STAPLES, INC. |
(Exact name of registrant as specified in charter) |
Delaware | 0-17586 | 04-2896127 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Five Hundred Staples Drive, Framingham, MA | 01702 |
(Address of principal executive offices) | (Zip Code) |
Michael T. Williams, Executive Vice President, General Counsel & Secretary | 508-253-5000 |
(Name and telephone number, including area code, of the person to contact in connection with this report) |
þ | Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2014. |
(a) | During the reporting period covering January 1, 2014 through December 31, 2014 (the "2014 Report Year"), Staples contracted to manufacture products for which 3TG is necessary to the functionality or production. |
(b) | Staples conducted a reasonable country of origin inquiry ("RCOI") designed to determine whether any 3TG originated in the DRC or an Adjoining Country, or from recycled or scrap sources. Based on this RCOI, Staples determined that it was required to exercise due diligence on the source and chain of custody of such 3TG and to file a Conflict Mineral Report ("CMR") for the 2014 Report Year. Our CMR for the 2014 Report Year is attached hereto as Exhibit 1.01. |
Date: | June 1, 2015 | Staples, Inc. | |
By: | /s/ Michael T. Williams | ||
Michael T. Williams | |||
Executive Vice President, | |||
General Counsel & Secretary |
• | Adopted and Communicated a Conflict Minerals Policy. We established a Conflict Minerals Policy and externally communicated the policy on our Ethics/Ethical Sourcing page on our publicly available website at http://www.staples.com/sbd/cre/marketing/about_us/ethical-sourcing.html. |
• | Organized Resources to Support Supply Chain Due Diligence. |
◦ | We assembled an internal team to support our Conflict Minerals Policy and compliance strategy, including representatives from our Legal, Compliance, Environmental Affairs/Sustainability, Staples Brands Group (our "own brand" group within merchandising), Staples Promotional Products, Investor Relations, Internal Audit and Finance functions and business units. The team provides its recommendations, and reports its findings, to the General Counsel, Chief Financial Officer and other senior management. |
◦ | We retained external advisors to assist with our due diligence efforts. We engaged Source Intelligence, a third-party information management services provider, among other things, to: engage in supplier outreach; collect, process and store information about the presence and sourcing of 3TG from our suppliers; validate supplier responses; and provide quality assurance by identifying and resolving "quality control flags". We also communicated with outside legal counsel to advise on compliance with the Conflict Minerals Rule, and attended industry training. |
◦ | We provided information to our suppliers about the Conflict Minerals Rule, our RCOI and due diligence process and expectations for participation and support of our compliance program. In addition to direct communications with our suppliers, Source Intelligence maintained a "Supplier |
• | Established a company-level grievance mechanism. Suppliers and other external parties may contact us at conflict.minerals@staples.com if they wish to report concerns or seek guidance on our policy. |
• | Identified Risks. |
