OECD Annex II Risks

What are the OECD Annex II Risks?

There are risks of significant adverse impacts that may be associated with extracting, trading, handling and exporting minerals globally, and especially from conflict-affected and high-risk areas. The RMI prioritizes, in its standards and programming, risks highlighted in the OECD Due Diligence Guidance Annex II, commonly referred to as Annex II Risks, including risk of conflict, severe human rights abuses, money laundering and mineral fraud as described below. The RMI also recognizes a broader set of environmental, social and governance (ESG) risks and issues and is leading new efforts to address those risks. Read about the emerging risk areas the RMI is working on. Further information on the Annex II Risks can be found on the OECD website, in the OECD Due Diligence Guidance  and in the additional simplified guide.

OECD Annex 2 Risks 

Risks can be broken down into three overarching criteria: Human Rights, Conflict, and Good Governance

Serious abuses associated with the extraction, transport or trade of minerals

Direct or indirect support to non-state armed groups

Public or private security forces

Bribery and fraudulent misrepresentation of the origin of minerals

Money laundering

Payment of taxes, fees and royalties due to governments

5 Step Framework for Risk-Based Due Diligence

The OECD Due Diligence Guidance Third Edition (OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas) provides a globally accepted standard for supply chain due diligence. The Guidance recommends 5 steps for developing an effective internal management system to track and manage risks in your minerals supply chain. The RMI enables companies at every stage to identify risks in their supply chain and to implement this due diligence process with the tools we make freely available.

OECD Action Step RMI Tools and Resources
STEP 1

Establish Strong Company Management Systems

Due Diligence Guidance Documents and Checklist

Grievance Mechanism and Minerals Grievance Platform

Online Training Platform – eLearning Academy

Model Supply Chain Policy
STEP 2

Identify and Assess Risks in the Supply Chain

CMRT and MRT + Guide

Online Smelter Database

Public Conformant Smelter and Refiners list

Country of Origin and Risk Information (RCOI)

Guidance on developing a procedure to Identify CAHRAs

Supply Chain Mapping Tool

Country Risk Assessment Map Tool 

Plausible Mineral Production Data

Risk Readiness Assessment (RRA)
STEP 3

Respond to and Manage Risks

Sample on-the-ground Assessment Questionnaire

Funding Mechanism: Upstream Smelter Due Diligence Fund

Risk Mitigation Tool

STEP 4

Audit of Smelter and Refiner Due Diligence Practices

Responsible Minerals Assurance Process (RMAP) Standards and Tools

  • Gold Standard, Revision 2017
  • Tin and Tantalum Standard, Revision 2017
  • Tungsten Standard, Revision 2017
  • Cobalt Standard, Revision 2018

Downstream audit program

Funding mechanism: Initial Audit Fund

Smelter Engagement Activities / Outreach, Technical Assistance

Auditee and Auditor Training (in-person and online)

RMI Recognition Process and Cross-Recognition

STEP 5

Publicly Report on Due Diligence Actions

Five Practical Steps for Conflict Minerals Due Diligence and SEC Disclosure

RMI and GRI Reporting Obligations Comparison (EU, US)

Due Diligence (Step 5) Report Writing Guidance

Smelter and Refiner Step 5 Due Diligence Reports