UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM SD

 

 

SPECIALIZED DISCLOSURE REPORT

 

 

Microsoft Corporation

(Exact Name of Registrant as Specified in Its Charter)

 

 

Washington

(State or Other Jurisdiction

of Incorporation)

 

001-37845   91-1144442

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

One Microsoft Way, Redmond, Washington   98052-6399
(Address of Principal Executive Offices)   (Zip Code)

(425) 882-8080

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the period from January 1 to December 31, 2021.

 

 

 


Section 1 - Conflict Minerals Disclosure

Items 1.01 Conflict Minerals Disclosure and Report

Conflict Minerals Disclosure

A copy of Microsoft’s Conflict Minerals Report is provided as Exhibit 1.01 hereto and is publicly available at:

http://aka.ms/conflictmineralreport

Item 1.02 Exhibits

The Conflict Minerals Report required by Item 1.01 is filed as Exhibit 1.01 to this form SD.

Section 2 - Exhibits

Item 2.01 - Exhibits

Exhibit 1.01 - Conflict Minerals Report


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   MICROSOFT CORPORATION
   (Registrant)

Date: May 31, 2022

  

/s/ BRADFORD L. SMITH

   Bradford L. Smith
   President and Chief Legal Officer
EX-1.01

Exhibit 1.01

MICROSOFT CORPORATION

CONFLICT MINERALS REPORT

FOR 2021 REPORTING YEAR

 

I.

INTRODUCTION

This Conflict Minerals Report (“CMR”) for MICROSOFT CORPORATION (“Microsoft”) is filed with the United States Securities and Exchange Commission (SEC) as an exhibit to Microsoft’s Form SD pursuant to Rule 13p-1 under the Securities Exchange Act of 1934, as amended, (the “Rule”) for the 2021 Reporting Year (January 1, 2021-December 31, 2021).1 The CMR covers all Microsoft majority-owned subsidiaries and variable interest entities that are subject to the Rule.2 During the 2021 Reporting Year, covered devices included the Surface line of computers, tablets, mobile phones, and accessories; Xbox gaming consoles and accessories; personal computing accessories (mice, headsets, and keyboards); HoloLens mixed reality device; and service, spare, and replacement parts.

Our commitment to the responsible sourcing of raw materials is established by Microsoft’s Responsible Sourcing of Raw Materials (“RSRM”) Policy, which guides our work to ensure that all raw materials used in our devices, unbounded by specific materials or locations, are sourced from responsible suppliers. We commit to the responsible sourcing of tin, tantalum, tungsten and gold (“3TGs”) from Conflict Affected and High-Risk Areas (“CAHRAs”), including the Democratic Republic of the Congo (“DRC”) or DRC-adjoining countries (each a “Covered Country” under the Rule), rather than restricting or avoiding sourcing from such regions. We do this in in recognition of the harmful societal and economic impacts that curtailing 3TG mineral sourcing from such regions might cause.

Based on our supply chain due diligence, we determined that 3TGs that were necessary to the functionality or production of devices we manufactured or contracted to manufacture during the 2021 Reporting Year may have originated in a Covered Country. Microsoft found no reasonable basis for concluding that any 3TG Smelter or Refiner (“SOR”) that was identified in Microsoft Devices supply chain for the 2021 Reporting Year sourced 3TGs in a manner that directly or indirectly financed or benefitted armed groups in a Covered Country.

 

 

1 

This CMR contains links to internal and external websites for informational purposes only. References to such websites and information available through such websites are not incorporated into this CMR. Additionally, this CMR includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions regarding the future implementation of our responsible sourcing program and are subject to change. Statements in this CMR are based on due diligence activities that were performed in good faith and to the best of our ability at the time of this filing. Factors that could affect the accuracy of such statements include, but are not limited to, incomplete or incorrect data submitted by suppliers, amendments to the Rule or SEC guidance.

2 

Throughout this CMR, we use “Microsoft,” “Microsoft Devices,” “we,” “our,” “us” and similar terms to refer to Microsoft Corporation and its subsidiaries and various interest entities subject to the Rule (collectively, “Microsoft”), unless otherwise indicated.

 

1


II.

DUE DILIGENCE FRAMEWORK

This CMR is based on Microsoft Devices’ Due Diligence Framework (“Due Diligence Framework”), which conforms to the Organisation for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and its related Supplements (“OECD Guidance”).

Our Devices supply chain contains many layers of upstream suppliers positioned between Microsoft and 3TG raw material mines and SORs. We use contractual provisions to require our direct suppliers to disclose information through an industry standard Conflict Mineral Reporting Template (CMRT) and meet audit requirements regarding the sources and chains of custody of 3TGs necessary for the functionality or production of our covered devices. We also require our direct suppliers to pass Microsoft requirements regarding 3TG sources and chains of custody to their direct suppliers. In this manner, we work to promote responsible sourcing across our direct and indirect supply chains.

Our due diligence actions go beyond the Rule and OECD Guidance by including several quality assurance steps. We engage with a third party to review all supplier responses to validate 3TG sourcing data. If a non-conformant SOR is reported by a supplier, we work with the supplier to engage with the SOR to bring them into conformance. If the SOR is not interested or not able to become conformant, we instruct suppliers to remove the SOR from their supply chain and source from conformant alternatives or face business termination with Microsoft.

We also survey our supply chain for minerals beyond 3TGs and beyond the Covered Countries consistent with our Responsible Souring of Raw Materials (RSRM) Policy, which is unbounded by specific materials or location. In addition to the CMRT survey, which is focused on 3TGs, we require our in-scope suppliers to report on their use of cobalt and other priority minerals, including aluminum, copper, lithium, magnesium, and nickel.

 

  A.

Step #1: Establish Strong Company Management Systems

 

  1.

Company Policies

Microsoft’s commitment to corporate responsibility and integrity guides everything we do as a company. We have established high ethical standards to govern the way we conduct our business, which also apply to our suppliers and business partners. Microsoft policies include the Microsoft Global Human Rights Statement, Trust Code, and our Supplier Code of Conduct. These policies establish Microsoft expectations our suppliers concerning legal and regulatory compliance; business practices and ethics; human rights and fair labor practices; health and safety; environmental protection; and data and privacy protection.

