EX-1.02 2 d738645dex102.htm EX-1.02 EX-1.02

Exhibit 1.02

Baxter International Inc.

Conflict Minerals Report

For The Year Ended December 31, 2013

This conflict minerals report for the year ended December 31, 2013 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934, which was adopted by the Securities and Exchange Commission (SEC) to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Rule 13p-1 imposes certain reporting obligations on SEC registrants whose manufactured products contain conflict minerals which are necessary to the functionality or production of their products. Conflict minerals are defined as cassiterite, columbite-tantalite, gold, wolframite, and their derivatives, which are limited to tin, tantalum, tungsten, and gold for the purposes of Rule 13p-1. These requirements apply to registrants whatever the geographic origin of the conflict minerals and whether or not they fund armed conflict.

Certain products manufactured by Baxter International Inc. (Baxter or the Company) are comprised of materials and components that contain tin, tantalum, tungsten and/or gold that are necessary to the functionality of such products (see “Product Description” below). Due to the depth of its supply chain, Baxter is far removed from the sources of ore from which these metals are produced and the smelters and refiners that process those ores. Additionally, the amount of information available globally on the traceability and sourcing of these ores is extremely limited, which is a situation that is not unique to Baxter. As a result, the efforts undertaken by Baxter to identify the countries of origin of those ores reflect its respective position in the supply chain and the challenge presented by the limited availability of information. Baxter has taken steps to identify the applicable smelters and refiners of the tin, tantalum, tungsten and gold in its supply chain and their respective sources, but in general, the Company believes that the smelters and refiners of such metals contained in its products are best situated to identify the sources and countries of origin of these metals. The efforts described herein were undertaken on the products manufactured by the Company during the year ended December 31, 2013.

Product Description

Baxter operates its business in two segments. The BioScience business manufactures various treatments for hemophilia and other bleeding disorders, immune deficiencies, and other chronic and acute blood-related conditions, as well biosurgery products and vaccines. The following products manufactured by the BioScience business are subject to disclosure under Rule 13p-1: biosurgical preparation devices and applicators, and microsurgical tools.

The Medical Products business manufactures products used in the delivery of fluids and drugs to patients as well as products to treat end-stage renal disease. The following products manufactured by the Medical Products business are subject to disclosure under Rule 13p-1: intravenous (IV) and peritoneal dialysis solutions, IV administration sets and related components, premixed drugs and drug-reconstitution and compounding systems, pre-filled vials and syringes for injectable drugs, irrigation solutions, IV nutrition products, infusion pumps, syringe pumps, inhalation anesthetics, peritoneal dialysis cyclers and related components, and continuous renal replacement therapy products.

Reasonable Country of Origin Inquiry (RCOI)

Direct suppliers were asked to provide answers to the Electronic Industry Citizenship Coalition-Global e-Sustainability Initiative (EICC-GeSI) Conflict Minerals Common Reporting Template reflecting Baxter’s position in the supply chain as described above. The EICC-GeSI Conflict Minerals Common Reporting Template is regarded as the most common reporting tool for conflict minerals content and sourcing information worldwide, developed by several of the world’s leading consumer electronics companies.

Baxter reviewed questionnaires received for completeness and consistency of answers. Suppliers were required to provide corrections and clarifications where needed. As a result, Baxter believes that its RCOI process was reasonably designed and performed in good faith.


Design of Due Diligence Measures

Baxter designed its due diligence measures to conform in all material respects with the due diligence framework relevant to conflict minerals provided by the Organization for Economic Co-operation and Development (OECD). In particular, Baxter’s overall conflict minerals procedures were designed to conform to the five step framework of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the relevant supplements on tin, tantalum, tungsten and gold, as applicable to Baxter’s circumstances and position in the supply chain as a “downstream” company with little to no direct influence on smelters and refiners.

