Apple Inc.
APPLE INC (Form: SD, Received: 05/29/2014 16:31:19)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM SD

 

 

S PECIALIZED D ISCLOSURE R EPORT

 

 

Apple Inc.

(Exact name of registrant as specified in its charter)

 

 

 

California   000-10030   94-2404110

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1 Infinite Loop

Cupertino, California

  95014
(Address of principal executive offices)   (Zip Code)

D. Bruce Sewell

Senior Vice President,

General Counsel and Secretary

(408) 996-1010

(Name and telephone number, including area code, of the

person to contact in connection with this report.)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

x Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2013.

 

 

 


Section 1 – Conflict Minerals Disclosure

Items 1.01 and 1.02 Conflict Minerals Disclosure and Report, Exhibit

Conflict Minerals Disclosure

A copy of Apple Inc.’s (“Apple’s”) Conflict Minerals Report for the reporting period January 1, 2013 to December 31, 2013 is provided as Exhibit 1.02 hereto and is publicly available at investor.apple.com/sec.cfm. Apple’s determination and related disclosures relating to materials that may come from recycled and scrap sources are included in Apple’s Conflict Minerals Report and incorporated by reference herein.

Section 2 – Exhibits

Item 2.01 Exhibits

Exhibit 1.02 – Conflict Minerals Report for the reporting period January 1, 2013 to December 31, 2013

* * * * *


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

APPLE INC.

 

By:  

/s/ D. Bruce Sewell

    Date: May 29, 2014
  D. Bruce Sewell    
  Senior Vice President, General Counsel and Secretary    


EXHIBIT INDEX

 

Exhibit

Number

  

Description

1.02    Conflict Minerals Report for the reporting period January 1, 2013 to December 31, 2013

EXHIBIT 1.02

Apple Inc.

Conflict Minerals Report

Introduction

This Report has been prepared pursuant to Rule 13p-1 under the Securities Exchange Act of 1934, as amended, for the reporting period from January 1 to December 31, 2013.

This Report relates to the process undertaken for Apple products that were manufactured, or contracted to be manufactured, during calendar 2013 and that contain gold, columbite-tantalite (coltan), cassiterite, wolframite, tantalum, tin, and tungsten (collectively, the “Subject Minerals”).

These products are Apple’s iPhone, iPad, Mac, iPod, Apple TV, displays, and accessories. Third-party products that Apple retails but that it does not manufacture or contract to manufacture are outside of the scope of this Report.

Apple’s Conflict Minerals Program

The ethical sourcing of minerals is an important part of Apple’s mission to ensure safe and fair working conditions in its supply chain. Apple is determined to use “conflict free” minerals in its products.

Apple began investigating the uses of tantalum, tin, tungsten, and gold in its products in 2009. In 2010, Apple became one of the first companies to begin mapping its supply chain to the smelter or refiner level, in order to identify the smelters and refiners its suppliers use and to understand potential entry points into its supply chain for tantalum, tin, tungsten, and gold.

Rather than simply funneling its demand through a limited number of verified smelters or those that are not sourcing in the Democratic Republic of the Congo (“DRC”) or adjoining countries, Apple is focused on expanding the verified smelter and refiner base. Apple believes the best way to impact human rights abuses on the ground in the DRC is to have a critical mass of smelters verified as conflict-free, so that demand from other questionable sources is reduced. Apple is pushing smelters and refiners to comply with the Conflict-Free Sourcing Initiative’s Conflict-Free Smelter Program (the “CFSP”) or equivalent independent third-party audit programs, and Apple is holding accountable the smelters and refiners in its supply chain by publishing their names, countries, and CFSP participation status. In February 2014, Apple announced that all tantalum smelters in its supply chain had been designated “conflict free” by the CFSP or an equivalent independent third-party audit program. Apple is also continuing to increase the number of verified smelters and refiners for tin, tungsten and gold, and the majority of the smelters and refiners in Apple’s supply chain are either designated “conflict free” by the CFSP or an equivalent independent third-party audit program or are undergoing conflict minerals audits. Apple will keep up the pressure until all unaudited smelters and refiners are either certified or removed from Apple’s supply chain.


To drive economic development and create opportunities to source “conflict free” minerals from the DRC and adjoining countries, Apple has provided financial support for in-region programs, including the Conflict-Free Tin Initiative, KEMET’s Partnership for Social and Economic Sustainability, Solutions for Hope, and the Public-Private Alliance for Responsible Minerals Trade. Apple is also working with other non-governmental organizations, trade groups, government agencies, and others to promote change.

