Exhibit 1.01 to Form SD
Church & Dwight Co., Inc.
Conflict Minerals Report for the Reporting Period from January 1, 2016 to December 31, 2016
This Conflict Minerals Report (this “Report”) of Church & Dwight Co., Inc. (the “Company”) has been prepared pursuant to Rule 13p-1 (the “Rule”) promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period from January 1, 2016 to December 31, 2016.
The Rule requires disclosure of certain information when a company manufactures, or contracts to manufacture, products and any of the minerals specified in the Rule are necessary to the functionality or production of such products. The specified minerals, which the Company collectively refers to in this Report as the “Conflict Minerals,” are gold, columbite-tantalite (coltan), cassiterite and wolframite and certain of their derivatives. The “Covered Countries” for the purposes of the Rule and this Report are the Democratic Republic of the Congo, the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola. As described in this Report, certain Conflict Minerals are necessary to the functionality or production of products that the Company contracts to manufacture.
This Report contains forward-looking statements that are made based on known events and circumstances at the time of this Report. 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, and those statements detailed under the heading “Future Improvements to Due Diligence Process.” These forward-looking statements are subject to various risks, uncertainties and other factors, 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. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the U.S. federal securities laws.
Description of the Company’s Products Covered by this Report
This Report relates to products: (i) for which Conflict Minerals are necessary to the functionality or production of the product; and (ii) that were contracted to be manufactured by the Company during calendar year 2016.
These products, which are referred to in this Report collectively as the “Covered Products,” were identified by the Company’s internal global operations team, with input from the relevant component material vendors and contract manufacturers (collectively, “Suppliers”). The Covered Products identified are the following:
• | Battery-operated toothbrushes |
• | Pregnancy test kits |
• | Ovulation test kits |
• | Vibrators |
Approximately 5% of the Company’s consolidated net sales in 2016 were derived from the sale of Covered Products.
The Company’s RCOI and Due Diligence Process
The Company has in good faith conducted a reasonable country of origin inquiry regarding the Conflict Minerals. This country of origin inquiry was designed to determine whether any of the Conflict Minerals used in the Covered Products may have originated in the Covered Countries and/or whether any of such Conflict Minerals may be from recycled or scrap sources. The Company determined that certain of the Conflict Minerals used in the Covered
Products may have originated in the Covered Countries. Accordingly, the Company also performed due diligence on the source and chain of custody of such Conflict Minerals. The Company’s due diligence measures have been designed to conform to the framework in theOrganisation for Economic Co-Operation and Development Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High Risk Areas: Second Edition, including the related supplements on gold, tin, tantalum and tungsten (the “OECD Guidance”). The Company’s due diligence process was led by the Company’s Law Department with input from representatives of the Company’s global operations, who provided subject matter expertise and managed the relationships with the Suppliers of the Covered Products.
The Company has adopted a Conflict Minerals Policy supplementing its previously existing policies regarding social responsibility. A copy of the Company’s Conflict Minerals Policy is publically available at: www.churchdwight.com/company/our-values-and-vision/corporate-responsibility.aspx.
In addition, the Company has taken steps across its entire supply chain to support conflict free sourcing of Conflict Minerals. For example, the Company’s form purchasing terms and conditions include a representation and warranty that the products supplied do not contain any Conflict Minerals and a requirement that the Company be alerted should such representation change. The Company remains committed to ensuring that it is not sourcing Conflict Minerals that fund armed groups in the Covered Countries, and it expects all its suppliers to respect internationally recognized human rights, comply with all applicable laws and conduct their business ethically and responsibly. Any supplier found to be in violation is subject to corrective action potentially including termination of its business relationship with the Company.
As a “downstream company” in the metals supply chain, the Company is many tiers removed from smelters and refiners that process the metals found in its final products, and there may be many intervening third parties between the original sources of Conflict Minerals and the Company. The Company does not manufacture any of the Covered Products it sells, nor does it purchase Conflict Minerals directly from mines, smelters or refiners, so it must therefore rely on its immediate suppliers, with which it has business relationships, to provide information regarding the sourcing, including country of origin, of necessary Conflict Minerals in its products.
Accordingly, after having identified the relevant products, the Company, consistent with the OECD Guidance, requested that the Suppliers provide certifications (“Certifications”) confirming in writing that, either (i) the products did not contain Conflict Minerals or, (ii) if present in the product, such Conflict Minerals either (a) came from recycled or scrap sources, or (b) did not originate in the Covered Countries. The Company in turn, relied on its contract manufacturers to solicit responses from its sub-tier suppliers.