These due diligence measures include, but are not limited to, the following actions:

 

    Instituting an internal conflict minerals team consisting of representatives from Baxter’s supply chain, legal, finance and compliance functions, which started meeting in 2012 to begin internal risk assessment on conflict minerals in Baxter’s supply chain

 

    Reporting to senior management on direct suppliers’ responses to conflict minerals information requests, including updates on monitoring and tracking corrective action and risk mitigation efforts

 

    Communicating the Company’s position and process on conflict minerals to direct suppliers

 

    Conducting awareness sessions concerning the commitments and requirements expected of Baxter’s suppliers, supported by email and phone dialogues

 

    Developing a risk mitigation plan that allows for continued trade with a supplier during the supplier’s risk mitigation efforts

 

    Supporting the development and implementation of independent third party audits of smelter and refiner’s sourcing through the Company’s policy and procurement practices that encourage suppliers to conduct due diligence and purchase materials from audited smelters and refiners

 

    Evaluating joining industry-wide efforts like the EICC Conflict Free Sourcing Initiative which directly support and implement third party audits of smelters and refiners

An independent private sector audit was not required for this report.

Facilities and Countries of Origin

As a result of the above described RCOI process and due diligence measures, the following entities were identified by Baxter’s suppliers as the smelters and refiners of the tin, tantalum, tungsten and/or gold present in and necessary to the functionality of products manufactured by Baxter in the year ended December 31, 2013. To the extent known, the countries of origin identified in connection with such smelters and refiners are also listed below.

 

Smelters/Refiners

   Identified Countries of Origin

Aida Chemical Industries Co. Ltd.

   Unknown

Allgemeine Gold und Silberscheideanstalt A.G.

   Germany

Almalyk Mining and Metallurgical Complex (AMMC)

   Uzbekistan

AngloGold Ashanti Mineração Ltda

   Brazil

Asahi Pretec Corporation

   Australia

Canada

Japan

USA

Asaka Riken Co Ltd

   Japan

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

   Unknown

ATI Firth Sterling

ATI Tungsten Materials

   USA

Aurubis AG

   Unknown

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

   Unknown

Boliden AB

   Unknown

 

2


Smelters/Refiners

   Identified Countries of Origin

Cabot Corporation

   Canada

Cendres & Métaux SA

   Unknown

Central Bank of the DPR of Korea

   Unknown

Chaozhou Xianglu Tungsten Industry Co Ltd

   Unknown

Chimet SpA

   Unknown

China Minmetals Corp.

China Minmetals Nonferrous Metals Co Ltd

   China

Chongyi Zhangyuan Tungsten Co Ltd

   China

Chugai Mining Co., Ltd.

   Japan

CNMC (Guangxi) PGMA Co. Ltd.

   Unknown

Cong Hua Tantalum and Niobium Smelter

   Unknown

Cookson

   Indonesia

Thailand

USA

Cooper Santa

   Brazil

Corporación Nacional del Cobre de Chile (Codelco)

   Chile

CV Duta Putra Bangka

   Unknown

CV JusTindo

   Unknown

CV Makmur Jaya

   Indonesia

CV Nurjanah

   Unknown

CV Prima Timah Utama

   Unknown

CV Serumpun Sebalai

   Unknown

CV United Smelting

   Indonesia

Dowa Metals & Mining Co. Ltd

   Australia

Canada

Japan

USA

Duoluoshan Sapphire Rare Metal Co. Ltd of Zhaoqing

   Brazil

Ethiopia

India

Niger

Rwanda

Thailand

Empresa Metalúrgica Vinto S.A.

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

F&X Electro-Materials Limited

   Unknown

Fenix Metals Sp. z o.o.

   Brazil

FSE Novosibirsk Refinery

   Unknown

Fujian Jinxin Tungsten Co., Ltd.

   Unknown

Gannon & Scott

   Unknown

Ganzhou Grand Sea W& Mo Group Co., Ltd.

   China

 

3


Smelters/Refiners

   Identified Countries of Origin

Geiju Non-Ferrous Metal Processing Co. Ltd.

