Exhibit 1.01
LyondellBasell Industries N.V.
Conflict Minerals Report for the Calendar Year Ended December 31, 2018.
Background
LyondellBasell Industries N.V. (the “Company”, “we” or “our”) has included this Conflict Minerals Report (this “Report”) as an exhibit to its Form SD for the calendar year ended December 31, 2018 as required by Rule 13p-1 under the Securities Exchange Act of 1934 (the “Rule”). We are subject to the Rule because we have identified certain products that we manufactured in 2018 that contain a “conflict mineral” as defined by Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act. On August 21, 2018 the Company completed its acquisition of A. Schulman, Inc. (“Schulman”), and information pertaining to Schulman for the 2018 reporting period is included in this Report.
After conducting our reasonable country of origin inquiry, as briefly described below, we determined that three of our products manufactured by our polyolefins business contained a conflict mineral (tin) and that several of the products manufactured by our (former Schulman) engineered composites business included a metal insert that contained a conflict mineral (tin and/or tantalum) that was necessary to the functionality or production of those products and may have originated from the Democratic Republic of Congo and its adjoining countries (the “Covered Countries”).
Reasonable Country of Origin Inquiry
We determined which of our products were in-scope or potentially in-scope for our compliance with the Rule by identifying product categories that may contain conflict minerals through product specifications and other information known to us. For 2018, we identified three products manufactured by our polyolefins business for use in wire and cable applications (Aquathene CM04482, CM04483 and FR439800X01) that contain a conflict mineral (tin) necessary to the production of these products. We also identified certain products manufactured by our (former Schulman) business that had metal inserts that we believed could contain necessary conflict minerals (tin and/or tantalum). We determined these in-scope products, which represented less than 1% of our net sales in 2018, did not contain any other conflict minerals. The Company had no reason to believe, based on an internal assessment of its product portfolio, that any of its other products manufactured and sold in 2018 contained any conflict minerals necessary to the functionality or production of those products.
We identified 17 suppliers from which we sourced tin and/or tantalum in 2018 that was actually used in the manufacture of the in-scope products. We sent the Conflict Minerals Reporting Template (as developed by the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative (the “CMRT”)) to the suppliers of the in-scope products (the “in-scope suppliers”) as part of our due diligence process. We received responses from 100% of our in-scope suppliers. Based on the CMRT responses received from the in-scope suppliers, we have reason to believe that some of the tin and/or tantalum contained in those products (i) may have originated in the Covered Countries and (ii) is not or may not be from recycled or scrap sources.
Conflict Minerals Due Diligence
The Company’s conflict minerals due diligence process is materially based on the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, including the Supplement on Tin, Tantalum and Tungsten and the Supplement on Gold (Second Edition 2013) (the “OECD Guidance”).
The Company occupies a “downstream” position in the supply chain and followed the principles outlined in the OECD Guidance for downstream companies. In this context, “downstream” refers to the supply chain from smelters to the eventual retailers of products. As a result of our position in the supply chain, we have no direct relationships with mines, smelters or other lower-tier suppliers of our tin and/or tantalum. Consequently, we rely on our direct suppliers to provide us with information on the origin of the tin and/or tantalum we purchase, including tin and/or tantalum that is supplied to them from lower-tier suppliers.
A summary of the Company’s conflict minerals diligence activities in respect of 2018 based on the OECD Guidance are outlined below.
