EX-1.02 2 a14-14363_1ex1d02.htm EX-1.02

EXHIBIT 1.02

 

Conflict Minerals Report of Helen of Troy Limited

 

In accord with Rule 13p-1 under the Securities Exchange Act of 1934

 

This is the Conflict Minerals Report of Helen of Troy Limited (“Helen of Troy”) for calendar year 2013 (excepting conflict minerals that, prior to January 31, 2013, were located outside of the supply chain) in accord with Rule 13p-1 under the Securities Exchange Act of 1934 (“Rule 13p-1”).

 

1.                                      Introduction

 

Helen of Troy is a global designer, developer, importer, and distributor of an expanding portfolio of brand-name consumer products.  Helen of Troy was incorporated as Helen of Troy Corporation in Texas in 1968 and reincorporated as Helen of Troy Limited in Bermuda in 1994.  Helen of Troy has three segments: Personal Care, Housewares and Healthcare/Home Environment.  The Personal Care segment’s products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid, solid- and powder-based personal care and grooming products. The Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation and storage, cleaning, organization, and baby and toddler care products. The Healthcare/Home Environment segment focuses on health care devices, such as thermometers, blood pressure monitors, humidifiers and heating pads, water filtration systems, and small home appliances, such as air purifiers, portable heaters, fans, and bug zappers. All three segments sell their products primarily through mass merchandisers, drugstore chains, warehouse clubs, catalogs, e-commerce retailers, grocery stores, and specialty stores.  In addition, the Personal Care segment sells extensively through beauty supply retailers and wholesalers, and the Healthcare/Home Environment segment sells certain of its product lines through medical distributors and others through home improvement stores.  Helen of Troy purchases its products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States.

 

Helen of Troy contracts to have manufactured products that may contain gold, tantalum, tin and tungsten (“3TG”), such as houseware, healthcare/home environment, and personal care consumer products.  As these materials may be necessary to Helen of Troy’s products, the Company has embarked on a process to trace the origin of these metals to determine whether our sourcing practices support conflict or human rights abuses in the Democratic Republic of Congo (“DRC”) and the surrounding area (the “Covered Countries”). The intent of this Conflict Minerals Report (“CMR”) is to describe this due diligence process. Per Rule 13p-1, due diligence is used to support a company’s determination whether or not there is evidence that the smelters or refiners within its supply chain are sourcing minerals that are considered “DRC Conflict Free”, that have “not been found to be DRC Conflict Free”, or that are “DRC Conflict Undeterminable”.

 

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2.                                      Product Description

 

Helen of Troy contracts to have manufactured products that may contain gold, tantalum, tin and tungsten (“3TG”), such as houseware, healthcare/home environment, and personal care consumer products.

 

Helen of Troy’s suppliers were requested to use the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative Conflict Minerals Due Diligence Template (“EICC/GeSI Template”) to identify gold, tantalum, tin and tungsten smelters or refiners (“SORs”) and associated countries of origin.  Verified SORs were matched against available lists of processors that have been certified by internationally-recognized industry validation schemes, such as the CFSI Conflict-Free Smelter Program (“CFSP”), the London Bullion Market Association Good Delivery Program (“LBMA”), and the Responsible Jewelry Council Chain-of-Custody Certification (“RJC”).

 

Below is a summary of verified smelters(1):

 

SOR / Facility Name

 

Conflict-Free Status

 

Gold

 

 

 

Aida Chemical Industries Co. Ltd.

 

Unknown

 

Allgemeine Gold- und Silberscheideanstalt A.G.

