EX-1.01 2 exhibit102conflictminerals.htm CONFLICT MINERALS REPORT Exhibit 1.02 Conflict Minerals Report 12.31.14



EXHIBIT 1.01


Brady Corporation
Conflict Minerals Report
For the Year Ended December 31, 2014

I.Introduction

This report has been prepared by management of Brady Corporation (hereinafter referred to as “Brady”, “Company”, “we”, “us”, “our”) pursuant to Rule 13p-1 under the Securities Exchange Act of 1934 as amended, for the reporting period January 1 to December 31, 2014. Reasonable country of origin inquiry (“RCOI”) and due diligence efforts were undertaken by Brady to determine whether our products contain casserite, columbite-tantalite, gold, wolframite, or other derivatives, which are limited to tin, tantalum, tungsten and gold (collectively, “3TG Minerals”), and further, to determine whether any such materials directly or indirectly fund or benefit armed groups in the Democratic Republic of the Congo or any adjacent countries (“Covered Countries”). The scope of the RCOI and due diligence include products both sourced directly by, and manufactured for, Brady in calendar year 2014.

Brady manufactures, or contracts for manufacture, products that contain materials or components that use 3TG Minerals. Due to the depth of its supply chain, Brady is far removed from the sources of ore from which these metals are produced and the smelters/refiners that process them. The efforts undertaken by Brady to identify the country(ies) of origin of those ores reflect our circumstances and position in the supply chain, which in many cases is multiple steps removed from the smelter or mine. The information available globally on the traceability and sourcing of these ores is limited at this time, and this situation is not unique to Brady.

Our 2014 RCOI inquiry began with a process to identify the products we manufacture or contract to manufacture that have a possibility of containing 3TG Minerals. In 2014, Brady expanded the scope of review of its product lines, as compared to 2013, and where there was uncertainty about a particular product being in scope of the 3TG Minerals review, it was included in the 2014 inquiries. The exact nature of the parts and materials identified in our products that may contain 3TG Minerals ranged over a broad spectrum of items, but were heavily concentrated in electronics and workplace safety products.

Brady conducted an RCOI of those suppliers, deemed “in scope”, using the Conflict Materials Reporting Template (CMRT v.3.02), which is the Conflict Free Sourcing Initiative (CFSI) reporting template developed by the Electronic Industry Citizenship Coalition/Global e-Sustainability Initiative (EICC/GeSI).

The supplier responses received were reviewed for completeness and consistency. We also verified “No 3TG content declarations” on a random basis to provide additional assurance of the claims made by suppliers. In certain other instances, suppliers were required to provide clarifications or additional detail where responses were incomplete or in need of explanation. Our RCOI process includes an escalation procedure seeking information from non-responsive suppliers. Our escalation process resulted in an increase of 10% in the response rate, and to date, we have a response rate just over 70% of our in scope suppliers.

For 2014, as compared to 2013, a number of Brady’s suppliers reported a significant improvement in their own RCOI initiatives, and they identified approximately 225 smelters (versus four in 2013). Brady undertook due diligence on the identified smelters to determine their status regarding conflict minerals, and as noted below, none have been shown to engage with conflict mines.

As such, we believe our process was reasonably designed and performed in good faith.

II.Design of Due Diligence Measures

Brady designed its 3TG Minerals compliance procedures based on, and in conformity with, the five-step framework of OECD (2013), OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing.
http://dx.doi.org/10.1787/9789264185050-en





III.     Due Diligence Measures Performed by Brady Corporation
The following are the due diligence measures performed by Brady:

Communicated our policy on 3TG Minerals to direct suppliers;
Conducted teleconference awareness sessions concerning the commitments and requirements expected of Brady suppliers
regarding 3TG Minerals, supported by follow-up email and phone communication;
Requested suppliers to conduct their own 3TG inquiries;
Compared smelter listings from our supply chain with the CFSI list of validated conflict free and verified facilities and the U.S. Department of Commerce "Reporting Requirements Under Section 1502(d)(3)(C) of the Dodd-Frank Act World-Wide Conflict Mineral Processing Facilities"; (http://www.ita.doc.gov/td/forestprod/DOC-ConflictMineralReport.pdf) to verify smelter status;
Supported the development and implementation of independent third-party audits of smelters/refiners through each of our 3TG Minerals policy and procurement practices, which encourages suppliers to purchase materials from audited smelters/refiners; and
Reported to senior management and the Board of Directors on the status of direct supplier responses.