As previously described, our RSRM Policy describes our commitment to responsibly source raw materials. This pledge extends to the harvesting, extraction, and transportation of raw materials unbounded by specific material or location. This policy supports implementation of programs that advance the use of responsibly sourced minerals in our manufactured devices

 

2


Our policies are based on internationally recognized standards, including the following declaration and covenants: Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, and International Covenant on Economic, Social and Cultural Rights. Our business operations are informed by human rights guidelines described in the following documents: International Labour Organization’s (“ILO”) Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises, and the United Nations Global Compact. As a global Information and Communications Technology company operating in more than 100 countries, we respect all human rights - civil, political, economic, social, and cultural; and our supplier requirements expect the same level of commitment.

 

  2.

Internal Management Team and Corporate Approval

A cross-functional internal team supports CMR development. Microsoft’s Senior Director of Devices Responsible Sourcing sponsors the team, which consists of representatives from Devices Manufacturing and Sourcing; Responsible Sourcing; Corporate, External and Legal Affairs; Information Services; Product Environmental Compliance; Global Trade; Finance; and Public Relations. The team assesses program progress, identifies steps needed to meet our compliance obligations, and identifies areas for continuous improvement. The team annually develops, reviews, and submits the final CMR to Microsoft’s President for approval and signature before being filed as an Exhibit to Microsoft’s Form SD and posted on the Microsoft website pursuant to the Rule.

 

  3.

System of Supply Chain Controls, Data Disclosure, and Due Diligence Assurance

Our Due Diligence Framework is based on a system of supply chain controls, data disclosure, and due diligence assurance. We require our suppliers to meet Microsoft specifications through our contracts. Our environmental product compliance specifications - H00594, Restricted Substances for Hardware Products; and H00642, Microsoft Restricted Substances Control System for Hardware Products (both available at this link) - require the disclosure of every substance contained in the materials, components, and products supplied to us, including 3TGs, by weight.

We require suppliers to annually submit a CMRT, providing source and chain of custody information for 3TGs that are contained in the products and components they supply to us. Our contracts also require suppliers to obtain the same information from their upstream suppliers. We collect these supply chain disclosures, conduct controls to ensure data integrity, and assess 3TG sourcing risk. Microsoft investigates any potential nonconformances and engages with suppliers that fail to meet Microsoft specifications and requirements.

Microsoft supply chain mineral disclosure requirements go beyond 3TGs and cover additional prioritized minerals. Since 2019, we have required suppliers to report on their use of cobalt, using the Responsible Minerals Initiative’s Extended Minerals Reporting Template. In 2020, we expanded our due diligence requirements, collecting data on aluminum, copper, lithium, magnesium, and nickel using the Microsoft Material Reporting Template.

Microsoft Devices’ Supplier Social and Environmental Accountability Manual (“H02050”) provides an operational framework for Microsoft to achieve supplier conformance with the Supplier Code of

 

3


Conduct and other responsible sourcing requirements. H02050 establishes a minimum set of requirements that suppliers must meet, including compliance with all applicable laws and regulations with respect to labor, ethics, occupational health and safety, and protection of the environment. Suppliers are encouraged to go beyond legal compliance by meeting relevant international standards (i.e., ILO and relevant United Nations Conventions) and committing to a process of continuous improvement.

H02050 requires all in-scope suppliers to:

 

   

Adopt a company policy for raw material sourcing, including a commitment to source raw materials from responsible sources and clearly communicate such policy to their suppliers and the public;

 

   

Exercise due diligence on the source and chain of custody of high-risk raw materials, including 3TGs, contained in materials, products, or parts supplied to Microsoft;

 

   

Require those SORs to participate in the Responsible Mining Assurance Program (“RMAP”) or an equivalent independent, third-party audit program for 3TGs; and

 

   

Timely communicate potential sourcing risks to Microsoft and propose a contingency plan and mitigation strategy to achieve conformance.

Suppliers are required to establish a system to gather, examine, and verify sourcing information for raw materials, including 3TGs, contained in products supplied to Microsoft and request their upstream suppliers to do the same. This supply chain transfer of audit data, source and chain of custody information, and risk assessment enables and facilitates raw material due diligence, mapping, and transparency.

Microsoft works with its suppliers to use SORs that are conformant to RMAP or another equivalent independent, third-party audit program for 3TGs. If we find that a supplier has introduced responsible sourcing risk to the Microsoft supply chain, such as use of an upstream SOR that is not conformant, Microsoft engages with such supplier to address the non-conformance. Risks are mitigated by supplier engagement, corrective actions, audits, training, and business termination when appropriate. These controls and related documentation are detailed in H02050 and Microsoft internal operating procedures.

 

  4.

Leveraging Industry Partnerships for Greater Impact

We leverage partnerships with industry peers and partners to scale our responsible sourcing impact. Microsoft is a long-standing member of the Responsible Business Alliance (“RBA”), and chairs its Responsible Minerals Initiative (RMI) Steering Committee. The RMI is one of the most utilized and respected resources for supply chain minerals due diligence and is aligned to the OECD Guidance. The RMI operates and manages the Responsible Minerals Assurance Process (RMAP), which uses independent, third-party audits to assess, monitor, and validate whether SORs process 3TGs from sources that directly or indirectly finance or benefit armed groups in a CAHRA, including Covered Countries.

 

4


In 2021, Microsoft provided direct financial support to the RMI upstream smelter due diligence fund to further the reach and success of the RMAP. Microsoft also supported the development of an RMI toolkit that provides due diligence guidance for mineral supply chains beyond 3TG and cobalt. This guidance will help suppliers conduct due diligence on a broader range of critical minerals, aligning with Microsoft’s expanded supply chain disclosure requirements for aluminum, copper, lithium, magnesium, and nickel.