Apple requires all of its suppliers to adhere to its conflict minerals policy and supplier code of conduct. This policy and code of conduct are on Apple’s website, along with Apple’s annual supplier responsibility progress reports. Apple expects its suppliers to implement policies and due diligence measures in accordance with its conflict minerals standards, and the suppliers are required to make their polices available to Apple. If a supplier fails to comply with Apple’s conflict minerals policy, Apple will take measures up to and including termination of its relationship with the supplier.

Understanding Sources of Minerals

In order to understand the sources of the Subject Minerals used in its complex and multi-tiered supply chain, Apple has implemented an extensive survey program. Apple’s conflict minerals policy requires that all of its suppliers map their supply chains through all levels down to the smelters and refiners and report the results to Apple. Accordingly, between 2010 and 2013, Apple surveyed more than 400 suppliers.

Apple worked to verify the smelters and refiners that its suppliers reported by, among other things, making in-person site visits, engaging third-party investigators, and collaborating with industry partners. Apple has identified to date 205 different smelters and refiners of Subject Minerals for 2013. Apple continues to work with suppliers throughout its supply chain to re-validate, improve, and refine their reported information, taking into account supply chain fluctuations and other changes in status or scope and relationships over time.

Due Diligence

Design of Due Diligence

Apple designed its due diligence measures to conform to the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, including the related supplements on tantalum, tin, tungsten and gold. Apple believes that auditing smelters and refiners through the CFSP or equivalent independent third-party audit programs provides a reasonable basis for determining if the smelters and refiners process minerals originating from “conflict free” sources.

Due Diligence Measures Performed

Based on its assessment of survey responses received from suppliers, Apple implemented due diligence measures with approximately 400 survey respondents that reported use of Subject Minerals. These due diligence measures included engaging directly with smelters and refiners to drive them to comply with the CFSP or equivalent third-party audit program. Apple personnel also conducted on-site visits of smelters and refiners, and established action plans with particular smelters and refiners, to prepare for and undergo conflict mineral audits.

 

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Apple also directed its suppliers to ensure that their smelters and refiners undergo audits to verify compliance with the CFSP or equivalent audit program. Where particular smelters or refiners were unwilling to engage with Apple or seek compliance with the CFSP or equivalent independent third-party audit programs, Apple required its suppliers to terminate their relationships with those smelters and refiners.

Risk Mitigation and Future Due Diligence Measures

Apple will keep improving its due diligence measures by taking the following steps, among others:

 

    Continuing to drive suppliers to ensure that their smelters and refiners obtain a “conflict free” designation from an independent third-party auditor of Subject Minerals;

 

    Continuing to pressure smelters and refiners directly to become verified as having “conflict free” sources of Subject Minerals, or have them removed from Apple’s supply chain; and

 

    Continuing to drive its suppliers to obtain current, accurate, and complete information about their smelters and refiners of Subject Minerals.

Determination

Based on the information provided by Apple’s suppliers and its own due diligence efforts with known smelters and refiners through December 31, 2013, Apple believes that the facilities used to process the Subject Minerals in Apple products include the smelters and refiners listed in Annex I below.

Based on its due diligence efforts, Apple does not have sufficient information to conclusively determine the country of origin of the Subject Minerals in its products or whether the Subject Minerals are from recycled or scrap sources. However, based on the information provided by Apple’s suppliers, smelters, and refiners, as well as from other sources, Apple believes that the countries of origin of the Subject Minerals contained in its products include the countries listed in Annex II below, as well as recycled and scrap sources.

Of the 205 smelters and refiners of Subject Minerals identified for calendar 2013, 21 smelters and refiners were identified as sources of Subject Minerals from the DRC or adjoining countries. Of these 21, 17 were found CFSP-compliant. The 4 remaining smelters and refiners have not yet undertaken a third-party audit. Apple commissioned a third-party review of publicly available information and found no reasonable basis for concluding that any of these smelters and refiners sourced Subject Minerals that directly or indirectly finance or benefit armed groups. Apple will continue to drive these 4 smelters and refiners to become CFSP-compliant or, if necessary, will require its suppliers to remove them from its supply chain.

