EXHIBIT 1.02
CONFLICT MINERALS REPORT OF
PLEXUS CORP.
IN ACCORDANCE WITH RULE 13p-1
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE REPORTING PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2013
I.Introduction
This is the Conflict Minerals Report (the “Report”) of Plexus Corp. (“Plexus,” the “Company,” “we,” “us,” or “our”) prepared for calendar year 2013 (excluding conflict minerals that, prior to January 31, 2013, were located outside of the supply chain) in accordance with Rule 13p-1 (“Rule 13p-1”) under the Securities Exchange Act of 1934 (the “Act”). The term “conflict mineral” is defined as (A) columbite-tantalite (coltan), cassiterite, gold, wolframite or their derivatives, which are limited to tantalum, tin and tungsten; or (B) any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country (collectively, the “Covered Countries”). Numerous terms in this Report are defined in Rule 13p-1 of the Act and Form SD and the reader is referred to those sources, and also to Securities and Exchange Commission (“SEC”) Release No. 34-67716 (August 22, 2012) under the Act for such definitions.
In accordance with Rule 13p-1, we undertook efforts to determine whether the conflict minerals necessary to the functionality or production of products that we manufacture or contract to manufacture were sourced from the Covered Countries, or are from recycled or scrap sources. The Company designed its efforts in conformity with the internationally recognized due diligence framework in the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (the “OECD Due Diligence Guidance”) and related supplements for each of the conflict minerals (the “Supplements”).
The statements below are based on the due diligence activities performed to date and are based on the information available at the time of this filing. Factors that could affect the accuracy of these statements include, but are not limited to, inaccurate or incomplete supplier data or a lack of available smelter data, errors, omissions or fraud by suppliers or smelters, lack of continuously updated information from suppliers, evolving confirmation of smelters, incomplete information from
industry or other third-party sources, additional guidance regarding the rules, and other issues. The content of any website referenced in this Report is included for general information only and is not incorporated by reference in this Report.
II.About Plexus
Plexus is an electronics manufacturing services (“EMS”) company that provides product conceptualization, design, commercialization, manufacturing, fulfillment and aftermarket services solutions for original equipment manufacturers (“OEMs”) throughout the world. Plexus does not sell “Plexus-branded” products. We partner with our customers to bring their products to market via our Product Realization Value Stream.
III.Design of Due Diligence Measures
Plexus designed its overall conflict minerals program based on the five-step framework of the OECD Due Diligence Guidance and its Supplements.
Plexus’ implementation of the framework for calendar year 2013 consisted of the following steps, which are discussed in further detail in Section IV.
Step 1: Establish strong company management systems
Step 2: Identify and assess risks in the supply chain
Step 3: Design and implement a strategy to respond to identified risks
Step 4: Carry out independent third-party audit of smelters'/refiners' due diligence practices
Step 5: Report annually on supply chain due diligence
We relied upon multi-stakeholder initiatives that provide verification processes for conflict-free minerals from smelters or refiners who may provide those minerals to companies in our supply chain. Plexus, as a purchaser of component parts, is many steps removed from the mining of conflict minerals; we do not purchase raw ore or unrefined conflict minerals and do not have direct contractual relationships with smelters or refiners. To the best of our knowledge, Plexus conducts no purchasing activities directly in the Covered Countries.
| |
| IV. | Due Diligence Measures Performed by Plexus |
The following describes the measures taken to reasonably determine the country of origin and to exercise due diligence in the mineral supply chain in conformance with the OECD Due Diligence Guidance for calendar year 2013.
Step 1: Establish strong company management systems
Conflict Minerals Team – Plexus formed an internal cross-functional team to design and implement the due diligence measures. The team was comprised of members from the Company’s supply chain, legal, information technology and environmental health and safety functions.
Conflict Minerals Policy – Plexus adopted and published a policy affirming the Company’s commitment to comply with the conflict minerals rule and establishing the expectations of our suppliers with respect to the rule. The policy can be found at www.plexus.com/about-us/social-responsibility/our-suppliers. We periodically review the policy and will make updates to the policy as necessary and appropriate.
