EX-1.01 2 d378766dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Fortune Brands Home & Security, Inc.

Conflict Minerals Report

Year Ended December 31, 2016

Summary

Fortune Brands Home & Security, Inc. (“Fortune Brands” the “Company”, “we”, “us”, or “our”) determined that tin, tantalum, tungsten and/or gold (the “Conflict Minerals”) were necessary for the production or functionality of products manufactured or contracted for manufacture by Fortune Brands in calendar year 2016 and is therefore subject to reporting under Section 1502(b) of the Dodd Frank Act, and Rule 13p-1 under the Securities Exchange Act of 1934. After conducting a reasonable country of origin inquiry (“RCOI”) regarding the applicable Conflict Minerals, Fortune Brands had reason to believe that some of the Conflict Minerals may have originated in the Democratic Republic of the Congo or an adjoining country (together, the “Conflict Region”) and therefore was subject to the exercise of due diligence as described in this Conflict Minerals Report (“Report”), which is presented to comply with Rule 13p-1 of the Securities Exchange Act of 1934.

 

  1. Company Overview.

We are a leading home and security products company that creates products and services that help fulfill the dreams of homeowners and help people feel more secure. The Company’s four segments are: Cabinets, Plumbing, Doors and Security and our brands in 2016 included MasterBrand cabinets, Moen faucets, Therma-Tru entry door systems, Master Lock security products and Sentry Safe personal safes1. Fortune Brands does not directly source any Conflict Minerals that may be used in the products it manufactures or contracts to manufacture. Because of the size of the Company, the complexity of our products and the manufacturing process, and because of the constant evolution of our supply chain, we relied on our direct suppliers to provide us with information on the origin of the Conflict Minerals that are supplied to them from upstream suppliers when conducting our RCOI and our due diligence process.

 

  2. Design of Due Diligence Process.

Fortune Brands designed its due diligence process and methodology to conform in all material respects with the framework of the Organization for Economic Co-Operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas (Second Edition, OECD 2013) and the supplements thereto (together, the “OECD Framework”).

 

  3. Due Diligence Measures Undertaken.

Fortune Brands undertook the following measures as part of its Conflict Minerals due diligence:

 

A. Established Company Management Systems:

The Company maintained a Conflict Minerals task force headed by the Fortune Brands’ legal department and which includes representatives from each business unit. The task force continued to educate senior management on the requirements of the legislation and work with the representatives of the Company’s businesses to help determine the scope of our due diligence, and the best methods to contact, educate, and survey our suppliers.

We employed our system of supply chain traceability to identify the facilities in our supply chain that may have supplied Conflict Minerals for our 2016 products. This system included identification of suppliers of materials for the 2016 products, outreach to these suppliers, and evaluation of information received from these suppliers (as described further in Part B below). Reports on the progress of the Conflict Minerals program were made to internal company management teams including our General Counsel, our Chief Financial Officer, our Chief Auditor and our Principal Accounting Officer periodically.

 

1  During the course of 2016 the Company also acquired the Riobel, ROHL and Perrin & Rowe brands. Information on the supply chains of Riobel, ROHL and Perrin & Rowe are excluded from this report.


The Company also continued to maintain control systems which include our many standards, policies and procedures designed to provide guidelines on how to conduct business in an ethical and responsible manner and how to report grievances. Please see our Annual Report on Form 10-K for more information on these controls and our Code of Business Conduct and Ethics, Supplier Code of Conduct and other related policies, all of which can be found at www.FBHS.com.

 

B. Identify and Assess Risks in the Supply Chain:

Fortune Brands relied on information provided by our suppliers to assist with our due diligence efforts. Specifically, we took the following steps as part of our Conflict Minerals due diligence process:

 

    Identified our direct suppliers which provided raw materials or components used in the production of those products reasonably believed to contain one or more Conflict Minerals;

 

    Contacted the identified suppliers and, together with a cover letter explaining the intent and purpose of our request, sent our direct suppliers the Conflict Free Sourcing Initiative’s Conflict Minerals Reporting Template (the “Template”);

 

    Requested from those suppliers confirmation of the presence of necessary Conflict Minerals in the raw materials or components they supplied to Fortune Brands and information regarding the origin of those minerals. The Template also included questions regarding the suppliers’ conflict mineral policies, due diligence processes, engagement with their supply chains and a listing of the smelters/refiners used to process the necessary Conflict Minerals;

 

    Followed-up with unresponsive suppliers to request compliance with our requests for information and documentation; and

 

    Reviewed, compiled and analyzed the responses for each responding supplier.