◦ | We worked with Source Intelligence to conduct our RCOI and due diligence, which was designed to determine whether any 3TG originated in the Democratic Republic of the Congo ("DRC") or Adjoining Countries and to solicit information about upstream suppliers. We utilized the Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI) Conflict Minerals Reporting Template (CMRT) for data collection. The collection process included an introductory email from Staples to our direct suppliers describing the compliance requirements and identifying Source Intelligence as our service provider. Source Intelligence then provided instructions for accessing the online data collection platform, and requesting completion of the CMRT. Following the initial introductions to the program and information request, up to seven reminder emails were sent to non-responsive suppliers. Telephone calls and direct mail communications supplemented email reminders, as needed. Protocol then required escalation to Staples, and we engaged in direct outreach with our suppliers. |
◦ | We requested information from our suppliers regarding use of 3TG, identification of smelters and refiners and associated mine countries of origin. Source Intelligence reviewed the CMRT responses and validated the information against data maintained in its smelter and refiner database, which includes known metal processors, exclusive recyclers, mine country of origin information and DRC conflict-free status. Source Intelligence utilized supplier-provided information, and also relied on the lists published by independent third-party audit programs, specifically the Conflict Free Smelter Program (a program of the Conflict Free Sourcing Initiative ("CFSI")), the London Bullion Market Association Good Delivery Program and the Responsible Jewellery Council Chain-of-Custody Certification. Internet research was also performed to determine whether there are any outside sources of information regarding sourcing practices. To the extent that a smelter or refiner was not designated by an independent third-party, Source Intelligence contacted, or attempted to contact, that smelter or refiner. |
• | Assessed and Responded to Identified Risk. |
◦ | The utilization of Source Intelligence's platform allowed us to have access to real-time information provided by our suppliers, and also to benefit from information available from sources beyond our own supply chains. |
◦ | Supplier responses were evaluated by Source Intelligence for plausibility, consistency, and gaps both in terms of which products were stated to contain or not contain necessary 3TG, as well as the origin of those materials. Additional supplier contact and engagement was established to address "quality control flags" including but not limited to: one or more smelter or refiner was listed for an unused metal; information was not provided for a used metal, or the information provided was not a known metal processor; supplier indicated it had not received conflict minerals data for each metal from upstream suppliers; supplier indicated that it had not identified all of the smelters or refiners used for the products included in its CMRT response; supplier indicated 3TG products covered by CMRT originated 100% from scrap or recycled sources, but one or more smelters or refiners listed in the CMRT are not known to be exclusive recyclers; or supplier answered yes to sourcing from the DRC or Adjoining Countries but no smelter or refiner listed is known to source from the region. |
• | Report to Senior Management. Our access to the data platform throughout the diligence process, as well as regularly scheduled meetings with Source Intelligence's representatives, enabled us to provide periodic reporting to our internal team supporting compliance, as well as the General Counsel, Chief Financial Officer and other senior management. |
