Exhibit 1.01
Echelon Corporation
Conflict Minerals Report
For The Year Ended December 31, 2015
This Conflict Minerals Report (this “Report”) for Echelon Corporation (the “Company”, “Echelon”, “our” or “we”) covers the reporting period from January 1, 2015 to December 31, 2015, and is presented in accordance with Rule 13p-1 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 13p-1”).
This Report is filed as Exhibit 1.01 to the Company’s Specialized Disclosure Report on Form SD (the “Form”). A copy of this Report and the Form are publicly available at http://www.echelon.com/company/investor/corpgov/.
We use the term “conflict free” in this Report in a broader sense to refer to suppliers, supply chains, smelters and refiners whose sources of conflict minerals did not or do not directly or indirectly finance or benefit armed groups in the Covered Countries. For purposes of this Report, the term “conflict minerals” means columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, which are limited to tantalum, tin, and tungsten. Numerous terms in this Report are defined in the Rule and the reader is referred to that source and to SEC Release No. 34-67716 issued by the Securities and Exchange Commission on August 22, 2012 for such definitions.
Introduction
In 2010, the United States enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”). Pursuant to Section 1502 of the Act, the United States Securities and Exchange Commission (“SEC”) promulgated regulations requiring companies covered under the Act annually to file a Specialized Disclosure Report on Form SD with the SEC to disclose whether certain specified conflict minerals (as described below) used in their products directly or indirectly benefitted armed groups in the Democratic Republic of the Congo and adjoining countries (collectively, the “Covered Countries”). This Report, which is an exhibit to the Form, describes the design of Echelon’s conflict minerals due diligence measures and provides an account of how these measures were implemented in 2015 to determine, to our knowledge, the source mines, the country of origin and the facilities used to process the conflict minerals used in our products. A description of our products covered by this Report is described under “Part 2: Product Determination” of this Report below.
Part 1: Due Diligence
Reasonable Country of Origin Inquiry Process
In accordance with Rule 13p-1 and Form SD, Echelon determined that conflict minerals are necessary to the functionality or production of our products, and undertook a reasonable country of origin inquiry (“RCOI”) with respect conflict minerals reasonably designed to determine whether any of the conflict minerals originated in the Covered Countries.
Due Diligence Process
In conducting our RCOI, Echelon employed a combination of measures to determine whether the conflict minerals in our products originated from the Covered Countries, and determined that the Company would survey direct suppliers that represented an aggregate of at least 85% of sales revenue generated from our products that contain or may be manufactured using conflict minerals. Echelon employed the Electronics Industry Citizenship Coalition (“EICC) - Global eSustainability Initiative (“GeSI”) Extractives industry tools to collect due diligence information on the source and chain of custody of conflict minerals.
To maximize the efficiency and effectiveness of our efforts to identify smelters and refiners in our supply chain, as a standardized protocol, we, along with other participants in the electronics industry, rely on the Conflict-Free Sourcing Initiative (“CFSI”)’s Conflict-Free Smelter Program (“CFSP”) or equivalent industry-wide program for audits of smelters and/or refiners. The CFSP is a voluntary initiative in which an independent third party audits smelter procurement and processing activities and determines if the smelter has provided sufficient documentation to demonstrate with reasonable confidence that the minerals it processed originated from conflict-free sources.
In addition, we designed our due diligence to conform, in all relevant material respects given our position in the supply chain, to the Organisation for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and High-Risk Areas (the “Framework”) as it pertains to downstream companies. We believe the Framework is an internationally recognized due diligence framework and meets the requirements of the Rule.
Establishment of a Management System.
Echelon established a management system for addressing the sourcing of conflict minerals in our products, and implemented a conflict minerals governance structure that includes executive sponsors and a cross-functional team comprised of individuals from our Operations, Finance, Accounting, Sales and Legal departments.