Step | OECD Guidance | Due Diligence Activities Performed |
1 | Establish Strong Company Management Systems | —We have adopted and published a Conflict Minerals Policy which is available at https://www.lyondellbasell.com/en/investors/corporate-governance/?id=52. —The Company created a cross-functional conflict minerals compliance team responsible for creating and implementing our conflict minerals compliance strategy. Compliance, Legal and Procurement were represented on the team. Our employees and external parties have access to a phone and internet based (http://www.lyondellbasell.ethicspoint.com) ethics reporting system to anonymously report any concerns. |
2 | Identify and Assess Risk in the Supply Chain | —We requested each of our suppliers of tin and/or tantalum used in our in-scope products to provide information regarding the origin and smelters of the tin and/or tantalum using the CMRT and reviewed each completed CMRT response. —We reviewed the smelters identified in the completed CMRT responses against the list of complaint smelters (the “Conflict Free Smelter List”) published by the Conflict-Free Sourcing Initiative (“CFSI”). |
3 | Design and Implement a Strategy to Respond to Identified Risks | —Our cross-functional conflict minerals compliance team reported the findings to our Executive Vice President & Chief Legal Officer and our Chief Compliance Officer. |
4 | Carry out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain | —As a downstream supplier, we do not have a direct relationship with conflict minerals smelters and do not perform or direct audits of these entities within our supply chain. In connection with our due diligence, we utilized information made available by the CFSI concerning independent third-party audits of smelters. |
5 | Report Annually on Supply Chain Due Diligence | —We filed a Form SD and this Report with the Securities and Exchange Commission and made available on our website this Report and the Form SD. |
Results of our Review
Based on the information provided by our in-scope suppliers, we believe, to the extent reasonably known, that some of the facilities used to process some of the conflict minerals in our in-scope products include the smelters listed below. We do not believe that the below list represents all of the smelters that processed conflict minerals in our in-scope products in the reporting period. Rather, it represents only those smelters that we could reasonably verify as related to our specific in-scope products based on our in-scope suppliers’ responses.
Metal | Smelter Name |
Tin | Alpha* |
Tin | An Vinh Joint Stock Mineral Processing Company |
Tin | Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.* |
Tin | Chifeng Dajingzi Tin Industry Co., Ltd.* |
Tin | China Tin Group Co., Ltd.* |
Tin | CNMC (Guangxi) PGMA Co., Ltd. |
Tin | CV Ayi Jaya* |
Tin | CV Dua Sekawan* |
Tin | CV Gita Pesona* |
Tin | CV Tiga Sekawan |
Tin | CV United Smelting* |
Tin | CV Venus Inti Perkasa* |
Tin | Dowa* |
Tin | Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company |
Tin | EM Vinto* |
Tin | Estanho de Rondonia S.A. |
Tin | Fenix Metals* |
Tin | Gejiu Fengming Metallurgy Chemical Plant* |
Tin | Gejiu Jinye Mineral Company* |
Tin | Gejiu Kai Meng Industry and Trade LLC* |
Tin | Gejiu Non-Ferrous Metal Processing Co., Ltd.* |
Tin | Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.* |
Tin | Gejiu Zili Mining And Metallurgy Co., Ltd.* |
Tin | Guangdong Hanhe Non-Ferrous Metal Co., Ltd.* |
Tin | Guanyang Guida Nonferrous Metal Smelting Plant* |
Tin | HuiChang Hill Tin Industry Co., Ltd.* |
Tin | Huichang Jinshunda Tin Co., Ltd.* |
Tin | Jiangxi Ketai Advanced Material Co., Ltd. |
Tin | Jiangxi New Nanshan Technology Ltd.* |
Tin | Magnu's Minerais Metais e Ligas Ltda.* |
Tin | Malaysia Smelting Corporation (MSC)* |
Tin | Melt Metais e Ligas S.A.* |
Tin | Metallic Resources, Inc.* |
Tin | Metallo Belgium N.V.* |
Tin | Metallo Spain S.L.U.* |
Metal | Smelter Name |
Tin | Mineração Taboca S.A.* |
Tin | Minsur* |
Tin | Mitsubishi Materials Corporation* |
Tin | Modeltech Sdn Bhd* |