 

CFSP; LBMA; RJC

 

Almalyk Mining and Metallurgical Complex (AMMC)

 

LBMA

 

AngloGold Ashanti Mineração Ltda

 

CFSP; LBMA

 

Argor-Heraeus SA

 

CFSP; LBMA

 

Asahi Pretec Corporation

 

CFSP; LBMA

 

Asaka Riken Co Ltd

 

Unknown

 

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

 

LBMA

 

Aurubis AG

 

LBMA

 

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

 

LBMA

 

Boliden AB

 

LBMA

 

Caridad

 

Unknown

 

Cendres & Métaux SA

 

LBMA

 

Chugai Mining

 

Unknown

 

Codelco

 

Unknown

 

Daejin Indus Co. Ltd

 

Unknown

 

DaeryongENC

 

Unknown

 

Do Sung Corporation

 

Unknown

 

Dowa

 

CFSP

 

FSE Novosibirsk Refinery

 

Unknown

 

Heimerle + Meule GmbH

 

Unknown

 

Heraeus Ltd Hong Kong

 

CFSP; LBMA

 

Heraeus Precious Metals GmbH & Co. KG

 

CFSP; LBMA

 

Hwasung CJ Co. Ltd

 

Unknown

 

Ishifuku Metal Industry Co., Ltd.

 

CFSP; LBMA

 

Istanbul Gold Refinery

 

CFSP; LBMA

 

Japan Mint

 

LBMA

 

Jiangxi Copper Company Limited

 

LBMA

 

Johnson Matthey Inc

 

CFSP; LBMA

 

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

 

LBMA

 

JSC Uralectromed

 

LBMA

 

JX Nippon Mining & Metals Co., Ltd

 

CFSP; LBMA

 

Kazzinc Ltd

 

LBMA

 

 


(1)  Verified smelters are those listed by the EICC.

 

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Kojima Chemicals Co. Ltd

 

CFSP

 

Korea Metal Co. Ltd

 

Unknown

 

Kyrgyzaltyn JSC

 

LBMA

 

L’ azurde Company For Jewelry

 

LBMA

 

LS-Nikko Copper Inc

 

CFSP; LBMA

 

Materion

 

CFSP

 

Matsuda Sangyo Co. Ltd

 

CFSP; LBMA

 

Metalor Technologies (Hong Kong) Ltd

 

CFSP; LBMA; RJC

 

Metalor Technologies SA

 

CFSP; LBMA; RJC

 

Metalor USA Refining Corporation

 

CFSP; LBMA; RJC

 

Met-Mex Peñoles, S.A.

 

LBMA

 

Mitsubishi Materials Corporation

 

CFSP; LBMA

 

Mitsui Mining and Smelting Co., Ltd.

 

CFSP; LBMA

 

Moscow Special Alloys Processing Plant

 

LBMA

 

Nadir Metal Rafineri San. Ve Tic. A.Ş.

 

LBMA

 

Navoi Mining and Metallurgical Combinat

 

LBMA

 

Nihon Material Co. LTD

 

CFSP; LBMA

 

Ohio Precious Metals LLC.

 

CFSP; LBMA

 

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)

 

LBMA

 

OJSC Kolyma Refinery

 

LBMA

 

PAMP SA

 

CFSP; LBMA

 

Pan Pacific Copper Co. LTD

 

Unknown

 

Prioksky Plant of Non-Ferrous Metals

 

LBMA

 

PT Aneka Tambang (Persero) Tbk

 

LBMA

 

PX Précinox SA

 

LBMA

 

Rand Refinery (Pty) Ltd

 

CFSP; LBMA

 

Royal Canadian Mint

 

CFSP; LBMA

 

Sabin Metal Corp.

 

Unknown

 

SAMWON METALS Corp.

 

Unknown

 

Schone Edelmetaal

 

LBMA

 

SEMPSA Joyeria Plateria SA

 

CFSP; LBMA

 

Shandong Zhaojin Gold & Silver Refinery Co. Ltd

 

LBMA

 

Solar Applied Materials Technology Corp.

 

CFSP; LBMA

 

 

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Sumitomo Metal Mining Co. Ltd.

 

CFSP; LBMA

 

Suzhou Xingrui Noble

 

Unknown

 

Tanaka Kikinzoku Kogyo K.K.