Company Level Grievance Mechanism – As an additional means of communication regarding conflict minerals, Plexus employees and other stakeholders can communicate directly and confidentially with our Corporate Compliance Officer and executive management by using our Ethics Hotline, as outlined in the Plexus Code of Conduct and Business Ethics located at www.plexus.com (follow the links to “Investor Relations” and then to “Corporate Governance”).
Document Retention – Plexus is retaining documentation regarding its conflict minerals due diligence measures for calendar year 2013 in accordance with its record retention guidelines.
Step 2: Identify and assess risks in the supply chain
We performed the following steps as part of our risk assessment process:
Identify Suppliers In Scope – Our internal cross-functional conflict minerals team identified all suppliers that Plexus utilized in 2013 that may have sold Plexus goods containing conflict minerals.
Conduct Reasonable Country of Origin Inquiry (“RCOI”) – Plexus utilized the industry-developed Electronic Industry Citizen Coalition (“EICC”) – Global e-Sustainability Initiative (“GeSI”) Conflict Minerals Reporting Template (“CMRT”) to query the suppliers identified in our assessment of the supply chain. After collecting CMRTs from suppliers, we evaluated the responses for completeness and content, and we engaged in follow-up communications with suppliers as appropriate. Some suppliers provided us with “company-level” CMRT responses that included information on all products sold by the supplier to its customers even though Plexus may have purchased only a limited subset of components or products from the supplier.
Step 3: Design and implement a strategy to respond to identified risks
We performed the following steps as part of our risk management plan:
Validate Smelters – As part of the risk mitigation process, we compared the list of smelters/processors collected from suppliers and compared it to the conflict-free smelter lists published by the Conflict-Free Sourcing Initiative (“CFSI”).
Supplier Communications – For suppliers that were unable or unwilling to provide us with a completed CMRT, we communicated in writing our expectation that suppliers provide us with the CMRT in future years. We sent a similar communication to suppliers who provided us with a CMRT but indicated that they were uncertain about or did not know the origin of their conflict minerals. We also followed up with suppliers who provided incomplete or unclear responses.
For suppliers who stated they were sourcing in part from the Covered Countries or had identified smelters that have been known to have sourced from the Covered Countries, we requested additional information regarding the smelters used that were not on the CFSI list.
If a supplier fails to comply with our Conflict Minerals Policy, we may reconsider our willingness to continue to partner with that supplier.
Step 4: Carry out independent third-party audit of smelter/refiner due diligence practices
Plexus is a downstream consumer of conflict minerals and is many steps removed from the smelters and refiners who provide minerals and ores. We do not purchase any conflict minerals in their raw material form and, to the best of our knowledge, do not purchase any products or components directly from the Covered Countries. As a result, we do not perform or direct audits of smelters and refiners within our supply chain.
Plexus is relying on the CFSI’s published lists to verify the conflict-free status of smelters/processors that source from Covered Countries. Additionally, Plexus has sent representation to various industry work groups to participate in efforts to improve supply chain communication to help verify their conflict-free status.
Step 5: Report annually on supply chain due diligence
This Report (and the related Form SD) was filed with the SEC and is available on our website at www.plexus.com/about-us/social-responsibility/our-suppliers.
We are an EMS company that provides manufacturing and related services to OEMs in the Networking/Communications, Healthcare/Life Sciences, Industrial/Commercial and Defense/Security/Aerospace market sectors. On the basis of the due diligence measures discussed in this Report, we do not have sufficient information from our suppliers or otherwise to conclude whether the conflict minerals in the products we manufacture, or contract to manufacture, originated in the Covered Countries and, if so, whether the conflict minerals were from recycled or scrap sources.
Based on our due diligence activities, we are unable to determine all of the facilities used to process these conflict minerals or their country of origin. Our efforts to determine the mine or location of origin with the greatest possible specificity included the due diligence measures described above. Appendix 1 to this Report lists those facilities identified by our due diligence activities as potentially processing these conflict minerals.
| |
| VI. | Steps to Improve Due Diligence |
We will continue to communicate our expectations and information requirements to our direct suppliers. We will also continue to monitor changes in circumstances that may impact the facts or our determination. We will continue to make inquiries to our direct suppliers and undertake additional risk assessments when potentially relevant changes in facts or circumstances are identified.