A copy of Echelon’s Supply Chain Policy for Conflict Minerals can be viewed at
http://www.echelon.com/assets/blt154f5ba824af808e/Echelon Conflict Minerals Policy Statement - FINAL 10-18-13-1.pdf
Echelon has a worldwide whistleblower policy and hotline, and we accept and encourage reporting of illegal or unethical activity. We believe that our whistleblower hotline is an appropriate mechanism for our employees and employees of our suppliers to report known or suspected false information concerning conflict minerals in our supply chain.
Identification and Assessment of Risks in the Supply Chain
In 2015, and again in 2016, Echelon selected and surveyed five first-tier direct suppliers, representing an aggregate of over 85% of our sales revenue generated from products containing or produced using conflict minerals. Echelon provided the Conflict Minerals Reporting Template (the “CMRT”) designed by CFSI to all such suppliers in order to gather information about their use of conflict minerals, their mineral sourcing practices and the smelters and refiners in their supply chain. We elected to use the CMRT as we believe that it is a commonly used reporting template used in numerous industries, thereby easing the potential for confusion or misunderstanding by our suppliers and helping to foster even more widespread adoption of the CMRT.
Echelon utilizes contract manufacturers to produce semiconductors, modules, and electronic systems.
Given our position in the supply chain, we relied heavily on our first-tier suppliers to provide information about the sources of conflict minerals used in our products. Upon receipt of responses to our CMRT request, we reviewed our suppliers’ responses for completeness, reasonableness, and acceptability in order to validate the smelters and refiners listed on the provided CMRTs.
Based on the data collected, the main risks that we have identified are suppliers providing incomplete or inconsistent responses in the CMRT, and suppliers providing the names of smelters or refiners that are unrecognized by CFSI or not certified by CFSP. As of the date of this Report, we have not identified a supplier, smelter or refiner which we have reason to believe may be sourcing conflict minerals from a Covered Country that, directly or indirectly, finances or benefits armed groups. However, given the uncertainty in the provenance of materials from a variety of smelters that may be present in materials used by our suppliers, we are unable to determine with certainty whether or not any minerals used in our products are so sourced.
Conducting Independent Audits of Supply Chain Due Diligence
Echelon does not have a direct relationship with any smelters or refiners in our supply chain and, as a result, we do not directly conduct audits. Instead, Echelon identified conflict-free smelters and refiners reported from our first-tier direct suppliers by confirming with the published list from third party audits (CFSP).
The supply chain that produces components used in Echelon’s products utilizes recycled and new materials for which the provenance is not documented or reported. Unfortunately, as a result, establishing provenance for all sources of conflict minerals used in our products is not feasible at this time.
Part 2: Product Determination
Products
During the reporting period from January 1, 2015 to December 31, 2015, we identified the following products that may contain conflict minerals that Echelon contracted to manufacture:
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| • | Integrated Circuit (IC) and Module Products |
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| • | Interconnectivity Products |
DRC Conflict Status
In 2014 and 2015, we conducted the due diligence process described above for the reporting period from January 1, 2015 to December 31, 2015 in order to ascertain source and chain of custody information for the necessary conflict minerals in our supply chain. Based on the subsequent information we gathered, Echelon has determined that (i) certain smelters and refiners in the supply chain that are sources of the necessary conflict minerals for our products have received a “conflict free” designation from CFSP or other third party audit program, and (ii) we are unable to determine the country of origin of conflict minerals and or chain of custody of all necessary conflict minerals procured by all smelters in our supply chain that contributed to our products because, for this reporting period, certain smelter and refiner facilities (1) had not yet received a “conflict free” designation from an independent third party audit program, and (2) did not respond to our requests for country of origin or chain or custody inquiries. As a result, our products are DRC conflict undeterminable.