• | Developed a Risk Management Plan. Throughout the due diligence process, we identified risks associated with our supply chain regarding 3TG used in our products. Our strategy for mitigating these risks are discussed below, under "Risk Mitigation Efforts". |
• | Third-Party Audit. We relied on Source Intelligence, and on CFSI's Conflict Free Smelter Program, the London Bullion Market Association Good Delivery Program and the Responsible Jewellery Council Chain-of-Custody Certification to conduct audits and validate smelters and refiners. |
• | Report on Supply Chain Due Diligence. Staples' Form SD and CMR for the 2014 Report Year are publicly available at http://www.staples.com/sbd/cre/marketing/about_us/ethical-sourcing.html. |
1. | Increase direct outreach to suppliers to (a) address non-responsiveness and (b) drive more complete and detailed responses. |
2. | Communicate with key suppliers and continue to encourage the use of conflict-free smelters and refiners in the supply chain. |
3. | Enhance contract language to confirm suppliers with which we contract to manufacture comply with our Conflict Mineral Policy. |
4. | Continue to work with industry-wide initiatives to improve 3TG sourcing diligence and support engagement and conflict-free sourcing. |
• | Core office supplies |
• | Ink & toner |
• | Business technology |
• | Paper |
• | Facilities and breakroom |
• | Computers and mobility |
• | Office furniture |
Aida Chemical Industries Co. Ltd. * |
Allgemeine Gold-und Silberscheideanstalt A.G. * |
Almalyk Mining and Metallurgical Complex (AMMC) |
AngloGold Ashanti Córrego do Sítio Minerção * |
Argor-Heraeus SA * |
Asahi Pretec Corporation * |
Asaka Riken Co Ltd |
Atasay Kuyumculuk Sanayi Ve Ticaret A.S * |
Aurubis AG * |
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) * |
Bauer Walser AG |
BHP Billiton |
Boliden AB * |
C. Hafner GmbH + Co. KG |
Caridad |
CCR Refinery - Glencore Canada Corporation * |
Cendres + Métaux SA |
Chimet S.p.A. * |
China National Gold Group Corporation |
Chugai Mining |
Codelco |
Colt Refining |
Daejin Indus Co. Ltd |
Daye Non-Ferrous Metals Mining Ltd. |
Do Sung Corporation |
Doduco |
Dowa Mining Co., Ltd. |
Eco-System Recycling Co., Ltd. * |
Faggi S.p.A. |
FSE Novosibirsk Refinery |
Gansu Seemine Material Hi-Tech Co Ltd |
Geib Refining Corp |
Guangdong Jinding Gold Limited |
Hangzhou Fuchunjiang Smelting Co., Ltd. |
Heimerle + Meule GmbH * |
Heraeus Ltd. Hong Kong * |
Heraeus Precious Metals GmbH & Co. KG * |
Hunan Chenzhou Mining Group Co., Ltd. |
Hwasung CJ Co. Ltd |
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited |
Ishifuku Metal Industry Co., Ltd. * |
Istanbul Gold Refinery * |
Japan Mint * |
Jiangxi Copper Company Limited |
Johnson Matthey Inc * |
Johnson Matthey Ltd.* |
JSC Ekaterinburg Non-Ferrous Metal Processing Plant * |
JSC Uralelectromed * |
JX Nippon Mining & Metals Co., Ltd. * |
Kazzinc Inc. * |
Kennecott Utah Copper LLC * |
Kojima Chemicals Co., Ltd * |
Korea Metal Co. Ltd |
Kyrgyzaltyn JSC |
L' azurde Company For Jewelry * |
Lingbao Jinyuan Tonghui Refinery Co. Ltd. |
LS-NIKKO Copper Inc. * |
Luoyang Zijin Yinhui Metal Smelt Co Ltd |
Materion * |
Matsuda Sangyo Co., Ltd. * |
Metalor Technologies (Hong Kong) Ltd * |
Metalor Technologies (Singapore) Pte. Ltd. * |
Metalor Technologies (Suzhou) Co Ltd * |
Metalor Technologies SA * |
Metalor USA Refining Corporation * |
Met-Mex Peñoles, S.A. * |
Mitsubishi Materials Corporation * |
Mitsui Mining and Smelting Co., Ltd. * |
Moscow Special Alloys Processing Plant |
Nadir Metal Rafineri San. Ve Tic. A.Ş. * |
Navoi Mining and Metallurgical Combinat |