Apple has provided information as of the date of this Report. Subsequent events, such as the inability or unwillingness of any suppliers, smelters or refiners to comply with Apple’s conflict minerals policies, may affect Apple’s future determinations under Rule 13p-1.

 

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ANNEX I

 

Subject

Mineral

  

Smelter or Refiner Name

  

Country

Location of

Smelter or

Refiner

Gold    AIDA Chemical Industries Co., Ltd.    Japan
Gold    Allgemeine Gold- und Silberscheideanstalt A.G.    Germany
Gold    Almalyk Mining and Metallurgical Complex    Uzbekistan
Gold    AngloGold Ashanti Corrego do Sitio Minercao    Brazil
Gold    Argor-Heraeus SA    Switzerland
Gold    Asahi Pretec Corporation    Japan
Gold    Asaka Riken Co., Ltd.    Japan
Gold    Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    Turkey
Gold    Aurubis AG    Germany
Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    Philippines
Gold    Boliden AB    Sweden
Gold    Caridad    Mexico
Gold    Cendres & Metaux SA    Switzerland
Gold    Chimet SpA    Italy
Gold    Chugai Mining Co., Ltd.    Japan
Gold    Codelco    Chile
Gold    DOWA    Japan
Gold    ECO-System Recycling Co., LTD.    Japan
Gold    FSE Novosibirsk Refinery    Russia
Gold    Guangdong Jinding Gold Ltd.    China
Gold    Hangzhou the Fuchun River Smelting Co., Ltd.    China
Gold    Heimerle and Meule GmbH    Germany
Gold    Heraeus Ltd. Hong Kong    China
Gold    Heraeus Precious Metals GmbH & Co. KG    Germany
Gold    Hunan Chenzhou Mining Industry Co., Ltd.    China
Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    China
Gold    Ishifuku Metal Industry Co., Ltd.    Japan
Gold    Istanbul Gold Refinery    Turkey
Gold    Japan Mint    Japan
Gold    Jiangxi Copper Co., Ltd.    China
Gold    Johnson Matthey Inc.    United States

 

4


Gold    Johnson Matthey Ltd.    Canada
Gold    JSC Ekaterinburg Non-Ferrous Metal Processing Plant    Russia
Gold    JSC UralElectromed    Russia
Gold    JX Nippon Mining & Metals Co., Ltd    Japan
Gold    Kazzinc Ltd.    Kazakhstan
Gold    Kennecott Utah Copper LLC    United States
Gold    Kojima Chemicals Co., Ltd.    Japan
Gold    Kyrgzaltyn JSC    Kyrgyzstan
Gold    L’azurde Company For Jewelry    Saudi Arabia
Gold    Lingbao Jinyuan Tonghui Refinery    China
Gold    LS-Nikko Copper Inc.    Republic of Korea
Gold    Materion    United States
Gold    Matsuda Sangyo Co., Ltd.    Japan
Gold    Met-Mex Peñoles, S.A.    Mexico
Gold    Metalor Technologies (Hong Kong) Ltd    China
Gold    Metalor Technologies Ltd. (Suzhou)    China
Gold    Metalor Technologies SA    Switzerland
Gold    Metalor Technologies Singapore Pte Ltd    Singapore
Gold    Metalor USA Refining Corporation    United States
Gold    Mitsubishi Materials Corp.    Japan
Gold    Mitsui Mining and Smelting Co., Ltd.    Japan
Gold    Moscow Special Alloys Processing Plant    Russia
Gold    Nadir Metal Rafineri San. Ve Tic. A.S.    Turkey
Gold    Navoi Mining & Metallurgy Combinat    Uzbekistan
Gold    Nihon Material Co., Ltd.    Japan
Gold    Ohio Precious Metals    United States
Gold    Ohura Precious Metal Industry Co., Ltd.    Japan
Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” - (OJSC Krastvetmet)    Russia
Gold    OJSC Kolyma Refinery    Russia
Gold    Pamp SA    Switzerland
Gold    Prioksky Plant of Non-Ferrous Metals    Russia
Gold    PT Aneka Tambang (Persero) Tbk    Indonesia
Gold    PX Precinox SA    Switzerland
Gold    Rand Refinery (Pty) Ltd.    South Africa
Gold    Royal Canadian Mint    Canada

 