Table 1 below lists the facilities which, to the extent known, processed the necessary conflict minerals in our products:
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| Metal | Smelter Name | Country |
| Gold | Aida Chemical Industries Co. Ltd.* | Japan |
| Gold | Allgemeine Gold-und Silberscheideanstalt A.G.* | Germany |
| Gold | Almalyk Mining and Metallurgical Complex (AMMC) | Uzbekistan |
| Gold | AngloGold Ashanti Córrego do Sítio Minerção* | Brazil |
| Gold | Argor-Heraeus SA* | Switzerland |
| Gold | Asahi Pretec Corporation* | Japan |
| Gold | Asaka Riken Co Ltd | Japan |
| Gold | Atasay Kuyumculuk Sanayi Ve Ticaret A.S.* | Turkey |
| Gold | Aurubis AG* | Germany |
| Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | Philippines |
| Gold | Bauer Walser AG | Germany |
| Gold | Boliden AB* | Sweden |
| Gold | C. Hafner GmbH + Co. KG* | Germany |
| Gold | Caridad | Mexico |
| Gold | CCR Refinery - Glencore Canada Corporation* | Canada |
| Gold | Cendres + Métaux SA | Switzerland |
| Gold | Chimet S.p.A.* | Italy |
| Gold | China National Gold Group Corporation | China |
| Gold | Chugai Mining | Japan |
| Gold | Colt Refining | United States |
| 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 | Dowa* | Japan |
| Gold | Eco-System Recycling Co., Ltd.* | Japan |
| Gold | FSE Novosibirsk Refinery | Russian Federation |
| Gold | Gansu Seemine Material Hi-Tech Co Ltd | China |
| Gold | Guangdong Jinding Gold Limited | China |
| Gold | Hangzhou Fuchunjiang Smelting Co., Ltd. | China |
| Gold | Heimerle + Meule GmbH* | Germany |
| Gold | Heraeus Ltd. Hong Kong* | Hong Kong |
| Gold | Heraeus Precious Metals GmbH & Co. KG* | Germany |
|
| | |
| 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 | Ishifuku Metal Industry Co., Ltd.* | Japan |
| Gold | Istanbul Gold Refinery* | Turkey |
| Gold | Japan Mint* | Japan |
| Gold | Jiangxi Copper Company Limited | China |
| Gold | Johnson Matthey Inc* | United States |
| Gold | Johnson Matthey Ltd* | Canada |
| Gold | JSC Ekaterinburg Non-Ferrous Metal Processing Plant* | Russian Federation |
| Gold | JSC Uralelectromed* | Russian Federation |
| Gold | JX Nippon Mining & Metals Co., Ltd.* | Japan |
| Gold | Kazzinc Ltd* | Kazakhstan |
| Gold | Kennecott Utah Copper LLC* | United States |
| Gold | Kojima Chemicals Co., Ltd* | Japan |
| Gold | Korea Metal Co. Ltd | Korea, Republic of |
| Gold | Kyrgyzaltyn JSC | Kyrgyzstan |
| Gold | L' azurde Company For Jewelry* | Saudi Arabia |
| Gold | Lingbao Jinyuan Tonghui Refinery Co. Ltd. | China |
| Gold | LS-NIKKO Copper Inc.* | Korea, Republic of |
| Gold | Luoyang Zijin Yinhui Metal Smelt Co Ltd | China |
| Gold | Materion* | United States |
| Gold | Matsuda Sangyo Co., Ltd.* | Japan |
| Gold | Metalor Technologies (Hong Kong) Ltd* | Hong Kong |
| Gold | Metalor Technologies (Singapore) Pte. Ltd.* | Singapore |
| Gold | Metalor Technologies SA* | Switzerland |
| 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 | Moscow Special Alloys Processing Plant | Russian Federation |
| Gold | Nadir Metal Rafineri San. Ve Tic. A.ª.* | Turkey |
| Gold | Navoi Mining and Metallurgical Combinat | Uzbekistan |
| 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 | OJSC Kolyma Refinery | Russian Federation |
| Gold | PAMP SA* | Switzerland |
| Gold | Penglai Penggang Gold Industry Co Ltd | China |
