Responsible Raw Materials Initiative

What is the Extended Corrective Action Plan (CAP) Process?

In cases where smelters have challenges meeting the compliance requirements of the CFSP protocol, CFSP respects the principles of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The Guidance states:

Devise and adopt a risk management plan. Devise a strategy for risk management by either i) continuing trade throughout the course of measureable risk mitigation efforts; ii) temporarily suspending trade while pursuing ongoing measurable risk mitigation; or iii) disengaging with a supplier after failed attempts at mitigation or where a company deems risk mitigation not feasible or not acceptable.

In line with this, the CFSP orients its corrective action plan process towards options (i) and (ii) by instituting measures that will encourage smelters to reach compliance. The OECD Guidance encourages development of indicators and transparency to measure improvement, so that downstream companies may identify which of the mitigation steps is the best approach for them.

Some suggested indicators for measuring improvement include:

  • Disclosure of information;
    • Nature and effectiveness of the chain of custody or supply chain transparency system;
    • Nature and form of supply chain risk assessments and management, in particular to verify information from the above step;
  • Engagement of the company in capability training and/or industry initiatives for supply chain due diligence.

The Extended CAP provides a concrete and transparent way for the program and downstream companies to engage noncompliant smelters and refiners as they pursue risk mitigation and continual improvement in their processes, as recommended in the OECD Guidance.

The smelters located on the Extended CAP list must have demonstrated a commitment to enter a process that is more transparent than the standard audit process. Transparency is needed to help downstream companies conduct their own risk assessments.

Any smelter which voluntarily exits CFSP or chooses not to engage in the Extended CAP will no longer appear on CFSI’s web site. Those smelters may choose their own method of customer communication and will not have any publicity via the CFSI site.

Smelters and refiners on the Extended CAP list have agreed to the following conditions:

  • Regular communication with CFSP
  • Senior management commitment to support the CAP
  • Publication of the CAP on the company’s website
  • Publication of the company’s due diligence process on the company’s website
  • Undergoing a full CFSP audit once the CAP has been implemented