Audit Working Group for

Responsible Mineral Supply

Chains: Calendar and objectives

October 2014

Objectives of the Audit Working Group

Objective 1: Increase communication, awareness and understanding among working group members about different audit schemes, standards and concepts. If possible, work towards greater alignment of audits (without interfering with existing alignment efforts).

Objective 2: Raise knowledge of Forum members on auditing, including through organising webinars, conference calls or, if appropriate, distributing discussion papers or reports.

Objective 3: Define issues related to auditing which could be discussed at future Forum meetings.

2

Audit Working Group members (as of Aug 2014)

Government

• ICGLR• OECD• German BGR• European Union

Industry• Cronimet• PAMP• London Bullion Market

Association (LBMA)• DMCC• Responsible Jewellery

Council (RJC)

Other• RCS Global• KPMG• UL Responsible Sourcing• Ernst & Young

3

Civil Society• Alliance for Responsible

Mining (ARM)• Global Witness• Partnership Africa

Canada (PAC)• Transparency

International

Proposed work plan: Objective 1

Objective Date Theme / Webinar Led by

Objective 1:

Increase communication, awareness and understanding on audits; work towards greater alignment of audits (without interfering with existing alignment efforts)

13 May 2014

18 July 2014

9 Oct 2014

Dec 2014/Jan 2015

Mar 2015

May 2015

June 2015

Introduction to auditing and key terminology (relevant for mineral supply chain audits); certification vs assurance audits

ICGLR’s Regional Certification Mechanism (RCM) and Certified Trading Chains (CTC)+ view of practitioner (Michele, RCS on CTC audits)

Conflict Free Smelter (CFS) programmes+ view of practitioner / auditor / auditee: tbc

LBMA’s Responsible Gold Guidance and the WGC’s Conflict-Free Gold Standard + view of practitioner / auditor / auditee: tbc

DMCC’s Responsible Sourcing Guidance and the RJC’s Chain of Custody and Code of Practice+ view of practitioner / auditor / auditee: tbc

Fairmined and Fairtrade+ view of practitioner / auditor / auditee: tbc

Lessons learnt: towards auditor guidance?

Ruth Rosenbaum and Michèle Brülhart

Peter Karasira, Phillip Schütte, Uwe Naeher, and Michèle Brülhart

Michael Rohwer

Ruth Crowell, World Gold Council

Chirag Sharma, Fiona Solomon

Patrick Schein, Amy Ross

Estelle Levin

4

Proposed work plan: Objectives 2 & 3

5

Objective Date Theme / Webinar Led by

Objective 2: Raise knowledge of Forum members on auditing

Objective 3: Define issues related to auditing which could be discussed at future Forum meetings

13 May 2014

Nov 2014

Discuss 7th ICGLR-OECD-UN GoE Forum (26-28 May 2014) audit session: e.g. focus on awareness raising and knowledge sharing for May Forum; Side meeting of audit WG?

8th ICGLR-OECD-UN GoE Form for Responsible Mineral Supply Chains, Kinshasa, DRC (3-5 Nov 2014)

Ruth Crowell and Hannah Koep-Andrieu

tbc

Webinar format

• One-hour, webinar format, OECD Secretariat hosted and organised

• Representatives of the different initiatives to introduce their audit programmes; those initiatives that are not represented in the WG to be invited by Secretariat for the relevant session

• Practitioners (auditors and/or auditees) to comment on presentation and audit programme; if necessary, interveners to be invited for the relevant session.

• One theme for the comment / feedback on the different audit initiatives should always be how audits and auditors performance can be improved and harmonized.

• Each presentations should be no longer than 10 minutes• Focus on guiding questions (see next slide)

6

Guiding questions for presenters (1/2)

Introduction – general context and terminology – Type of audit? (certification/assurance)– Objective / Focus of the audit: downstream/upstream, who are the main

auditees, does the audit cover other parts of the supply chain to reach its objectives?

Audit process – Accreditation of the auditors: how are they chosen, individuals vs

companies– Cycle and timelines: frequency of the audits (when do follow-up audits

occur?), duration (how much time is allowed for the field and then analysis, compilation and review?)

– Governance of the audit: who supervises the auditors, who are the reports submitted to, do reports go through several layers of corrections?

Audit methodology – Reference documents and auditors guidelines: what is expected from an

auditor while conducting an audit (questions, documentation, reviews…), are there indications on how the initiative’s standards are looked into and tested?

– Standards used (ISO …)

7

Guiding questions (2/2)

Audit data – How many audits were carried out and published?– What provisions are there for public disclosure of audit reports?– How was the audit data shared with the audited entity or others

(e.g. others in the supply chain)? – In which countries have audits from the initiative been

conducted?– Are there any efforts in aligning or complementing other audits?

Recognition by Conflict-Free Smelter Initiative (CFSI) (if relevant)– What is the output of the audit that can be shared with CFSI

smelters?– What documents are auditees requested to keep on file that can

be shared with midstream companies?– Are there gaps preventing the audit from being recognized by

the CFSI?8

For further information

• For further information on this project and to keep informed of latest developments, please visit:mneguidelines.oecd.org/responsible-mineral-supply-chains-audits.htm

• If you have a question, please email:louis.marechal@oecd.org or tyler.gillard@oecd.org

9