   Bolivia

China

Indonesia

Peru

Global Advanced Metals Pty Ltd

   Australia

Global Tungsten & Powders Corp

   Bolivia

Canada

Peru

Portugal

Spain

USA

Guangxi Zhongshan Goldbell Smelting Corp. Ltd. (Gold Bell Group)

   Bolivia

H.C. Starck GmbH

   Australia

Brazil

Thailand

USA

Heimerle + Meule GmbH

   Unknown

Heraeus (Zhaoyuan) Precious Metal Materials Co., Ltd. (The Refinery of Shandong Gold Mining Co. Ltd)

   China

Heraeus Ltd Hong Kong

   Australia

Philippines

South Africa

Heraeus Precious Metals GmbH & Co. KG

   Germany

USA

Huichang Jinshunda Tin Co. Ltd

   Unknown

Hunan Chenzhou Mining Group Co

   Unknown

Hunan Chun-Chang Non-ferrous Smelting & Concentrating Co., Ltd.

   China

Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited

   Unknown

Ishifuku Metal Industry Co., Ltd.

   Australia

Canada

Japan

USA

Istanbul Gold Refinery

   Unknown

Japan Mint

   Unknown

Japan New Metals Company Ltd

   China

Jiangxi Copper Company Limited

   Unknown

Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.

   Unknown

Jiangxi Nanshan

   Unknown

Jiangxi Tungsten Co Ltd

Jiangxi Rare Earth & Rare Metals Tungsten Group Corp

   China

Jiangxi Tungsten Industry Group Co. Ltd.

   China

JiuJiang Tambre Co. Ltd.

   Unknown

Johnson Matthey Inc.

   USA

Johnson Matthey Limited

   Unknown

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

   Unknown

JSC Uralelectromed

   Unknown

 

4


Smelters/Refiners

   Identified Countries of Origin

JX Nippon Mining & Metals Co., Ltd

   Australia

Canada

Japan

USA

Kai Unita Trade Limited Liability Company

   Unknown

Kazzinc Ltd

   Unknown

Kemet Blue Powder

   Unknown

Kojima Chemicals Co. Ltd

   Unknown

Kyrgyzaltyn JSC

   Unknown

L’Azurde Company For Jewelry

   Unknown

Linwu Xianggui Smelter Co

   Indonesia

Liuzhou China Tin Group Co., Ltd.

   China

Indonesia

LS-Nikko Copper Inc.

   Australia

Brazil

Chile

Kazakhstan

Korea, Republic Of

Malaysia Smelting Corporation Berhad

   Bolivia

DRC

Indonesia

Malaysia

Rwanda

Materion Advanced Metals

   Brazil

Chile

USA

Matsuda Sangyo Co. Ltd

   Australia

Canada

Japan

USA

Metalor Chimique

   Australia

China

Indonesia

Russia

Metalor Technologies (Hong Kong) Ltd

   China

Metalor Technologies SA (Switzerland)

   Unknown

Metalor USA Refining Corporation

   USA

Met-Mex Peñoles, S.A.

   Unknown

Mexicana de Cobre, S.A. de C.V.

(subsidiary of Grupo Mexico)

   Mexico

Mineração Taboca S.A.

   Brazil

Minmetals Ganzhou Tin Co. Ltd.

   Unknown

Minsur SA

   Bolivia

Brazil

Canada

China

DRC

Indonesia

Malaysia

Peru

Rwanda

 

5


Smelters/Refiners

   Identified Countries of Origin

Mitsubishi Materials Corporation

   Argentina

Australia

Canada

Chile

China

Indonesia

Japan

Papua New Guinea

Peru

USA

Mitsui Mining and Smelting Co., Ltd.

   Australia

Canada

Japan

USA

Moscow Special Alloys Processing Plant

   Unknown

Nadir Metal Rafineri San. Ve Tic. A.Ş.

   Unknown

Navoi Mining and Metallurgical Combinat

   Unknown

Nihon Material Co. Ltd

   Australia

Canada

Japan

Ningxia Orient Tantalum Industry Co., Ltd.

   Brazil

China

DRC

Ethiopia

Rwanda

Noventa

   Mozambique

Novosibirsk Integrated Tin Works

   Unknown

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)

   Unknown

OJSC Kolyma Refinery

   Unknown

Operaciones Metalúrgicas S.A. - OMSA

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

PAMP SA

   Unknown

Pan Pacific Copper Co. Ltd.