IV.    Product Determination

Brady has not received any information from our direct suppliers indicating that any of the 3TG Minerals that are used in our products are known or believed to fund the conflict in the Covered Countries. However, all suppliers have not responded at this time, and for those that have responded, we are continuing to work to improve the quality of their responses to our due diligence information requests. Based on information as of the date of this report, Brady has no evidence that any of the 3TG Minerals used in our products fund the conflict in the Covered Countries, although that cannot be determined with absolute certainty. We are continuing our efforts to obtain additional information from our direct suppliers of 3TG Minerals.

V.    Product Description

The scope of our inquiry covered all products manufactured, or contracted for manufacture by Brady Corporation:

Thermal transfer printers - both hand-held and desk models - containing electronic parts;
Labels and tapes for thermal transfer printing, some of which are in cassettes containing electronic parts;
Preprinted labels and tapes, some with external coating, pipe and wire markers, and metal asset tags;
Safety signs and traffic signs;
Pads for medical applications and sorbent materials for environmental clean-up;
Lockout/tagout devices (primarily plastic);
Visitor identification badges, badge holders and lanyards, and wristbands;
Die-cut materials for the telecommunication industry - primarily plastics and polyester foams.

The smelting and refining facilities used to process the mined materials that were identified by our 3TG Minerals suppliers are described in Attachment 1(A) and Attachment 1(B) to this Conflict Minerals Report.

Brady also sells products that are purchased ‘as is’ from manufacturers and not manufactured, or contracted to manufacture, or whose design and bill of materials is not influenced in any way by Brady. These include traffic cones and barriers, barrier and perimeter tapes, and certain of our lockout/tagout devices. Brady also develops software for products that are factory installed or downloadable. All of the foregoing products are not within the scope of this report.

VI.    Steps to Improve Due Diligence

We will continue to communicate our expectations and information requirements regarding 3TG Minerals to our direct suppliers, as a part of our supplier compliance program. Brady has incorporated more detailed discussions of compliance in general, including conflict minerals, in our supplier manual, which is distributed to all suppliers, and in our specifications for all new parts. We also include compliance requirements generally, and conflict minerals information specifically, in discussions with our suppliers, including detailed on-site assessments that examine policies, procedures and practices. We will continue to monitor changes in circumstances that may impact the facts or our determination regarding the source of our 3TG Minerals. Over time we anticipate that the amount of information globally on the traceability and sourcing of these ores will increase and improve our knowledge. We will continue to make further inquiries to our direct suppliers with the goals of assessing our supply chain, including existing and new suppliers, and improving our understanding of each 3TG Mineral supply chain.







VII. Independent Private Sector Audit

Not required for Brady’s conflict minerals filing for calendar year 2014.




























































Attachment 1(A)

CFSI Conflict Free Smelter and Refiner List
3TG
Smelter name
Smelter Country
Comment*
Gold
Aida Chemical Industries Co. Ltd.
JAPAN
Active
Gold
Allgemeine Gold- und Silberscheideanstalt A.G.
GERMANY
 
Gold
AngloGold Ashanti Córrego do Sítio Minerção
BRAZIL
 
Gold
Argor-Heraeus SA
SWITZERLAND
 
Gold
Asahi Pretec Corp
JAPAN
 
Gold
Asaka Riken Co Ltd
JAPAN
Active
Gold
Atasay Kuyumculuk Sanayi Ve Ticaret A.S.
TURKEY
 
