Economic Impact Analysis on Dodd-Frank Section 1502 Concerning Conflict Minerals

On October 17, 2011, Tulane University’s Payson Center published the white paper entitled: “A Critical Analysis of the SEC and NAM Economic Impact Models and the Proposal of a 3rd Model in view of the Implementation of Section 1502 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.” Prepared by doctoral student, Chris Bayer with contributions from faculty member, Dr. Elke de Buhr, this white paper sought to provide a detailed projection of what the effort required for companies to implement the Dodd-Frank Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which mandates company disclosure of the mineral origin contained in their products.

Coverage of the white paper by industry groups and news agencies was wide, featured by groups including:

In successive comments to the SEC, Payson’s white paper was subject to critique by Claigan and Assent, yet its findings were referenced by Industry associations including the National Association of Manufacturers (NAM), IPC, and the National Retail Federation. Indeed, in the final rule preamble discussion of its revised economic impact analysis, SEC stated that they found “the most useful frameworks for considering costs were provided by the manufacturing industry association [National Association of Manufacturers] and university group [Payson] commentators.” The study was also referenced in recent hearings on the law held by the House Financial Services Subcommittee.

Subsequent surveys

April 2015: Dodd-Frank Section 1502: 3TG Market Impact Survey 2015

This survey follows up Tulane’s Dodd-Frank Section 1502: Post-Filing Survey 2014, which targeted issuers. Now the focus is on the rest of the upstream and downstream 3TG supply chain. The answers companies provide will help all stakeholders concerned better understand the impact of Dodd-Frank Section 1502 on the global 3TG-based markets, provide affected industries with benchmarks, and reveal good practice in conflict minerals program implementation.

June 2014: A Retrospective Dodd-Frank Section 1502 Conflict Mineral Survey

The first round of Form SD filing represents the first major compliance milestone.  Working in an inclusive manner, with a diverse group of stakeholders, on June 8th, 2014, Chris Bayer, a newly conferred International Development PhD,  who helped author the 2011 Economic Impact Analysis worked with the Payson Center of International Development at Tulane University Law School to launch a retrospective survey inviting companies affected by the law to take stock and anonymously share their experience. This was an anonymous, company-level survey that sheds light on the economic impact of Dodd-Frank Section 1502 as well as the nuts and bolts employed to comply. Preliminary study results were released in a video presentation format on October 1, 2014.

July 2013: A Survey of Corporate Efforts and Resources Utilized to Comply with Dodd-Frank Section 1502

While the paper’s projection model was based on the best available evidence we had at the time of the proposed rule, and thus fulfilled its purpose in providing an ex ante economic impact projection, a survey of companies affected by the law and currently implementing relevant measures was conducted in July of 2013 which allowed an ex post picture to be sketched at the macro-level of private sector resources brought to bear in compliance with the law. Finding from this survey were presented at Global Conflict Minerals Symposium in Los Angeles, CA on August 22, 2013.

Would you like to receive our eNewsletter?

Delivered to your inbox every two weeks, The Monitor covers a wide variety of topics – from profiles of our researchers, faculty, staff and students, to in-depth looks at some of our projects, as well as new academic programming and initiatives. View the archive...

Subscribe to The Monitor