(JX Nippon Mining & Metals Co., Ltd Group)

   Australia

Plansee SE

   Unknown

Prioksky Plant of Non-Ferrous Metals

   Unknown

PT Alam Lestari Kencana

   Unknown

PT Aneka Tambang (Persero) TBK

   Unknown

PT Artha Cipta Langgeng

   Indonesia

PT Babel Inti Perkasa

   Unknown

PT Babel Surya Alam Lestari

   Unknown

PT Bangka Kudai Tin

   Indonesia

 

6


Smelters/Refiners

   Identified Countries of Origin

PT Bangka Putra Karya

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

PT Bangka Timah Utama Sejahtera

   Indonesia

PT Belitung Industri Sejahtera

   Indonesia

PT BilliTin Makmur Lestari

   Unknown

PT Bukit Timah

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

PT DS Jaya Abadi

   Indonesia

PT Eunindo Usaha Mandiri

   Unknown

PT Fang Di MulTindo

   Unknown

PT HP Metals Indonesia

   Unknown

PT Koba Tin

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

PT Mitra Stania Prima

   Chile

Indonesia

Mexico

PT Refined Banka Tin

   Indonesia

PT Sariwiguna Binasentosa

   Indonesia

PT Sumber Jaya Indah

   Unknown

PT Tambang Timah

   Indonesia

PT Timah Nusantara

   Bolivia

Brazil

Burundi

Canada

China

DRC

Indonesia

Malaysia

Nigeria

Peru

Rwanda

PT Tinindo Inter Nusa

   Unknown

PT Yinchendo Mining Industry

   Unknown

PX PRÉCINOX SA

   Unknown

 

7


Smelters/Refiners

   Identified Countries of Origin

Rand Refinery (Pty) Ltd

   Unknown

Royal Canadian Mint

   Canada

Schone Edelmetaal

   Unknown

Shandong Zhaojin Gold & Silver Refinery Co. Ltd

   China

SOE Shyolkovsky Factory of Secondary Precious Metals

   Unknown

Solar Applied Materials Technology Corp.

   Unknown

Solikamsk Metal Works

   Unknown

Sumitomo Metal Mining Co. Ltd.

   Australia

Canada

Chile

Japan

Peru

USA

Suzhou Xingrui Noble Metal Material Co. Ltd.

   Unknown

Taicang City Nancang Metal Material Co., Ltd

   China

Tanaka Kikinzoku Kogyo K.K.

   Australia

Canada

Japan

Tejing (Vietnam) Tungsten Co Ltd

   Unknown

Thailand Smelting and Refining Co. Ltd. (Thaisarco)

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

Thailand

The Great Wall Gold and Silver Refinery of China

   Unknown

Tokuhiri Honten Co., Ltd.

   Australia

Canada

Japan

USA

Ulba Metallurgical Plant JSC

   Australia

DRC

Japan

Russia

Rwanda

USA

Zimbabwe

Umicore Brasil Ltda

   Unknown

Umicore SA

   Unknown

United Precious Metal Refining Inc.

   USA

Valcambi SA

   Unknown

Western Australian Mint trading as The Perth Mint

   Australia

White Solder Metalurgia

   Brazil

Wolfram Bergbau und Hütten AG

   Unknown

Wolfram Company CJSC

   Russia

USA

 

8


Smelters/Refiners

   Identified Countries of Origin

Xstrata Canada Corporation, CCR Refinery

   Unknown

Yokohama Metal Co Ltd

   Japan

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

   China

Yunnan Gejiu Zili Metallurgy Co., Ltd.

(Gejiu Zili Mining & Smelting Co., Ltd.)

   Brazil
China

Yunnan Tin Company Limited

(Yuntinic Resources Inc.)

   Bolivia

Brazil

Canada

China

Indonesia

Malaysia

Peru

Zhongjin Gold Corporation Limited

   China

Zhuzhou Cemented Carbide Group Corp Ltd

   Brazil

Burundi

China

DRC

Malaysia

Nigeria

Rwanda

Zhuzhou Cemented Carbide Works Imp.&Exp. Co

Xiamen Tungsten Co Ltd (XTC H.C.)

   Canada

China

Russia

Thailand

Zijin Mining Group Co. Ltd

   Unknown

 

9