The Certifications received were reviewed for completeness and consistency of answers, and the Suppliers were required to provide corrections and clarifications where needed. For those Suppliers that provided incomplete information, or if further information was needed from a Supplier (for example, if the information received appeared incorrect), the Company requested further information/detail from such Suppliers. For those Suppliers that did not respond to the initial inquiry, the Company sent follow-up inquires to solicit their responses. In addition, the Company supplemented the responses received with information derived from alternate sources, including, but not limited to, e-mail communications and publicly available disclosures.
As of May 30, 2017, of the twelve (12) Suppliers from which Certifications were requested:
• | Nine (9) responded that either the products supplied did not contain Conflict Minerals or the Conflict Minerals did not originate in one of the Covered Countries |
• | Two (2) responded that the products supplied contained Conflict Minerals that were sourced from recycled or scrap sources; and |
• | One (1) Supplier (the “Reporting Supplier”) indicated that the products supplied contained Conflict Minerals sourced from the Covered Countries (and not 100% from scrap or recycled sources). |
In response to the Company’s request for a Certification, the Reporting Supplier, itself an SEC reporting company subject to the Rule, provided a Conflict Free Sourcing Initiative’s Conflict Minerals Reporting Template (CFSI CMRT) version 4.10 completed at the company level. The provided CFSI CMRT indicated that the Reporting Supplier was able to identify 100% of the smelters that it and its sub-tier suppliers used to manufacture all of the Reporting Supplier’s products (including those not supplied to the Company), and all smelters were listed on CFSI’s “compliant smelter” list, the CFSI’s “active smelter” list, or the TI-CMC’s “active smelter” list. Further, the Reporting Supplier’s independent due diligence did not identify conflict minerals sourcing risk from the current “active smelters”. The specific smelters identified by the Reporting Supplier are set forth on Annex I attached hereto.
Future Improvements to Due Diligence Process
The Company expects to continue to engage with its Suppliers to obtain current, accurate and complete information about their supply chain, including with respect to sub-tier suppliers, and to evaluate the Company’s due diligence measures to identify more efficient and effective means to obtain current, accurate and complete information about its supply chain. The Company will continue to refine its internal system to maintain and retrieve data from Suppliers regarding the products they supply and to encourage more widespread adoption of robust supply chain practices on the part of the Suppliers in the future. In addition, the Company anticipates that it will revise its current sourcing procedures in order to identify in advance those potential Suppliers that may source Conflict Minerals from one or more of the Covered Countries, as well as in such cases the status of applicable smelters. The Company intends to follow up with Suppliers that have not responded to its inquiries in a timely manner and consider further action under its policy.
Annex I
Smelters Identified by Reporting Supplier
Metal | Smelter Name | Smelter Country | Smelter ID | |||
Gold | Aida Chemical Industries Co., Ltd. | JAPAN | CID000019 | |||
Gold | Allgemeine Gold-und Silberscheideanstalt A.G. | GERMANY | CID000035 | |||
Gold | AngloGold Ashanti Córrego do Sítio Mineração | BRAZIL | CID000058 | |||