In addition to those above, the Company is considering taking the following steps during the next compliance period to improve the due diligence conducted and to further mitigate the risk that the conflict minerals necessary to support our operations benefit armed groups, including:
| |
| • | Informing and encouraging suppliers to transition to smelters identified by the due diligence process as “conflict-free” by an independent audit program such as the CFSI. |
| |
| • | Actively participating in and supporting industry trade groups to help improve communication throughout the supply chain. |
| |
| • | Working with certain suppliers to help educate them on our ongoing expectations supporting responsible sourcing decisions. |
| |
| • | Reconsidering our willingness to continue to partner with suppliers that do not comply with our Conflict Minerals Policy. |
VII. Independent Audit
For calendar year 2013, in accordance with SEC rules and related guidance, an independent private sector audit of this Report was not required.
VIII. Conflict Minerals Disclosure
This Report (and the related Form SD) is available on our website at www.plexus.com/about-us/social-responsibility/our-suppliers.
APPENDIX 1
LISTING OF IDENTIFIED FACILITIES
|
| | |
| Metal | Smelter or Refiner Facility Name* | Listed on the CFSI’s Published “Conflict-Free” Smelter & Refiner List** |
| Gold | Aida Chemical Industries Co. Ltd. | No |
| Gold | Allgemeine Gold- und Silberscheideanstalt A.G. | Yes |
| Gold | Almalyk Mining and Metallurgical Complex (AMMC) | No |
| Gold | AngloGold Ashanti Corrego do Sitio Mineração | Yes |
| Gold | Argor-Heraeus SA | Yes |
| Gold | Asahi Pretec Corporation | Yes |
| Gold | Asaka Riken Co Ltd | No |
| Gold | Atasay Kuyumculuk Sanayi Ve Ticaret A.S. | No |
| Gold | Aurubis AG | No |
| Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | No |
| Gold | Bauer Walser AG | No |
| Gold | Boliden AB | No |
| Gold | Caridad | No |
| Gold | Cendres & Métaux SA | No |
| Gold | Chimet SpA | Yes |
| Gold | China National Gold Group Corporation | No |
| Gold | Chugai Mining | No |
| Gold | Colt Refining | No |
| Gold | Daejin Indus Co. Ltd | No |
| Gold | DaeryongENC | No |
| Gold | Do Sung Corporation | No |
| Gold | Doduco | No |
| Gold | Dowa | Yes |
| Gold | Eco-System Recycling Co., Ltd. | Yes |
| Gold | FSE Novosibirsk Refinery | No |
| Gold | Gansu Seemine Material Hi-Tech Co Ltd | No |
| Gold | Guangdong Jinding Gold Limited | No |
| Gold | Heimerle + Meule GmbH | Yes |
| Gold | Heraeus Ltd Hong Kong | Yes |
|
| | |
| Gold | Heraeus Precious Metals GmbH & Co. KG | No |
| Gold | Hunan Chenzhou Mining Industry Group | No |
| Gold | Hwasung CJ Co. Ltd | No |
| Gold | Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited | No |
| Gold | Ishifuku Metal Industry Co., Ltd. | Yes |
| Gold | Istanbul Gold Refinery | Yes |
| Gold | Japan Mint | No |
| Gold | Jiangxi Copper Company Limited | No |
| Gold | Johnson Matthey Inc | Yes |
| Gold | Johnson Matthey Limited | Yes |
| Gold | JSC Ekaterinburg Non-Ferrous Metal Processing Plant | No |
| Gold | JSC Uralectromed | No |
| Gold | JX Nippon Mining & Metals Co., Ltd | Yes |
| Gold | Kazzinc Ltd | No |