Nihon Material Co. LTD * |
Ohio Precious Metals, LLC * |
Ohura Precious Metal Industry Co., Ltd * |
OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet) * |
OJSC Kolyma Refinery * |
PAMP SA * |
Penglai Penggang Gold Industry Co Ltd |
Prioksky Plant of Non-Ferrous Metals * |
PT Aneka Tambang (Persero) Tbk * |
PX Précinox SA * |
Rand Refinery (Pty) Ltd * |
Republic Metals Corporation * |
Royal Canadian Mint * |
Sabin Metal Corp. |
Samduck Precious Metals |
SAMWON METALS Corp. |
Schöne Edelmetaal B.V. * |
SEMPSA Joyería Platería SA * |
Shandong Tarzan Bio-Gold Co Ltd |
Shandong Zhaojin Gold & Silver Refinery Co. Ltd * |
So Accurate Group, Inc. |
SOE Shyolkovsky Factory of Secondary Precious Metals |
Solar Applied Materials Technology Corp. * |
Sumitomo Metal Mining Co., Ltd.* |
Tanaka Kikinzoku Kogyo K.K. * |
The Great Wall Gold and Silver Refinery of China |
The Refinery of Shandong Gold Mining Co. Ltd |
Tokuriki Honten Co., Ltd * |
TongLing Nonferrous Metals Group Holdings Co., Ltd. |
Torecom |
Umicore Brasil Ltda * |
Umicore Precious Metals Thailand * |
Umicore SA Business Unit Precious Metals Refining * |
United Precious Metal Refining, Inc. * |
Valcambi SA * |
Western Australian Mint trading as The Perth Mint * |
Yamamoto Precious Metal Co., Ltd. |
Yantai Guodasafina High-tech Environmental Refinery CO., Ltd. |
Yokohama Metal Co Ltd |
Yunnan Copper Industry Co Ltd |
Zhongyuan Gold Smelter of Zhongjin Gold Corporation * |
Zijin Mining Group Co. Ltd * |
Changsha South Tantalum Niobium Co., Ltd.* |
Conghua Tantalum and Niobium Smeltry* |
Duoluoshan Sapphire Rare Metal Co., Ltd.* |
Ethiopian Minerals Development Share Company |
Exotech Inc.* |
F&X Electro-Materials Ltd.* |
Global Advanced Metals Aizu* |
Global Advanced Metals Boyertown* |
Guangdong Zhiyuan New Material Co., Ltd. |
H.C. Starck Co., Ltd.* |
H.C. Starck GmbH Goslar* |
H.C. Starck GmbH Laufenburg* |
H.C. Starck Hermsdorf GmbH* |
H.C. Starck Inc.* |
H.C. Starck Ltd.* |
H.C. Starck Smelting GmbH & Co.KG* |
Hengyang King Xing Lifeng New Materials Co., Ltd.* |
Hi-Temp Specialty Metals, Inc.* |
JiuJiang JinXin Nonferrous Metals Co., Ltd.* |
Jiujiang Tanbre Co., Ltd.* |
KEMET Blue Metals* |
Kemet Blue Powder* |
King-Tan Tantalum Industry Ltd* |
LSM Brasil S.A.* |
Metallurgical Products India (Pvt.) Ltd.* |
Mineração Taboca S.A.* |
Mitsui Mining and Smelting Co., Ltd.* |
Molycorp Silmet A.S.* |
Ningxia Orient Tantalum Industry Co., Ltd.* |
Plansee SE Liezen* |
QuantumClean* |
RFH Tantalum Smeltry Co., Ltd.* |
Shanghai Jiangxi Metals Co., Ltd. |
Solikamsk Metal Works* |
Taki Chemicals* |
Telex* |
Ulba* |
Yichun Jin Yang Rare Metal Co., Ltd* |
Zhuzhou Cement Carbide* |
Alpha* |
China Rare Metal Materials Company |
China Tin Group Co., Ltd. |
CNMC (Guangxi) PGMA Co. Ltd. |
Cooper Santa |
CV Duta Putra Bangka |
CV Gita Pesona |
CV Makmur Jaya |
CV Nurjanah |
CV Prima Timah Utama |
CV Serumpun Sebalai |
CV United Smelting* |
Dowa Mining Co., Ltd.* |
EFD INC. |
Electroloy Metal Pte |
Empresa Metallurgica Vinto* |
Estanho de Rondônia S.A. |
Feinhutte Halsbrucke GmbH |
Fenix Metals |
Gejiu Kai Meng Industry and Trade LLC |
Gejiu Non-Ferrous Metal Processing Co. Ltd.* |
Gejiu Zi-Li |
Huichang Jinshunda Tin Co. Ltd |
Jean Goldschmidt International SA |
Jiangxi Nanshan |
Kai Unita Trade Limited Liability Company |
Kovohutě Příbram |
Linwu Xianggui Smelter Co |
Magnu's Minerais Metais e Ligas LTDA* |
Malaysia Smelting Corporation (MSC)* |
Melt Metais e Ligas S/A* |
Metallo Chimique* |
Mineração Taboca S.A.* |
Minsur* |
Mitsubishi Materials Corporation* |
Novosibirsk Integrated Tin Works |
