Maxwell strives to uphold high standards of business conduct and ethics, including within its sourcing activities. Maxwell is committed to sourcing responsibly and considers sourcing activities within its supply chain which fuel human rights abuses and armed conflict as unacceptable.
• Conflict Minerals Policy
• 2013 Conflict Minerals Report
• Statement on the California Transparency Act
Maxwell Technologies, Inc. Conflict Minerals Policy
In August 2012, the Securities and Exchange Commission (“SEC”) published its final rule implementing the conflict minerals reporting requirements of Section 1502 of the U.S. Dodd-Frank Wall Street Reform Act. The rule, in essence, requires U.S. public companies who manufacture or contract to manufacture products that include tin, tantalum, tungsten or gold, or their derivatives, (“Conflict Minerals”) to disclose the measures it has taken to determine whether those minerals originated from the Democratic Republic of the Congo or adjoining countries (“DRC”) and whether the mining or sourcing of those minerals funded conflict as defined under the rule.
To the extent that Conflict Minerals are necessary to the functionality or production of products that Maxwell Technologies, Inc. (“Maxwell”) manufactures or contracts to manufacture, Maxwell is required to conduct supply chain procedures to conclude whether or not the Conflict Minerals originated in the DRC, and ultimately whether the sourcing of those minerals from the DRC funded conflict. The results of these procedures are to be disclosed annually on Maxwell’s website and in a specialized disclosure report on Form SD to be filed with the SEC no later than May 31 of each year.
As a responsible corporate citizen, Maxwell is committed to sourcing responsibly and takes its legal compliance responsibilities under the SEC ruling seriously. Maxwell considers sourcing activities within its supply chain that fuel armed conflict and serious human rights abuses as unacceptable.
Maxwell strives to obtain a high degree of transparency in its supply chain sourcing activities for Conflict Minerals and to determine whether these sourcing activities fund conflict in the DRC. Maxwell does not directly source these minerals from mines, smelters or refiners, and, therefore, is many layers removed in the supply chain hierarchy from the original sources of Conflict Minerals. Consequently, Maxwell relies on the support of each party within its supply chain in order to trace the source of these minerals back to their origins. This process is complex and Maxwell expects that the completion of tracing the sources of its Conflict Minerals will be a multi-year effort within its supply chain.
Maxwell will strive to source from certified conflict-free sources when possible and practical. Currently, based on its size and place near the top of its supply chain, Maxwell is essentially depending on the Conflict-Free Smelter Program , sponsored by the Electronics Industry Citizen Coalition and the Global e-Sustainability Initiative (“EICC-GeSI”), which provides an independent certification as to whether a smelter’s or refiner’s sourcing practices are free of conflict, in order to conclude on the conflict status of its supply chain. Other similar certification programs may be developed in the future. Through its recent due diligence efforts, Maxwell has identified the existence of hundreds of smelters and refiners within its supply chain of materials containing Conflict Minerals. To date, a small proportion of these smelters and refiners have been certified as conflict-free under the EICC-GeSI Conflict-Free Smelter Program1. Maxwell believes that the goal of attaining conflict-free DRC sourcing will only be reached as more and more smelters and refiners are certified as conflict-free.
Maxwell expects to meet its SEC compliance obligations to conduct due diligence on DRC Conflict Mineral sourcing, however, Maxwell recognizes that these due diligence efforts will take multiple years to implement throughout the supply chain in which Maxwell participates.
1Refer to www.conflictfreesourcing.org
Our Due Diligence Measures
Maxwell is working on implementing the five-step framework described 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 (“OECD Due Diligence Guidance”).
In 2012, we began surveying our direct suppliers to assess their usage of Conflict Minerals and to identify the smelters and refiners of Conflict Minerals in our supply chain. These supplier surveys are essentially ongoing as we attempt to gather additional information on the use and source of Conflict Minerals as it becomes available from our supply chain. We are diligently following up with our suppliers to obtain the necessary information in order to complete the tracing of Conflict Minerals in our products to the smelters and refiners of the minerals. To date, we have not identified any sourcing of Conflict Minerals from the DRC, however, complete sourcing information has not been received from all suppliers of materials, components and products containing Conflict Minerals. Maxwell evaluates supplier responses using a risk-based approach to assess our suppliers’ mineral sourcing practices with respect to funding or possible funding of armed conflict in the DRC. Risk mitigation measures are being developed to address the risks that sourcing practices within our supply chain may fund conflict in the DRC. When possible and practical, we aim to source from suppliers wherein the smelters and refiners in the supply chain have been certified as DRC conflict-free by the EICC-GeSI sponsored Conflict-Free Smelter Program. However, a small proportion of these smelters and refiners have been certified to date under this program.
