Section 1—Conflict Minerals Disclosure
Item 1.01 Conflict Minerals Disclosure and Report
In accordance with the disclosure requirements promulgated by the
U.S. Securities and Exchange Commission (“SEC”), Harsco Corporation
(“we,” “our,” “Harsco,” or the “Company) has undertaken efforts to
determine the Company’s conflict minerals reporting
requirements1
for the period from January 1 to December 31, 2021. The
Company is a market-leading, global provider of environmental
solutions for industrial and specialty waste streams. The Company’s
operations consist of two reportable segments: Harsco Environmental
and Harsco Clean Earth, as well as the Harsco Rail business which
is reported as discontinued operations. The Company has locations
in approximately 30 countries, including the U.S. The Company was
incorporated in 1956.
We are subject to this rule as we have determined that, during
2021, conflict minerals were likely necessary to the functionality
or production of products we manufactured or are contracted to
manufacture. The Company, as a purchaser of component parts, is
several steps removed from the mining of conflict minerals. We do
not purchase raw ore or unrefined conflict minerals and we conduct
no purchasing activities directly in the DRC or adjoining
countries.
The Company has developed a policy statement to support the goals
expressed by Congress in enacting Section 1502 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act. The
policy highlights the Company’s commitment to complying with the
reporting and due diligence obligations required by SEC rules and
regulations, and the Company’s expectations from its suppliers. In
addition, the policy includes language encouraging suppliers to
source responsibly. The policy resides on our corporate website
(https://www.harsco.com/sustainability). The information on the
Company’s website does not constitute part of this Form SD.
We have conducted a good faith reasonable country of origin inquiry
(“RCOI”) to determine whether the necessary conflict minerals
originated in the DRC or an adjoining country or came from recycled
or scrap sources.
We began our RCOI by identifying product categories and consumables
that may contain conflict minerals. Initial product categories and
consumables within this scope included fittings, paint, motors,
coatings, air motors, admiralty brass, pipes, welding wire, wire,
electrical fittings, lubricants, glass, bushings, electronics,
cables, steel parts, fabricated parts, machine parts, castings,
hydraulic parts, bearings, power transmissions and tubular parts.
Using information derived from Harsco’s procurement systems,
supplemented by information supplied by personnel in Harsco’s
divisional supply chain, we produced a list of direct suppliers of
components and raw materials that may contain conflict minerals. We
then conducted a good faith RCOI to determine whether the necessary
conflict minerals originated in the DRC or an adjoining country or
came from recycled or scrap sources. Our RCOI process included
conducting an inquiry of our direct suppliers using the Responsible
Minerals Initiative’s Conflict Minerals Reporting Template
(“CMRT”). We sent reminders to those suppliers that did not respond
to our request to complete a CMRT. Based on the results of our
RCOI, which indicated sourcing from the covered countries, we
exercised due diligence on the source and chain of custody of the
conflict minerals in accordance with the Organization for Economic
Co-operation and
Development framework2.
The Company has elected not to file disclosure under Item 1.01(c)
of Form SD in accordance with the “Updated Statement on the Effect
of the Court of Appeals Decision on the Conflict Minerals Rule”
issued by the Division of Corporation Finance of the SEC on
April 7, 2017.
*****
| 1 |
The term “conflict mineral” is defined in
Section 1502(e)(4) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act as (A) columbite-tantalite, also known
as coltan (the metal ore from which tantalum is extracted);
cassiterite (the metal ore from which tin is extracted); gold;
wolframite (the metal ore from which tungsten is extracted); or
their derivatives; or (B) any other mineral or its derivatives
determined by the Secretary of State to be financing conflict in
the Democratic Republic of the Congo (“DRC”) or an adjoining
country.
|
| 2 |
OECD (2013), OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-Affected and
High-Risk Areas: Second Edition, OECD Publishing. http://dx.doi.org/10.1787/9789264185050-en.
|