 

CFSP; LBMA

 

The Great Wall Gold and Silver Refinery of China

 

LBMA

 

The Refinery of Shandong Gold Mining Co. Ltd

 

LBMA

 

Tokuriki Honten Co. Ltd

 

CFSP; LBMA

 

Torecom

 

Unknown

 

Umicore Brasil Ltda

 

LBMA

 

Umicore SA Business Unit Precious Metals Refining

 

CFSP; LBMA

 

Valcambi SA

 

CFSP; LBMA

 

Western Australian Mint trading as The Perth Mint

 

CFSP; LBMA

 

Xstrata Canada Corporation

 

Unknown

 

Yokohama Metal Co Ltd

 

Unknown

 

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

 

LBMA

 

Zijin Mining Group Co. Ltd

 

LBMA

 

Tin

 

 

 

CNMC (Guangxi) PGMA Co. Ltd.

 

Unknown

 

Cookson

 

CFSP

 

Cooper Santa

 

Unknown

 

CV Duta Putra Bangka

 

Unknown

 

CV JusTindo

 

Unknown

 

CV Makmur Jaya

 

Unknown

 

CV Nurjanah

 

Unknown

 

CV Prima Timah Utama

 

Unknown

 

CV Serumpun Sebalai

 

Unknown

 

CV United Smelting

 

Unknown

 

EM Vinto

 

Unknown

 

Fenix Metals

 

Unknown

 

Geiju Non-Ferrous Metal Processing Co. Ltd.

 

CFSP

 

Gejiu Zi-Li

 

Unknown

 

Gold Bell Group

 

Unknown

 

Huichang Jinshunda Tin Co. Ltd

 

Unknown

 

Jiangxi Nanshan

 

Unknown

 

Linwu Xianggui Smelter Co

 

Unknown

 

 

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Liuzhou China Tin

 

Unknown

 

Malaysia Smelting Corporation (MSC)

 

CFSP

 

Metallo Chimique

 

Unknown

 

Mineração Taboca S.A.

 

CFSP

 

Minmetals Ganzhou Tin Co. Ltd.

 

Unknown

 

Minsur

 

CFSP

 

Novosibirsk Integrated Tin Works

 

Unknown

 

OMSA

 

CFSP

 

PT Alam Lestari Kencana

 

Unknown

 

PT Artha Cipta Langgeng

 

Unknown

 

PT Babel Inti Perkasa

 

Unknown

 

PT Babel Surya Alam Lestari

 

Unknown

 

PT Bangka Kudai Tin

 

Unknown

 

PT Bangka Putra Karya

 

Unknown

 

PT Bangka Timah Utama Sejahtera

 

Unknown

 

PT Belitung Industri Sejahtera

 

Unknown

 

PT BilliTin Makmur Lestari

 

Unknown

 

PT Bukit Timah

 

CFSP

 

PT DS Jaya Abadi

 

Unknown

 

PT Eunindo Usaha Mandiri

 

Unknown

 

PT Fang Di MulTindo

 

Unknown

 

PT HP Metals Indonesia

 

Unknown

 

PT Koba Tin

 

Unknown

 

PT Mitra Stania Prima

 

Unknown

 

PT Refined Bangka Tin

 

Unknown

 

PT Sariwiguna Binasentosa

 

Unknown

 

PT Stanindo Inti Perkasa

 

Unknown

 

PT Sumber Jaya Indah

 

Unknown

 

PT Tambang Timah

 

Unknown

 

PT Timah

 

Unknown

 

PT Timah Nusantara

 

Unknown

 

PT Tinindo Inter Nusa

 

Unknown

 

PT Yinchendo Mining Industry

 

Unknown

 

Thaisarco

 

CFSP

 

 

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White Solder Metalurgia

 

CFSP

 

Yunnan Chengfeng

 

Unknown

 

Yunnan Tin Company Limited

 

CFSP

 

Tungsten

 

 

 

A.L.M.T. Corp.

 

Unknown

 

ATI Tungsten Materials

 

Unknown

 

Chaozhou Xianglu Tungsten Industry Co Ltd

 

Unknown

 

China Minmetals Nonferrous Metals Co Ltd

 

Unknown

 

Chongyi Zhangyuan Tungsten Co Ltd

 

Unknown

 

Fujian Jinxin Tungsten Co., Ltd.

