The Joint Due Diligence Standard for Copper, Lead, Molybdenum, Nickel and Zinc is designed to enable effective due diligence for producers and/or traders of these metals. It intends to build on existing standards and looks to provide flexibility for multi-metal producers to include materials intended for the production of metal products other than of principal covered metals at their site(s) as needed.

JOINT DUE DILIGENCE STANDARD FOR COPPER, LEAD, MOLYBDENUM, NICKEL AND ZINC

The Copper Mark, the International Lead Association (ILA), the International Molybdenum Association (IMOA), the International Zinc Association (IZA), the Nickel Institute and the Responsible Minerals Initiative (RMI) collaborated to issue the Joint Due Diligence Standard to enable companies to comply with the London Metal Exchange (LME) Responsible Sourcing requirements.

Download the Joint Due Diligence Standard HERE rev. 3, 26 August 2022 (CHI / ESP / JAP /RUS).

The Joint Standard represents Criterion 10 of the Copper Mark Responsible Production Criteria or can be used for a standalone assessment.

ELIGIBILTY

Conformance of companies with this Joint Due Diligence Standard will be assessed using The Copper Mark’s Assurance Process or the RMI’s Responsible Minerals Assurance Process. The following types of companies are eligible to implement the Joint Due Diligence Standard and undergo an assessment:

1. Copper producers participating in the Copper Mark. Implementation of the Joint Due Diligence Standard is currently voluntary and will be become mandatory for participating copper producers of the Copper Mark to demonstrate conformance with Criteria 10 of the Risk Readiness Assessment.
2. All companies extracting, producing and/or trading copper, lead, nickel or zinc materials from mine sites to, and including, producers of refined metal products, which are generally referred to as the refiner.
3. Producers of nickel chemical compounds and all nickel raw intermediate materials (including ferro-nickel, nickel pig iron, and nickel oxide sinter) entering production of stainless steel, alloys, batteries, plating, and where no refining takes place

For companies listed under points 2 and 3, an assessment against the Joint Due Diligence Standard does not result in participation in the Copper Mark and companies are not eligible to make any claims in that regard.

FREQUENTLY ASKED QUESTIONS

You can also download the FAQ in CHI / SPA / JAP / RUS.

Standard Overview

1. What is the Joint Standard? Expand

The Joint Due Diligence Standard was developed as an assessment standard to enable London Metal Exchange (LME) listed copper, lead, nickel, and zinc brands to comply with LME’s Responsible Sourcing Requirements.

2. Who was involved in the development of the Joint Standard? Expand

The Copper Mark, the International Lead Association (ILA), the International Zinc Association (IZA), the Nickel Institute and the Responsible Minerals Initiative (RMI) collaborated to issue the Joint Due Diligence Standard.

3. What is the Joint Standard used for? Expand

The Joint Standard is used to meet LME Responsible Sourcing requirements as well as customer and other requirements for due diligence in minerals supply chains.

4. Can I use the Joint Standard to meet compliance with the European Union Conflict Minerals Rule? Expand

The Joint Standard is not approved for compliance with the European Conflict Minerals Rule.  It is worth noting that currently, copper, lead, nickel, and zinc are not in scope for the European Union Conflict Minerals Rule.

5. What are other benefits of an assessment against the Joint Standard? Expand

Assessments against the Joint Standard may meet customer, investor, and other stakeholder requirements and provide a public indication that your facility meets international standards on responsible sourcing.

6. Do I have to have a separate assessment against the Joint Standard if I have an assessment against the Copper Mark Criteria? Expand

No.  If you have an assessment against the Copper Mark Criteria, the Joint Standard is embedded in Criterion 31. Mineral Supply Chain Due Diligence.

LME Compliance

1. How does the Joint Standard help with my LME Compliance? Expand

An LME listed Brand can comply with the LME’s requirement in three different ways. One way is to be audited through an assurance framework recognized by the LME using an “OECD-aligned” standard (Track A). Through a collaborative effort, the Joint Standard offers a single tool that LME listed Brands can use to comply with the LME, Track A.

2. Who sends my final report to the LME? Expand

Companies are responsible for sending the assessment report and the conformance determination to the LME directly.

3. Does the Joint Standard also cover ISO 14001 and ISO 45001 as needed for ISO Compliance? Expand

No.  The Joint Standard only covers the requirement for OECD-aligned responsible sourcing.

4. Will the LME accept an assessment from the pilot implementation? Expand

The Joint Standard is currently undergoing an Alignment Assessment by the OECD.  If considered aligned, the Joint Standard will be accepted by the LME.