Gold
Aurubis AG
GERMANY
 
Gold
Boliden AB
SWEDEN
 
Gold
C. Hafner GmbH + Co. KG
GERMANY
 
Gold
CCR Refinery - Glencore Canada Corporation
CANADA
 
Gold
Cendres + Métaux SA
SWITZERLAND
Active
Gold
Chimet SpA
ITALY
 
Gold
Dowa
JAPAN
 
Gold
Eco-System Recycling Co., Ltd.
JAPAN
 
Gold
Heimerle + Meule GmbH
GERMANY
 
Gold
Heraeus Ltd Hong Kong
HONG KONG
 
Gold
Heraeus Precious Metals GmbH & Co. KG
GERMANY
 
Gold
Ishifuku Metal Industry Co., Ltd.
JAPAN
 
Gold
Istanbul Gold Refinery
TURKEY
 
Gold
Japan Mint
JAPAN
 
Gold
Johnson Matthey Inc
UNITED STATES
 
Gold
Johnson Matthey Ltd
CANADA
 
Gold
JSC Ekaterinburg Non-Ferrous Metal Processing Plant
RUSSIAN FEDERATION
 
Gold
JX Nippon Mining & Metals Co., Ltd.
JAPAN
 
Gold
Kazzinc Ltd
KAZAKHSTAN
 
Gold
Kennecott Utah Copper
UNITED STATES
 
Gold
Kojima Chemicals Co., Ltd
JAPAN
 
Gold
L' azurde Company For Jewelry
SAUDI ARABIA
 
Gold
LS-Nikko Copper Inc
KOREA, REPUBLIC OF
 
Gold
Materion
UNITED STATES
 
Gold
Matsuda Sangyo Co., Ltd.
JAPAN
 
Gold
Metalor Technologies (Singapore) Pte. Ltd.
SINGAPORE
 
Gold
Metalor Technologies SA
SWITZERLAND
 
Gold
Metalor Technologies(HongKong)Limited
HONG KONG
 
Gold
Metalor USA Refining Corporation
UNITED STATES
 
Gold
Met-Mex Peñoles, S.A.
MEXICO
 
Gold
Mitsubishi Materials Corporation
JAPAN
 
Gold
Mitsui Mining and Smelting Co., Ltd.
JAPAN
 
Gold
Nadir Metal Rafineri San. Ve Tic. A.ª.
TURKEY
 
Gold
Nihon Material Co. LTD
JAPAN
 
Gold
Ohio Precious Metals LLC.
UNITED STATES
 
Gold
Ohura Precious Metal Industry Co., Ltd
JAPAN
 
Gold
OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)
RUSSIAN FEDERATION
 
Gold
PAMP SA
SWITZERLAND
 





Gold
PT Aneka Tambang (Persero) Tbk
INDONESIA
 
Gold
PX Précinox SA
SWITZERLAND
 
Gold
Rand Refinery (Pty) Ltd
SOUTH AFRICA
 
Gold
Royal Canadian Mint
CANADA
 
Gold
Sabin Metal Corp.
UNITED STATES
Active
Gold
Schone Edelmetaal
NETHERLANDS
 
Gold
SEMPSA Joyería Platería SA
SPAIN
 
Gold
Shandong Zhaojin Gold & Silver Refinery Co., Ltd
CHINA
 
Gold
SOE Shyolkovsky Factory of Secondary Precious Metals
RUSSIAN FEDERATION
Active
Gold
Solar Applied Materials Technology Corp.
TAIWAN
 
Gold
Sumitomo Metal Mining Co., Ltd.
JAPAN
 
Gold
Tanaka Kikinzoku Kogyo K.K.
JAPAN
 
Gold
The Refinery of Shandong Gold Mining Co. Ltd
CHINA
 
Gold
Tokuriki Honten Co., Ltd
JAPAN
 
Gold
Umicore Brasil Ltda
BRAZIL
 
Gold
Umicore SA Business Unit Precious Metals Refining
BELGIUM
 
Gold
United Precious Metal Refining, Inc.
UNITED STATES
 
Gold
Valcambi SA
SWITZERLAND
 
Gold
Western Australian Mint trading as The Perth Mint
AUSTRALIA
 
Gold
YAMAMOTO PRECIOUS METAL CO., LTD.
JAPAN
Active
Gold
Yokohama Metal Co Ltd
JAPAN
Active
Tantalum
Conghua Tantalum and Niobium Smeltry
CHINA
 