Gold | Argor-Heraeus S.A. | SWITZERLAND | CID000077 | |||
Gold | Asahi Pretec Corp. | JAPAN | CID000082 | |||
Gold | Asahi Refining Canada Ltd. | CANADA | CID000924 | |||
Gold | Asahi Refining USA Inc. | UNITED STATES | CID000920 | |||
Gold | Asaka Riken Co., Ltd. | JAPAN | CID000090 | |||
Gold | Aurubis AG | GERMANY | CID000113 | |||
Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | PHILIPPINES | CID000128 | |||
Gold | Boliden AB | SWEDEN | CID000157 | |||
Gold | C. Hafner GmbH + Co. KG | GERMANY | CID000176 | |||
Gold | CCR Refinery - Glencore Canada Corporation | CANADA | CID000185 | |||
Gold | Chimet S.p.A. | ITALY | CID000233 | |||
Gold | Dowa | JAPAN | CID000401 | |||
Gold | Eco-System Recycling Co., Ltd. | JAPAN | CID000425 | |||
Gold | Elemetal Refining, LLC | UNITED STATES | CID001322 | |||
Gold | Heimerle + Meule GmbH | GERMANY | CID000694 | |||
Gold | Heraeus Ltd. Hong Kong | CHINA | CID000707 | |||
Gold | Heraeus Precious Metals GmbH & Co. KG | GERMANY | CID000711 | |||
Gold | Ishifuku Metal Industry Co., Ltd. | JAPAN | CID000807 | |||
Gold | Istanbul Gold Refinery | TURKEY | CID000814 | |||
Gold | Jiangxi Copper Co., Ltd. | CHINA | CID000855 | |||
Gold | JX Nippon Mining & Metals Co., Ltd. | JAPAN | CID000937 | |||
Gold | Kennecott Utah Copper LLC | UNITED STATES | CID000969 | |||
Gold | Kojima Chemicals Co., Ltd. | JAPAN | CID000981 | |||
Gold | LS-NIKKO Copper Inc. | KOREA, REPUBLIC OF | CID001078 | |||
Gold | Materion | UNITED STATES | CID001113 | |||
Gold | Matsuda Sangyo Co., Ltd. | JAPAN | CID001119 | |||
Gold | Metalor Technologies (Hong Kong) Ltd. | CHINA | CID001149 | |||
Gold | Metalor Technologies (Singapore) Pte., Ltd. | SINGAPORE | CID001152 | |||
Gold | Metalor Technologies S.A. | SWITZERLAND | CID001153 | |||
Gold | Metalor USA Refining Corporation | UNITED STATES | CID001157 | |||
Gold | Metalúrgica Met-Mex Peñoles S.A. De C.V. | MEXICO | CID001161 | |||
Gold | Mitsubishi Materials Corporation | JAPAN | CID001188 | |||
Gold | Mitsui Mining and Smelting Co., Ltd. | JAPAN | CID001193 | |||
Gold | Nadir Metal Rafineri San. Ve Tic. A.Ş. | TURKEY | CID001220 | |||
Gold | Nihon Material Co., Ltd. | JAPAN | CID001259 | |||
Gold | Ohura Precious Metal Industry Co., Ltd. | JAPAN | CID001325 | |||
Gold | PAMP S.A. | SWITZERLAND | CID001352 | |||
Gold | PT Aneka Tambang (Persero) Tbk | INDONESIA | CID001397 | |||
Gold | PX Précinox S.A. | SWITZERLAND | CID001498 | |||
Gold | Rand Refinery (Pty) Ltd. | SOUTH AFRICA | CID001512 | |||
Gold | Republic Metals Corporation | UNITED STATES | CID002510 | |||
Gold | Royal Canadian Mint | CANADA | CID001534 | |||
Gold | SEMPSA Joyería Platería S.A. | SPAIN | CID001585 | |||
Gold | Shandong Zhaojin Gold & Silver Refinery Co., Ltd. | CHINA | CID001622 | |||
Gold | SOE Shyolkovsky Factory of Secondary Precious Metals | RUSSIAN FEDERATION | CID001756 | |||
Gold | Solar Applied Materials Technology Corp. | TAIWAN | CID001761 | |||
Gold | Sumitomo Metal Mining Co., Ltd. | JAPAN | CID001798 | |||
Gold | Tanaka Kikinzoku Kogyo K.K. | JAPAN | CID001875 | |||
Gold | The Refinery of Shandong Gold Mining Co., Ltd. | CHINA | CID001916 | |||
Gold | Tokuriki Honten Co., Ltd. | JAPAN | CID001938 | |||
Gold | Umicore Brasil Ltda. | BRAZIL | CID001977 | |||
Gold | Umicore Precious Metals Thailand | THAILAND | CID002314 |
Metal | Smelter Name | Smelter Country | Smelter ID | |||
Gold | Umicore S.A. Business Unit Precious Metals Refining | BELGIUM | CID001980 | |||
Gold | United Precious Metal Refining, Inc. | UNITED STATES | CID001993 | |||
Gold | Valcambi S.A. | SWITZERLAND | CID002003 | |||
Gold | Western Australian Mint trading as The Perth Mint | AUSTRALIA | CID002030 | |||
