EX-1.01 2 d708243dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Conflict Minerals Report of Nordson Corporation

For The Year Ended December 31, 2018

I. Introduction

Nordson Corporation (“our,” “we” or “us”) engineers, manufactures and markets differentiated products and systems used for dispensing and processing adhesives, coatings, polymers, sealants and biomaterials, and for managing fluids, testing and inspecting for quality, treating surfaces and curing. These products are supported with extensive application expertise and direct global sales and service. We serve a wide variety of consumer non-durable, consumer durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing.

Headquartered in Westlake, Ohio, our products are marketed through a network of direct operations in more than 35 countries. Our principal manufacturing facilities are located in the United States, the People’s Republic of China, Germany, Ireland, Israel, Mexico, the Netherlands, Thailand and the United Kingdom.

Pursuant to the Securities and Exchange Commission’s conflict minerals rule adopted pursuant to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Rule”) and to the guidance provided by the Securities and Exchange Commission in its Statement on the Effect of the Recent Court of Appeals Decision on the Conflict Minerals Rule issued on April 29, 2014, this Report was not subject to an independent private sector audit.

II. Reasonable Country of Origin Inquiry

Organization for Economic Co-operation and Development (OECD) Step 1 – Establish strong management systems

Internal Management

We have established a Conflict Minerals Reporting Oversight Committee. The team members include representatives from our Supply Chain Management, one of whom is our designated member of senior management, Legal, Product Compliance, Finance and Internal Audit departments. Periodic reports are made to the audit committee of the board of directors with respect to our due diligence process and compliance obligations.

We have been an active member of the Responsible Materials Initiative (RMI), formerly known as the Conflict-Free Sourcing Initiative (CFSI), since 2015. Through the RMI, we participate in the Due Diligence Practices Team, which meets monthly, the Smelter Engagement Team, which meets bi-weekly, and the RMI Plenary Call, which meets monthly. In addition to our RMI membership, we host a regular call with representatives from select peer group companies to benchmark compliance efforts and best practices.

External Communications and Supply Chain Engagement

Our customers can access our conflict minerals statement on our public website, www.nordson.com. Our conflict minerals statement informs customers of where we are in our Rule compliance efforts. Customer inquiries are handled on a case by case basis, utilizing the conflict minerals statement or customized responses using the conflict mineral reporting template (CMRT) developed by the RMI, as appropriate.

Since we are an industrial equipment supplier, many of our products are not incorporated into our customers’ products and, therefore, do not fall within the scope of the Rule as applied to our customers.

In addition to our conflict minerals statement, our Conflict Minerals Policy, adopted on May 6, 2014, is available on our website, www.nordson.com. In conjunction with the adoption of the Conflict Minerals Policy, we revised our Supplier Code of Ethics, which outlines the ethical standards with which we expect our suppliers to comply, to reflect our expectations that our suppliers procure materials from sources that do not directly or indirectly support non-state armed groups. The Conflict Minerals Policy and Supplier Code of Ethics have been distributed to our suppliers.


Reasonable Country of Origin Survey Process

We evaluated our products and determined that certain products manufactured during calendar year 2018 were manufactured with materials or components that contain, or likely contain, conflict minerals, i.e. tin, tantalum, tungsten and gold, that are necessary to the functionality or production of those products. The areas of conflict mineral usage within our supply chain were identified based on the results of previous surveys. Future surveys will focus efforts on these areas.

We identified in-scope suppliers that we believed provided materials or components containing conflict minerals. Based on commodity analysis and responses from prior years, 43% of our total direct material spend was classified as in-scope. The total direct material spend attributable to in-scope suppliers is lower than in past years due to improvements in the evaluation process to exclude out-of-scope suppliers from polling. Given the size and complexity of our supply chain, we focused on our largest suppliers, ranked by the amount that we paid to each supplier.

We surveyed our suppliers utilizing the CMRT and our supplier portal, Nordson’s Supply Chain Central (SCC). The SCC software was used by all product lines to automate surveying our suppliers, and to collect and analyze the survey data. Suppliers were provided training materials on the SCC website regarding conflict minerals and the CMRT.

As part of our grievance mechanism, we rely on RMI to provide us with information regarding grievances shared among group members, and we encourage our suppliers to send inquiries or other information concerning conflict minerals to productcompliance@nordson.com.

