EX-10.1 2 exhibit101sd.htm EX-10.1 Document

Exhibit 1.01
Reporting Period from January 1, 2019 to December 31, 2019
This Conflict Minerals Report (this “Report”) of Lennox International Inc. (including its consolidated subsidiaries, the “Company”) has been prepared pursuant to Rule 13p-1 and Form SD promulgated under the Securities Exchange Act of 1934 for the reporting period from January 1, 2019 to December 31, 2019 (the “Reporting Period”).

Forward-looking statements contained in this Report are made based on known events and circumstances at the time of release and, as such, are subject in the future to unforeseen uncertainties and risks. Statements in this Report which express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements, including statements related to the Company’s compliance efforts and expected actions identified in this Report. These forward-looking statements are subject to various risks, uncertainties and assumptions, including, among other matters, the Company’s customers’ requirements to use certain suppliers, the Company’s suppliers’ responsiveness and cooperation with the Company’s due diligence efforts, the Company’s ability to implement improvements in its conflict minerals program and the Company’s ability to identify and mitigate related risks in its supply chain. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see the Company’s other filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10‑K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10-Q. The Company makes these statements as of the date of this disclosure, and undertakes no obligation to update them unless otherwise required by law.

Rule 13p-1, through Form SD, requires the disclosure of certain information if a company manufactures or contracts to manufacture products for which certain “conflict minerals” (as defined below) are necessary to the functionality or production of such products. Form SD defines “conflict minerals” as: (i)(a) columbite-tantalite (or coltan, the metal ore from which tantalum is extracted), (b) cassiterite (the metal ore from which tin is extracted), (c) gold and (d) wolframite (the metal ore from which tungsten is extracted), or their derivatives, which are currently limited to tantalum, tin and tungsten; or (ii) any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo or an “adjoining country,” as such term is defined in Form SD (collectively, the “Covered Countries”).

The Company’s operations may at times manufacture, or contract to manufacture, products for which conflict minerals are necessary to the functionality or production of those products (collectively, the “products”). For the Reporting Period, the Company reasonably determined that the following product groups contain conflict minerals: furnaces, air conditioners, air handlers, heat pumps, display cases, unit coolers, condensing units and controls.

I.Reasonable Country of Origin Inquiry and Due Diligence:

As required by Form SD, the Company has conducted a good faith reasonable country of origin inquiry (“RCOI”) regarding the conflict minerals included in the products described above during the Reporting Period, which the Company refers to as the “Subject Minerals,” to determine whether any such Subject Minerals originated in the Covered Countries and/or whether any of the Subject Minerals were from recycled or scrap sources. Where applicable, the Company has conducted additional due diligence regarding the sources of the Subject Minerals. The results of the Company’s RCOI regarding the Subject Minerals, as well as the Company’s additional due diligence regarding the sources of such Subject Minerals, are contained in this Report, which is publicly available at http://www.lennoxinternational.com under “Terms, Conditions and Disclosures.” The content on, or accessible through, any web site referred to in this Report is not incorporated by reference into this Report unless expressly noted.

The Company’s global supply chain is complex. The Company does not purchase conflict minerals directly from mines, smelters or refiners, and there are many third parties in the supply chain between the Company and the original sources of conflict minerals. In the course of its business operations, the Company may purchase materials and components containing conflict minerals, and those materials and components may, in turn, be included in the Company’s products. As a result, the Company necessarily relies on its direct material suppliers to provide information regarding the origin of any conflict minerals that are included in its products. In accordance with the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, including the related supplements for gold, tin, tantalum and tungsten, and related guidance provided by the SEC, the Company works with its direct material suppliers to identify, where possible, the smelters and/or refiners and countries of origin of the Subject Minerals. Additionally, the Company’s standard purchase order terms require suppliers to comply with all applicable laws. The Company also is committed to increasing transparency in its supply chain regarding the origin and traceability of conflict minerals.