We also work outside of our supply chain to promote responsible mining practices in CAHRAs, including Covered Countries, by partnering with organizations, including the RMI, the Initiative for Responsible Mining Assurance (“IRMA”), the Public-Private Alliance for Responsible Minerals Trade (“PPA”), and others. In this manner, we go beyond the minimum due diligence established by the OECD Guidance to assess and reduce our supply chain sourcing risk and improve working conditions in raw material supply chains.

 

  5.

Supplier Engagement to Ensure Conformance

We apply several supplier-focused strategies to promote responsible mining and sourcing, including the supplier engagement tools set forth below.

 

   

Supplier Requirements: We require our suppliers to meet our material disclosure requirements and related responsible sourcing policies through contractual provisions and product specifications. We communicate, monitor, and track supplier adherence to these requirements, ensuring conformance through the Microsoft Audit Management System (“AMS”) and maintain supplier records for a minimum of five years.

 

   

Training: We train suppliers on our responsible sourcing requirements through classes, educational forums, and direct communications. The SEA Academy is part of the supplier on-boarding process. Existing suppliers and newly onboarded suppliers are required to complete training modules to understand and implement Microsoft SEA requirements. We leverage the online component of our “SEA Academy” to educate factory management, workers, and third-party auditors as well as internal Microsoft teams with the goal of promoting responsible sourcing across our supply chain.

 

   

Capability Building and Partnerships: We work closely with in-scope suppliers and third-party auditors to build suppliers’ raw material due diligence capabilities and advance conformance to the RMAP or equivalent independent, third-party audit program for 3TGs. We invest in industry programs to increase suppliers’ abilities and provide platforms for sharing best practices.

 

   

Supplier Audits and Conformance Assurance: Microsoft requires audits of its directly contracted suppliers to assess their conformance to these requirements. Newly contracted suppliers undergo an Initial Capability Assessment (“ICA”) prior to onboarding and Sustaining Maintenance Audits (“SMA”) after onboarding to verify their initial conformance and to confirm their sustained conformance to our requirements.    

 

5


Microsoft selects and retains business partners that have committed to meet these requirements. A failure by a supplier or their upstream suppliers to conform to these requirements may constitute a breach of the supplier’s contractual agreement with Microsoft, resulting in possible business termination

 

  6.

Grievance Mechanism

Microsoft provides an anonymous grievance reporting mechanism for employees and other stakeholders who may be impacted by our operations. Microsoft’s Business Conduct Hotline allows employees and others to anonymously ask compliance questions or report concerns regarding Microsoft’s business operations, including our responsible sourcing policies or those of our suppliers. Additionally, Microsoft continues to scale its Worker Voice Hotline Program3 across our supplier factories. This program provides workers with a reliable and anonymous reporting channel for raising workplace concerns. The Hotline is operated by a neutral third-party provider. We investigate and, where appropriate, take remedial action to address reported issues. We also participate in the development of industry grievance mechanisms that seek to address responsible sourcing of raw materials related issues.

 

  B.

Step #2: Identify and Assess Risk in the Supply Chain

In order to make a Reasonable Country of Origin Inquiry (“RCOI”) determination, Microsoft took the following steps, which are consistent with OECD Guidance and Microsoft procedure, to identify and assess 3TG sourcing risk in our supply chain during the 2021 Reporting Year:

 

   

We generated a list of in-scope suppliers by surveying 193 Devices direct suppliers to determine whether they used any 3TGs in the products or parts supplied to Microsoft by utilizing the CMRT and the services of a third-party solution provider. All suppliers responded to our survey request – a 100% response rate.

 

   

We excluded suppliers that did not report the use of 3TGs in the products or parts supplied to Microsoft during the 2021 Reporting Year from our in-scope supplier list.

 

   

For the 2021 Reporting Year, we identified 148 in-scope suppliers that reported the use of 3TGs in the products or parts supplied to Microsoft. For these suppliers, we reviewed their CMRT responses to validate completion and to identify any contradictions or inconsistencies. We worked with our third-party solution provider to obtain updated or missing information when necessary.

 

 

3 

Please see page 60 of our 2021 Devices Responsible Sourcing Report for more details regarding our Workers’ Voice Hotline Program.

 

6


   

Based on the CMRTs, 322 SORs were found to be eligible for the RMAP or an equivalent, independent, third-party audit program for 3TGs such as cross-recognized programs overseen by the London Bullion Market Association (“LBMA”) or Responsible Jewellery Council (“RJC”).

Figure 1. CMRT Response Rate (2013-2021 Reporting Years)

 

 

LOGO

 

  C.

Step #3: Design and Implement a Strategy to Respond to Risks

We determined that 3TGs that were necessary to the functionality or production of covered devices may have originated in one or more Covered Country. Accordingly, we performed due diligence on the source and chain-of-custody of those 3TGs to assess our conflict minerals sourcing risk.

 

  7.

Microsoft Supplier Specifications—H00594, H00642, and H02050

For the 2021 Reporting Year, Microsoft required its in-scope suppliers to conduct due diligence to address the potential sourcing of 3TGs from CAHRAs, including Covered Countries, through contract requirements (H00594, H00642, and H02050), incorporating Microsoft’s supplier specifications and responsible sourcing requirements, as detailed above.

 

7


  8.

Implementation of OECD Guidance

Microsoft screened its in-scope supplier CMRT data for the 2021 Reporting Year against the OECD Guidance” red flag” triggers4 to assess the in-scope suppliers that required due diligence per the OECD Guidance.

 

  D.

Step #4: Independent Third-Party Audits of Supply Chain Due Diligence

Our due diligence program leveraged independent SOR audits to provide assurance that the 322 3TG SORs that were identified in our supply chain for the 2021 Reporting Year conducted an appropriate level of conflict minerals due diligence. Microsoft obtained SOR data from the RMAP Conformant Smelter List5 using Reasonable Country of Origin Inquiry Data for member MSFT and used the SOR data to assess the conflict mineral audit status of our in-scope suppliers and to support our due diligence findings.

Recognizing the importance of broad and consistent participation in the RMAP program, Microsoft proactively engages directly with certain SORs where it is believed that a SOR may be at risk of becoming non-conformant. Microsoft also asks its suppliers to engage directly with potentially non-conformant SORs in order to prevent potential non-conformance and to develop Corrective Action Plans (“CAPs”) to identify sourcing alternatives in case a SOR become non-conformant.