| Gold | Kojima Chemicals Co., Ltd | Yes |
| Gold | Korea Metal Co. Ltd | No |
| Gold | Kyrgyzaltyn JSC | No |
| Gold | L' azurde Company For Jewelry | No |
| Gold | Lingbao Jinyuan Tonghui Refinery Co. Ltd. | No |
| Gold | LS-NIKKO Copper Inc | Yes |
| Gold | Luoyang Zijin Yinhui Metal Smelt Co Ltd | No |
| Gold | Materion | Yes |
| Gold | Matsuda Sangyo Co. Ltd | Yes |
| Gold | Metalor Technologies (Hong Kong) Ltd | Yes |
| Gold | Metalor Technologies (Singapore) Ltd | Yes |
| Gold | Metalor Technologies SA | Yes |
| Gold | Metalor USA Refining Corporation | Yes |
| Gold | Met-Mex Peñoles, S.A. | No |
| Gold | Mitsubishi Materials Corporation | Yes |
| Gold | Mitsui Mining and Smelting Co., Ltd. | Yes |
| Gold | Moscow Special Alloys Processing Plant | No |
| Gold | Nadir Metal Rafineri San. Ve Tic. A.Ş. | No |
| Gold | Navoi Mining and Metallurgical Combinat | No |
| Gold | Nihon Material Co. LTD | Yes |
| Gold | Ohio Precious Metals, LLC | Yes |
|
| | |
| Gold | OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet) | No |
| Gold | OJSC Kolyma Refinery | No |
| Gold | PAMP SA | Yes |
| Gold | Penglai Penggang Gold Industry Co Ltd | No |
| Gold | Prioksky Plant of Non-Ferrous Metals | No |
| Gold | PT Aneka Tambang (Persero) Tbk | No |
| Gold | PX Précinox SA | No |
| Gold | Rand Refinery (Pty) Ltd | Yes |
| Gold | Royal Canadian Mint | Yes |
| Gold | Sabin Metal Corp. | No |
| Gold | SAMWON METALS Corp. | No |
| Gold | Schone Edelmetaal | No |
| Gold | SEMPSA Joyeria Plateria SA | Yes |
| Gold | Shandong Zhaojin Gold & Silver Refinery Co. Ltd | No |
| Gold | SOE Shyolkovsky Factory of Secondary Precious Metals | No |
| Gold | Solar Applied Materials Technology Corp. | Yes |
| Gold | Sumitomo Metal Mining Co., Ltd. | No |
| Gold | Tanaka Kikinzoku Kogyo K.K. | Yes |
| Gold | The Great Wall Gold and Silver Refinery of China | No |
| Gold | The Refinery of Shandong Gold Mining Co. Ltd | No |
| Gold | Tokuriki Honten Co., Ltd | No |
| Gold | Tongling nonferrous Metals Group Co., Ltd | No |
| Gold | Torecom | No |
| Gold | Umicore Brasil Ltda | No |
| Gold | Umicore SA Business Unit Precious Metals Refining | Yes |
| Gold | United Precious Metal Refining, Inc. | Yes |
| Gold | Valcambi SA | Yes |
| Gold | Western Australian Mint trading as The Perth Mint | Yes |
| Gold | Yamamoto Precious Metals Co., Ltd. | No |
| Gold | Yokohama Metal Co Ltd | No |
| Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation | No |
| Gold | Zijin Mining Group Co. Ltd | No |
| Tantalum | Changsha South Tantalum Niobium Co., Ltd. | No |
| Tantalum | Conghua Tantalum and Niobium Smeltry | Yes |
| Tantalum | Duoluoshan | Yes |
|
| | |
| Tantalum | Exotech Inc. | Yes |
| Tantalum | F&X Electro-Materials Ltd. | Yes |
| Tantalum | Global Advanced Metals | Yes |
| Tantalum | H.C. Starck Group | Yes |
| Tantalum | Hi-Temp | Yes |
| Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. | Yes |
| Tantalum | JiuJiang Tanbre Co., Ltd. | Yes |
| Tantalum | Kemet Blue Powder | Yes |
| Tantalum | King-Tan Tantalum Industry Ltd | No |
| Tantalum | LMS Brasil S.A. | Yes |
| Tantalum | Mineracao Toboca S.A. | Yes |
| Tantalum | Mitsui Mining & Smelting | Yes |
| Tantalum | Molycorp Silmet A.S. | Yes |