 

TI-CMC

 

Ganzhou Grand Sea W & Mo Group Co Ltd

 

Unknown

 

Global Tungsten & Powders Corp

 

TI-CMC

 

HC Starck GmbH

 

TI-CMC

 

Hunan Chenzhou Mining Group Co

 

Unknown

 

Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.

 

Unknown

 

Japan New Metals Co Ltd

 

Unknown

 

Jiangxi Rare Earth & Rare Metals Tungsten Group Corp

 

Unknown

 

Jiangxi Tungsten Industry Group Co Ltd

 

 

 

Kennametal Inc.

 

Unknown

 

Tejing (Vietnam) Tungsten Co Ltd

 

TI-CMC

 

Wolfram Bergbau und Hütten AG

 

TI-CMC

 

Wolfram Company CJSC

 

TI-CMC

 

Xiamen Tungsten Co Ltd

 

TI-CMC

 

 

 

TI-CMC

 

Tantalum

 

 

 

Conghua Tantalum and Niobium Smeltry

 

CFSP

 

Duoluoshan

 

CFSP

 

Exotech Inc.

 

CFSP

 

F&X

 

CFSP

 

Gannon & Scott

 

Unknown

 

Global Advanced Metals

 

CFSP

 

H.C. Starck GmbH

 

CFSP

 

 

6



 

HC Starck GmbH

 

TI-CMC

 

Hi-Temp

 

CFSP

 

JiuJiang JinXin Nonferrous Metals Co. Ltd.

 

Unknown

 

Kemet Blue Powder

 

CFSP

 

Mitsui Mining & Smelting

 

CFSP

 

Plansee

 

CFSP

 

RFH

 

CFSP

 

Solikamsk Metal Works

 

CFSP

 

Taki Chemicals

 

CFSP

 

Tantalite Resources

 

CFSP

 

Telex

 

CFSP

 

Ulba

 

CFSP

 

Zhuzhou Cement Carbide

 

CFSP

 

 

Countries of Origin for these SORs are believed to include:

 

Argentina

Australia

Austria

Bolivia

Brazil

Burundi

Canada

Chile

China

Democratic Republic of the Congo

Ethiopia

Ghana

Guinea

Indonesia

Japan

Kazakhstan

Kyrgyzstan

Laos

Malaysia

 

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Mali

Mexico

Mongolia

Mozambique

Namibia

Nigeria

Papua New Guinea

Peru

Philippines

Portugal

Russia

Rwanda

South Africa

South Korea

Spain

Taiwan

Tajikistan

Tanzania

Thailand

United Kingdom

United States

Uzbekistan

Zambia

 

3.                                      Reasonable Country of Origin Inquiry Description

 

Helen of Troy obtained the aforementioned product information by implementing a Reasonable Country of Origin Inquiry (“RCOI”).  Helen of Troy assembled an internal team comprised of representatives from Helen of Troy’s finance, legal and supply chain departments.  The team researched, interviewed and ultimately engaged Source Intelligence (“SI”), a third party information management service provider, to establish a system of controls and transparency over our supply chain. Helen of Troy’s Tier 1 suppliers were engaged by SI to collect information regarding the presence and sourcing of 3TG used in the products supplied to us.  Information was collected and stored using an online platform provided by SI.

 

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Supplier engagement followed these steps:

 

·                  An introduction email was sent to Tier 1 suppliers describing the compliance requirements and requesting conflict minerals information;

 

·                  Following the initial introductions to the program and information request, at least 3 reminder emails were sent to each non-responsive supplier requesting survey completion; and

 

·                  Suppliers who remained non-responsive to these email reminders were contacted by phone and offered assistance. This assistance included, but was not limited to, further information about the Conflict Minerals Compliance Program, an explanation of why the information was being collected, a review of how the information would be used and clarification regarding how the information needed could be provided.

 

At all times during the above steps, Helen of Troy’s internal team was able to monitor progress 24 hours per day/7 days per week via access to the Helen of Troy online platform provided by SI.