Although Microsoft’s Responsible Sourcing program operates an escalation and engagement process should non-conformant SORs be detected, taking a proactive approach to potentially non-conformant SORs helps prevent potential non-conformances from occurring. During the 2021 Reporting Year, we did not identify a SOR nonconformance that supported business termination with any in-scope supplier.

 

  E.

Step #5: Report on Supply Chain Due Diligence

We have filed our CMR with the SEC and concurrently posted it on our Microsoft Devices Responsible Sourcing website. The results of our Responsible Sourcing program are also presented in Microsoft’s 2021 Devices Responsible Sourcing Report. The Microsoft Corporate Social Responsibility Responsible Sourcing website provides additional information about Microsoft’s RSRM Program. Each year, Microsoft Devices publishes a list of its Top 100 Production Suppliers. These disclosures meet the fifth step of the OECD Guidance.

 

III.

CONFLICT MINERAL DISCLOSURE

 

  F.

Reasonable Countries of Origin of 3TGs

Microsoft obtained Reasonable Country of Origin data through our membership in the RMAP using the Reasonable Country of Origin Inquiry Data for member MSFT. We used this data to determine the 3TG country of origin for the 322 Eligible SORs identified in Microsoft Devices’ supply chain for the 2021 Reporting Year.

 

4 

See p. 33 of the OECD Guidance.

5 

The RMAP Conformant Smelter list identifies the SORs that have undergone conformance audits through the RMAP or equivalent independent, third-party audit programs for 3TGs.

 

8


The RMAP classifies SOR audit status in the manner described in the table below. The breakdown of the identified 322

Eligible 3TG SORs (for which minerals sourcing information was available from RMAP or an equivalent, independent, third-party audit program for 3TGs) by their RMI Status was as follows:

 

Audit Status

  

Audit Status Description

   SORs      %  

Conformant

   SOR has been audited and found to conform with a relevant, third-party audit protocol, including RMAP, London Bullion Market Association (“LBMA”), or Responsible Jewellery Council (“RJC”)      238        73.9

Active

   SOR has been engaged but is not yet conformant      25        7.8

Non-Conformant

   SOR was audited but found not to conform to a relevant, third-party audit protocol or failed to renew its assessment      9        2.8
Communication Suspended    Not Interested: SOR has strongly communicated a lack of interest in participation      5        1.6
Outreach Required    SOR is not yet active and outreach is needed by RMAP member companies to encourage SOR participation in RMAP      36        11.2
In Communication    SOR is not yet active but is in communication with RMAP and/or member company      5        1.6
RMI Due Diligence Review    Unable to Proceed: SOR has not met the threshold for Due Diligence Vetting Process after a period of 6 months. Status may change if additional information is submitted      4        1.2

 

9


For the identified 322 Eligible 3TG SORs:

 

   

48 SORs sourced from Covered Countries, of which 46 (95.8%) were Conformant and 2 (4.2%) were Active;

 

   

For these 48 SORs, the audit status per 3TG mineral was 100% Conformant for Gold, Tantalum, and Tungsten and 80% Conformant and 20% Active for Tin (see Figure 3 below).

 

   

Out of 322 Eligible SORs, 238 (73.9%) were Conformant; and

 

   

Out of 322 Eligible SORs, 309 (96.0%) were Conformant, Active, or are reasonably believed to have sourced 3TGs from outside the Covered Countries.

Microsoft found no reasonable basis for concluding that any SOR sourced 3TGs in a manner that directly or indirectly financed or benefitted armed groups in a Covered Country. Figure 2 depicts the 322 SORs by 3TG audit status and Reporting Year. Figure 3 depicts the audit status of the 48 SORs that sourced 3TGs from a Covered Country by 3TG mineral for the 2021 Reporting Year.

Figure 2. Identified SORs by Audit Status (2013- 2021 Reporting Years)

 

LOGO

 

10


Figure 3: Audit Status of SORs Sourcing from Covered Countries by 3TG Mineral

 

LOGO

Figures 4-7 show the geographic distribution of the 322 Eligible SORs identified in the Microsoft Devices’ supply chain by 3TG mineral for the 2021 Reporting Year. The circle size corresponds to the relative number of times our in-scope suppliers identified each 3TG SOR in their CMRT form.

Figure 4: Location and Relative Number of Identified SORs – Tin

 

LOGO

 

11


Figure 5: Location and Relative Number of Identified SORs – Tantalum

 

LOGO

Figure 6: Location and Relative Number of Identified SORs – Tungsten

 

LOGO

 

12


Figure 7: Location and Relative Number of Identified SORs – Gold

 

LOGO

Appendix A provides the list of 322 Eligible SORs identified in Microsoft Devices’ supply chain which processed 3TGs during the 2021 Reporting Year. Appendix A lists each SOR by mineral, official name, and country of operation.

 

  G.

3TG Countries of Origin

The table below lists the countries of origin for the 322 Eligible SORs identified in Microsoft Devices’ supply chain which processed 3TGs during the 2021 Reporting Year.

 

Angola

Argentina

Armenia

Australia

Austria

Belarus

Belgium

Bolivia

Brazil

Burundi

Cambodia

Canada

Central African Republic

  

Luxembourg

Madagascar

Malaysia

Mali

Mexico

Mongolia

Morocco

Mozambique

Myanmar

Namibia

Netherlands

New Zealand

Niger

 

13


Chile

China

Colombia

Republic of the Congo

Czech Republic

Djibouti

Democratic Republic of the Congo

Ecuador

Egypt

Estonia

Ethiopia

Finland

France

Germany

Ghana

Guinea

Guyana

Hong Kong

Hungary

India

Indonesia

Ireland

Israel

Italy

Ivory Coast

Japan

Kazakhstan

Kenya

Republic of Korea

Kyrgyzstan

Laos

  

Nigeria

Papua New Guinea

Peru

Philippines

Poland

Portugal

Russian Federation

Rwanda

Saudi Arabia

Sierra Leone

Singapore

Slovakia

South Africa

South Sudan

Spain

Suriname

Sweden

Switzerland

Taiwan

Tajikistan

Tanzania

Thailand

Turkey

Uganda

United Arab Emirates

United Kingdom

United States

Uzbekistan

Viet Nam

Zambia

Zimbabwe

 

IV.