Tantalum
Duoluoshan
CHINA
 
Tantalum
Exotech Inc.
UNITED STATES
 
Tantalum
F&X Electro-Materials Ltd.
CHINA
 
Tantalum
Global Advanced Metals
UNITED STATES
 
Tantalum
Hi-Temp
UNITED STATES
 
Tantalum
Jiujiang Tanbre Co., Ltd.
CHINA
 
Tantalum
KEMET Blue Powder
UNITED STATES
 
Tantalum
King-Tan Tantalum Industry Ltd
CHINA
Active
Tantalum
Metallurgical Products India (Pvt.) Ltd.
INDIA
 
Tantalum
Mitsui Mining & Smelting
JAPAN
 
Tantalum
Ningxia Orient Tantalum Industry Co., Ltd.
CHINA
 
Tantalum
QuantumClean
UNITED STATES
 
Tantalum
RFH Tantalum Smeltry Co., Ltd
CHINA
 
Tantalum
Taki Chemicals
JAPAN
 
Tantalum
Telex
UNITED STATES
 
Tantalum
Ulba
KAZAKHSTAN
 
Tin
Alpha- Cookson
UNITED STATES
 
Tin
China Rare Metal Materials Company
CHINA
Active
Tin
Cooper Santa
BRAZIL
Active
Tin
CV JusTindo
INDONESIA
Active
Tin
CV Nurjanah
INDONESIA
Active
Tin
CV Serumpun Sebalai
INDONESIA
Active
Tin
CV United Smelting
INDONESIA
 
Tin
EM Vinto
BOLIVIA
 
Tin
Fenix Metals
POLAND
Active
Tin
Gejiu Non-Ferrous Metal Processing Co. Ltd.
CHINA
 
Tin
Liuzhou nChina Tin Group Co., Ltd.
CHINA
Active
Tin
Magnu's Minerais Metais e Ligas LTDA
BRAZIL
 





Tin
Malaysia Smelting Corporation (MSC)
MALAYSIA
 
Tin
Melt Metais e Ligas S/A
BRAZIL
 
Tin
Metallo Chimique
BELGIUM
 
Tin
Mineração Taboca S.A.
BRAZIL
 
Tin
Minsur
PERU
 
Tin
Mitsubishi Materials Corporation
JAPAN
 
Tin
O.M. Manufacturing (Thailand) Co., Ltd.
THAILAND
Active
Tin
OMSA
BOLIVIA
 
Tin
PT Artha Cipta Langgeng
INDONESIA
Active
Tin
PT Babel Inti Perkasa
INDONESIA
 
Tin
PT Bangka Putra Karya
INDONESIA
 
Tin
PT Bangka Tin Industry
INDONESIA
 
Tin
PT Belitung Industri Sejahtera
INDONESIA
Active
Tin
PT BilliTin Makmur Lestari
INDONESIA
Active
Tin
PT Bukit Timah
INDONESIA
 
Tin
PT DS Jaya Abadi
INDONESIA
 
Tin
PT Eunindo Usaha Mandiri
INDONESIA
 
Tin
PT Karimun Mining
INDONESIA
Active
Tin
PT Mitra Stania Prima
INDONESIA
Active
Tin
PT Panca Mega Persada
INDONESIA
Active
Tin
PT Prima Timah Utama
INDONESIA
 
Tin
PT Refined Banka Tin
INDONESIA
 
Tin
PT Sariwiguna Binasentosa
INDONESIA
 
Tin
PT Stanindo Inti Perkasa
INDONESIA
 
Tin
PT Sumber Jaya Indah
INDONESIA
Active
Tin
PT Tambang Timah
INDONESIA
 
Tin
PT Timah
INDONESIA
 
Tin
PT Tinindo Inter Nusa
INDONESIA
Active
Tin
Rui Da Hung
TAIWAN
Active
Tin
Soft Metais, Ltda.
BRAZIL
Active
Tin
Thaisarco
THAILAND
 
Tin
White Solder Metalurgia e Mineração Ltda.
BRAZIL
 
Tin
Yunnan Chengfeng
CHINA
Active
Tin
Yunnan Tin Company Limited
CHINA
 
Tungsten
A.L.M.T. Corp.
JAPAN
Active
Tungsten
Chaozhou Xianglu Tungsten IND Co., LTD.
CHINA
Active
Tungsten
Chenzhou Diamond Tungsten Products Co., Ltd.
CHINA
Active
Tungsten
Chongyi Zhangyuan Tungsten Co., Ltd.
CHINA
Active
Tungsten
Dayu Weiliang Tungsten Co., Ltd.
CHINA
Active
Tungsten
Fujian Jinxin Tungsten Co., Ltd.
CHINA
Active
Tungsten
Ganzhou Huaxin Tungsten Products Ltd
CHINA
 