For the period covered by this Report, we prioritized collection of responses from in-scope suppliers representing approximately 31% of our total direct material spend. For this group of suppliers, we had about an 92% response rate. Based on the information obtained pursuant to the reasonable country of inquiry process described above, we do not have sufficient information to determine the country of origin of all of the conflict minerals in our supply chain. We continue to work to improve our reasonable country of origin process as described in more detail below.

OECD Step 2 – Identify and assess risk in the supply chain

An escalation process was initiated with those surveyed suppliers who continued to be nonresponsive after the above contacts were made, or whose initial (or subsequent) response was not complete or otherwise warranted clarification or confirmation. We evaluated responses from the surveyed suppliers for plausibility, consistency, and gaps both in terms of which materials or components were stated to contain or not contain conflict minerals and the origin of such conflict minerals. We engaged certain surveyed suppliers, holding discussions and reviewing the results of their internal due diligence efforts, to ensure that our inquiries regarding conflict minerals were understood and complied with.

III. Due Diligence Framework

Our due diligence process has been designed to conform, in all material respects relevant to the disclosure requirements under the Rule, with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

IV. Due Diligence Undertaken

OECD Step 3 – Design and implement a strategy to respond to identified risks

We supported audits of conflict mineral smelters and refiners conducted by third parties through our participation in the RMI. Suppliers were evaluated based on their smelter and refiner information obtained from CMRT declarations. If supplier information indicated that they used conflict minerals from the Democratic Republic of the Congo, including Angola, Burundi, Central African Republic, the Republic of Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia (collectively, the “Covered Countries”), then we used the flagship program of the RMI, the Responsible Minerals Assurance Process (RMAP) and general public information to determine a smelter or refiner’s conflict minerals program status.

If, through our smelters lists, we discover that certain of our products contain conflict minerals that finance or benefit armed groups in the Covered Countries, or we cannot definitively deem a product to be free of conflict minerals that finance or benefit armed groups in the Covered Countries, we will analyze the adverse impact of this determination pursuant to the standards set forth in our Conflict Minerals Policy and Supplier Code of Ethics.


Findings regarding the compiled supply chain information through the processes described above will be reported to our executive officer committee. Identified areas of risk in our supply chain will be subject to a risk management plan developed pursuant to our Supplier Code of Ethics and Conflict Minerals Policy. Such risk management plan may include continuing trade throughout the course of measurable risk mitigation efforts, temporarily suspending trade while pursuing ongoing measurable risk mitigation, or disengaging with a supplier after failed attempts at mitigation or where we deem risk mitigation not feasible or unacceptable.

Once our risk management plan is implemented, we will track performance of our risk mitigation efforts and report the results back to our executive officer committee. For risks requiring additional mitigation, or after a change of circumstances, we will undertake additional fact and risk assessments.

V. Results of Due Diligence Undertaken

OECD Step 4 – Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain

We will rely on third party assurances and certifications. For example, if a supplier provides the name of a smelter or source mine, we would compare that reply to the listing of smelters from the RMI thereby relying on the program’s processes.

OECD Step 5 – Report on supply chain due diligence

We have taken the information gathered through the above-described due diligence process and compiled this Report. In the future, we will take such information and compile it in a Report or in our specialized disclosure report as required by the Rule, whichever is applicable.

We have not identified any occurrence where our conflict mineral sourcing has directly or indirectly financed or benefited armed groups in the Covered Countries.

VI. Smelter and Refiner Disclosures

Schedule 1 lists the RMI verified smelters and refiners identified by collection of supplier conflict mineral reporting templates where sourcing is unknown. Please note these reported smelters and refiners have not been verified as contributing to components or parts that are in our products.

Schedule 2 lists the countries of the direct and indirect sourcing for conformant smelters reported by the RMI.

VII. Future Improvements

We intend to undertake the following steps during the next compliance period:

 

   

Continue to collect conflict minerals information from all suppliers included in our conflict mineral survey process.

 

   

Strive to improve the response rate from our suppliers.

 

   

Continue to engage with relevant trade associations to define and improve best practices.

 

   

Continue to support the RMI through our membership and participation in subcommittees.

 

   

Direct suppliers to the RMI organization for information.


Schedule 1

 

ID

  

Metal

  

Name

  

Country

CID000093   

Gold

  

Asarco

   UNITED STATES
CID000103   

Gold

  

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

   TURKEY
CID000180   

Gold

  

Caridad

   MEXICO
CID000264   

Gold

  

Chugai Mining

   JAPAN
CID000268   

Tantalum

  

CIF

   BRAZIL
CID000343   

Gold

  

Daye Non-Ferrous Metals Mining Ltd.