MICROSOFT COMMITMENT

Microsoft is committed to the responsible sourcing of raw materials in support of human rights; labor, health and safety; and environmental protection. We continue to advance implementation of our RSRM policy in our Devices supply chain to promote supply chain identification, traceability, risk assessment, and due diligence.

Our 2021 Reporting Year achievements included the following:

 

   

We supported supplier efforts to increase their responsible sourcing capabilities through supplier forums, training, webinars, and by providing technical resources;

 

14


   

We continued our engagements with external responsible sourcing organizations, including but not limited to the RMI, that are committed to advancing responsible sourcing on a global basis;

 

   

We achieved a 100% supplier CMRT response rate through extensive supplier outreach, including a supplementary campaign to directly contact suppliers to encourage reporting;

 

   

We conducted a data validation and verification program to randomly audit CMRT information submitted to us by suppliers to validate and confirm that supplier data was accurate and complete;

 

   

We expanded due diligence program across all in-scope suppliers to capture sourcing data on additional priority minerals including aluminum, cobalt, copper, lithium, magnesium, and nickel.

Going forward, Microsoft will remain focused on internal and external efforts to promote the responsible sourcing of minerals from CAHRAs, including Covered Countries, including:

 

   

Expanding our knowledge about 3TGs, cobalt, and other critical raw materials to effectively implement our RSRM strategy to promote the responsible sourcing of raw materials across our hardware supply chains;

 

   

Requiring our in-scope suppliers to meet our requirements for responsibly sourcing raw materials and finding alternative upstream suppliers if they are found to be sourcing from non-conformant SORs;

 

   

Engaging with in-scope suppliers so that they utilize supplier best practices and tools for responsibly sourcing raw materials from CAHRAs, including Covered Countries;

 

   

Furthering engagement with industry organizations and external stakeholders to improve mineral traceability, establish global responsible sourcing standards, and support due diligence programs in the mineral supply chain;

 

   

Leveraging Full Material Disclosure and other supplier data to fine-tune supplier data requests and verify and confirm reported critical raw material information; and

 

   

Supporting the efforts of the RMI in developing the Minerals Agnostic Standard and Pilot Reporting Template (“PRT”), anticipated to be released in late 2022, which will provide a platform to collect data on all minerals, thus significantly expanding the scope of industry-wide minerals due diligence.

 

15


APPENDIX A

Eligible SORs for 2021 Reporting Year

This Appendix lists the 322 Eligible SORs which processed 3TGs during the 2021 Reporting Year. Please note that Eligible SORs are listed for each 3TG they processed. Therefore, certain Eligible SORs may be represented more than once.

 

Metal

  

Official Smelter Name

  

Smelter Country

Gold        

   Matsuda Sangyo Co., Ltd.    Japan

Gold

   Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH    Austria

Gold

   Singway Technology Co., Ltd.    Taiwan

Gold

   8853 S.p.A.    Italy

Gold

   Metalurgica Met-Mex Penoles S.A. De C.V.    Mexico

Gold

   SOE Shyolkovsky Factory of Secondary Precious Metals    Russian Federation

Gold

   Solar Applied Materials Technology Corp.    Taiwan

Gold

   Metal Concentrators SA (Pty) Ltd.    South Africa

Gold

   Refinery of Seemine Gold Co., Ltd.    China

Gold

   Advanced Chemical Company    United States

Gold

   Metalor Technologies (Hong Kong) Ltd.    China

Gold

   Metalor Technologies (Singapore) Pte., Ltd.    Singapore

Gold

   Metalor Technologies (Suzhou) Ltd.    China

Gold

   Metalor Technologies S.A.    Switzerland

Gold

   Metalor USA Refining Corporation    United States

Gold

   Asahi Refining Canada Ltd.    Canada

Gold

   Aida Chemical Industries Co., Ltd.    Japan

Gold

   Geib Refining Corporation    United States

Gold

   Degussa Sonne / Mond Goldhandel GmbH    Germany

Gold

   L’Orfebre S.A.    Andorra

Gold

   Al Etihad Gold Refinery DMCC    United Arab Emirates

Gold

   Pease & Curren    United States

Gold

   SAAMP    France

Gold

   Allgemeine Gold-und Silberscheideanstalt A.G.    Germany

Gold

   Industrial Refining Company    Belgium

Gold

   Almalyk Mining and Metallurgical Complex (AMMC)    Uzbekistan

Gold

   Sudan Gold Refinery    Sudan

Gold

   Mitsubishi Materials Corporation    Japan

Gold

   Mitsui Mining and Smelting Co., Ltd.    Japan

Gold

   MMTC-PAMP India Pvt., Ltd.    India

Gold

   Sumitomo Metal Mining Co., Ltd.    Japan

Gold

   Morris and Watson    New Zealand

Gold

   Moscow Special Alloys Processing Plant    Russian Federation

Gold

   AngloGold Ashanti Corrego do Sitio Mineracao    Brazil

Gold

   Nadir Metal Rafineri San. Ve Tic. A.S.    Turkey

Gold

   Guangdong Jinding Gold Limited    China

 

