xinsheng Tungsten Industry Co., Ltd. CHINA
Tungsten Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. CHINA
Tungsten Malipo Haiyu Tungsten Co., Ltd. CHINA
Tungsten Xiamen Tungsten (H.C.) Co., Ltd. CHINA
Tungsten Jiangxi Gan Bei Tungsten Co., Ltd. CHINA
Tungsten Ganzhou Seadragon W & Mo Co., Ltd. CHINA
Tungsten Asia Tungsten Products Vietnam Ltd. VIETNAM
Tungsten Hunan Shizhuyuan Nonferrous Metals Co., Ltd. Chenzhou Tungsten Products Branch CHINA
Tungsten H.C. Starck Tungsten GmbH GERMANY
Tungsten TANIOBIS Smelting GmbH & Co. KG GERMANY
Tungsten Masan High-Tech Materials VIETNAM
Tungsten Jiangwu H.C. Starck Tungsten Products Co., Ltd. CHINA
Tungsten Niagara Refining LLC UNITED STATES OF AMERICA
Tungsten China Molybdenum Tungsten Co., Ltd. CHINA
Tungsten Philippine Chuangxin Industrial Co., Inc. PHILIPPINES
Tungsten Lianyou Metals Co., Ltd. TAIWAN, PROVINCE OF CHINA
Tungsten Hubei Green Tungsten Co., Ltd. CHINA
Tungsten Cronimet Brasil Ltda BRAZIL
Tungsten Fujian Xinlu Tungsten Co., Ltd. CHINA
Tungsten Tungsten Vietnam Joint Stock Company VIETNAM
Tungsten Plansee Composite Materials GmbH GERMANY
Tungsten Lianyou Resources Co., Ltd. TAIWAN, PROVINCE OF CHINA
Tungsten Shinwon Tungsten (Fujian Shanghang) Co., Ltd. CHINA
Tungsten Kenee Mining Corporation Vietnam VIETNAM

 

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