 

C. Design and Implement a Strategy to Respond to Identified Risks.

Fortune Brands continued to implement a strategy for complying with the Conflict Minerals reporting requirements, which included establishing a timeline for the sending, collection and analysis of the responses to the Template we gathered as part of our due diligence process. Fortune Brands continued to use a task force to coordinate the process and the collection of data. Members of this task force worked to incorporate insights gained during the 2013, 2014, and 2015 reporting cycles to improve the accuracy of the 2016 due diligence process. This included identifying incomplete or internally inconsistent supplier responses, and working to obtain additional information and accurate responses. Members of Senior management received periodic reports and updates regarding the due diligence process. In addition, the business units had discussions with the Company’s legal department throughout the process.

 

D. Carry Out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain.

As a downstream company with no direct relationships with smelters/refiners, we did not directly engage in any third-party audits of smelters of refiners in our supply chain.

 

E. Report on Supply Chain Due Diligence.

A copy of this Conflict Minerals Report can be found on our website at www.FBHS.com


  4. Results of Due Diligence Process.

As part of our internal assessment, we identified our global suppliers who were potentially supplying products that contained Conflict Minerals. Each supplier was sent a cover letter, background on the Template and the Template. The vast majority of our suppliers responded. However, many of the responses were incomplete or had inconsistencies with the data reported. All of our segments had products that were subject to our due diligence efforts. For more information about our products, please refer to our Annual Report on Form 10-K for year ended 2016.

Fortune Brands was unable, after exercising the due diligence described in this Conflict Minerals Report, to determine the country of origin of some necessary Conflict Minerals in our 2016 products or whether any of the necessary Conflict Minerals may have directly or indirectly financed or benefited an armed group in the Conflict Region.

Facilities used to process necessary Conflict Minerals and country of origin

As a result of the Company’s due diligence process, 227 smelters and refiners were reported to us by our responsive direct suppliers as having potentially processed necessary Conflict Minerals contained in our 2016 products. Of these, 175 are included on the Conflict Free Smelter List as facilities that have been verified and found to be compliant with the Conflict-Free Smelter Program (“CFSP”) assessment protocols, and one other facility has committed to undergo a CFSP audit. Appendix A sets forth a list of the facilities our suppliers identified, with CFSP-compliant smelters identified as “Conflict Free” and those committed to an audit identified as “Active.” The majority of our direct suppliers provided the information on smelters and refiners at their company level (i.e., representing the smelters and refiners associated with all product offerings of the supplier that contained Conflict Minerals) and did not customize the information for Fortune Brands or the specific materials supplied to the Company. We were therefore unable to confirm that the Conflict Minerals in our 2016 products were necessarily processed by the reported smelters and refiners.

Efforts to determine the mine or location of origin

We have determined that seeking information about the smelters and refiners of Conflict Minerals in our supply chain and utilizing the tools and information developed by industry organizations to assess the due diligence practices of these entities represent the most reasonable efforts we can make to determine the mines or locations of origin of the Conflict Minerals in our supply chains and products.

 

  5. Steps to Improve Due Diligence Efforts in 2017

The Company intends to continue to take the following steps to improve our Conflict Minerals due diligence process:

 

    Continue to utilize internal resources and expertise to ensure uniform implementation of Company Conflict Minerals processes.

 

    Continue to engage our suppliers that have not fully responded to our requests for Conflict Minerals information, ultimately seeking to obtain complete responses from all of our direct suppliers of materials containing Conflict Minerals, to determine:

 

    the use of Conflict Minerals;

 

    the country of origin of those Conflict Minerals;

 

    the use of scrap or recycled sources of those Conflict Minerals; and

 

    the source and chain of custody of those Conflict Minerals there is reason to believe may have originated in the covered countries and that were not obtained from scrap or recycled sources.

 

    Work with relevant trade associations and industry organizations to define and improve best practices and build leverage over the supply chain.