As part of the Company’s RCOI and due diligence activities, employees of the Company’s global sourcing group identified 338 Tier 1 suppliers in its centralized Business Warehouse spend database of products during the Reporting Period that (i) were believed to possibly include conflict minerals and (ii) were used in the production of a product under product manufacturing and contract manufacturing arrangements. The Company, through a third party, contacted these 338 suppliers. Suppliers were asked to provide information regarding the sourcing of their Conflict Minerals, through the use of a Responsible Minerals Initiative (“RMI”) (formerly known as the Conflict-Free Sourcing Initiative) Conflict Minerals Reporting Template (“CMRT”) with the ultimate goal of identifying the smelters or refiners and associated mine countries of origin. Where a supplier was unable to provide a CMRT, the Company, through a third party, requested additional information from such supplier regarding its supply chain. The Company, through a third party, later sent follow-up emails to the suppliers who had not responded, and conducted additional outreach with certain suppliers who remained non-responsive, in order to remind these non-responders to respond to its requests regarding conflict minerals sourcing. The suppliers were given an April 1, 2020 deadline to respond. In total, 46% of the 338 suppliers contacted responded. Of these responding suppliers, 39% indicated that one or more of the Subject Minerals was necessary to the functionality or production of the products they supply to the Company, but such suppliers did not provide the Company with sufficient information to fully determine the facilities used to process the Subject Minerals or fully determine the countries of origin for the Subject Minerals.

Based on the information obtained pursuant to the RCOI and due diligence process described above, the Company does not have sufficient information, with respect to the Reporting Period, to determine the known facility/smelter or country of origin of the Subject Minerals. For the Reporting Period, the Company identified over 303 facilities/smelters, as reported by the Covered Suppliers, as potential sources of Subject Minerals. The names of these facilities/smelters are included in Annex A hereto for reference. Although the Company received responses from certain Covered Suppliers in connection with its RCOI that listed smelter or refiner names, such Covered Suppliers are unable to accurately report which specific smelters were part of the supply chain for the Subject Minerals. For example, the majority of Covered Suppliers reported their sourcing results on a company-wide basis, rather than on a product-specific basis or were unable to determine the facility/smelter and/or country of origin for the Subject Minerals. A Covered Supplier’s failure to identify a specific facility/smelter and/or country of origin at any point in its supply chain will drive an equivalent response for the Company and, therefore, the Company is unable to report any known facilities/smelters and/or countries of origin for the Subject Minerals at this time. The Company continues to implement and refine its conflict minerals program to improve its supply chain transparency by obtaining more accurate and more complete information from its suppliers.

II.Additional Information:

This Report was not subjected to an independent private sector audit, as such audit was not required. The statements above are based on the information available at the time this Report was prepared, and a number of factors may change this information. The activities described above are continuing, and after December 31, 2019, the Company has continued to follow up with the suppliers described above and to verify any responses from those suppliers.

Within the Company’s supplier relationships, the Company seeks to manage its sourcing processes ethically, and to hold the Company and its suppliers to high standards of behavior. This means that the Company is committed to working with its suppliers to encourage responsible practices throughout the supply network. The Company expects to continue to improve its RCOI process and due diligence measures, including, but not limited to:

• assessing the presence of conflict minerals in its supply chain;

• clearly communicating expectations with regard to transparency of supplier sourcing of conflict minerals;

• increasing the response rate for RCOI process;

• continuing to monitor and track the Company’s performance of risk mitigation and response rate for RCOI process; and

• continuing to compare RCOI results to information collected via independent conflict free smelter validation programs such as the Responsible Minerals Assurance Process assessment protocols established by the RMI.

Annex A:

Gold8853 S.p.A.GoldJX Nippon Mining & Metals Co., Ltd.
GoldAbington Reldan Metals, LLCGoldKaloti Precious Metals
GoldAdvanced Chemical CompanyGoldKazakhmys Smelting LLC
GoldAfrican Gold RefineryGoldKazzinc
GoldAida Chemical Industries Co., Ltd.GoldKennecott Utah Copper LLC
GoldAl Etihad Gold Refinery DMCCGoldKGHM Polska Miedz Spolka Akcyjna
GoldAllgemeine Gold-und Silberscheideanstalt A.G.GoldKojima Chemicals Co., Ltd.
GoldAlmalyk Mining and Metallurgical Complex (AMMC)GoldKorea Zinc Co., Ltd.
GoldAngloGold Ashanti Corrego do Sitio MineracaoGoldKyrgyzaltyn JSC
GoldArgor-Heraeus S.A.GoldKyshtym Copper-Electrolytic Plant ZAO
GoldAsahi Pretec Corp.GoldL'azurde Company For Jewelry
GoldAsahi Refining Canada Ltd.GoldLingbao Gold Co., Ltd.
GoldAsahi Refining USA Inc.GoldLingbao Jinyuan Tonghui Refinery Co., Ltd.
GoldAsaka Riken Co., Ltd.GoldL'Orfebre S.A.
GoldAtasay Kuyumculuk Sanayi Ve Ticaret A.S.GoldLS-NIKKO Copper Inc.
GoldAU Traders and RefinersGoldLT Metal Ltd.
GoldAurubis AGGoldLuoyang Zijin Yinhui Gold Refinery Co., Ltd.
GoldBangalore RefineryGoldMarsam Metals
GoldBangko Sentral ng Pilipinas (Central Bank of the Philippines)GoldMaterion
GoldBoliden ABGoldMatsuda Sangyo Co., Ltd.
GoldC. Hafner GmbH + Co. KGGoldMetalor Technologies (Hong Kong) Ltd.
GoldC.I Metales Procesados Industriales SASGoldMetalor Technologies (Singapore) Pte., Ltd.
GoldCaridadGoldMetalor Technologies (Suzhou) Ltd.
GoldCCR Refinery - Glencore Canada CorporationGoldMetalor Technologies S.A.
GoldCendres + Metaux S.A.GoldMetalor USA Refining Corporation
GoldCGR Metalloys Pvt Ltd.GoldMetalurgica Met-Mex Penoles S.A. De C.V.
GoldChimet S.p.A.GoldMitsubishi Materials Corporation
GoldChugai MiningGoldMitsui Mining and Smelting Co., Ltd.
GoldDaye Non-Ferrous Metals Mining Ltd.GoldMMTC-PAMP India Pvt., Ltd.
GoldDegussa Sonne / Mond Goldhandel GmbHGoldModeltech Sdn Bhd
GoldDijllah Gold Refinery FZCGoldMorris and Watson
GoldDODUCO Contacts and Refining GmbHGoldMoscow Special Alloys Processing Plant
GoldDowaGoldNadir Metal Rafineri San. Ve Tic. A.S.
GoldDS PRETECH Co., Ltd.GoldNavoi Mining and Metallurgical Combinat
GoldDSC (Do Sung Corporation)GoldNH Recytech Company
GoldEco-System Recycling Co., Ltd. East PlantGoldNihon Material Co., Ltd.
GoldEco-System Recycling Co., Ltd. North PlantGoldOgussa Osterreichische Gold- und Silber-Scheideanstalt GmbH
GoldEco-System Recycling Co., Ltd. West PlantGoldOhura Precious Metal Industry Co., Ltd.
GoldEmirates Gold DMCCGoldOJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet)
GoldFidelity Printers and Refiners Ltd.GoldOJSC Novosibirsk Refinery
GoldFujairah Gold FZCGoldPAMP S.A.
GoldGCC Gujrat Gold Centre Pvt. Ltd.GoldPease & Curren
GoldGeib Refining CorporationGoldPenglai Penggang Gold Industry Co., Ltd.
GoldGold Coast RefineryGoldPlanta Recuperadora de Metales SpA
GoldGold Refinery of Zijin Mining Group Co., Ltd.GoldPrioksky Plant of Non-Ferrous Metals
GoldGreat Wall Precious Metals Co., Ltd. of CBPMGoldPT Aneka Tambang (Persero) Tbk
GoldGuangdong Jinding Gold LimitedGoldPX Precinox S.A.
GoldGuoda Safina High-Tech Environmental Refinery Co., GoldQG Refining, LLC
GoldHangzhou Fuchunjiang Smelting Co., Ltd.GoldRand Refinery (Pty) Ltd.
GoldHeimerle + Meule GmbHGoldRefinery of Seemine Gold Co., Ltd.
GoldHeraeus Metals Hong Kong Ltd.GoldREMONDIS PMR B.V.