   CHINA
CID000373   

Tin

  

Dongguan Qiandao Metal Tin Product Co., Ltd.

   CHINA
CID000448   

Tin

  

Estanho de Rond

   BRAZIL
CID000522   

Gold

  

Gansu Seemine Material Hi-Tech Co Ltd

   CHINA
CID000555   

Tin

  

Gejiu Zi-Li

   CHINA
CID000651   

Gold

  

Guoda Safina High-Tech Environmental Refinery Co., Ltd.

   CHINA
CID000671   

Gold

  

Hangzhou Fuchunjiang Smelting Co., Ltd.

   CHINA
CID000724   

Gold

  

Sumitomo Hishikari Mine

   JAPAN
CID000767   

Gold

  

Hunan Chenzhou Mining Co., Ltd.

   CHINA
CID000773   

Gold

  

Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.

   CHINA
CID000778   

Gold

  

HwaSeong CJ CO., LTD.

   KOREA, REPUBLIC OF
CID000927   

Gold

  

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

   RUSSIAN FEDERATION
CID000956   

Gold

  

Kazakhmys Smelting LLC

   KAZAKHSTAN
CID001032   

Gold

  

L’ azurde Company For Jewelry

   SAUDI ARABIA
CID001056   

Gold

  

Lingbao Gold Co., Ltd.

   CHINA
CID001058   

Tin

  

Lingbao Jinyuan tonghu

   CHINA
CID001093   

Gold

  

Luoyang Zijin Yinhui Gold Refinery Co., Ltd.

   CHINA
CID001106   

Tin

  

Malaysia Smelting Corporation Berhad

   MALAYSIA
CID001141   

Gold

  

Metallic Resources, Inc.

   UNITED STATES OF AMERICA
CID001236   

Gold

  

Navoi Mining and Metallurgical Combinat

   UZBEKISTAN
CID001246   

Tin

  

Ney Metals and Alloys

   UNITED STATES OF AMERICA
CID001362   

Gold

  

Penglai Penggang Gold Industry Co Ltd

   CHINA
CID001416   

Tin

  

PT Bangka Timah Utama Sejahtera

   INDONESIA
CID001546   

Gold

  

Sabin Metal Corp.

   UNITED STATES OF AMERICA
CID001562   

Gold

  

Samwon Metals Corp.

   KOREA, REPUBLIC OF
CID001619   

Gold

  

Shandong Tarzan Bio-Gold Industry Co., Ltd.

   CHINA
CID001745   

Gold

  

China Sino-Platinum Metals Co.,Ltd

   CHINA
CID001783   

Gold

  

Standard Bank

   UNITED STATES OF AMERICA
CID001909   

Gold

  

Great Wall Precious Metals Co., Ltd. of CBPM

   CHINA
CID001947   

Gold

  

Anhui Tongling Nonferrous Metal Mining Co., Ltd.

   CHINA
CID001997   

Tin

  

Univertical International (Suzhou) Co., Ltd

   CHINA
CID002102   

Gold

  

Yamato Denki Ind. Co., Ltd.

   Unknown
CID002162   

Tin

  

Yunnan Chengo Electric Smelting Plant

   CHINA
CID002282   

Gold

  

Morris and Watson

   NEW ZEALAND
CID002290   

Gold

  

SAFINA A.S.

   CZECH REPUBLIC
CID002312   

Gold

  

Guangdong Jinding Gold Limited

   CHINA
CID002313   

Tungsten

  

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

   CHINA


ID

  

Metal

  

Name

  

Country

CID002386   

Tantalum

  

Nantong Tongjie Electrical Co., Ltd.

   CHINA
CID002478   

Tin

  

PT Tirus Putra Mandiri

   INDONESIA
CID002502   

Tungsten

  

Asia Tungsten Products Vietnam Ltd.

   VIET NAM
CID002511   

Gold

  

KGHM Polska Mied? Sp

   POLAND
CID002515   

Gold

  

Fidelity Printers and Refiners Ltd.

   ZIMBABWE
CID002525   

Gold

  

Shandong Humon Smelting Co., Ltd.