Tungsten
Ganzhou Jiangwu Ferrotungsten Co., Ltd.
CHINA
 
Tungsten
Ganzhou Non-ferrous Metals Smelting Co., Ltd.
CHINA
Active
Tungsten
Ganzhou Seadragon W & Mo Co., Ltd.
CHINA
 
Tungsten
Global Tungsten & Powders Corp
UNITED STATES
 
Tungsten
H.C. Starck GmbH
GERMANY
Active
Tungsten
H.C. Starck Smelting GmbH & Co.KG
GERMANY
Active
Tungsten
Hunan Chenzhou Mining Group Co., Ltd.
CHINA
Active
Tungsten
Hunan Chunchang Nonferrous Metals Co., Ltd.
CHINA
 
Tungsten
Japan New Metals Co., Ltd.
JAPAN
 





Tungsten
Jiangxi Xinsheng Tungsten Industry Co., Ltd.
CHINA
Active
Tungsten
Jiangxi Yaosheng Tungsten Co., Ltd.
CHINA
Active
Tungsten
Kennametal Fallon
UNITED STATES
Active
Tungsten
Kennametal Huntsville
UNITED STATES
Active
Tungsten
Tejing (Vietnam) Tungsten Co., Ltd.
VIET NAM
Active
Tungsten
Vietnam Youngsun Tungsten Industry Co., Ltd
VIET NAM
 
Tungsten
Wolfram Bergbau und Hütten AG
AUSTRIA
Active
Tungsten
Xiamen Tungsten (H.C.) Co., Ltd.
CHINA
 
Tungsten
Xiamen Tungsten Co., Ltd
CHINA
 
Tungsten
Xinhai Rendan Shaoguan Tungsten Co., Ltd.
CHINA
Active
 
 
 
 
* All smelters/refiners on this list are certified by CFSI as conflict free, except for those identified as "Active". Smelters/refiners identified as "Active" are currently in the conflict free audit certification process being conducted by CFSI.








Attachment 1(B)

CFSI Indeterminate Smelter and Refiner List*
3TG
Smelter name
Smelter Country
Gold
Almalyk Mining and Metallurgical Complex (AMMC)
UZBEKISTAN
Gold
Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
PHILIPPINES
Gold
Bauer Walser AG
GERMANY
Gold
Caridad
MEXICO
Gold
Chugai Mining
JAPAN
Gold
Codelco
CHILE
Gold
Daejin Indus Co. Ltd
KOREA, REPUBLIC OF
Gold
Daye Non-Ferrous Metals Mining Ltd.
CHINA
Gold
Do Sung Corporation
KOREA, REPUBLIC OF
Gold
Doduco
GERMANY
Gold
FSE Novosibirsk Refinery
RUSSIAN FEDERATION
Gold
Guangdong Jinding Gold Limited
CHINA
Gold
Hunan Chenzhou Mining Group Co., Ltd.
CHINA
Gold
Hwasung CJ Co. Ltd
KOREA, REPUBLIC OF
Gold
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited
CHINA
Gold
Jiangxi Copper Company Limited
CHINA
Gold
JSC Uralelectromed
RUSSIAN FEDERATION
Gold
Korea Metal Co. Ltd
KOREA, REPUBLIC OF
Gold
Kyrgyzaltyn JSC
KYRGYZSTAN
Gold
Lingbao Jinyuan Tonghui Refinery Co. Ltd.
CHINA
Gold
Luoyang Zijin Yinhui Metal Smelt Co Ltd
CHINA
Gold
Moscow Special Alloys Processing Plant
RUSSIAN FEDERATION
Gold
Navoi Mining and Metallurgical Combinat
UZBEKISTAN
Gold
OJSC Kolyma Refinery
RUSSIAN FEDERATION
Gold
Prioksky Plant of Non-Ferrous Metals
RUSSIAN FEDERATION
Gold
SAMWON METALS Corp.
KOREA, REPUBLIC OF
Gold
So Accurate Group, Inc.
UNITED STATES
Gold
The Great Wall Gold and Silver Refinery of China
CHINA
Gold
Tongling nonferrous Metals Group Co.,Ltd
CHINA
Gold
Torecom
KOREA, REPUBLIC OF
Gold
Xstrata Canada Corporation
CANADA
Gold
Yunnan Copper Industry Co Ltd
CHINA
Gold
Zhaojin Group&Gold Mineral China Co., Ltd.
CHINA
Gold
Zhongyuan Gold Smelter of Zhongjin Gold Corporation
CHINA
Gold
Zijin Mining Group Co. Ltd
CHINA
Tantalum
Changsha South Tantalum Niobium Co., Ltd.
CHINA
Tantalum
Global Advanced Metals Aizu
JAPAN
Tantalum
Global Advanced Metals Boyertown
UNITED STATES
Tantalum
Guangdong Zhiyuan New Material Co., Ltd.
CHINA
Tantalum
H.C. Starck GmbH
GERMANY
Tantalum
H.C. Starck GmbH
GERMANY
Tantalum
H.C. Starck GmbH Goslar
GERMANY





