Conflict Minerals Policy Statement

Overview

Xylem supports ending the violence and human rights violations related to the mining of certain minerals from a location described as the “Conflict Region,” which is situated in the eastern portion of the Democratic Republic of the Congo (DRC) and surrounding countries. As a result of this violence and human rights violations, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 directed the U.S. Securities and Exchange Commission (SEC) to adopt rules to implement disclosure requirements related to “conflict minerals”. Conflict minerals refer to tin, tantalum, tungsten and gold (referred to as “3TG”), regardless of where they are sourced, processed or sold. 

The SEC’s conflict minerals disclosure rules apply to manufacturers that file periodic reports with the SEC and that manufacture or contract to manufacture products containing conflict minerals that are necessary to the functionality or production of those products. These manufacturers are required to make inquiries as to the origin of these conflict minerals and file a report with the SEC to describe and disclose the results of their inquiries. This requirement is intended to further the humanitarian goal of ending violent conflict in the DRC and the surrounding countries, which has been partially financed by the exploitation and trade of conflict minerals.

Our conflict minerals supply chain due diligence program is designed to conform, in all material respects, to the framework in The Organization for Economic Co-operation and Development's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We continue to evolve our program in alignment with the OECD Guidance’s five-step framework:

1. Establish strong management systems to oversee conflict minerals due diligence.
2. Identify and assess risks in our supply chain.
3. Develop and implement a strategy to mitigate identified risks.
4. Conduct independent third-party audits of our due diligence practices.
5. Publicly report on our supply chain due diligence efforts.

This structured approach supports responsible sourcing and enhances transparency across our supply chain. Consistent with our approach to risk management, we strive to continuously improve our annual diligence process and management of associated risks.

Our commitments 

1. To support the aims and objectives of the SEC rules and regulations related to the supply of conflict minerals.
2. To uphold our commitment that any tin, tantalum, tungsten or gold we procure through our supply chain that has originated from the Conflict Region has been certified as “conflict-free.”
3. To comply with these requirements, including through standardized reporting using the Responsible Minerals Initiative’s (RMI) Conflict Minerals Reporting Template (CMRT). Additionally, we share our annual CMRT report with customers upon their request.
4. To ask our suppliers to undertake reasonable due diligence in alignment with the OECD Guidance to see that the specified metals within their supply chains are only sourced from:
• Mines and smelters outside the Conflict Region or
• Mines and smelters that have been certified by an independent third party as conflict-free if sourced from within the Conflict Region.
•  To address any grievance from a supplier or other stakeholder regarding our approach to conflict minerals via our Supplier Ombudsperson Program or our internal Ombudsperson Program (see our Business Partner & Supply Partner Code of Conduct and our Code of Conduct)

If we discover the use of conflict minerals in any material, parts or components we procure for use in our products that are sourced from smelters or refiners that are not considered to be conflict-free, we reserve the right to take appropriate actions, including discontinuing purchases from the supplier.

Next steps

We remain focused on the responsible sourcing of 3TGs by advancing the implementation of our conflict minerals policy and strengthening our partnerships with new and existing suppliers to maintain compliance with our policy as well as all applicable laws and regulations. We will continue to advance our program in alignment with the OECD Guidance’s five-step framework.

Matthew Pine
President and Chief Executive Officer
Xylem Inc.