Gold | Yamamoto Precious Metal Co., Ltd. | JAPAN | CID002100 | |||
Gold | Yokohama Metal Co., Ltd. | JAPAN | CID002129 | |||
Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation | CHINA | CID002224 | |||
Gold | Zijin Mining Group Co., Ltd. Gold Refinery | CHINA | CID002243 | |||
Tantalum | Changsha South Tantalum Niobium Co., Ltd. | CHINA | CID000211 | |||
Tantalum | Conghua Tantalum and Niobium Smeltry | CHINA | CID000291 | |||
Tantalum | D Block Metals, LLC | UNITED STATES | CID002504 | |||
Tantalum | Duoluoshan | CHINA | CID000410 | |||
Tantalum | Exotech Inc. | UNITED STATES | CID000456 | |||
Tantalum | F&X Electro-Materials Ltd. | CHINA | CID000460 | |||
Tantalum | Global Advanced Metals Aizu | JAPAN | CID002558 | |||
Tantalum | Global Advanced Metals Boyertown | UNITED STATES | CID002557 | |||
Tantalum | Guangdong Zhiyuan New Material Co., Ltd. | CHINA | CID000616 | |||
Tantalum | H.C. Starck Co., Ltd. | THAILAND | CID002544 | |||
Tantalum | H.C. Starck GmbH Goslar | GERMANY | CID002545 | |||
Tantalum | H.C. Starck GmbH Laufenburg | GERMANY | CID002546 | |||
Tantalum | H.C. Starck Hermsdorf GmbH | GERMANY | CID002547 | |||
Tantalum | H.C. Starck Inc. | UNITED STATES | CID002548 | |||
Tantalum | H.C. Starck Ltd. | JAPAN | CID002549 | |||
Tantalum | H.C. Starck Smelting GmbH & Co. KG | GERMANY | CID002550 | |||
Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd. | CHINA | CID002492 | |||
Tantalum | Hi-Temp Specialty Metals, Inc. | UNITED STATES | CID000731 | |||
Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. | CHINA | CID000914 | |||
Tantalum | Jiujiang Tanbre Co., Ltd. | CHINA | CID000917 | |||
Tantalum | LSM Brasil S.A. | BRAZIL | CID001076 | |||
Tantalum | Mineração Taboca S.A. | BRAZIL | CID001175 | |||
Tantalum | Mitsui Mining & Smelting | JAPAN | CID001192 | |||
Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | CHINA | CID001277 | |||
Tantalum | Plansee SE Liezen | AUSTRIA | CID002540 | |||
Tantalum | Plansee SE Reutte | AUSTRIA | CID002556 | |||
Tantalum | Solikamsk Magnesium Works OAO | RUSSIAN FEDERATION | CID001769 | |||
Tantalum | Taki Chemicals | JAPAN | CID001869 | |||
Tantalum | Telex Metals | UNITED STATES | CID001891 | |||
Tantalum | Ulba Metallurgical Plant JSC | KAZAKHSTAN | CID001969 | |||
Tantalum | Yichun Jin Yang Rare Metal Co., Ltd. | CHINA | CID002307 | |||
Tantalum | Zhuzhou Cemented Carbide | CHINA | CID002232 | |||
Tin | Alpha | UNITED STATES | CID000292 | |||
Tin | China Tin Group Co., Ltd. | CHINA | CID001070 | |||
Tin | Cooperativa Metalurgica de Rondônia Ltda. | BRAZIL | CID000295 | |||
Tin | CV Ayi Jaya | INDONESIA | CID002570 | |||
Tin | CV Gita Pesona | INDONESIA | CID000306 | |||
Tin | CV Serumpun Sebalai | INDONESIA | CID000313 | |||
Tin | CV United Smelting | INDONESIA | CID000315 | |||
Tin | CV Venus Inti Perkasa | INDONESIA | CID002455 | |||
Tin | Dowa | JAPAN | CID000402 | |||
Tin | Elmet S.L.U. | SPAIN | CID002774 | |||
Tin | EM Vinto | BOLIVIA | CID000438 | |||
Tin | Fenix Metals | POLAND | CID000468 | |||
Tin | Gejiu Non-Ferrous Metal Processing Co., Ltd. | CHINA | CID000538 | |||
Tin | Jiangxi Ketai Advanced Material Co., Ltd. | CHINA | CID000244 | |||
Tin | Magnu’s Minerais Metais e Ligas Ltda. | BRAZIL | CID002468 | |||
Tin | Malaysia Smelting Corporation (MSC) | MALAYSIA | CID001105 | |||
Tin | Melt Metais e Ligas S.A. | BRAZIL | CID002500 | |||
Tin | Metallic Resources, Inc. | UNITED STATES | CID001142 | |||
Tin | Metallo-Chimique N.V. | BELGIUM | CID002773 | |||
Tin | Mineração Taboca S.A. | BRAZIL | CID001173 | |||
Tin | Minsur | PERU | CID001182 |
Metal | Smelter Name | Smelter Country | Smelter ID | |||
Tin | Mitsubishi Materials Corporation | JAPAN | CID001191 | |||