Tin | Nghe Tinh Non-Ferrous Metals Joint Stock Company |
Tin | Operaciones Metalurgical S.A.* |
Tin | Pongpipat Company Limited |
Tin | PT Aries Kencana Sejahtera* |
Tin | PT Artha Cipta Langgeng* |
Tin | PT ATD Makmur Mandiri Jaya* |
Tin | PT Babel Inti Perkasa* |
Tin | PT Bangka Prima Tin* |
Tin | PT Bangka Serumpun* |
Tin | PT Bangka Tin Industry* |
Tin | PT Bukit Timah* |
Tin | PT DS Jaya Abadi* |
Tin | PT Eunindo Usaha Mandiri |
Tin | PT Inti Stania Prima* |
Tin | PT Karimun Mining* |
Tin | PT Kijang Jaya Mandiri* |
Tin | PT Menara Cipta Mulia* |
Tin | PT Mitra Stania Prima* |
Tin | PT Panca Mega Persada* |
Tin | PT Premium Tin Indonesia* |
Tin | PT Prima Timah Utama* |
Tin | PT Refined Bangka Tin* |
Tin | PT Sariwiguna Binasentosa* |
Tin | PT Stanindo Inti Perkasa* |
Tin | PT Sukses Inti Makmur* |
Tin | PT Sumber Jaya Indah* |
Tin | PT Timah (Persero) Tbk Kundur* |
Tin | PT Tinindo Inter Nusa* |
Tin | PT Tommy Utama* |
Tin | Resind Industria e Comercio Ltda.* |
Tin | Soft Metais Ltda.* |
Tin | Super Ligas |
Tin | Thaisarco* |
Tin | Tin Technology & Refining* |
Tin | Tuyen Quang Non-Ferrous Metals Joint Stock Company |
Tin | Yunnan Chengfeng Non-ferrous Metals Co., Ltd.* |
Tin | Yunnan Tin Company Limited* |
Tin | O.M. Manufacturing (Thailand) Co., Ltd.* |
Tin | PT Belitung Industri Sejahtera* |
Metal | Smelter Name |
Tin | White Solder Metalurgia e Mineracao Ltda.* |
Tantalum | Asaka Riken Co., Ltd.* |
Tantalum | Changsha South Tantalum Niobium Co., Ltd.* |
Tantalum | D Block Metals, LLC* |
Tantalum | Exotech Inc.* |
Tantalum | F&X Electro-Materials Ltd.* |
Tantalum | FIR Metals & Resource Ltd.* |
Tantalum | Global Advanced Metals Aizu* |
Tantalum | Global Advanced Metals Boyertown* |
Tantalum | Guangdong Rising Rare Metals-EO Materials Ltd.* |
Tantalum | Guangdong Zhiyuan New Material Co., Ltd.* |
Tantalum | H.C. Starck Co., Ltd.* |
Tantalum | H.C. Starck Hermsdorf GmbH* |
Tantalum | H.C. Starck Inc.* |
Tantalum | H.C. Starck Smelting GmbH & Co. KG* |
Tantalum | H.C. Starck Tantalum and Niobium GmbH* |
Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd.* |
Tantalum | Jiangxi Dinghai Tantalum & Niobium Co., Ltd.* |
Tantalum | Jiangxi Tuohong New Raw Material* |
Tantalum | Jiujiang Janny New Material Co., Ltd.* |
Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd.* |
Tantalum | Jiujiang Tanbre Co., Ltd.* |
Tantalum | Jiujiang Zhongao Tantalum & Niobium Co., Ltd.* |
Tantalum | KEMET Blue Metals* |
Tantalum | KEMET Blue Powder* |
Tantalum | LSM Brasil S.A.* |
Tantalum | Metallurgical Products India Pvt., Ltd.* |
Tantalum | Mineracao Taboca S.A.* |
Tantalum | Mitsui Mining and Smelting Co., Ltd.* |
Tantalum | Ningxia Orient Tantalum Industry Co., Ltd.* |
Tantalum | NPM Silmet AS* |
Tantalum | Power Resources Ltd.* |
Tantalum | QuantumClean* |
Tantalum | Resind Industria e Comercio Ltda.* |
Tantalum | RFH Tantalum Smeltery Co., Ltd./Yanling Jincheng Tantalum & Niobium Co., Ltd.* |
Tantalum | Solikamsk Magnesium Works OAO* |
Tantalum | Taki Chemical Co., Ltd.* |
Tantalum | Telex Metals* |
Tantalum | Ulba Metallurgical Plant JSC* |
Tantalum | XinXing HaoRong Electronic Material Co., Ltd.* |
Tantalum | Yichun Jin Yang Rare Metal Co., Ltd. |
*Smelter name included on the Conflict Free Smelter List as of May 20, 2019. This compliance status is based solely on information made publicly available by the CFSI, without independent verification by us.
The CMRT responses we received from the in-scope suppliers were made on a company level basis and did not provide detail as to source and chain of custody for the tin and/or tantalum that was actually supplied to us. As a result, we do not possess sufficient information to draw definitive conclusions as to the exact smelter, country of origin, mine location or location of origin of the tin and/or tantalum contained in our in-scope products.
Steps to Mitigate Risk
The Company intends to take the following steps in respect of 2019:
• | Clearly communicate our sourcing expectations to potentially in-scope suppliers. |
• | Continue to engage in-scope suppliers. |
• | Continue the due diligence measures described in this Report. |