| Gold | Prioksky Plant of Non-Ferrous Metals | Russian Federation |
| Gold | PT Aneka Tambang (Persero) Tbk* | Indonesia |
| Gold | PX Précinox SA* | Switzerland |
| Gold | Rand Refinery (Pty) Ltd* | South Africa |
| Gold | Republic Metals Corporation* | United States |
| Gold | Royal Canadian Mint* | Canada |
| Gold | Sabin Metal Corp. | United States |
| Gold | SAMWON METALS Corp. | Korea, Republic of |
| Gold | Schone Edelmetaal* | Netherlands |
| Gold | SEMPSA Joyería Platería SA* | Spain |
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| | |
| Gold | Shandong Zhaojin Gold & Silver Refinery Co. Ltd* | China |
| Gold | So Accurate Group, Inc. | United States |
| Gold | SOE Shyolkovsky Factory of Secondary Precious Metals | Russian Federation |
| Gold | Solar Applied Materials Technology Corp.* | Taiwan |
| Gold | Sumitomo Metal Mining Co., Ltd.* | Japan |
| Gold | Tanaka Kikinzoku Kogyo K.K.* | Japan |
| Gold | The Great Wall Gold and Silver Refinery of China | China |
| Gold | The Refinery of Shandong Gold Mining Co. Ltd* | China |
| Gold | Tokuriki Honten Co., Ltd* | Japan |
| Gold | Tongling nonferrous Metals Group Co.,Ltd | China |
| Gold | Torecom | Korea, Republic of |
| Gold | Umicore Brasil Ltda* | Brazil |
| Gold | Umicore Precious Metals Thailand* | Thailand |
| 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 |
| Gold | Yokohama Metal Co Ltd | Japan |
| Gold | Yunnan Copper Industry 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 | 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 | Global Advanced Metals Aizu* | Japan |
| Tantalum | Global Advanced Metals Boyertown* | United States |
| Tantalum | Guangdong Zhiyuan New Material Co., Ltd.* | China |
| Tantalum | H.C. Starck Co., Ltd.* | Japan |
| Tantalum | H.C. Starck GmbH Goslar* | Germany |
| Tantalum | H.C. Starck GmbH Laufenburg* | Germany |
| Tantalum | H.C. Starck Hermsdorf GmbH* | Germany |
| Tantalum | H.C. Starck Inc.* | United States |
| Tantalum | H.C. Starck Ltd.* | Japan |
| Tantalum | H.C. Starck Smelting GmbH & Co.KG* | Germany |
| Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd.* | China |
| Tantalum | Hi-Temp* | United States |
| Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd.* | China |
| Tantalum | Jiujiang Tanbre Co., Ltd.* | China |
| Tantalum | KEMET Blue Metals* | Mexico |
| Tantalum | Kemet Blue Powder* | United States |
| Tantalum | King-Tan Tantalum Industry Ltd* | China |
| Tantalum | LSM Brasil S.A.* | Brazil |
| Tantalum | Metallurgical Products India (Pvt.) Ltd.* | India |
| Tantalum | Mitsui Mining & Smelting* | Japan |
| Tantalum | Molycorp Silmet A.S.* | Estonia |
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd.* | China |
|
| | |
| Tantalum | Plansee | Austria |
| Tantalum | Plansee SE Liezen* | Austria |
| Tantalum | Plansee SE Reutte* | Austria |
| Tantalum | QuantumClean* | United States |
| Tantalum | RFH Tantalum Smeltry Co., Ltd* | China |
| Tantalum | Shanghai Jiangxi Metals Co. Ltd | China |
| Tantalum | Solikamsk Magnesium Works OAO* | Russian Federation |
| Tantalum | Taki Chemicals* | Japan |
| Tantalum | Telex* | United States |
| Tantalum | Ulba* | Kazakhstan |
| Tantalum | Yichun Jin Yang Rare Metal Co., Ltd | China |
| Tantalum | Zhuzhou Cement Carbide* | China |
| Tin | Alpha* | United States |
| Tin | China Tin Group Co., Ltd. | China |
| Tin | CNMC (Guangxi) PGMA Co. Ltd. | China |