A-1


Gold        

   T.C.A S.p.A    Italy

Gold

   African Gold Refinery    Uganda

Gold

   Argor-Heraeus S.A.    Switzerland

Gold

   Asahi Pretec Corp.    Japan

Gold

   Asaka Riken Co., Ltd.    Japan

Gold

   Bangalore Refinery    India

Gold

   Navoi Mining and Metallurgical Combinat    Uzbekistan

Gold

   Tanaka Kikinzoku Kogyo K.K.    Japan

Gold

   Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    Turkey

Gold

   GCC Gujrat Gold Centre Pvt. Ltd.    India

Gold

   Aurubis AG    Germany

Gold

   Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.    China

Gold

   Nihon Material Co., Ltd.    Japan

Gold

   Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    Philippines

Gold

   Hangzhou Fuchunjiang Smelting Co., Ltd.    China

Gold

   Great Wall Precious Metals Co., Ltd. of CBPM    China

Gold

   Shandong Gold Smelting Co., Ltd.    China

Gold

   International Precious Metal Refiners    United Arab Emirates

Gold

   QG Refining, LLC    United States

Gold

   LT Metal Ltd.    Republic of Korea

Gold

   Heimerle + Meule GmbH    Germany

Gold

   Planta Recuperadora de Metales SpA    Chile

Gold

   Heraeus Metals Hong Kong Ltd.    China

Gold

   Boliden AB    Sweden

Gold

   Heraeus Precious Metals GmbH & Co. KG    Germany

Gold

   Tokuriki Honten Co., Ltd.    Japan

Gold

   Tongling Nonferrous Metals Group Co., Ltd.    China

Gold

   TOO Tau-Ken-Altyn    Kazakhstan

Gold

   Torecom    Republic of Korea

Gold

   C. Hafner GmbH + Co. KG    Germany

Gold

   Ohura Precious Metal Industry Co., Ltd.    Japan

Gold

   OJSC Novosibirsk Refinery    Russian Federation

Gold

   Caridad    Mexico

Gold

   OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)    Russian Federation

Gold

   CCR Refinery—Glencore Canada Corporation    Canada

Gold

   Cendres + Metaux S.A.    Switzerland

Gold

   Umicore Precious Metals Thailand    Thailand

Gold

   Umicore S.A. Business Unit Precious Metals Refining    Belgium

Gold

   Hunan Chenzhou Mining Co., Ltd.    China

Gold

   PAMP S.A.    Switzerland

Gold

   United Precious Metal Refining, Inc.    United States

Gold

   Penglai Penggang Gold Industry Co., Ltd.    China

Gold

   HwaSeong CJ Co., LTD.    Republic of Korea

Gold

   Chimet S.p.A.    Italy

 

A-2


Gold        

   Valcambi S.A.    Switzerland

Gold

   Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    China

Gold

   Prioksky Plant of Non-Ferrous Metals    Russian Federation

Gold

   Chugai Mining    Japan

Gold

   PT Aneka Tambang (Persero) Tbk    Indonesia

Gold

   Western Australian Mint (T/a The Perth Mint)    Australia

Gold

   Ishifuku Metal Industry Co., Ltd.    Japan

Gold

   Istanbul Gold Refinery    Turkey

Gold

   Italpreziosi    Italy

Gold

   WIELAND Edelmetalle GmbH    Germany

Gold

   Japan Mint    Japan

Gold

   CGR Metalloys Pvt Ltd.    India

Gold

   Dijllah Gold Refinery FZC    United Arab Emirates

Gold

   Sovereign Metals    India

Gold

   C.I Metales Procesados Industriales SAS    Colombia

Gold

   Jiangxi Copper Co., Ltd.    China

Gold

   PX Precinox S.A.    Switzerland

Gold

   Daye Non-Ferrous Metals Mining Ltd.    China

Gold

   Yamakin Co., Ltd.    Japan

Gold

   Guoda Safina High-Tech Environmental Refinery Co., Ltd.    China

Gold

   Rand Refinery (Pty) Ltd.    South Africa

Gold

   NH Recytech Company    Republic of Korea

Gold

   Eco-System Recycling Co., Ltd. North Plant    Japan

Gold

   Eco-System Recycling Co., Ltd. West Plant    Japan

Gold

   DSC (Do Sung Corporation)    Republic of Korea

Gold

   Asahi Refining USA Inc.    United States

Gold

   DODUCO Contacts and Refining GmbH    Germany

Gold

   Yokohama Metal Co., Ltd.    Japan

Gold

   JSC Ekaterinburg Non-Ferrous Metal Processing Plant    Russian Federation

Gold

   JSC Uralelectromed    Russian Federation

Gold

   JX Nippon Mining & Metals Co., Ltd.    Japan

Gold

   AU Traders and Refiners    South Africa

Gold

   Kaloti Precious Metals    United Arab Emirates

Gold

   Yunnan Copper Industry Co., Ltd.    China

Gold

   Augmont Enterprises Private Limited    India

Gold

   Kazakhmys Smelting LLC    Kazakhstan

Gold

   Kazzinc    Kazakhstan

Gold

   Royal Canadian Mint    Canada

Gold

   REMONDIS PMR B.V.    Netherlands

Gold

   Sai Refinery    India

Gold

   Sabin Metal Corp.    United States

Gold

   Modeltech Sdn Bhd    Malaysia

Gold

   Safimet S.p.A    Italy

Gold

   Kyshtym Copper-Electrolytic Plant ZAO    Russian Federation

 

A-3


Gold        

   SAFINA A.S.    Czech Republic

Gold

   Kennecott Utah Copper LLC    United States

Gold

   KGHM Polska Miedz Spolka Akcyjna    Poland

Gold

   Dowa    Japan

Gold

   Samduck Precious Metals    Republic of Korea

Gold

   Alexy Metals    United States

Gold

   Sancus ZFS (L’Orfebre, SA)    Colombia

Gold

   SAMWON METALS Corp.    Republic of Korea

Gold

   Kojima Chemicals Co., Ltd.    Japan

Gold

   Abington Reldan Metals, LLC    United States

Gold

   Korea Zinc Co., Ltd.    Republic of Korea

Gold

   Shandong Humon Smelting Co., Ltd.    China

Gold

   Zhongyuan Gold Smelter of Zhongjin Gold Corporation    China

Gold

   SAXONIA Edelmetalle GmbH    Germany

Gold

   Gold Refinery of Zijin Mining Group Co., Ltd.    China

Gold

   WEEEREFINING    France

Gold

   Eco-System Recycling Co., Ltd. East Plant    Japan

Gold

   SEMPSA Joyeria Plateria S.A.    Spain

Gold

   Kyrgyzaltyn JSC    Kyrgyzstan

Gold

   L’azurde Company for Jewelry    Saudi Arabia

Gold

   Emirates Gold DMCC    United Arab Emirates

Gold

   SungEel HiMetal Co., Ltd.    Republic of Korea

Gold

   Shandong Tiancheng Biological Gold Industrial Co., Ltd.    China

Gold

   Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    China

Gold

   Lingbao Gold Co., Ltd.    China

Gold

   Lingbao Jinyuan Tonghui Refinery Co., Ltd.    China

Gold

   LS-NIKKO Copper Inc.    Republic of Korea

Gold

   Fidelity Printers and Refiners Ltd.    Zimbabwe

Gold

   Luoyang Zijin Yinhui Gold Refinery Co., Ltd.    China

Gold

   State Research Institute Center for Physical Sciences and Technology    Lithuania