GoldHeraeus Precious Metals GmbH & Co. KGGoldRoyal Canadian Mint
GoldHunan Chenzhou Mining Co., Ltd.GoldSAAMP
GoldHunan Guiyang yinxing Nonferrous Smelting Co., Ltd.GoldSabin Metal Corp.
GoldHwaSeong CJ CO., LTD.GoldSafimet S.p.A
GoldInner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.GoldSAFINA A.S.
GoldInternational Precious Metal RefinersGoldSai Refinery
GoldIshifuku Metal Industry Co., Ltd.GoldSamduck Precious Metals
GoldIstanbul Gold RefineryGoldSAMWON METALS Corp.
GoldItalpreziosiGoldSAXONIA Edelmetalle GmbH
GoldJALAN & CompanyGoldSEMPSA Joyeria Plateria S.A.
GoldJapan MintGoldShandong Humon Smelting Co., Ltd.
GoldJiangxi Copper Co., Ltd.GoldShandong Tiancheng Biological Gold Industrial Co., Ltd.
GoldJSC Ekaterinburg Non-Ferrous Metal Processing PlantGoldShandong Zhaojin Gold & Silver Refinery Co., Ltd.
GoldKennecott Utah Copper LLCGoldSichuan Tianze Precious Metals Co., Ltd.
GoldJSC UralelectromedGoldSingway Technology Co., Ltd.
GoldSOE Shyolkovsky Factory of Secondary Precious MetalsTinDongguan CiEXPO Environmental Engineering Co., Ltd.
GoldSolar Applied Materials Technology Corp.TinDowa
GoldSovereign MetalsTinElectro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company
GoldState Research Institute Center for Physical Sciences and TechnologyTinEM Vinto
GoldSudan Gold RefineryTinEstanho de Rondonia S.A.
GoldSumitomo Metal Mining Co., Ltd.TinFenix Metals
GoldSungEel HiMetal Co., Ltd.TinGejiu City Fuxiang Industry and Trade Co., Ltd.
GoldT.C.A S.p.ATinGejiu Kai Meng Industry and Trade LLC
GoldTanaka Kikinzoku Kogyo K.K.TinGejiu Non-Ferrous Metal Processing Co., Ltd.
GoldThe Refinery of Shandong Gold Mining Co., Ltd.TinGejiu Yunxin Nonferrous Electrolysis Co., Ltd.
GoldTokuriki Honten Co., Ltd.TinGejiu Zili Mining And Metallurgy Co., Ltd.
GoldTongling Nonferrous Metals Group Co., Ltd.TinGuangdong Hanhe Non-Ferrous Metal Co., Ltd.
GoldTony Goetz NVTinGuanyang Guida Nonferrous Metal Smelting Plant
GoldTOO Tau-Ken-AltynTinHuiChang Hill Tin Industry Co., Ltd.
GoldTorecomTinHuichang Jinshunda Tin Co., Ltd.
GoldUmicore Brasil Ltda.TinJiangxi New Nanshan Technology Ltd.
GoldUmicore Precious Metals ThailandTinLuna Smelter, Ltd.
GoldUmicore S.A. Business Unit Precious Metals RefiningTinMa'anshan Weitai Tin Co., Ltd.
GoldUnited Precious Metal Refining, Inc.TinMagnu's Minerais Metais e Ligas Ltda.
GoldValcambi S.A.TinMalaysia Smelting Corporation (MSC)
GoldWestern Australian Mint (T/a The Perth Mint)TinMelt Metais e Ligas S.A.
GoldWIELAND Edelmetalle GmbHTinMetallic Resources, Inc.
GoldYamakin Co., Ltd.TinMetallo Belgium N.V.
GoldYokohama Metal Co., Ltd.TinMetallo Spain S.L.U.
GoldYunnan Copper Industry Co., Ltd.TinMineracao Taboca S.A.
GoldZhongyuan Gold Smelter of Zhongjin Gold CorporationTinMinsur
TantalumAsaka Riken Co., Ltd.TinMitsubishi Materials Corporation
TantalumChangsha South Tantalum Niobium Co., Ltd.TinModeltech Sdn Bhd
TantalumCP Metals Inc.TinNghe Tinh Non-Ferrous Metals Joint Stock Company
TantalumD Block Metals, LLCTinO.M. Manufacturing (Thailand) Co., Ltd.
TantalumExotech Inc.TinO.M. Manufacturing Philippines, Inc.
TantalumF&X Electro-Materials Ltd.TinOperaciones Metalurgicas S.A.