Tin | O.M. Manufacturing (Thailand) Co., Ltd. | THAILAND | CID001314 | |||
Tin | O.M. Manufacturing Philippines, Inc. | PHILIPPINES | CID002517 | |||
Tin | Operaciones Metalurgical S.A. | BOLIVIA | CID001337 | |||
Tin | PT Aries Kencana Sejahtera | INDONESIA | CID000309 | |||
Tin | PT Artha Cipta Langgeng | INDONESIA | CID001399 | |||
Tin | PT ATD Makmur Mandiri Jaya | INDONESIA | CID002503 | |||
Tin | PT Babel Inti Perkasa | INDONESIA | CID001402 | |||
Tin | PT Bangka Prima Tin | INDONESIA | CID002776 | |||
Tin | PT Bangka Tin Industry | INDONESIA | CID001419 | |||
Tin | PT Belitung Industri Sejahtera | INDONESIA | CID001421 | |||
Tin | PT Bukit Timah | INDONESIA | CID001428 | |||
Tin | PT Cipta Persada Mulia | INDONESIA | CID002696 | |||
Tin | PT DS Jaya Abadi | INDONESIA | CID001434 | |||
Tin | PT Eunindo Usaha Mandiri | INDONESIA | CID001438 | |||
Tin | PT Inti Stania Prima | INDONESIA | CID002530 | |||
Tin | PT Mitra Stania Prima | INDONESIA | CID001453 | |||
Tin | PT Panca Mega Persada | INDONESIA | CID001457 | |||
Tin | PT Prima Timah Utama | INDONESIA | CID001458 | |||
Tin | PT Refined Bangka Tin | INDONESIA | CID001460 | |||
Tin | PT Sariwiguna Binasentosa | INDONESIA | CID001463 | |||
Tin | PT Stanindo Inti Perkasa | INDONESIA | CID001468 | |||
Tin | PT Sukses Inti Makmur | INDONESIA | CID002816 | |||
Tin | PT Sumber Jaya Indah | INDONESIA | CID001471 | |||
Tin | PT Timah (Persero) Tbk Kundur | INDONESIA | CID001477 | |||
Tin | PT Timah (Persero) Tbk Mentok | INDONESIA | CID001482 | |||
Tin | PT Tinindo Inter Nusa | INDONESIA | CID001490 | |||
Tin | PT Wahana Perkit Jaya | INDONESIA | CID002479 | |||
Tin | Resind Indústria e Comércio Ltda. | BRAZIL | CID002706 | |||
Tin | Rui Da Hung | TAIWAN | CID001539 | |||
Tin | Soft Metais Ltda. | BRAZIL | CID001758 | |||
Tin | Thaisarco | THAILAND | CID001898 | |||
Tin | VQB Mineral and Trading Group JSC | VIET NAM | CID002015 | |||
Tin | White Solder Metalurgia e Mineração Ltda. | BRAZIL | CID002036 | |||
Tin | Yunnan Tin Company Limited | CHINA | CID002180 | |||
Tungsten | A.L.M.T. TUNGSTEN Corp. | JAPAN | CID000004 | |||
Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd. | CHINA | CID002513 | |||
Tungsten | Chongyi Zhangyuan Tungsten Co., Ltd. | CHINA | CID000258 | |||
Tungsten | Fujian Jinxin Tungsten Co., Ltd. | CHINA | CID000499 | |||
Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd. | CHINA | CID000875 | |||
Tungsten | Ganzhou Seadragon W & Mo Co., Ltd. | CHINA | CID002494 | |||
Tungsten | Global Tungsten & Powders Corp. | UNITED STATES | CID000568 | |||
Tungsten | Guangdong Xianglu Tungsten Co., Ltd. | CHINA | CID000218 | |||
Tungsten | H.C. Starck GmbH | GERMANY | CID002541 | |||
Tungsten | H.C. Starck Smelting GmbH & Co.KG | GERMANY | CID002542 | |||
Tungsten | Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji | CHINA | CID002579 | |||
Tungsten | Hunan Chunchang Nonferrous Metals Co., Ltd. | CHINA | CID000769 | |||
Tungsten | Hydrometallurg, JSC | RUSSIAN FEDERATION | CID002649 | |||
Tungsten | Japan New Metals Co., Ltd. | JAPAN | CID000825 | |||
Tungsten | Jiangwu H.C. Starck Tungsten Products Co., Ltd. | CHINA | CID002551 | |||
Tungsten | Kennametal Huntsville | UNITED STATES | CID000105 | |||
Tungsten | Niagara Refining LLC | UNITED STATES | CID002589 | |||
Tungsten | Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC | VIET NAM | CID002543 | |||
Tungsten | Tejing (Vietnam) Tungsten Co., Ltd. | VIET NAM | CID001889 | |||
Tungsten | Wolfram Bergbau und Hütten AG | AUSTRIA | CID002044 | |||
Tungsten | Xiamen Tungsten (H.C.) Co., Ltd. | CHINA | CID002320 | |||
Tungsten | Xiamen Tungsten Co., Ltd. | CHINA | CID002082 |