 

An escalation process was initiated with Helen of Troy for suppliers who continued to be non-responsive after the above contacts were made. The program utilized the EICC-GeSI Template for data collection. Supplier responses were evaluated for plausibility, consistency, and gaps, both in terms of which products were stated to contain or not contain necessary 3TG, as well as the origin of those materials. Additional supplier contacts were conducted to address issues including implausible statements regarding no presence of 3TG, incomplete data on EICC-GeSI Templates, responses that did not identify smelters or refiners, responses which indicated sourcing location without complete supporting information from the supply chain, and organizations that were identified as smelter or refiners, but not verified as such through further analysis and research.

 

4.                                      RCOI Results

 

A total of 217 Tier 1 suppliers were identified as potentially in-scope for conflict mineral regulatory purposes and contacted as part of the RCOI process. The survey response rate among these suppliers was 67%. Of these responding suppliers, 39% responded yes as to having one or more of the 3TG as necessary to the functionality or production of the products they supply to Helen of Troy.

 

5.                                      Design of Due Diligence Measures

 

Based on the RCOI results, Helen of Troy’s designed a due diligence process to conform to the Organization for Economic Cooperation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of

 

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Minerals from Conflict-Affected and High-Risk Areas and accompanying Supplements(2). It is important to note that the OECD Guidance was written for both upstream(3) and downstream(4) companies in the supply chain. As Helen of Troy is a downstream company in the supply chain, due diligence practices were tailored accordingly.

 

6.                                      Due Diligence Measures Implemented

 

Due diligence measures undertaken by Helen of Troy included the following:

 

·                  Adopt a conflict minerals policy that is publicly available at www.hotus.com

 

·                  Assemble an internal team to support supply chain due diligence

 

·                  Establish a system of controls and transparency over the 3TG supply chain

 

·                  Implement internal measures taken to strengthen company engagement with suppliers

 

·                  Identify the SORs in the supply chain

 

·                  Engage with SORs to obtain mine of origin and transit routes and assess whether SORs have carried out all elements of due diligence for responsible supply chains of minerals from conflict-affected and high-risk areas

 

·                  Design and implement a strategy to respond to supply chain matters

 

·                  Report findings to senior management

 

·                  Devise and adopt a management plan

 

·                  Undertake additional fact and risk assessments for risks requiring mitigation, or after a change of circumstances

 

·                  Report annually on its supply chain due diligence

 

7.                                      Steps to Improve Due Diligence

 

Helen of Troy will endeavor to continuously improve upon its supply chain due diligence efforts via the following measures:

 

·                  Continue to assess the presence of 3TG in its supply chain

 


(2)  OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Supplement on Tin, Tantalum and Tungsten and Supplement on Gold, 2013; http://www.oecd.org/daf/inv/mne/GuidanceEdition2.pdf.

(3)  Upstream companies refer to those between the mine and SORs. As such, the companies typically include miners, local traders, or exporters from the country of mineral origin, international concentrate traders and SORs.

(4)  Downstream companies refer to those entities between the SORs and the retailer. As such, the companies typically include metal traders and exchanges, component manufacturers, product manufacturers, original equipment manufacturers and retailers.

 

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·                  Clearly communicate expectations with regard to supplier performance, transparency and sourcing

 

·                  Increase the response rate for the RCOI process

 

·                  Continue to compare RCOI results to information collected via independent conflict free smelter validation programs such as the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative Conflict Free Smelter program

 

8.                                      Product Determination

 

Helen of Troy is unable to determine whether or not various components/materials, which contribute to products sold by its business segments, are DRC conflict free. Helen of Troy does not have sufficient information from suppliers or other sources to conclude whether the necessary conflict minerals originated in the Covered Countries and, if so, whether the necessary conflict minerals were from recycled or scrap sources, were DRC conflict free, or have not been found to be DRC conflict free.  On the basis of the due diligence measures taken above, Helen of Troy has determined that products sold by its business segments are “DRC Conflict Undeterminable”.

 

9.                                      Independent Private Sector Audit

 

Based on Helen of Troy’s declaration of “DRC Conflict Undeterminable”, a private sector audit is not required.

 

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