TantalumFIR Metals & Resource Ltd.TinPongpipat Company Limited
TantalumGlobal Advanced Metals AizuTinPrecious Minerals and Smelting Limited
TantalumGlobal Advanced Metals BoyertownTinPT Artha Cipta Langgeng
TantalumGuangdong Zhiyuan New Material Co., Ltd.TinPT ATD Makmur Mandiri Jaya
TantalumH.C. Starck Co., Ltd.TinPT Menara Cipta Mulia
TantalumH.C. Starck Hermsdorf GmbHTinPT Mitra Stania Prima
TantalumH.C. Starck Inc.TinPT Refined Bangka Tin
TantalumH.C. Starck Ltd.TinPT Timah Tbk Kundur
TantalumH.C. Starck Smelting GmbH & Co. KGTinPT Timah Tbk Mentok
TantalumH.C. Starck Tantalum and Niobium GmbHTinResind Industria e Comercio Ltda.
TantalumHengyang King Xing Lifeng New Materials Co., Ltd.TinRui Da Hung
TantalumJiangxi Dinghai Tantalum & Niobium Co., Ltd.TinSoft Metais Ltda.
TantalumJiangxi Tuohong New Raw MaterialTinSuper Ligas
TantalumJiuJiang JinXin Nonferrous Metals Co., Ltd.TinThai Nguyen Mining and Metallurgy Co., Ltd.
TantalumJiujiang Tanbre Co., Ltd.TinThaisarco
TantalumJiujiang Zhongao Tantalum & Niobium Co., Ltd.TinTin Technology & Refining
TantalumKEMET Blue MetalsTinTuyen Quang Non-Ferrous Metals Joint Stock Company
TantalumLSM Brasil S.A.TinWhite Solder Metalurgia e Mineracao Ltda.
TantalumMetallurgical Products India Pvt., Ltd.TinYunnan Chengfeng Non-ferrous Metals Co., Ltd.
TantalumMineracao Taboca S.A.TinYunnan Tin Company Limited
TantalumMitsui Mining and Smelting Co., Ltd.TinYunnan Yunfan Non-ferrous Metals Co., Ltd.
TantalumNingxia Orient Tantalum Industry Co., Ltd.TungstenA.L.M.T. TUNGSTEN Corp.
TantalumNPM Silmet ASTungstenACL Metais Eireli
TantalumPRG DooelTungstenAlbasteel Industria e Comercio de Ligas Para Fundicao
TantalumQuantumCleanTungstenAsia Tungsten Products Vietnam Ltd.
TantalumResind Industria e Comercio Ltda.TungstenChenzhou Diamond Tungsten Products Co., Ltd.
TantalumSolikamsk Magnesium Works OAOTungstenChina Molybdenum Co., Ltd.
TantalumTaki Chemical Co., Ltd.TungstenChongyi Zhangyuan Tungsten Co., Ltd.
TantalumTelex MetalsTungstenCNMC (Guangxi) PGMA Co., Ltd.
TantalumUlba Metallurgical Plant JSCTungstenCP Metals Inc.
TantalumXinXing Haorong Electronic Material Co., Ltd.TungstenFujian Ganmin RareMetal Co., Ltd.
TantalumYanling Jincheng Tantalum & Niobium Co., Ltd.TungstenFujian Jinxin Tungsten Co., Ltd.
TinAlphaTungstenGanzhou Haichuang Tungsten Co., Ltd.
TinAn Vinh Joint Stock Mineral Processing CompanyTungstenGanzhou Huaxing Tungsten Products Co., Ltd.
TinChenzhou Yunxiang Mining and Metallurgy Co., Ltd.TungstenGanzhou Jiangwu Ferrotungsten Co., Ltd.
TinChifeng Dajingzi Tin Industry Co., Ltd.TungstenGanzhou Seadragon W & Mo Co., Ltd.
TinChina Tin Group Co., Ltd.TungstenGlobal Tungsten & Powders Corp.
TungstenGuangdong Xianglu Tungsten Co., Ltd.TungstenKennametal Huntsville
TungstenH.C. Starck Smelting GmbH & Co. KGTungstenKGETS CO., LTD.
TungstenH.C. Starck Tungsten GmbHTungstenLianyou Metals Co., Ltd.
TungstenHunan Chenzhou Mining Co., Ltd.TungstenMalipo Haiyu Tungsten Co., Ltd.
TungstenHunan Chuangda Vanadium Tungsten Co., Ltd. WujiTungstenMasan Tungsten Chemical LLC (MTC)
TungstenHunan Chunchang Nonferrous Metals Co., Ltd.TungstenMoliren Ltd.
TungstenHunan Litian Tungsten Industry Co., Ltd.TungstenNiagara Refining LLC

TungstenHydrometallurg, JSCTungstenPhilippine Chuangxin Industrial Co., Inc.
TungstenJapan New Metals Co., Ltd.TungstenTejing (Vietnam) Tungsten Co., Ltd.
TungstenJiangwu H.C. Starck Tungsten Products Co., Ltd.TungstenUnecha Refractory Metals Plant
TungstenJiangxi Gan Bei Tungsten Co., Ltd.TungstenWolfram Bergbau und Hutten AG
TungstenJiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.TungstenWoltech Korea Co., Ltd.
TungstenJiangxi Tonggu Non-ferrous Metallurgical & Chemical TungstenXiamen Tungsten (H.C.) Co., Ltd.
TungstenJiangxi Xianglu Tungsten Co., Ltd.TungstenXiamen Tungsten Co., Ltd.
TungstenJiangxi Xinsheng Tungsten Industry Co., Ltd.TungstenXinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.
TungstenJiangxi Yaosheng Tungsten Co., Ltd.TungstenXinhai Rendan Shaoguan Tungsten Co., Ltd.
TungstenJSC "Kirovgrad Hard Alloys Plant"
TungstenKennametal Fallon