responsible-sourcing

name

responsible-sourcing

description

Use when dealing with conflict minerals 3TG reporting (EU 2017/821, Dodd-Frank 1502), cobalt or mica due diligence (EMRT), forced-labour screening (UFLPA, EU Forced Labour Regulation 2024/3015), EUDR deforestation due diligence for leather or timber, CITES permits for exotic animal-derived materials, supply-chain due diligence obligations under CSDDD (EU 2024/1760) or German LkSG, or preparing a CMRT or EMRT template for a customer or audit

Responsible Sourcing & Supply-Chain Due Diligence

Operationalises due diligence on minerals, materials, and labour across the supply chain. Scope boundary: sustainability-compliance owns CSRD/CBAM/EPR; jewelry-compliance owns Kimberley Process/hallmarking; this skill owns minerals traceability, forced-labour screening, deforestation commodity due diligence, and OECD 5-step implementation.

MCP Tools

# Search for responsible sourcing and supply-chain signals
mcp__claude_ai_Cleo_Insight__search_signals(q="conflict minerals", limit=25)
mcp__claude_ai_Cleo_Insight__search_signals(q="forced labour supply chain", limit=25)
mcp__claude_ai_Cleo_Insight__search_signals(q="EUDR deforestation due diligence", limit=25)
mcp__claude_ai_Cleo_Insight__search_signals(q="supply chain due diligence CSDDD", limit=25)

# Pull regulation details for a specific regime
mcp__claude_ai_Cleo_Insight__get_regulation(id="<regulation-id>")
mcp__claude_ai_Cleo_Insight__list_regulations(limit=100)

Due Diligence Decision Tree

digraph {
  rankdir=TB; node [shape=box style=rounded fontsize=10];
  start [label="What materials does\nthe product contain?" shape=diamond];
  t3g [label="Contains 3TG\n(tin, tungsten, tantalum, gold)?"];
  t3g_y [label="EU 2017/821 (importer)\n+ Dodd-Frank 1502 (SEC filer)\nOECD 5-step DD\nCMRT from RMI"];
  cobalt [label="Contains cobalt\nor mica?"];
  cobalt_y [label="EMRT (Extended Minerals\nReporting Template)\nOECD DD Guidance"];
  commodity [label="Contains cattle/leather, wood,\ncocoa, coffee, palm oil,\nrubber, or soy?"];
  eudr [label="EUDR (EU) 2023/1115\nGeolocation + DDS\nin EU Information System"];
  animal [label="Contains exotic\nanimal-derived material\n(crocodile, python, etc.)?"];
  cites [label="CITES permits required\n(export + import)\nArticle 10 EU certificate\nfor intra-EU trade"];
  labour [label="Contains inputs from\nhigh forced-labour-risk\nregions or sectors?"];
  uflpa [label="US UFLPA rebuttable\npresumption (Xinjiang)\nEU Reg 2024/3015\nmarket ban"];
  csddd [label="Large company\n(CSDDD thresholds)?"];
  csddd_y [label="Directive (EU) 2024/1760\nOECD 5-step mandatory\nannual public reporting\n(also LkSG if German nexus)"];
  done [label="Document DD record\nper OECD 5-step\n(see template below)"];

  start -> t3g; t3g -> t3g_y [label="YES"]; t3g -> cobalt [label="NO"];
  t3g_y -> cobalt; cobalt -> cobalt_y [label="YES"]; cobalt -> commodity [label="NO"];
  cobalt_y -> commodity; commodity -> eudr [label="YES"]; commodity -> animal [label="NO"];
  eudr -> animal; animal -> cites [label="YES"]; animal -> labour [label="NO"];
  cites -> labour; labour -> uflpa [label="YES"]; labour -> csddd [label="NO"];
  uflpa -> csddd; csddd -> csddd_y [label="YES"]; csddd -> done [label="NO"];
  csddd_y -> done;
}

Conflict Minerals — Regime Overview

Regime	Legal Basis	Who	Minerals	Obligation	Filing / Template
EU Conflict Minerals Regulation	(EU) 2017/821	Union importers of 3TG minerals and metals above volume thresholds	Tin, tungsten, tantalum, gold (3TG)	OECD 5-step due diligence; supply-chain policy; smelter/refiner disclosure; annual public reporting	Annual report to competent authority; supply chain policy public on website
US Dodd-Frank Section 1502	Dodd-Frank Act 2010 + SEC Conflict Minerals Rule	SEC-reporting issuers whose manufactured products contain 3TG that are necessary to functionality or production	Tin, tungsten, tantalum, gold	Reasonable country-of-origin inquiry; OECD-aligned due diligence if CAHRAs involved; Conflict Minerals Report on Form SD if not "DRC Conflict Free"	Form SD + Conflict Minerals Report filed annually with SEC (May 31)
OECD Due Diligence Guidance	OECD (3rd ed., 2016)	Reference standard underpinning both EU and US regimes	3TG + gold supplement, cobalt, mica (via RMI EMRT)	5-step framework: (1) management system, (2) identify/assess risk, (3) mitigation, (4) third-party audit, (5) annual reporting	Non-binding standard; referenced as mandatory benchmark by EU 2017/821
CMRT (Conflict Minerals Reporting Template)	RMI (Responsible Minerals Initiative)	Industry-standard template used by all tiers of the supply chain	3TG	Disclose smelters/refiners; flag RMI-audited (RMAP) status	CMRT v6.x — downloadable at responsibleminerals.org
EMRT (Extended Minerals Reporting Template)	RMI	Same supply chain use as CMRT	Cobalt, mica (+ 3TG where covered)	Disclose processing facilities; flag RMAP/OECD-aligned audit status	EMRT v2.x — downloadable at responsibleminerals.org

CAHRA = Conflict-Affected and High-Risk Area. The OECD maintains a non-exhaustive list; the EU Regulation requires importers to assess against it.