Appendix A

 

Metal

  

Smelter Name

   Conflict Free      Active  

Gold

   Navoi Mining and Metallurgical Combinat         X  

Gold

   Advanced Chemical Company      X     

Gold

   Aida Chemical Industries Co., Ltd.      X     

Gold

   Allgemeine Gold-und Silberscheideanstalt A.G.      X     

Gold

   Almalyk Mining and Metallurgical Complex (AMMC)      X     

Gold

   AngloGold Ashanti Córrego do Sítio Mineração      X     

Gold

   Argor-Heraeus S.A.      X     

Gold

   Asahi Pretec Corp.      X     

Gold

   Asaka Riken Co., Ltd.      X     

Gold

   Aurubis AG      X     

Gold

   Bangko Sentral ng Pilipinas (Central Bank of the Philippines)      X     

Gold

   Boliden AB      X     

Gold

   C. Hafner GmbH + Co. KG      X     

Gold

   CCR Refinery - Glencore Canada Corporation      X     

Gold

   Chimet S.p.A.      X     

Gold

   Daejin Indus Co., Ltd.      X     

Gold

   DODUCO GmbH      X     

Gold

   Dowa      X     

Gold

   Eco-System Recycling Co., Ltd.      X     

Gold

   OJSC Novosibirsk Refinery      X     

Gold

   Heimerle + Meule GmbH      X     

Gold

   Heraeus Ltd. Hong Kong      X     

Gold

   Heraeus Precious Metals GmbH & Co. KG      X     

Gold

   Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.      X     

Gold

   Ishifuku Metal Industry Co., Ltd.      X     

Gold

   Istanbul Gold Refinery      X     

Gold

   Japan Mint      X     

Gold

   Jiangxi Copper Co., Ltd.      X     

Gold

   Asahi Refining USA Inc.      X     

Gold

   Asahi Refining Canada Ltd.      X     

Gold

   JSC Ekaterinburg Non-Ferrous Metal Processing Plant      X     


Metal

  

Smelter Name

   Conflict Free    Active  
Gold    JSC Uralelectromed    X   

Gold

   JX Nippon Mining & Metals Co., Ltd.    X   

Gold

   Kazzinc    X   

Gold

   Kennecott Utah Copper LLC    X   

Gold

   Kojima Chemicals Co., Ltd.    X   

Gold

   Kyrgyzaltyn JSC    X   

Gold

   Lingbao Jinyuan Tonghui Refinery Co., Ltd.    X   

Gold

   LS-NIKKO Copper Inc.    X   

Gold

   Materion    X   

Gold

   Matsuda Sangyo Co., Ltd.    X   

Gold

   Metalor Technologies (Hong Kong) Ltd.    X   

Gold

   Metalor Technologies (Singapore) Pte., Ltd.    X   

Gold

   Metalor Technologies S.A.    X   

Gold

   Metalor USA Refining Corporation    X   

Gold

   Metalurgica Met-Mex Penoles S.A. De C.V.    X   

Gold

   Mitsubishi Materials Corporation    X   

Gold

   Mitsui Mining and Smelting Co., Ltd.    X   

Gold

   Moscow Special Alloys Processing Plant    X   

Gold

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

Gold

   Nihon Material Co., Ltd.    X   

Gold

   Ohura Precious Metal Industry Co., Ltd.    X   

Gold

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

Gold

   PAMP S.A.    X   

Gold

   Prioksky Plant of Non-Ferrous Metals    X   

Gold

   PT Aneka Tambang (Persero) Tbk    X   

Gold

   PX Précinox S.A.    X   

Gold

   Rand Refinery (Pty) Ltd.    X   

Gold

   Royal Canadian Mint    X   

Gold

   Samduck Precious Metals    X   

Gold

   Schone Edelmetaal B.V.    X   

Gold

   SEMPSA Joyería Platería S.A.    X   

Gold

   Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    X   

Gold

   Sichuan Tianze Precious Metals Co., Ltd.    X   

Gold

   SOE Shyolkovsky Factory of Secondary Precious Metals    X   


Metal

  

Smelter Name

   Conflict Free      Active  
Gold    Solar Applied Materials Technology Corp.      X     

Gold

   Sumitomo Metal Mining Co., Ltd.      X     

Gold

   Tanaka Kikinzoku Kogyo K.K.      X     

Gold

   The Refinery of Shandong Gold Mining Co., Ltd.      X     

Gold

   Tokuriki Honten Co., Ltd.      X     

Gold

   Umicore Brasil Ltda.      X     

Gold

   Umicore S.A. Business Unit Precious Metals Refining      X     

Gold

   United Precious Metal Refining, Inc.      X     

Gold

   Valcambi S.A.      X     

Gold

   Western Australian Mint trading as The Perth Mint      X     

Gold

   Yamamoto Precious Metal Co., Ltd.      X     

Gold

   Yokohama Metal Co., Ltd.      X     

Gold

   Zhongyuan Gold Smelter of Zhongjin Gold Corporation      X     

Gold

   Zijin Mining Group Co., Ltd. Gold Refinery      X     

Gold

   Umicore Precious Metals Thailand      X     

Gold

   Republic Metals Corporation      X     

Gold

   Torecom      X     

Gold

   Atasay Kuyumculuk Sanayi Ve Ticaret A.S.      

