The Craft Standards Committee and the Board of Directors of ARM have officially approved the third round of revisions that will amend the CRAFT Code 2.1. The final phase of the review that started in April 2023 is approaching, which will further align the CRAFT Code with the recommendations of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from CAHRAs (“OECD DDG”) and introduce specific requirements for CRAFT Schemes aiming to facilitate due diligence for the industry.
The objective of the proposed amendments to the CRAFT Code is to fill the gaps identified in the first OECD Alignment Assessment as part of the process for recognizing the Code as a framework standard for Upstream Mechanism by the Responsible Minerals Initiative (RMI). In volume 2 (requirements for ASM producers), the CRAFT team presented minor modifications to the Governance Bodies. These included adjustments in wording to harmonize the text with the terminology used in the OECD DDG, clarifications of the criteria regarding the CRAFT Report, and the role of the CRAFT Code as a management system. Three new requirements were introduced: (i) disseminating ASM producers’ performance information to stakeholders; (ii) traceability guidelines; and (iii) tax payment disclosure.
In volume 3 (CRAFT Schemes), a new chapter was introduced with requirements aligned with the OECD DDG, for those CRAFT Schemes aiming (optionally) to provide assurance and facilitate due diligence with industry stakeholders. A CRAFT Upstream Assurance Scheme indicates to each actor in the upstream supply chain (mineral suppliers, aggregators, or traders up to the refiner/processor level) what their due diligence obligations are and provides support for fulfilling such responsibilities. In addition, the CRAFT Upstream Assurance Scheme monitors the supply chain, implements assessments, facilitates the design of progressive improvement plans, and advises supply chain actors on plans to mitigate legal and reputational risks. We hope these guidelines facilitate a framework for collaboration between supply chain actors, local initiatives, and organizations with knowledge and experience working towards responsible ASM. At the same time, the pathway for full recognition of Upstream Mechanisms by RMI paves the way for scaling up collaboration between global supply chain actors and ASM, with a bottom-up approach.
This preliminary version of the CRAFT Code 2.1, approved by the Governance Bodies, will be presented by ARM and RESOLVE at the upcoming OECD Forum on Responsible Mineral Supply Chains in Paris. We invite forum attendees to join the session, “CRAFT Code Community of Practice” on Friday, May 24th from 11:15 to 13:15 CEST and discuss the various uses of the CRAFT Code 2.1 to advance responsible engagement and sourcing from ASM. The official version of the CRAFT Code 2.1 will be launched after the completion of the second OECD Alignment Assessment. Additional amendments may be introduced if necessary.
This interim review was made possible thanks to the European Partnership for Responsible Minerals (EPRM) funded project, Scalable Trade in Artisanal Gold (STAG) led by the Artisanal Gold Council, RESOLVE, and RMI.