2024 Yantai Cash Industrial Co., Ltd. Cobalt Supply Chain Due Diligence Assessment Summary Report(1)
Mineral Supply Chain Due Diligence Assessment Summary Report
| 26/12/2024-27/12/2024 | ||
Assessed Material | Cobalt | ||
LME-listed Brand | CASH (Cobalt) | ||
| ☑Main Assessment □Tracking Assessment | ||
Assessment Result | □AAA □AA ☑A | □B | □C |
| China Quality Mark Certification Group | ||
Assessor | Lu Da ,Wang Jinghan |
Instruction
Objective |
This assessment program is an independent third-party assessment conducted by China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) based on Chinese Due Diligence Guidelines for Mineral Supply Chain (Second Edition), aiming to assess the performance of the company's due diligence management system and process, and support the company to identify the gaps that need further improvements and develop corresponding improvement measures. |
Basis of the Assessment |
The assessment is based on Chinese Due Diligence Guidelines for Mineral Supply Chain (Second Edition) and Cobalt Refiner SupplyChain Due Diligence Standard (Version 2.0), hereinafter referred to as the Guidelines. The companies shall meet the content of "Companies should" in the Guidelines. "Companies should" refers to specific requirements of the Guidelines for companies ’ due diligence management, as well as the specific refinement of the requirements, which is consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas (Third Edition). |
Explanation of Conformity Degree |
Conformity: Indicates that the company's management system, policies, procedures or processes meet the requirements of corresponding provisions of the Guidelines. Need improvement: Indicates that the company’s management system, policies, procedures or processes partially meet the requirements of corresponding provisions of the Guidelines, but lack some necessary elements or content, or can not prove or lack evidence to prove that they are substantively functional, and further measures are needed to improve its performance. Non-conformity: Indicates that the company's management system, policies, procedures, or processes cannot meet the requirements |
of corresponding provisions of the Guidelines, resulting in systematic and repetitive non-conformities. Not applicable: Indicates that corresponding provisions of the Guidelines do not apply to the Company. Zero tolerance: If any of the following situations occurs, it is a "zero tolerance" situation. 1. Misrepresentation, deliberately forging false evidence or vouchers; 2. Any form of support for illegal control, or illegal taxation and extortion by non-state armed groups; 3. Any form of torture, cruel, inhuman and degrading treatment; 4. Directly cause or contribute to forced or compulsory labor; 5. Cause or contribute to widespread sexual violence; 6. The worst forms of child labor; 7. War crimes or other serious violations of international humanitarian law, crimes against humanity or genocide; 8. Other situations generally considered unacceptable. |
Explanation of Assessment Results |
The overall assessment result is based on the percentages of "non-conformity" items and "need improvement" items. The China Chamber of Commerce of Metals, Minerals & Chemical Importers & Exporters (CCCMC) provides the following suggestions on the assessment results: Level AAA: There is no "non-conformity" items, indicating that the company has excellent supply chain due diligence management performance. Level AA: the percentage of "Need improvement" items does not exceed 15% of all applicable items, and the percentage of "non-conformity" items does not exceed 5% of all applicable items. |
Level A: the percentage of "Need improvement" items does not exceed 25% of all applicable items, and the percentage of "non-conformity" items does not exceed 10% of all applicable items. Level B: the percentage of "Need improvement" items does not exceed 35% of all applicable items, and the percentage of "non- conformity" items does not exceed 20% of all applicable items. Level C: The above level cannot be reached or there is any "zero tolerance" situation. |
Description of Assessment Type |
The assessment is divided into main assessment and tracking assessment. The main assessment needs to be carried out once a year. The tracking assessment is conducted every six months or during there-assessment (main assessment) based on the conformity degree and assessment results. |
1. Assessed Party |
Company Name | Yantai Cash Industrial Co., Ltd |
Location | No. 215, Xingfu Road, Yantai, Shandong Province, China |
Profile Number | DDMSC-CNNiCo0103 |
2. Assessment Results |
Type | 口 Main Assessment | □ Tracking Assessment | |||
Result | □ Level AAA | □ Level AA | 口 Level A | □ Level B | □ Level C |
3. Assessment Scope |
Materials | Cobalt |
LME-listed Brand | CASH (Cobalt) |
Types of Materials | 口 Mine materials □ Recycled materials □ Both |
Assessment Period | 口 12 months: 1/10/2023-30/9/2024 □ Less than 12 months: |
4. Summary of Assessment Results |
Assessment Result |
A |
Step 1: Establishing A Corporate Due Diligence System | |
Develop and adopt due diligence policy | The company formulated and approved Aluminum Supply Chain Due Diligence Policy, in line with the requirements of the Chinese Due Diligence Guidelines for Mineral Supply Chain. |
Structure appropriate internal management systems | The company has established a Supply Chain Due Diligence Management Committee, setup a Joint Office for Supply Chain Due Diligence Management across departments, responsible for the operation of the supply chain due diligence management system and assigned the responsibility of due diligence management to relevant management and employees. |