5


Gold    Sabin Metal Corp.    United States
Gold    Samwon Metals Corp.    Republic of Korea
Gold    Schone Edelmetaal    Netherlands
Gold    SEMPSA Joyeria Plateria, S.A.    Spain
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    China
Gold    SOE Shyolkovsky Factory of Secondary Precious Metals    Russia
Gold    Solar Applied Materials Technology Corp.    Taiwan
Gold    Sumitomo Metal Mining Co., Ltd.    Japan
Gold    Tanaka Kikinzoku Kogyo K.K.    Japan
Gold    The Great Wall Gold & Silver Refinery of China    China
Gold    The Refinery of Shandong Gold Mining Co. Ltd.    China
Gold    Tokuriki Honten Co., Ltd.    Japan
Gold    Tongling Nonferrous Metals Group Holdings Co., Ltd    China
Gold    Torecom    Republic of Korea
Gold    Umicore Brasil Ltda    Brazil
Gold    Umicore SA Business Unit Precious Metals Refining    Belgium
Gold    United Precious Metal Refining, Inc.    United States
Gold    Valcambi SA    Switzerland
Gold    Western Australian Mint trading as The Perth Mint    Australia
Gold    Xstrata Canada Corp.    Canada
Gold    Yantai Guoda Safina High-Advanced Refining Co. Ltd.    China
Gold    Yokohama Metal Co. Ltd    Japan
Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation    China
Gold    Zijin Mining Group Co. Ltd    China
Tantalum    Conghua Tantalum and Niobium Smeltery    China
Tantalum    Duoluoshan    China
Tantalum    Exotech, Inc.    United States
Tantalum    F&X    China
Tantalum    Gannon & Scott    United States
Tantalum    Global Advanced Metals    United States
Tantalum    H.C. Starck Gmbh    Germany
Tantalum    Hi-Temp Specialty Metals, Inc.    United States
Tantalum    JiuJiang JinXin Nonferrous Metals Co. Ltd.    China
Tantalum    JiuJiang Tanbre Co. Ltd.    China
Tantalum    Kemet Blue Powder    United States

 

6


Tantalum    Metallurgical Products India Pvt Ltd.    India
Tantalum    Mitsui Mining & Smelting    Japan
Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.    China
Tantalum    Plansee    Austria
Tantalum    RFH Tantalum Smeltry Co., Ltd    China
Tantalum    Shanghai Jiangxi Metals Co., Ltd    China
Tantalum    Solikamsk Metal Works    Russia
Tantalum    Taki Chemical Co., Ltd.    Japan
Tantalum    Tantalite Resources    South Africa
Tantalum    Telex    United States
Tantalum    Ulba    Kazakhstan
Tantalum    Zhuzhou Cement Carbide    China
Tin    Alpha    United States
Tin    CFC Cooperativa dos Fundidores de Cassiterita da Amazônia Ltda.    Brazil
Tin    China Rare Metal Material Co., Ltd.    China
Tin    China Tin Group    China
Tin    CNMC (Guangxi) PGMA Co. Ltd.    China
Tin    Cooper Santa    Brazil
Tin    CV Duta Putra Bangka    Indonesia
Tin    CV Gita Pesona    Indonesia
Tin    CV JusTindo    Indonesia
Tin    CV Makmur Jaya    Indonesia
Tin    CV Nurjanah    Indonesia
Tin    CV Serumpun Sebalai    Indonesia
Tin    CV United Smelting    Indonesia
Tin    EM Vinto    Bolivia
Tin    Estanho de Rondonia SA    Brazil
Tin    Fenix Metals    Poland
Tin    Gejiu Non-Ferrous Metal Processing Co. Ltd.    China
Tin    Gejiu Zi-Li    China
Tin    Gold Bell Group    China
Tin    Huichang Jinshunda Tin Co., Ltd    China
Tin    Kai Unita Trade Limited Liability Company    China
Tin    Linwu Xianggui Smelter Co    China
Tin    Magnu’s Minerais Metais e Ligas LTDA    Brazil

 

