Conflict Minerals Due Diligence

Conflict minerals due diligence is the structured process through which companies and public buyers trace the origin of specific raw materials to ensure that their supply chains do not fund armed groups or involve human rights violations. In a European procurement context, this requirement is driven primarily by EU Regulation 2017/821, which establishes supply chain due diligence obligations for importers of tin, tantalum, tungsten, and gold (collectively known as 3TG minerals). Contracting authorities and their suppliers must increasingly demonstrate compliance with these obligations when bidding for or awarding public contracts involving products that contain these minerals.

What is Conflict Minerals Due Diligence?

EU Regulation 2017/821, which entered into force in January 2021, requires EU importers of 3TG minerals and metal smelters and refiners that source from conflict-affected and high-risk areas to carry out supply chain due diligence based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The five-step OECD framework requires companies to establish strong management systems, identify and assess risks in the supply chain, design and implement a strategy to respond to identified risks, carry out independent third-party audits, and report annually on supply chain due diligence.

The minerals most commonly affected are found in electronic equipment, vehicles, aerospace components, and industrial machinery. A public authority procuring IT hardware, defence equipment (under Directive 2009/81/EC for defence and security procurement), or infrastructure components may therefore encounter 3TG minerals in the supply chain of its contracted goods.

In practice, contracting authorities embed conflict minerals requirements in two ways. First, they may include supply chain transparency requirements as technical specifications or contract performance conditions, requiring suppliers to demonstrate that their 3TG sources are either conflict-free or sourced only from responsible smelters certified under recognised schemes such as the Responsible Minerals Initiative (RMI). Second, under Socially Responsible Public Procurement (SRPP) frameworks, authorities may treat a supplier's conflict minerals compliance programme as a qualitative selection criterion reflecting their capacity to manage human rights risk.

The Corporate Sustainability Reporting Directive (CSRD) reinforces this by requiring large companies to disclose their due diligence processes on human rights and environmental matters in their sustainability reports. Suppliers subject to CSRD reporting will be expected to provide documented conflict minerals due diligence data that a contracting authority can verify.

In the UK, there is no direct equivalent of EU Regulation 2017/821, but the Modern Slavery Act 2015 and the Procurement Act 2023 both place human rights supply chain obligations on suppliers and buyers. Contracting authorities in the UK are expected to consider supply chain transparency risks, including conflict minerals, when evaluating suppliers under Sustainable Public Procurement (SPP) and fair trade frameworks.

Why conflict minerals due diligence matters for bidders

Suppliers of electronics, machinery, vehicles, or other 3TG-containing goods bidding on European public contracts should maintain documented conflict minerals compliance programmes. Buyers are increasingly asking for evidence of OECD-aligned due diligence, responsible smelter certification, and country-of-origin traceability. The absence of such documentation can disqualify a bid or result in a lower score on social responsibility criteria.

Smaller suppliers who source finished components rather than raw materials should still understand their sub-tier exposure. The OECD framework requires traceability to the smelter or refiner level, which means prime contractors must cascade due diligence obligations down the supply chain.

Example

A German federal agency procures several hundred laptop computers under an EU framework agreement. The technical specification requires that the successful supplier provide evidence that all 3TG minerals used in the devices are sourced from smelters certified as conflict-free under the RMI Responsible Minerals Assurance Process. A supplier who cannot demonstrate certified sourcing through a Conflict Minerals Reporting Template (CMRT) is treated as non-compliant with the specification and excluded from the award stage.

Frequently Asked Questions

Which minerals are covered by EU Regulation 2017/821?

The regulation covers tin, tantalum, tungsten, and gold (3TG). It applies to EU importers of these minerals and metals and to smelters and refiners that process them. Downstream manufacturers and public buyers are not directly regulated by the Regulation but are increasingly subject to contractual requirements that cascade compliance obligations through the supply chain.

How do I demonstrate conflict minerals compliance to a contracting authority?

The most widely accepted method is completing a Conflict Minerals Reporting Template (CMRT) using the format published by the Responsible Minerals Initiative, which traces minerals to individual smelters and their certification status. Alternatively, suppliers may demonstrate that their products carry third-party verified responsible sourcing certifications from recognised industry schemes. Some contracting authorities also accept OECD-aligned annual due diligence reports as evidence of systemic compliance.

Does this apply to service contracts as well?

Conflict minerals due diligence is most relevant to goods contracts involving electronic or mechanical components. It is generally not a direct requirement for service contracts unless the service involves the supply of physical goods containing 3TG minerals. However, large service providers subject to CSRD reporting may need to address conflict minerals in their broader sustainability disclosures, which contracting authorities may request as part of pre-qualification.