We expect our suppliers to strive to source from socially responsible sources that do not directly or indirectly contribute to conflict or human rights abuses.
In furtherance of this policy, suppliers who supply or manufacture materials, components or products containing Conflict Minerals are expected to:
- familiarize themselves with the SEC’s Conflict Minerals rule and the OECD Due Diligence;
- implement and communicate to their personnel and suppliers Conflict Minerals policies that are consistent with this policy, and require their direct and indirect suppliers to do the same;
- put in place procedures and management systems designed to prevent sourcing that is not DRC Conflict Free;
- put in place procedures for the traceability of Conflict Minerals at least to the smelter or refiner level, working with their direct and indirect suppliers as applicable;
- use reasonable efforts to source Conflict Minerals from smelters and refiners validated as being conflict free, and require their direct and indirect suppliers to do the same;
- advise Maxwell in a timely manner of any determination that the supplier either has concluded or has a reasonable basis to believe that products it currently sells or has sold to Maxwell are not DRC Conflict Free;
- from time to time, at Maxwell’s request, provide to Maxwell written certifications and other information concerning the origin of Conflict Minerals included in products supplied to Maxwell and the supplier's compliance with this policy, and require their direct and indirect suppliers to do the same; and
- maintain reviewable business records for a period not less than five (5) years supporting the source of Conflict Minerals, as required under the OECD Due Diligence Guidance.
If we determine that a supplier is not in compliance with this policy, Maxwell will request such supplier to devise and implement a corrective action plan, and may terminate or suspend our relationship with such supplier at any time.
Any concerns regarding this policy, or violations or possible violations of this policy, can be reported to Maxwell as follows:
E mail: firstname.lastname@example.org
Mail: Maxwell Technologies, Inc.
Attn: Conflict Minerals Steering Committee
3888 Calle Fortunada
San Diego, CA 92123
Adopted April 2014
2013 Conflict Minerals Report
California Transparency Act Disclosure
v. 20 November 2012
The California Transparency in Supply Chains Act (the "Act") requires certain companies to disclose their efforts (if any) to eradicate slavery and human trafficking from their supply chains. As a responsible corporate citizen, Maxwell Technologies, Inc. (“Maxwell”) fully supports the elimination of human trafficking and slavery from the supply chain. Maxwell complies with all applicable laws, rules, and regulations where we manufacture products, and expects that our suppliers do so as well. We believe that our business relationships are grounded on a foundation of integrity, honesty and fairness. We develop relationships with carefully selected suppliers who are committed to responsible business practices. Maxwell does not condone the use of slavery or human trafficking and does not knowingly do business with any supplier who engages in such practice.
For certain suppliers, Maxwell reviews particular aspects of the business and operations practices before engaging the supplier to do business with us on a continuous basis. Additionally, for these certain suppliers, Maxwell performs on-site audits of the supplier and its facilities to determine if the business and operations practices of the supplier satisfy Maxwell’s missions and goals. Furthermore, Maxwell is currently reviewing our options in the future, as such things as particularized training, audits, and procedures become available. As stated in Maxwell’s Code of Business Conduct & Ethics, Maxwell has and continues to declare its support for the Electronic Industry Code of Conduct (the “EICC”) which established standards to ensure that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible. Furthermore, Maxwell and its employees therefore agree to actively pursue conformance of our activities to the EICC and its standards.
In addition to the specific items identified above that are more focused on combating human trafficking, Maxwell maintains a robust, broad-based ethics and compliance program. This program addresses values, leadership, training, audits, certifications and accountability. This program is intended to ensure compliance with applicable laws and a culture committed to ethics and integrity in all we do. Any party having a question or concern with regard to Maxwell’s practices in this regard may contact email@example.com.