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Tin    Malaysia Smelting Corporation    Malaysia
Tin    Melt Metais e Ligas Ltda.    Brazil
Tin    Metallo Chimique    Belgium
Tin    Mineração Taboca S.A.    Brazil
Tin    Minmetals Ganzhou Tin Co., Ltd.    China
Tin    Minsur    Peru
Tin    Mitsubishi Materials Corp.    Japan
Tin    Novosibirsk Integrated Tin Works    Russia
Tin    O.M. Manufacturing (Thailand) Co., Ltd.    Thailand
Tin    OMSA    Bolivia
Tin    PT Alam Lestari Kencana    Indonesia
Tin    PT Artha Cipta Langgeng    Indonesia
Tin    PT Babel Inti Perkasa    Indonesia
Tin    PT Babel Surya Alam Lestari    Indonesia
Tin    PT Bangka Kudai Tin    Indonesia
Tin    PT Bangka Putra Karya    Indonesia
Tin    PT Bangka Timah Utama Sejahtera    Indonesia
Tin    PT Bangka Tin Industry    Indonesia
Tin    PT Belitung Industri Sejahetra    Indonesia
Tin    PT Billi Tin Makmur Lestari    Indonesia
Tin    PT Bukit Timah    Indonesia
Tin    PT DS Jaya Abadi    Indonesia
Tin    PT Eunindo Usaha Mandiri    Indonesia
Tin    PT Fang Di Multindo    Indonesia
Tin    PT HP Metals of Indonesia    Indonesia
Tin    PT Koba Tin    Indonesia
Tin    PT Mitra Stania Prima    Indonesia
Tin    PT Panca Mega    Indonesia
Tin    PT Prima Timah Utama    Indonesia
Tin    PT Refined Bangka Tin    Indonesia
Tin    PT Sariwiguna Binasentosa    Indonesia
Tin    PT Stanindo Inti Perkasa    Indonesia
Tin    PT Sumber Jaya Indah    Indonesia
Tin    PT Tambang Timah    Indonesia

 

8


Tin    PT Timah    Indonesia
Tin    PT Timah Nusantara    Indonesia
Tin    PT Tinindo Inter Nusa    Indonesia
Tin    PT Yinchendo Mining Industry    Indonesia
Tin    Rui Da Hung Business Co., Ltd.    Taiwan
Tin    Soft Metais, Ltda.    Brazil
Tin    THAISARCO    Thailand
Tin    VQB Mineral and Trading Group Joint Stock Co.    Vietnam
Tin    White Solder Metalurgia    Brazil
Tin    Yunnan Chengfeng Non-Ferrous Metals Co., Ltd.    China
Tin    Yunnan Tin Company, Ltd.    China
Tungsten    A.L.M.T. Corp.    Japan
Tungsten    ATI Tungsten Materials    United States
Tungsten    Chaozhou Xianglu Tungsten lndustry Co. Ltd.    China
Tungsten    Chongyi Zhangyuan Tungsten Co. Ltd    China
Tungsten    Dayu Weiliang Tungsten Co., Ltd.    China
Tungsten    FuJian JinXin Tungsten Co., Ltd.    China
Tungsten    Ganzhou Grand Sea W & Mo Group Co. Ltd    China
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    China
Tungsten    Global Tungsten & Powders Corp.    United States
Tungsten    H.C. Starck GmbH    Germany
Tungsten    Hunan Chenzhou Mining Group Co    China
Tungsten    Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.    China
Tungsten    Japan New Metals Co., Ltd.    Japan
Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.    China
Tungsten    Jiangxi Rare Earth & Rare Metals Tungsten Group Corp.    China
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    China
Tungsten    Kennametal Inc.    United States
Tungsten    Tejing (Vietnam) Tungsten Co. Ltd    Germany
Tungsten    Wolfram Bergbau und Hütten AG    Austria
Tungsten    Wolfram Co., CJSC    Russia
Tungsten    Xiamen Tungsten (H.C.) Co. Ltd    China
Tungsten    Xiamen Tungsten Co. Ltd    China
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    China
Tungsten    Zhuzhou Cemented Carbide Group Co. Ltd    China

 

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ANNEX II

Angola

Argentina

Australia

Austria

Belgium

Bolivia

Brazil

Burundi

Central African Republic

Chile

China

Colombia

Côte D’Ivoire

Czech Republic

Democratic Republic of the Congo

Djibouti

Egypt

Estonia

Ethiopia

France

Germany

Guyana

India

Indonesia

Ireland

Israel

Japan

Kenya

Laos

Luxembourg

Madagascar

Malaysia

Mongolia

Mozambique

Myanmar

Netherlands

Nigeria

Peru

Portugal

Republic of Congo

Republic of Korea

Russia

Rwanda

Sierra Leone

Singapore

South Africa

South Sudan

Suriname

Switzerland

Tanzania

Thailand

Uganda

United Kingdom

United States

Zambia

Zimbabwe

 

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