The LME will accept assessments emerging from the pilot for the purposes of compliance with LME responsible sourcing.  If the OECD Alignment Assessment identifies broader changes or improvements that need to be made to the Joint Standard, these will also have to be reflected in practice by the producer of that LME-brand.

Content and Main Concepts

1. What risk-areas are covered in the Joint Standard? Expand

The Joint Standard covers at a minimum, OECD “Annex II” risks, which include:

• Serious human rights abuses including:
  • Any forms of torture, cruel, inhumane, and degrading treatment.
  • Any forms of forced or compulsory labour.
  • The worst forms of child labour.
  • Other gross human rights violations and abuses such as widespread sexual violence. o War crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.
• Direct or indirect support to non-state armed groups.
• Risks associated with the contracting of public or private security forces.
• Bribery and fraudulent misrepresentation of the origin of materials.
• Money laundering.
• Non-payment of taxes, fees and royalties owed to governments.

2. How do I identify Conflict-Affected and High-Risk Areas? Expand

If you are subject to a Joint Due Diligence Standard assessment, your company will be required to have a documented procedure for the identification of conflict-affected and high-risk areas that is consistently applied to review all areas in the primary material supply chain. There are a number of resources to help you identify Conflict-Affected and High-Risk Areas, including:

• EU CAHRA list
• Open-source documents as identified by the European Commission
• TDI CAHRA Map ($)
• RMI’s Country Risk Map ($)
• Kumi’s CAHRAMap ($)
• RCS Global’s tool ($)

Additionally, companies can refer to the RMI’s webpage on CAHRAs identification for additional resources and guidance in crafting a CAHRA identification procedure.

3. Is there a recommended number of countries a company should include in the CAHRA list? Expand

No.  Companies need to assess all countries from which materials are extracted, traded, transported, or otherwise handled up to and including the smelter / refiner.  This also means companies must assess the country in which they are located.  Companies also need to assess all countries in which suppliers are located or operate. Companies are only required to review the areas within their supply chain for CAHRA identification, rather than reviewing all areas globally.

4. Can the CAHRA list used by a company be different for different commodities? Expand

Yes.  Different commodities may invoke a different CAHRA profile based on regulatory requirements or different risks specific to a particular commodity. For instance, companies that are subject to the EU Minerals Regulation will be required to incorporate the EU CAHRAs list into their CAHRA list for 3TG (tin, tantalum, tungsten, gold) and subsequent enhanced due diligence activities for regulatory compliance.

5. What is the EITI? Expand

The Extractives Industry Transparency Initiative (EITI) is a global standard to promote the open and accountable management of extractive resources.  In the Joint Standard, companies located in member countries are expected to adhere to certain requirements, but even companies not located in a member country are required to support the implementation of the EITI, in alignment with the OECD Due Diligence Guidance and Joint Due Diligence Standard.

6. Do I need to undergo an assessment if I do not take in external materials? Expand

For the Joint Standard, the answer is yes.  The standard is management system-based and therefore applies even if a site does not take in external materials.

7. Do I need an assessment if I found no red flags? Expand

For the Joint Standard, the answer is yes.  The standard is management system-based and therefore requires an assessment of the risk management processes in place, including the determination that no red flags are triggered in a company’s supply chain.

8. Do I need to conduct Know-Your-Counterparty (KYC) with longstanding primary and/or secondary material suppliers? Expand

For the Joint Standard, the answer is yes.  KYC must be conducted for all suppliers both at the start of and throughout the business relationship.

9. Is the assessment specific to a particular production line? Expand

For the Joint Standard, the answer is no.  The standard is management system-based, and all material received, held and/or intended for production in the assessment period is within scope of the assessment.

Assurance Process

1. Am I eligible to be assessed against the Joint Standard? Expand

An entity from mine up to and including a refiner for copper, lead, nickel, or zinc that is processing material from mine sites, or otherwise meets the definition of a facility within scope as outlined in Section 3.1 of the Standard, is eligible.

2. What metals are covered in the Joint Standard? Expand

Any metal produced at site is covered in the Joint Standard as long as the site also produces copper, lead, nickel, and / or zinc. If a company is seeking specific association recognition for gold, silver, or cobalt, they should consult with their selected implementing organization for equivalence and/or top-off requirements.

3. Are by-products covered in the assessment? Expand

Yes.  Because the assessment is management-system based, by-products are included in the scope.

4. Does assurance happen at site level or at corporate level? Expand

Assurance happens at site level even if due diligence processes are established at the corporate level.

5. What costs are associated with using the Joint Standard? Expand

For the Copper Mark, sites pay a management fee of $2,000 USD per assessment.  Sites are responsible for the cost of the assessment directly with the assessor or firm.