Gold

   Marsam Metals    Brazil

Gold

   Sichuan Tianze Precious Metals Co., Ltd.    China

Gold

   Fujairah Gold FZC    United Arab Emirates

Gold

   Materion    United States

Tantalum

   Solikamsk Magnesium Works OAO    Russian Federation

Tantalum

   Metallurgical Products India Pvt., Ltd.    India

Tantalum

   Jiangxi Tuohong New Raw Material    China

Tantalum

   Mineracao Taboca S.A.    Brazil

Tantalum

   Global Advanced Metals Aizu    Japan

Tantalum

   Global Advanced Metals Boyertown    United States

Tantalum

   Mitsui Mining and Smelting Co., Ltd.    Japan

Tantalum

   NPM Silmet AS    Estonia

Tantalum

   XIMEI RESOURCES (GUANGDONG) LIMITED    China

Tantalum

   TANIOBIS Co., Ltd.    Thailand

 

A-4


Tantalum

   TANIOBIS GmbH    Germany

Tantalum

   H.C. Starck Hermsdorf GmbH    Germany

Tantalum

   H.C. Starck Inc.    United States

Tantalum

   TANIOBIS Japan Co., Ltd.    Japan

Tantalum

   TANIOBIS Smelting GmbH & Co. KG    Germany

Tantalum

   Telex Metals    United States

Tantalum

   Ningxia Orient Tantalum Industry Co., Ltd.    China

Tantalum

   Hengyang King Xing Lifeng New Materials Co., Ltd.    China

Tantalum

   Ulba Metallurgical Plant JSC    Kazakhstan

Tantalum

   Changsha South Tantalum Niobium Co., Ltd.    China

Tantalum

   Guangdong Rising Rare Metals-EO Materials Ltd.    China

Tantalum

   D Block Metals, LLC    United States

Tantalum

   XinXing Haorong Electronic Material Co., Ltd.    China

Tantalum

   QuantumClean    United States

Tantalum

   JiuJiang JinXin Nonferrous Metals Co., Ltd.    China

Tantalum

   Jiujiang Tanbre Co., Ltd.    China

Tantalum

   Jiujiang Zhongao Tantalum & Niobium Co., Ltd.    China

Tantalum

   Resind Industria e Comercio Ltda.    Brazil

Tantalum

   Yanling Jincheng Tantalum & Niobium Co., Ltd.    China

Tantalum

   KEMET de Mexico    Mexico

Tantalum

   RFH Yancheng Jinye New Material Technology Co., Ltd.    China

Tantalum

   Jiangxi Dinghai Tantalum & Niobium Co., Ltd.    China

Tantalum

   Taki Chemical Co., Ltd.    Japan

Tantalum

   Exotech Inc.    United States

Tantalum

   F&X Electro-Materials Ltd.    China

Tantalum

   AMG Brasil    Brazil

Tantalum

   FIR Metals & Resource Ltd.    China

Tin          

   Melt Metais e Ligas S.A.    Brazil

Tin

   Soft Metais Ltda.    Brazil

Tin

   Metallic Resources, Inc.    United States

Tin

   Metallo Belgium N.V.    Belgium

Tin

   Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.    China

Tin

   HuiChang Hill Tin Industry Co., Ltd.    China

Tin

   Gejiu Kai Meng Industry and Trade LLC    China

Tin

   Gejiu Non-Ferrous Metal Processing Co., Ltd.    China

Tin

   Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.    China

Tin

   Mineracao Taboca S.A.    Brazil

Tin

   Minsur    Peru

Tin

   Alpha    United States

Tin

   Mitsubishi Materials Corporation    Japan

Tin

   An Vinh Joint Stock Mineral Processing Company    Viet Nam

Tin

   Guangdong Hanhe Non-Ferrous Metal Co., Ltd.    China

Tin

   Jiangxi New Nanshan Technology Ltd.    China

Tin

   Nghe Tinh Non-Ferrous Metals Joint Stock Company    Viet Nam

 