Gold

   Caridad      

Gold

   Cendres + Métaux S.A.      

Gold

   Yunnan Copper Industry Co., Ltd.      

Gold

   Chugai Mining      

Gold

   Daye Non-Ferrous Metals Mining Ltd.      

Gold

   DSC (Do Sung Corporation)      

Gold

   Gansu Seemine Material Hi-Tech Co., Ltd.      

Gold

   Hangzhou Fuchunjiang Smelting Co., Ltd.      

Gold

   Hwasung CJ Co., Ltd.      

Gold

   Korea Metal Co., Ltd.      

Gold

   L’azurde Company For Jewelry      

Gold

   Luoyang Zijin Yinhui Gold Refinery Co., Ltd.      

Gold

   Elemental Refining, LLC      

Gold

   Penglai Penggang Gold Industry Co., Ltd.      

Gold

   Sabin Metal Corp.      

Gold

   SAMWON Metals Corp.      


Metal

  

Smelter Name

   Conflict Free    Active
Gold    So Accurate Group, Inc.      
Gold    Great Wall Precious Metals Co., Ltd. of CBPM      
Gold    Tongling Nonferrous Metals Group Co., Ltd.      
Gold    Guangdong Jinding Gold Limited      
Tantalum    Exotech    X   
Tantalum    F&X Electro-Materials Ltd.    X   
Tantalum    Guangdong Zhiyuan New Material Co., Ltd.    X   
Tantalum    Hi-Temp Specialty Metals, Inc.    X   
Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd    X   
Tantalum    RFH Tantalum Smeltry Co., Ltd.    X   
Tantalum    Telex Metals    X   
Tantalum    Zhushou Cemented Carbide    X   
Tantalum    Jiangxi Dinghai Tantalum & Niobium Co., Ltd.    X   
Tantalum    H.C. Starck Co., Ltd.    X   
Tantalum    H.C. Starck GmbH Goslar    X   
Tantalum    H.C. Starck Hermsdorf GmbH    X   
Tantalum    H.C. Starck Inc.    X   
Tantalum    H.C. Starck Ltd.    X   
Tantalum    Global Advanced Metals Boyertown    X   
Tantalum    Plansee SE Liezen      
Tantalum    H.C. Starck GmbH Laufenburg      
Tantalum    Plansee SE Reutte      
Tantalum    Tranzact, Inc.      
Tin    Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.    X   
Tin    Jiangxi Ketai Advanced Material Co., Ltd.    X   
Tin    Alpha    X   
Tin    Cooperativa Metalurgica de Rondônia Ltda.    X   
Tin    CV Gita Pesona    X   
Tin    PT Aries Kencana Sejahtera    X   
Tin    CV Serumpun Sebalai    X   
Tin    CV United Smelting    X   
Tin    Dowa    X   
Tin    EM Vinto    X   
Tin    Fenix Metals    X   


Metal

  

Smelter Name

   Conflict Free    Active
Tin    Geijiu Non-Ferrous Metal Processing Co., Ltd.    X   
Tin    China Tin Group Co., Ltd.    X   
Tin    Malaysia Smelting Corporation (MSC)    X   
Tin    Metallic Resources, Inc.    X   
Tin    Mineração Taboca S.A.    X   
Tin    Minsur    X   
Tin    Mitsubishi Materials Corporation    X   
Tin    O.M. Manufacturing (Thailand) Co., Ltd.    X   
Tin    Operaciones Metalurgical S.A.    X   
Tin    PT Artha Cipta Langgeng    X   
Tin    PT Babel Inti Perkasa    X   
Tin    PT Bangka Tin Industry    X   
Tin    PT Belitung Industri Sejahtera    X   
Tin    PT Bukit Timah    X   
Tin    PT DS Jaya Abadi    X   
Tin    PT Eunindo Usaha Mandiri    X   
Tin    PT Karimun Mining    X   
Tin    PT Mitra Stania Prima    X   
Tin    PT Panca Mega Persada    X   
Tin    PT Prima Timah Utama    X   
Tin    PT Refined Bangka Tin    X   
Tin    PT Sariwiguna Binasentosa    X   
Tin    PT Stanindo Inti Perkasa    X   
Tin    PT Sumber Jaya Indah    X   
Tin    PT Timah (Persero) Tbk Kundur    X   
Tin    PT Timah (Persero) Tbk Mentok    X   
Tin    PT Tinindo Inter Nusa    X   
Tin    PT Tommy Utama    X   
Tin    Rui Da Hung    X   
Tin    Soft Metais Ltda.    X   
Tin    Thaisarco    X   
Tin    Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.    X   
Tin    White Solder Metalurgia e Mineração Ltda.    X   
Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    X   