For the RMI, sites pay the management fee of $1,000 and assessment fee directly to the RMI.

6. How often does my site have to be assessed? Expand

For the Copper Mark, sites are assessed every 3 years unless there is a change in circumstance that triggers a re-assessment sooner (see the Copper Mark Assurance Process, Section 3.6 for a full list of changes).

For the RMI, sites are assessed every 1-3 years depending on their risk profile. For full information on the criteria for a 3-year assessment cycle, companies may consult the Risk-Based Assessment Program (RBAP) or contact RMI for further information.

7. How do I find an assessor? Expand

Both the Copper Mark and the RMI have rigorous processes to approve both audit firms and assessors, including training requirements.

The Copper Mark lists all approved assessment firms on the website here.

The RMI will select an assessor as part of their process but takes auditee preference into strong consideration. The list of fully and provisionally approved RMAP audit firms is available here.

8. What documentary evidence will the assessor need to see? Expand

Any documents including policies, procedures and records related to the due diligence processes will be required for review during the assessment.

9. How long does the assessment take? Expand

Depending on the size and complexity of the operation and their sourcing practices, the assessment may take 2-8 days.

10. Some decisions in our company are managed and taken at corporate level, others at site level – how will this affect my assessment? Expand

All assessments are completed at site level.  Assessments may look slightly different in instances where:

• The site is part of a group of sites whose due diligence management system is managed at corporate level;
• The policies and procedures for purchasing are managed at corporate level; and
• Material used to produce Cu, Pb, Ni, Zn products are purchased by corporate offices and the site does not purchase any material directly.

In these instances:

• The assessor must review the corporate-level due diligence management system for conformance with the Joint Standard including all policies, procedures, and interviews with management.
• The assessor must visit each of the sites to complete a physical walk-through (including of areas such as ports and unloading, materials receipt, storage, raw material planning, lab, etc.) and interviews with workers to ensure implementation at site of the corporate-level policies and procedures. This includes confirming:
  • Access to and knowledge of the policies and procedures
  • Implementation of the relevant policies and procedures
  • Intended effect of the relevant policies and procedures
• The assessor will write a report for each site.

11. How does cross-recognition with the Joint Standard work? Expand

The RMAP has a cross-recognition policy (available here) that is used for evaluation of all assurance programs across all minerals. Review for cross-recognition of a separate assurance scheme involves review of both the Standard and implementation of that Standard. Currently, review of implementation of the Joint Due Diligence Standard by Copper Mark will need to be completed in order to issue a final determination of either full cross-recognition or need for a top-off assessment.

The Copper Mark has a Recognition Process that allows for schemes that have successfully completed an OECD Alignment Assessment using an OECD-approved assessor to be recognized.

12. I am already complying with other standards – do I have to do all assessments again? Expand

Both the Copper Mark and the RMI recognize standards that have been independently assessed to be OECD-Aligned in both design and equivalent to their assessment results in implementation, in accordance with our recognition processes (Copper Mark, RMI).

13. Can the assessment cycles linked to the Joint DD Standard be done together with assessments for other standards? Expand

Yes.  Sites determine the start of the assessment period (which is 12 months) based on factors such as calendar year, fiscal year, reporting year, etc. The re-assessment every 3 years for sites on a 3-year cycle covers a period of 36 months.

14. Can auditor implement a double audit, for example against the Joint Standard and LBMA? Expand

Yes.  Both the Copper Mark and the RMI can provide additional guidance for what to include in a multi-standard assessment. If a Joint DD Standard assessment is being conducted simultaneously with another standard assessment using the same audit team, the site must ensure that the audit team is approved for implementation of the Joint DD Standard. Approved firms for both the Copper Mark and RMI are noted previously.

15. Where can I find help? Expand

For more information, see the resources below or contact:

• The Copper Mark: info@coppermark.org
• Responsible Minerals Initiative: ctyson@responsiblebusiness.org; RMI@responsiblebusiness.org

RESOURCES

Joint Due Diligence Standard for Copper, Lead, Molybdenum, Nickel and Zinc rev. 3, 26 August 2022 (CHI / ESP / JAP / RUS)

Joint Due Diligence Assessment Tool rev. 10 January 2023 (CHI / ESP / JAP / RUS)

Download an overview of the Joint Standard HERE (CHI).

Watch a presentation by the LME and the Copper Mark explain how the Joint Standard links to Track A of the LME’s Responsible Sourcing Requirements HERE.

For any questions on the Joint Due Diligence Standard, please contact The Copper Mark at info@coppermark.org.