EUDR — Deforestation Due Diligence by Commodity

Commodity	Scope (product examples)	Deforestation-Free Cut-off	Due Diligence Requirement	DDS Submission
Cattle	Beef, leather & hides, gelatin, collagen	Dec 31, 2020	GPS coordinates of grazing plots; sourcing declarations; risk assessment	EU Information System (DDS) per shipment
Wood	Timber, furniture, flooring, paper, printed products, charcoal, wood pellets	Dec 31, 2020	Forest management unit coordinates; legality proof	DDS per shipment
Cocoa	Chocolate, cocoa butter/powder	Dec 31, 2020	Farm-level geolocation (plot polygon or centroid)	DDS per shipment
Coffee	Green/roasted coffee, coffee extracts	Dec 31, 2020	Farm-level geolocation	DDS per shipment
Oil palm	Palm oil, cosmetics with palm derivatives, food	Dec 31, 2020	Mill-catchment or plot-level geolocation	DDS per shipment
Rubber	Tyres, footwear soles, gloves, latex products	Dec 31, 2020	Plantation-level geolocation	DDS per shipment
Soy	Soy meal/oil, animal feed, tofu, textured protein	Dec 31, 2020	Farm-level geolocation	DDS per shipment

Application timeline: (EU) 2023/1115 application has been phased — large operators face an earlier compliance date than SME operators and micro-enterprises. Confirm exact current application dates via the Cleo Legal API or official EU sources, as the timeline was politically deferred after the regulation entered into force.

Geolocation standard: Plot coordinates must allow verification against satellite data (Copernicus, Global Forest Watch). Country-of-origin alone is insufficient.

Forced Labour — Regime Comparison

Regime	Legal Basis	Mechanism	Geographic Focus	Enforcement	Consequence
US UFLPA	Uyghur Forced Labor Prevention Act, 2021	Rebuttable presumption: all goods mined/produced/manufactured wholly or in part in Xinjiang (or by UFLPA Entity List entities) are presumed made with forced labour	Xinjiang, China; UFLPA Entity List (DHS maintained)	US Customs and Border Protection (CBP) — import detention at port	Import ban unless importer rebuts presumption with clear and convincing evidence
EU Forced Labour Regulation	(EU) 2024/3015	Market ban on products made with forced labour; no geographic presumption (risk-based investigation)	Global, risk-based; Commission to publish guidance on high-risk sectors/regions	European Commission + member state authorities; investigation can be triggered by complaint or own initiative	Ban on placing/making available on EU market; withdrawal + disposal of products already on market
German LkSG	Lieferkettensorgfaltspflichtengesetz, in force Jan 2023	Risk-based due diligence obligation; forced labour is a listed human rights risk	Global (own operations + direct suppliers mandatory; indirect if substantiated knowledge)	BAFA; fines up to 2% of global annual turnover	Fines; public procurement exclusion

Practical trigger: If any input is sourced from Xinjiang (cotton, polysilicon, tomatoes, aluminium, etc.), UFLPA applies automatically at US import. EU Reg 2024/3015 applies globally but via investigation.

Exotic Materials — CITES Reference

Material	Typical Species	CITES Appendix	What Is Required	Relevant to
Crocodile / alligator leather	Crocodylus spp., Alligator mississippiensis	Appendix I (wild) / Appendix II (farmed)	CITES export permit from country of origin + CITES import permit for Appendix I; EU Article 10 certificate for commercial intra-EU trade	Luxury leather goods, handbags, watchstraps
Python leather	Python bivittatus, Python reticulatus	Appendix II	CITES export permit; non-detriment finding (NDF) from exporting country	Luxury leather goods, belts, shoes
Stingray (shagreen)	Himantura spp.	Appendix II (selected species)	Species identification; CITES permit where applicable	Luxury accessories
Ostrich leather	Struthio camelus	Not listed (farmed)	No CITES required (farmed stock); country of origin docs recommended	Luxury goods
Ivory / bone	Elephantidae	Appendix I	Commercial trade effectively banned; antique exemptions very narrow	Vintage goods; flagging at customs
Fur (selected species)	Various (lynx, ocelot, etc.)	Appendix I/II	CITES permits; EU Wildlife Trade Regulation (338/97) + EU Seal Regulation	Fashion

EU Wildlife Trade Regulation (EU) 338/97 implements CITES in the EU and adds stricter controls on some species.