| Tin | Cooper Santa* | Brazil |
| Tin | CV Gita Pesona | Indonesia |
| Tin | CV JusTindo | Indonesia |
| Tin | CV Makmur Jaya | Indonesia |
| Tin | CV Nurjanah | Indonesia |
| Tin | CV Serumpun Sebalai | Indonesia |
| Tin | CV United Smelting* | Indonesia |
| Tin | Dowa* | Japan |
| Tin | EM Vinto* | Bolivia |
| Tin | Estanho de Rondônia S.A. | Brazil |
| Tin | Fenix Metals | Poland |
| Tin | Gejiu Kai Meng Industry and Trade LLC | China |
| Tin | Gejiu Non-Ferrous Metal Processing Co. Ltd.* | China |
| Tin | Gejiu Zi-Li | China |
| Tin | Huichang Jinshunda Tin Co. Ltd | China |
| Tin | Jiangxi Ketai Advanced Material Co., Ltd. * | China |
| Tin | Jiangxi Nanshan | China |
| Tin | Linwu Xianggui Smelter Co | China |
| 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 | Mineração Taboca S.A.* | Brazil |
| Tin | Minmetals Ganzhou Tin | China |
| Tin | Minsur* | Peru |
| Tin | Mitsubishi Materials Corporation* | Japan |
| Tin | Novosibirsk Integrated Tin Works | Russian Federation |
| Tin | O.M. Manufacturing (Thailand) Co., Ltd. | Thailand |
| Tin | O.M. Manufacturing Philippines, Inc. | Philippines |
| Tin | OMSA* | Bolivia |
| Tin | PT Alam Lestari Kencana | Indonesia |
| Tin | PT Artha Cipta Langgeng* | Indonesia |
| Tin | PT Babel Inti Perkasa* | Indonesia |
| Tin | PT Babel Surya Alam Lestari | Indonesia |
|
| | |
| Tin | PT Bangka Kudai Tin | Indonesia |
| Tin | PT Bangka Putra Karya* | Indonesia |
| Tin | PT Bangka Timah Utama Sejahtera | Indonesia |
| Tin | PT Bangka Tin Industry* | Indonesia |
| Tin | PT Belitung Industri Sejahtera* | Indonesia |
| Tin | PT BilliTin Makmur Lestari | Indonesia |
| Tin | PT Bukit Timah* | Indonesia |
| Tin | PT DS Jaya Abadi* | Indonesia |
| Tin | PT Eunindo Usaha Mandiri* | Indonesia |
| Tin | PT Fang Di MulTindo | Indonesia |
| Tin | PT HP Metals Indonesia | Indonesia |
| Tin | PT Inti Stania Prima | Indonesia |
| Tin | PT Karimun Mining | Indonesia |
| Tin | PT Koba Tin | Indonesia |
| Tin | PT Mitra Stania Prima* | Indonesia |
| Tin | PT Panca Mega Persada* | Indonesia |
| Tin | PT Pelat Timah Nusantara Tbk | Indonesia |
| Tin | PT Prima Timah Utama* | Indonesia |
| Tin | PT REFINED BANGKA TIN* | Indonesia |
| Tin | PT Sariwiguna Binasentosa* | Indonesia |
| Tin | PT Seirama Tin investment | Indonesia |
| Tin | PT Stanindo Inti Perkasa* | Indonesia |
| Tin | PT Sumber Jaya Indah | Indonesia |
| Tin | PT Supra Sukses Trinusa | Indonesia |
| Tin | PT Tambang Timah* | Indonesia |
| Tin | PT Timah (Persero), Tbk* | Indonesia |
| Tin | PT Tinindo Inter Nusa* | Indonesia |
| Tin | PT Tommy Utama | Indonesia |
| Tin | PT Yinchendo Mining Industry | Indonesia |
| Tin | Rui Da Hung | Taiwan |
| Tin | Soft Metais, Ltda. | Brazil |
| Tin | Thaisarco* | Thailand |
| Tin | White Solder Metalurgia e Mineração Ltda.* | Brazil |
| Tin | Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. | China |
| Tin | Yunnan Tin Company, Ltd.* | China |
| Tungsten | A.L.M.T. Corp. | Japan |
| Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd.* | China |
| Tungsten | Chongyi Zhangyuan Tungsten Co., Ltd. | China |
| Tungsten | Dayu Weiliang Tungsten Co., Ltd. | China |
| Tungsten | Fujian Jinxin Tungsten Co., Ltd.* | China |
| Tungsten | Ganzhou Grand Sea W and Mo Company | China |
| Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd.* | China |
| Tungsten | Ganzhou Jiangwu Ferrotungsten Co., Ltd.* | China |
