Conflict Minerals and Child Labor Due Diligence Provisions

Reporting
Due Diligence
- Due diligence is only required for companies that (a) transfer minerals or metals containing tin, tantalum, tungsten or gold from conflict and high-risk areas into free circulation in Switzerland or process them in Switzerland, or (b) offer products or services for which there is a reasonable suspicion that they were produced or provided using child labor.
- The import and processing of recycled metals is not subject to the due diligence and reporting requirements, regardless of any thresholds
- If the assessment shows that medium or high risks exist (risk classification «enhanced» or «heightened» according to the UNICEF Index), a company must confirm whether there is a reasonable suspicion of child labor in relation to a specific product or service.
- The company is only exempt from the due diligence and reporting obligations in the area of child labor if the examination does not reveal any concrete, justified suspicion of child labor.
Other

Human Rights
Environment
Other Social Matters
Broad ranging
- Due diligence is only required for metals from conflict areas and child labor

Large Companies
- Concerning conflict minerals companies below defined import and processing volumes are exempt
- Concerning child labour large companies are in scope, except if they are only active in low-risk countries (countries where UNICEF «Children’s Rights in the Workplace Index» recommends «basic» due diligence). Large companies are companies which, together with the domestic or foreign entities they control, have an annual average of at least 500 full-time equivalents in two consecutive financial years, and which, together with the domestic or foreign entities they control, exceed either a balance sheet total of CHF 20 million or sales revenue of CHF 40 million in two consecutive financial years fall within the scope of this law.
SME
- Concerning conflict minerals companies below defined import and processing volumes are exempt
- Concerning child labor SMEs are exempt, except if use of child labor is «obvious» (Article 8, Ordinance)
All sectors

Civil Liability
Facilitating Access to Justice
Other
- The due diligence obligation is not linked with any kind of judicial enforcement. For conflict minerals an audit company should assess if there are indications of non-compliance of the due diligence system.