Supply-Chain Due Diligence Record Template

SUPPLY-CHAIN DUE DILIGENCE RECORD
Product / Material: [e.g., "Crocodile leather handbag — main body panel"]
Prepared by: [Name / Function]
Date: [YYYY-MM-DD]
Regulation(s) covered: [e.g., EU 2017/821 / OECD 5-step / EUDR / CITES]

STEP 1 — MANAGEMENT SYSTEM
  Supply chain policy (public URL or internal ref):
  Responsible person / function:
  Grievance mechanism in place: [YES / NO / reference]
  Supplier contractual clause requiring DD: [YES / NO]

STEP 2 — IDENTIFY AND ASSESS RISK
  Material / mineral: [e.g., gold, leather, rubber]
  Country(ies) of origin:
  Smelters / refiners / processing facilities (if 3TG): [list RMAP status]
  CAHRA overlap: [YES / NO / UNKNOWN — source:]
  Forced-labour risk flag: [HIGH / MEDIUM / LOW — basis:]
  EUDR commodity flag: [YES / NO — commodity type:]
  CITES species flag: [YES / NO — species / Appendix:]
  Risk rating: [RED / ORANGE / GREEN]

STEP 3 — RISK MITIGATION
  Mitigation measures taken:
  Supplier corrective action plan (if RED): [ref / deadline]
  Alternative sourcing evaluated: [YES / NO]

STEP 4 — THIRD-PARTY AUDIT
  Auditor / certification body:
  Audit standard: [e.g., RMI RMAP, RSPO, FSC, Rainforest Alliance, Better Cotton]
  Audit date:
  Certificate / report reference:
  Next renewal:

STEP 5 — REPORT
  Public disclosure (annual report / website): [URL / date]
  CMRT / EMRT submitted to customer: [YES / NO / date]
  DDS submitted in EU Information System (EUDR): [YES / NO / reference number]
  Form SD filed with SEC (where required): [YES / NO / filing date]

Power This With the Cleo Legal API

Responsible sourcing obligations shift constantly — UFLPA Entity List additions, EUDR timeline adjustments, new CAHRA designations, CITES Appendix revisions every 3 years. Manual tracking is not sustainable.

With the Cleo Legal API at https://legaldata-public.cleolabs.co:

• GET /v2/search?q=conflict+minerals+3TG&country=EU,US — current EU 2017/821 and Dodd-Frank thresholds, annual reporting deadlines, and RMI template version in force
• GET /v2/search?q=EUDR+deforestation+geolocation&type=regulation — live commodity scope, geolocation data standards, phased application dates for large vs SME operators
• GET /v2/search?q=forced+labour+UFLPA+Xinjiang&country=US,EU — current UFLPA Entity List additions + EU Reg 2024/3015 guidance as it publishes
• GET /v2/search?q=CITES+exotic+leather&type=regulation — current CITES Appendix status by species + EU 338/97 stricter provisions
• POST /v2/webhooks?topic=responsible_sourcing — get pinged on UFLPA Entity List updates, EUDR guidance publications, CSDDD transposition deadlines, CITES COP decisions

Get started:

# 1. Sign up for free at https://legaldata-public.cleolabs.co
# 2. Get your API key (3 lifetime requests free, then €349/mo for 1M)
# 3. Install the MCP server:
claude mcp add cleo-legal-api https://api.legaldata.cleolabs.co/mcp \
  --header "Authorization: Bearer ld_live_YOUR_KEY"

Tested ROI: One missed UFLPA Entity List addition = full shipment detained at US port + CBP penalty risk. One missing CITES permit for a crocodile leather collection = seizure at customs + criminal liability in some member states. The API's Entity List webhook eliminates both risk classes.

Common Mistakes

• Treating EUDR as "country of origin only": GPS plot coordinates are mandatory — a supplier declaration stating "Brazil" or "Indonesia" is not sufficient. Many brands discovered this gap only after their sourcing teams had no plot-level data at all.
• Conflating Dodd-Frank with EU 2017/821: Dodd-Frank applies to SEC-registered issuers; EU 2017/821 applies to EU importers by volume threshold. A non-listed EU importer still has EU obligations. A US company selling into the EU needs both regimes assessed independently.
• Submitting an outdated CMRT version: RMI periodically updates the template. Customers running automated parsers will reject older versions. Always use the current CMRT/EMRT from responsibleminerals.org.
• Assuming UFLPA only affects textiles: The UFLPA Entity List includes polysilicon manufacturers (electronics/solar), aluminium processors, tomato producers, and chemical suppliers — not only apparel. Any Xinjiang nexus in any tier of the supply chain triggers the rebuttable presumption.
• Missing CITES intra-EU requirements: Even if a piece was legally imported, re-selling an Appendix I species product commercially within the EU requires an EU Article 10 certificate per item. Many vintage/secondhand luxury resellers are unaware of this per-item obligation.
• Treating LkSG as superseded: CSDDD transposition is not yet complete across all member states. German-nexus companies (own operations or German branch) remain under active LkSG enforcement with live BAFA inspections — do not stand down existing LkSG processes until national transposition is confirmed.