Metal

  

Smelter Name

   Conflict Free    Active
Tin    Yunnan Tin Company Limited    X   
Tin    CV Venus Inti Perkasa    X   
Tin    Magnu’s Minerais Metais e Ligas Ltda.    X   
Tin    Melt Metais e Ligas S.A.    X   
Tin    PT ATD Makmur Mandiri Jaya    X   
Tin    O.M. Manufacturing Philippines, Inc.    X   
Tin    PT Inti Stania Prima    X   
Tin    Metallo-Chimique N.V.    X   
Tin    PT Bangka Prima Tin    X   
Tin    PT Sukses Inti Makmur    X   
Tin    PT Lautan Harmonis Sejahtera    X   
Tin    EM Vinto      
Tin    Mineracao Taboca S.A.      
Tin    Jiangxi Nanshan      
Tin    Yunnan Tin Company Limited      
Tin    PT Timah      
Tin    PT Tambang Timah      
Tin    Cooper Santa      
Tin    Malaysia Smelting Corp      
Tin    Minsur      
Tin    Thaisarco      
Tin    CNMC (Guangxi) PGMA Co., Ltd.      
Tin    PT Justindo      
Tin    Estanho de Rondônia S.A.      
Tin    Feinhütte Halsbrücke GmbH      
Tin    Gejiu Zili Mining And Metallurgy Co., Ltd.      
Tin    Huichang Jinshunda Tin Co., Ltd.      
Tin    Gejiu Kai Meng Industry and Trade LLC      
Tin    Linwu Xianggui Ore Smelting Co., Ltd.      
Tin    Metallo Chimique      
Tin    Nankang Nanshan Tin Manufactory Co., Ltd.      
Tin    PT Alam Lestari Kencana      
Tin    PT Bangka Timah Utama Sejahtera      
Tin    PT BilliTin Makmur Lestari      


Metal

  

Smelter Name

   Conflict Free    Active
Tin    PT Fang Di MulTindo      
Tin    PT Seirama Tin Investment      
Tin    PT Pelat Timah Nusantara Tbk      
Tungsten    A.L.M.T. TUNGSTEN Corp.    X   
Tungsten    Kennametal Huntsville    X   
Tungsten    Guangdong Xianglu Tungsten Co., Ltd.    X   
Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.    X   
Tungsten    Fujian Jinxin Tungsten Co., Ltd.    X   
Tungsten    Global Tungsten & Powders Corp.    X   
Tungsten    Hunan Chenzhou Mining Co., Ltd.    X   
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    X   
Tungsten    Kennametal Fallon    X   
Tungsten    Xiamen Tungsten Co., Ltd.    X   
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    X   
Tungsten    Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    X   
Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.    X   
Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.    X   
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    X   
Tungsten    Xiamen Tungsten (H.C.) Co., Ltd.    X   
Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.    X   
Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.    X   
Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.    X   
Tungsten    H.C. Starck GmbH    X   
Tungsten    H.C. Starck Smelting GmbH & Co.KG    X   
Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    X   
Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.    X   

Countries of origin of the conflict minerals these facilities process are believed to include one or more of the following countries:

Australia, Austria, Belgium, Bolivia, Brazil, Canada, China, Estonia, France, Germany, India, Indonesia, Italy, Japan, Kazakhstan, Republic of Korea, Kyrgyzstan, Malaysia, Mexico, Netherlands, Peru, Philippines, Poland, Russian Federation, Rwanda, South Africa, Saudi Arabia, Singapore, South Africa, Spain, Sudan, Sweden, Taiwan, Thailand, Turkey, United Arab Emirates, United States, Uzbekistan, Vietnam, Zimbabwe