Dodd-Frank Act

Strengthening financial market stability

Stricter risk management standards are intended to improve the stability of the financial markets.

Consumer protection

The Dodd-Frank Act promotes consumer protection by requiring transparency in financial products and combating abuse.

Combating conflict minerals

A key provision concerns the disclosure of the use of conflict minerals. The aim is to source raw materials from conflict-free sources and to stop the financing of armed conflicts in the Democratic Republic of the Congo and neighbouring regions.

For the rubber and plastics industry, the Dodd-Frank Act has far-reaching implications, particularly with regard to the use of conflict minerals.

Supply chain responsibility

Companies must monitor their supply chains and disclose whether their products contain conflict minerals. This considerably increases the documentation effort.

Compliance with international standards

The OECD Due Diligence Guidance serves as the basis for excluding conflict minerals from the supply chain and meeting the requirements of the Dodd-Frank Act.

Reputation management

Companies that comply with the Dodd-Frank Act strengthen their reputation and promote ethical supply chains.

Companies that use conflict minerals and are listed on a US stock exchange must submit a Conflict Minerals Report every year.

Requirements for the Conflict Minerals Report

• Due diligence: the supply chains must be reviewed.

• Disclosure obligation: the results are filed with the US Securities and Exchange Commission (SEC) on Form SD.

• Independent audit: some companies must have their reports audited externally.

Consequences of non-compliance

Companies that do not meet the requirements risk fines and damage to their reputation. They may also be excluded from the supply chains of major customers.

In the rubber and plastics industry, conflict minerals can occur in coatings, pigments or additives. Companies must ensure that these materials are conflict-free.

Conflict mineral	Use in the rubber and plastics industry	Challenges
Tin	Coatings, alloys, as a stabiliser in PVC	Verifying the origin
Tantalum	Capacitors in electronic devices	Transparency in global supply chains
Tungsten	Hardener for tools, wear protection	Difficult supply chain traceability
Gold	Contacts and conductors in electronic components	High documentation requirements

Challenges

• Supply chain complexity: tracing the origin of raw materials is often difficult.

• Increased effort: complying with the reporting obligations requires additional resources.

• Legal risks: non-compliance can lead to sanctions and legal consequences.

Opportunities

• Improved transparency: the Dodd-Frank Act strengthens the trust of customers and partners.

• Sustainability: conflict-free materials promote ethical supply chains.

• Competitive advantage: compliance can create a lead over competitors.

• Does the Dodd-Frank Act also affect companies outside the USA? Yes, particularly companies with global supply chains or business relationships with US-listed companies.

• Which industries are particularly affected? Electronics, automotive, construction and the elastomer and plastics industries, as they frequently use conflict minerals.

• How can compliance be ensured? By introducing due diligence procedures, supplier audits and cooperation with certified conflict-free mines.

• What are the benefits of complying with the Dodd-Frank Act? In addition to legal compliance, companies promote their sustainability and strengthen the trust of customers and partners.

The Dodd-Frank Act sets high standards for transparency and ethical responsibility in global supply chains. Companies in the rubber and plastics industry are required to monitor their supply chains carefully and exclude conflict minerals. At the same time, compliance with the law offers the opportunity to promote sustainable business models and strengthen the trust of customers and partners.