| Tungsten | Ganzhou Non-ferrous Metals Smelting Co., Ltd. | China |
| Tungsten | Ganzhou Seadragon W & Mo Co., Ltd.* | China |
| Tungsten | Global Tungsten & Powders Corp.* | United States |
| Tungsten | Guangdong Xianglu Tungsten Co., Ltd. | China |
| Tungsten | H.C. Starck GmbH | Germany |
| Tungsten | H.C. Starck Smelting GmbH & Co.KG* | Germany |
| Tungsten | HC Starck GmbH | Germany |
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| | |
| Tungsten | Hunan Chenzhou Mining Group Co., Ltd. | China |
| Tungsten | Hunan Chunchang Nonferrous Metals Co., Ltd.* | China |
| Tungsten | Japan New Metals Co., Ltd.* | Japan |
| Tungsten | Jiangxi Gan Bei Tungsten Co., Ltd.* | China |
| Tungsten | Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. | China |
| Tungsten | Jiangxi Richsea New Materials Co., Ltd. | China |
| Tungsten | Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. | China |
| Tungsten | Jiangxi Xinsheng Tungsten Industry Co., Ltd. | China |
| Tungsten | Kennametal Fallon | United States |
| Tungsten | Kennametal Huntsville | United States |
| Tungsten | Malipo Haiyu Tungsten Co., Ltd.* | China |
| Tungsten | Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC | Vietnam |
| Tungsten | Tejing (Vietnam) Tungsten Co., Ltd. | Vietnam |
| Tungsten | Vietnam Youngsun Tungsten Industry Co., Ltd* | Vietnam |
| Tungsten | Wolfram Bergbau und Hütten AG* | Austria |
| Tungsten | Wolfram Company CJSC | Russian Federation |
| Tungsten | Xiamen Tungsten (H.C.) Co., Ltd.* | China |
| Tungsten | Xiamen Tungsten Co., Ltd.* | China |
| Tungsten | Xinhai Rendan Shaoguan Tungsten Co., Ltd. | China |
| Tungsten | Zhuzhou Cemented Carbide Group Co Ltd | China |
* Denotes smelters and refiners which have received a "conflict free" designation from an independent third party audit as updated by CFSI. [Source of information: http://www.conflictfreesourcing.org/conflict-free-smelter-refiner-lists/ on 14 May 2015.]
Efforts to Determine Mine Location
Echelon has very limited engagement with the majority of parties beyond our first-tier direct suppliers in our supply chain. Consequently, identifying, with certainty, the smelters, refiners and recyclers and the source of the conflict minerals they process is an extraordinary challenge. In 2015, the primary focus of our due diligence on the source and chain of custody of the necessary conflict minerals in our supply chain was on the collection and assessment of the data gathered, consolidated and provided by our direct first-tier suppliers. As a downstream supplier, we base our due diligence program on current industry guidance and practices for implementing the Framework, Echelon’s primary means of determining mine location is through the CFSP audits, industry lists and reports that we expect to gather through our participation in the various organizations identified above.
Future Steps
We recognize that this is a complicated process given the complexity of our supply chain, and that Echelon has very limited engagement with the majority of our supply chain beyond our first-tier direct suppliers. As a result, in 2016, we expect to continue to focus our efforts on collaborating with our first tier direct suppliers to improve the systems of transparency and control in our supply chain, including through our use of CMRT in connection with our diligence of our supply chain.