Establish a system of controls and transparency over the supply chain | The company has established a supply chain control and transparency system and developed a Supplier Classification Management Procedure to collect and understand the company's mineral supply chain traceability information. For suppliers that trigger warning signs, the company required to further collect mineral supply chain traceability information needed for reviewing supply chain warning signs. |
Strengthen engagement with suppliers | The company has formulated the Responsibility Contract Terms, Supply Chain Due Diligence Management Statement and Commitment, and Supplier Code of Conduct, requiring suppliers to sign these documents to ensure their compliance with supplier policies aligned with the company's due diligence management policies. The company needs to further strengthen its efforts in assisting suppliers with |
capacity building. | |
Establish a company level grievance mechanism and/or participate an industrial level grievance mechanism | The company has established the Grievance Mechanism for Supply Chain Due Diligence which includes record, response and settlement of the grievance. The company has identified and committed to participating in the grievance mechanism at the industry level. |
Step 2: Risk Identification and Assessment | |
Conduct warning signs review, and identify the scope of the risk assessment of the mineral supply chain based on the results of warning signs review | The company has developed the High Risk Areas (CAHRAs) Identification Management Measures 、 Mineral Supply Chain Risk Management Procedures, and conducted warning sign review on suppliers. The company has clarified the information verification requirements, and verified information by collecting the Know Your Supplier (KYS) Questionnaire and Supply Chain Traceability Form from the suppliers. Further improvement is needed in the completeness of information collection for supply chain traceability. |
When warning signs are identified, companies shall conduct an on-the-ground assessment of the corresponding supply chain | The company has developed the On-the-ground Assessment Plan and On-the-ground Assessment Tool, which can be used to guide field assessments. During this assessment period, the company did not identify any supply chain warning signals and did not establish an On-the-ground Assessment team. However, due to some suppliers have not yet tracing back to the mine source information, it remains unconfirmed whether field assessments were conducted in accordance with all category 1 risk factors. |
Assess risks in the supply chain | The company has conducted a supply chain risk assessment and formed a Risk Identification and Assessment Report. Due to some suppliers' inability to trace back to the origin of minerals, the scope of the risk assessment was incomplete, requiring further refinement of the risk assessment report. |
Step 3: Risk Prevention and Mitigation | |
Report risk assessment results internally | The company’s supply chain risk assessment results can be reported to senior managers. |
Develop and adopt risk management plan | The company has developed and approved the Risk Management Plan, covering mitigation strategies for different types of risks. |
Implement risk management plan, monitor and track performance of risk mitigation strategies | The company has implemented the Risk Management Plan and needs to strengthen its performance in collaborating with stakeholders to promote the implementation, monitoring, and tracking of mitigation measures. However, monitoring and tracking records have not been provided. |
Supplementary assessment of risks that need to be mitigated. Supplementary assessment can also be conducted after actual circumstances have changed |
The company has clearly stipulated that it will conduct continuous monitoring and additional assessment of risks that need to be mitigated when there are changes in the actual situation or supply chain during implementation of the Risk Management Plan. |
Step 4: Internal and External Assessment | |
Companies should establish internal assessment system, to continuously monitor and manage due diligence performance | The company has developed an internal Assessment work plan, established an internal Assessment team, conducted internal Assessment and completed an Internal Assessment Report. The practical capabilities in conducting internal assessments of supply chain due diligence management of the company's internal evaluators needs to be further improved. |
Companies should designate the second or third party to conduct assessment when applicable |
It’s the second time for the company to participate in the independent third-party assessment ofaluminum supply chain due diligence management. |
When necessary, the company at the key points (smelters/refiners) makes necessary disclosures on the assessment results |
The company has committed to releasing the Assessment Summary Report of Supply Chain Due Diligence to the public. |
Step 5: Reporting and Communication | |
Develop due diligence progress report | The company has compiled the 2023-2024 Yantai Cash Industrial Co., Ltd. Annual Progress Report on Supply Chain Due Diligence Management. |
With due regard to business confidentiality and other competitive concerns, companies should publish due diligence progress reports or summary |
The company has publicly released the 2023-2024 Yantai Cash Industrial Co., Ltd. Annual Progress Report on Supply Chain Due Diligence Management. Link:click here |
Step 6: Provide for or Cooperate in Remediation When Appropriate | |
When the company recognize that it has caused or contributed to actual adverse impacts, they should mitigate these impacts by providing for or cooperating in remediation when appropriate |
N/A |
Companies provide conditions or cooperate with existing remedial mechanisms in a timely manner |
N/A |