   CHINA
CID002562   

Gold

  

International Precious Metal Refiners

   UNITED ARAB EMIRATES
CID002563   

Gold

  

Kaloti Precious Metals

   UNITED ARAB EMIRATES
CID002567   

Gold

  

Sudan Gold Refinery

   SUDAN
CID002572   

Tin

  

Electro-Mechanical Facility of the Cao Bang Minerals &

Metallurgy Joint Stock Company

   VIET NAM
CID002573   

Tin

  

Nghe Tinh Non-Ferrous Metals Joint Stock Company

   VIET NAM
CID002574   

Tin

  

Tuyen Quang Non-Ferrous Metals Joint Stock Company

   VIET NAM
CID002584   

Gold

  

Fujairah Gold FZE

   UNITED ARAB EMIRATES
CID002587   

Gold

  

Tony Goetz NV

   BELGIUM
CID002596   

Gold

  

ARY Aurum Plus (private, 100%)

   UNITED ARAB EMIRATES
CID002615   

Gold

  

TOO Tau-Ken-Altyn

   KAZAKHSTAN
CID002647   

Tungsten

  

Jiangxi Dayu Longxintai Tungsten Co., Ltd.

   CHINA
CID002703   

Tin

  

An Vinh Joint Stock Mineral Processing Company

   VIET NAM
CID002708   

Gold

  

Abington Reldan Metals, LLC

   UNITED STATES OF AMERICA
CID002756   

Tin

  

Super Ligas

   BRAZIL
CID002852   

Gold

  

GCC Gujrat Gold Centre Pvt. Ltd.

   INDIA
CID002853   

Gold

  

Sai Refinery

   INDIA
CID002854   

Gold

  

Universal Precious Metals Refining Zambia

   ZAMBIA
CID002857   

Gold

  

Modeltech Sdn Bhd

   MALAYSIA
CID002863   

Gold

  

Bangalore Refinery

   INDIA
CID002865   

Gold

  

Kyshtym Copper-Electrolytic Plant ZAO

   RUSSIAN FEDERATION
CID002866   

Gold

  

Morris and Watson Gold Coast

   AUSTRALIA
CID002867   

Gold

  

Degussa Sonne / Mond Goldhandel GmbH

   GERMANY
CID002872   

Gold

  

Pease & Curren

   UNITED STATES OF AMERICA
CID003153   

Gold

  

State Research Institute Center for Physical Sciences and  Technology

   LITHUANIA
CID003182   

Tungsten

  

Hunan Litian Tungsten Industry Co., Ltd.

   CHINA
CID003185   

Gold

  

African Gold Refinery

   UGANDA
CID003189   

Gold

  

NH Recytech Company

   KOREA, REPUBLIC OF
CID003208   

Tin

  

Pongpipat Company Limited

   MYANMAR
CID003324   

Gold

  

QG Refining, LLC

   UNITED STATES OF AMERICA
CID003348   

Gold

  

Dijllah Gold Refinery FZC

   UNITED ARAB EMIRATES
CID003356   

Tin

  

Dongguan CiEXPO Environmental Engineering Co., Ltd.

   CHINA
CID003381   

Tin

  

PT Rajawali Rimba Perkasa

   INDONESIA


Schedule 2

Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Barbados, Belarus, Belgium, Benin, Bolivia, Bolivia (Plurinational State of), Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Caymen Islands, Chile, China, Colombia, Congo, Democratic Republic of the, Croatia, Curacao (Dutch Antilles), Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Eritrea, Estonia, Ethiopia, Fiji, Finland, France, Gabon, Gambia, The, Georgia, Germany, Ghana, Greece, Guatemala, Guinea, Guyana, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kazakhstan, Kenya, Korea, Republic of, Kosovo, Kuwait, Kyrgyzstan, Laos, Latvia, Lebanon, Liberia, Libya, Liechtenstein, Lithuania, Luxembourg, Macau, Madagascar, Malaysia, Mali, Malta, Mauritania, Mauritius, Mexico, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Netherlands, New Caledonia, New Zealand, Nicaragua, Niger, Nigeria, Norway, Pakistan, Panama, Papua New Guinea, Peru, Philippines, Philippines, Poland, Portugal, Puerto Rico, Romania, Russian Federation, Rwanda, San Marino, Saudi Arabia, Senegal, Serbia, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Suriname, Swaziland, Sweden, Switzerland, Taiwan, Tajikistan, Tanzania, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States of America, Uruguay, Uzbekistan, Vatican City, Venezuela, Vietnam, Yemen, Zambia, and Zimbabwe