O.M. Manufacturing (Thailand) Co., Ltd. |
O.M. Manufacturing Philippines, Inc. |
Operaciones Metalurgical S.A.* |
PBT |
Poongsan Corporation |
PT Alam Lestari Kencana |
PT Artha Cipta Langgeng |
PT ATD Makmur Mandiri Jaya* |
PT Babel Inti Perkasa* |
PT Babel Surya Alam Lestari |
PT Bangka Kudai Tin |
PT Bangka Putra Karya* |
PT Bangka Timah Utama Sejahtera |
PT Bangka Tin Industry* |
PT Belitung Industri Sejahtera |
PT BilliTin Makmur Lestari |
PT Bukit Timah* |
PT DS Jaya Abadi* |
PT Eunindo Usaha Mandiri* |
PT Fang Di MulTindo |
PT HP Metals Indonesia |
PT Inti Stania Prima |
PT Justindo |
PT Karimun Mining |
PT Koba Tin |
PT Mitra Stania Prima* |
PT Panca Mega Persada* |
PT Pelat Timah Nusantara Tbk |
PT Prima Timah Utama* |
PT Refined Banka Tin* |
PT Sariwiguna Binasentosa* |
PT Seirama Tin investment |
PT Singkep Times Utama |
PT Stanindo Inti Perkasa* |
PT Sumber Jaya Indah |
PT Supra Sukses Trinusa |
PT Tambang Timah* |
PT Timah (Persero), Tbk* |
PT Tinindo Inter Nusa* |
PT Tommy Utama |
PT Yinchendo Mining Industry |
Pure Technology |
RUI DA HUNG |
Senju Metal Industry Co., Ltd. |
Soft Metais, Ltda. |
Thaisarco* |
VQB Mineral and Trading Group JSC |
White Solder Metalurgia e Mineração Ltda.* |
Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. |
Yunnan Tin Company Limited* |
A.L.M.T. Corp. |
Chenzhou Diamond Tungsten Products Co., Ltd. |
Chongyi Zhangyuan Tungsten Co., Ltd. |
Dayu Weiliang Tungsten Co., Ltd. |
Fujian Jinxin Tungsten Co., Ltd. |
Ganzhou Huaxing Tungsten Products Co., Ltd.* |
Ganzhou Jiangwu Ferrotungsten Co., Ltd.* |
Ganzhou Non-ferrous Metals Smelting Co., Ltd. |
Ganzhou Seadragon W & Mo Co., Ltd. |
Global Tungsten & Powders Corp.* |
Golden Egret Special Alloy Co. Ltd |
Guangdong Xianglu Tungsten Industry Co., Ltd. |
H.C. Starck GmbH |
Hunan Chenzhou Mining Group Co., Ltd. |
Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.* |
Japan New Metals Co., Ltd.* |
Jiangxi Gan Bei Tungsten Co., Ltd.* |
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. |
Jiangxi Rare Earth & Rare Metals Tungsten Group Corp |
Jiangxi Richsea New Materials Co., Ltd. |
Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
Jiangxi Tungsten Industry Group Co Ltd |
Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
JX Nippon Mining & Metals Co., Ltd. |
Kennametal Fallon |
Kennametal Huntsville |
Malipo Haiyu Tungsten Co., Ltd.* |
Materion |
Mitsubishi Materials Corporation |
North American Tungsten |
Sumitomo Metal Mining Co., Ltd. |
TaeguTec Ltd. |
Tejing (Vietnam) Tungsten Co., Ltd. |
Vietnam Youngsun Tungsten Industry Co., Ltd. |
Wolfram Bergbau und Hütten AG |
Wolfram Company CJSC* |
Xiamen Honglu Tungsten Molybdenum Industry Co.Ltd |
Xiamen Tungsten (H.C.) Co., Ltd. |
Xiamen Tungsten Co., Ltd.* |
Xinhai Rendan Shaoguan Tungsten Co., Ltd. |
Angola |
Argentina |
Armenia |
Australia |
Austria |
Belarus |
Belgium |
Bermuda |
Bolivia |
Brazil |
Burundi |
Canada |
Chile |
China |
DRC- Congo (Kinshasa) |
Estonia |
Ethiopia |
France |
Germany |
Ghana |
Guinea |
Guyana |
Hong Kong |
India |
Indonesia |
Italy |
Japan |
Jersey |
Kazakhstan |
Kyrgyzstan |
Laos |
Malaysia |
Mali |
Mexico |
Mongolia |
Morocco |
Mozambique |
Myanmar |
Namibia |
Netherlands |
Niger |
Nigeria |
Papua New Guinea |
Peru |
Philippines |
Poland |
Portugal |
Russia |
Rwanda |
Saudi Arabia |
Sierra Leone |
Singapore |
South Africa |
South Korea |
Spain |
Suriname |
Sweden |
Switzerland |
Taiwan |
Tajikistan |
Tanzania |
Thailand |
Turkey |
United Arab Emirates |
United Kingdom |
United States |
Uzbekistan |
Vietnam |
Zambia |
Zimbabwe |
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