A-5


Tin          

   Thaisarco    Thailand

Tin

   PT Bangka Serumpun    Indonesia

Tin

   Pongpipat Company Limited    Myanmar

Tin

   Tin Technology & Refining    United States

Tin

   Dongguan CiEXPO Environmental Engineering Co., Ltd.    China

Tin

   PT Masbro Alam Stania    Indonesia

Tin

   PT Rajawali Rimba Perkasa    Indonesia

Tin

   Novosibirsk Processing Plant Ltd.    Russian Federation

Tin

   O.M. Manufacturing (Thailand) Co., Ltd.    Thailand

Tin

   O.M. Manufacturing Philippines, Inc.    Philippines

Tin

   Tuyen Quang Non-Ferrous Metals Joint Stock Company    Viet Nam

Tin

   Operaciones Metalurgicas S.A.    Bolivia

Tin

   Thai Nguyen Mining and Metallurgy Co., Ltd.    Viet Nam

Tin

   Ma’anshan Weitai Tin Co., Ltd.    China

Tin

   China Tin Group Co., Ltd.    China

Tin

   PT Aries Kencana Sejahtera    Indonesia

Tin

   PT Artha Cipta Langgeng    Indonesia

Tin

   PT ATD Makmur Mandiri Jaya    Indonesia

Tin

   PT Babel Inti Perkasa    Indonesia

Tin

   PT Babel Surya Alam Lestari    Indonesia

Tin

   PT Belitung Industri Sejahtera    Indonesia

Tin

   PT Bukit Timah    Indonesia

Tin

   PT Cipta Persada Mulia    Indonesia

Tin

   White Solder Metalurgia e Mineracao Ltda.    Brazil

Tin

   CRM Synergies    Spain

Tin

   Yunnan Yunfan Non-ferrous Metals Co., Ltd.    China

Tin

   PT Mitra Stania Prima    Indonesia

Tin

   PT Panca Mega Persada    Indonesia

Tin

   PT Timah Nusantara    Indonesia

Tin

   PT Prima Timah Utama    Indonesia

Tin

   PT Refined Bangka Tin    Indonesia

Tin

   PT Sariwiguna Binasentosa    Indonesia

Tin

   Gejiu City Fuxiang Industry and Trade Co., Ltd.    China

Tin

   CV Venus Inti Perkasa    Indonesia

Tin

   PT Stanindo Inti Perkasa    Indonesia

Tin

   PT Sukses Inti Makmur    Indonesia

Tin

   Precious Minerals and Smelting Limited    India

Tin

   Luna Smelter, Ltd.    Rwanda

Tin

   PT Timah Tbk Mentok    Indonesia

Tin

   PT Timah Tbk Kundur    Indonesia

Tin

   PT Tinindo Inter Nusa    Indonesia

Tin

   PT Tommy Utama    Indonesia

Tin

   Chifeng Dajingzi Tin Industry Co., Ltd.    China

Tin

   PT Mitra Sukses Globalindo    Indonesia

 

A-6


Tin

   Resind Industria e Comercio Ltda.    Brazil

Tin

   Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    China

Tin

   Yunnan Tin Company Limited    China

Tin

   Rui Da Hung    Taiwan

Tin

   Modeltech Sdn Bhd    Malaysia

Tin

   CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda    Brazil

Tin

   Dowa    Japan

Tin

   Fabrica Auricchio Industria e Comercio Ltda.    Brazil

Tin

   PT Menara Cipta Mulia    Indonesia

Tin

   Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company    Viet Nam

Tin

   Super Ligas    Brazil

Tin

   Metallo Spain S.L.U.    Spain

Tin

   EM Vinto    Bolivia

Tin

   Estanho de Rondonia S.A.    Brazil

Tin

   Fenix Metals    Poland

Tin

   Magnu’s Minerais Metais e Ligas Ltda.    Brazil

Tin

   Gejiu Zili Mining and Metallurgy Co., Ltd.    China

Tin

   Malaysia Smelting Corporation (MSC)    Malaysia

Tungsten

   A.L.M.T. TUNGSTEN Corp.    Japan

Tungsten

   Ganzhou Haichuang Tungsten Co., Ltd.    China

Tungsten

   Ganzhou Huaxing Tungsten Products Co., Ltd.    China

Tungsten

   Ganzhou Jiangwu Ferrotungsten Co., Ltd.    China

Tungsten

   ACL Metais Eireli    Brazil

Tungsten

   Ganzhou Seadragon W & Mo Co., Ltd.    China

Tungsten

   Moliren Ltd.    Russian Federation

Tungsten

   Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.    China

Tungsten

   Global Tungsten & Powders Corp.    United States

Tungsten

   Guangdong Xianglu Tungsten Co., Ltd.    China

Tungsten

   Asia Tungsten Products Vietnam Ltd.    Viet Nam

Tungsten

   H.C. Starck Tungsten GmbH    Germany

Tungsten

   Niagara Refining LLC    United States

Tungsten

   TANIOBIS Smelting GmbH & Co. KG    Germany

Tungsten

   KGETS CO., LTD.    Republic of Korea

Tungsten

   Masan High-Tech Materials    Viet Nam

Tungsten

   Hunan Chenzhou Mining Co., Ltd.    China

Tungsten

   Hunan Chunchang Nonferrous Metals Co., Ltd.    China

Tungsten

   Chenzhou Diamond Tungsten Products Co., Ltd.    China

Tungsten

   Hydrometallurg, JSC    Russian Federation

Tungsten

   Chongyi Zhangyuan Tungsten Co., Ltd.    China

Tungsten

   CNMC (Guangxi) PGMA Co., Ltd.    China

Tungsten

   Japan New Metals Co., Ltd.    Japan

Tungsten

   China Molybdenum Co., Ltd.    China

Tungsten

   Fujian Ganmin RareMetal Co., Ltd.    China

 

A-7


Tungsten

   Wolfram Bergbau und Hutten AG    Austria

Tungsten

   JSC “Kirovgrad Hard Alloys Plant”    Russian Federation

Tungsten

   Lianyou Metals Co., Ltd.    Taiwan

Tungsten

   Jingmen Dewei GEM Tungsten Resources Recycling Co., Ltd.    China

Tungsten

   NPP Tyazhmetprom LLC    Russian Federation

Tungsten

   Jiangwu H.C. Starck Tungsten Products Co., Ltd.    China

Tungsten

   Xiamen Tungsten (H.C.) Co., Ltd.    China

Tungsten

   Xiamen Tungsten Co., Ltd.    China

Tungsten

   Jiangxi Gan Bei Tungsten Co., Ltd.    China

Tungsten

   Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    China

Tungsten

   Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.    China

Tungsten

   Jiangxi Xinsheng Tungsten Industry Co., Ltd.    China

Tungsten

   Jiangxi Yaosheng Tungsten Co., Ltd.    China

Tungsten

   Albasteel Industria e Comercio de Ligas Para Fundicao Ltd.    Brazil

Tungsten

   Cronimet Brasil Ltda    Brazil

Tungsten

   Philippine Chuangxin Industrial Co., Inc.    Philippines

Tungsten

   Kennametal Fallon    United States

Tungsten

   Kennametal Huntsville    United States

Tungsten

   Unecha Refractory Metals Plant    Russian Federation

Tungsten

   OOO “Technolom” 1    Russian Federation

Tungsten

   OOO “Technolom” 2    Russian Federation

Tungsten

   Fujian Xinlu Tungsten    China

Tungsten

   Malipo Haiyu Tungsten Co., Ltd.    China

 

A-8