Tantalum
H.C. Starck Hermsdorf GmbH
GERMANY
Tantalum
H.C. Starck Ltd.
JAPAN
Tantalum
H.C. Starck Smelting GmbH & Co.KG
GERMANY
Tantalum
HC Starck
Germany
Tantalum
Hengyang King Xing Lifeng New Materials Co., Ltd.
CHINA
Tantalum
JiuJiang JinXin Nonferrous Metals Co., Ltd.
CHINA
Tantalum
KEMET Blue Metals
MEXICO
Tantalum
LSM Brasil S.A.
BRAZIL
Tantalum
Mineração Taboca S.A.
BRAZIL
Tantalum
Molycorp Silmet A.S.
ESTONIA
Tantalum
Nippon Mining & Metals
JAPAN
Tantalum
Plansee SE Liezen
AUSTRIA
Tantalum
Plansee SE Reutte
AUSTRIA
Tantalum
Shanghai Jiangxi Metals Co. Ltd
CHINA
Tantalum
Solikamsk Magnesium Works OAO
RUSSIAN FEDERATION
Tantalum
Tantalite Resources
SOUTH AFRICA
Tantalum
Yichun Jin Yang Rare Metal Co., Ltd
CHINA
Tantalum
Zhuzhou Cement Carbide
CHINA
Tin
CNMC (Guangxi) PGMA Co. Ltd.
CHINA
Tin
CV Makmur Jaya
INDONESIA
Tin
Estanho de Rondônia S.A.
BRAZIL
Tin
Gejiu Zi-Li
CHINA
Tin
Huichang Jinshunda Tin Co. Ltd
CHINA
Tin
Jiangxi Nanshan
CHINA
Tin
Kai Unita Trade Limited Liability Company
CHINA
Tin
KOBA
INDONESIA
Tin
Linwu Xianggui Smelter Co
CHINA
Tin
Minmetals Ganzhou Tin Co. Ltd.
CHINA
Tin
Novosibirsk Integrated Tin Works
RUSSIAN FEDERATION
Tin
PT Bangka Kudai Tin
INDONESIA
Tin
PT Bangka Timah Utama Sejahtera
INDONESIA
Tin
PT HP Metals Indonesia
INDONESIA
Tin
PT Koba Tin
INDONESIA
Tin
PT Pelat Timah Nusantara Tbk
INDONESIA
Tin
PT Stanindo Inti Perkasa
INDONESIA
Tin
PT Yinchendo Mining Industry
INDONESIA
Tungsten
Ganzhou Grand Sea W & Mo Group Co Ltd
CHINA
Tungsten
Ganzhou sinda W&Mo Co.,Ltd
CHINA
Tungsten
Hunan Chun-Chang Nonferrouse Smelting & Concentrating Co Ltd
CHINA
Tungsten
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.
CHINA
Tungsten
Nanchang Cemented Carbide Limited Liability Company
CHINA
 
 
 
* All smelters/refiners on this list have not been identified by CFSI as conflict free.