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | Yes |
| Tantalum | Plansee | Yes |
| Tantalum | QuantumClean | Yes |
| Tantalum | RFH Tantalum Smelting Co. Ltd. | Yes |
| Tantalum | Shanghai Jiangxi Metals Co. Ltd | No |
| Tantalum | Solikamsk Metal Works | Yes |
| Tantalum | Taki Chemicals | Yes |
| Tantalum | Tantalite Resources | Yes |
| Tantalum | Telex | Yes |
| Tantalum | Ulba | Yes |
| Tantalum | Zhuzhou Cement Carbide | Yes |
| Tin | CNMC (Guangxi) PGMA Co. Ltd. | No |
| Tin | Cooper Santa | No |
| Tin | CV Serumpun Sebalai | No |
| Tin | CV United Smelting | No |
| Tin | EM Vinto | No |
| Tin | Fenix Metals | No |
| Tin | Geiju Non-Ferrous Metal Processing Co. Ltd. | Yes |
| Tin | Gejiu Zi-Li | No |
| Tin | Huichang Jinshunda Tin Co. Ltd | No |
| Tin | Jiangxi Nanshan | No |
| Tin | Kai Unita Trade Limited Liability Company | No |
|
| | |
| Tin | Linwu Xianggui Smelter Co | No |
| Tin | Liuzhou China Tin | No |
| Tin | Malaysia Smelting Corporation (MSC) | Yes |
| Tin | Metallo Chimique | No |
| Tin | Mineração Taboca S.A. | Yes |
| Tin | Minmetals Ganzhou Tin Co. Ltd. | No |
| Tin | Minsur | Yes |
| Tin | Mitsubishi Materials Corporation | Yes |
| Tin | Novosibirsk Integrated Tin Works | No |
| Tin | OMSA | Yes |
| Tin | PT Artha Cipta Langgeng | No |
| Tin | PT Babel Inti Perkasa | No |
| Tin | PT Bangka Putra Karya | No |
| Tin | PT Bangka Tin Industry | No |
| Tin | PT Belitung Industri Sejahtera | No |
| Tin | PT Bukit Timah | Yes |
| Tin | PT DS Jaya Abadi | No |
| Tin | PT Eunindo Usaha Mandiri | No |
| Tin | PT Karimun Mining | No |
| Tin | PT Mitra Stania Prima | No |
| Tin | PT Refined Banka Tin | No |
| Tin | PT Sariwiguna Binasentosa | No |
| Tin | PT Stanindo Inti Perkasa | No |
| Tin | PT Tambang Timah | Yes |
| Tin | PT Timah | Yes |
| Tin | PT Tinindo Inter Nusa | No |
| Tin | Rui Da Hung | No |
| Tin | Thaisarco | Yes |
| Tin | White Solder Metalurgia e Mineracao Ltda. | Yes |
| Tin | Yunnan Chengfeng Non-ferrous Metals Co., Ltd. | No |
| Tin | Yunnan Tin Company Ltd. | Yes |
| Tungsten | A.L.M.T. Corp. | Yes |
| Tungsten | Chongyi Zhangyuan Tungsten Co Ltd | No |
| Tungsten | Dayu Weiliang Tungsten Co., Ltd. | No |
| Tungsten | Fujian Jinxin Tungsten Co., Ltd. | Yes |
|
| | |
| Tungsten | Ganzhou Grand Sea W & Mo Group Co Ltd | Yes |
| Tungsten | Global Tungsten & Powders Corp. | Yes |
| Tungsten | HC Starck GmbH | Yes |
| Tungsten | Hunan Chenzhou Mining Group Co | Yes |
| Tungsten | Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd. | No |
| Tungsten | Japan New Metals Co Ltd | No |
| Tungsten | Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. | No |
| Tungsten | Kennametal Inc. | Yes |
| Tungsten | Tejing (Vietnam) Tungsten Co Ltd | Yes |
| Tungsten | Wolfram Bergbau und Hütten AG | Yes |
| Tungsten | Wolfram Company CJSC | Yes |
| Tungsten | Xiamen Tungsten Co., Ltd. | Yes |
| Tungsten | Xinhai Rendan Shaoguan Tungsten Co., Ltd. | No |
| Tungsten | Zhuzhou Cemented Carbide Group Co Ltd | No |
* Smelter and refiner facility names as reported by the CFSI and listed on the CMRT as of May 15, 2014.
** Available at www.conflictfreesourcing.org/conflict-free-smelter-refiner-lists. Designations as of May 15, 2014.
