EX-1.01 2 exhibit101.htm CONFLICT MINERALS REPORT Exhibit 1.01



Exhibit 1.01

Avaya Inc. Conflict Minerals Report
Reporting Period: January 1, 2013 - December 31, 2013
Avaya Company Overview
Avaya Inc. (“Avaya”, the “Company,” “we,” “us” or “our”) is a leading global provider of real-time business collaboration and communications products and services that bring people together with the right information at the right time in the right context, enabling businesses to improve their efficiency and quickly solve critical business challenges. Our products and services are designed to enable business users to work together more effectively internally and with their customers and suppliers, to accelerate decision-making and achieve enhanced business outcomes. These industry leading products and services are also designed to be flexible, reliable and secure, enabling simplified management and cost reduction while providing a platform for next-generation collaboration from Avaya.
We are highly focused on serving our core business collaboration and communications markets with open fit-for-purpose products and distributed software services and support models. We shape our portfolio to meet the demands of customers today and in the future. Our products are aimed at large enterprises, mid-market businesses and government organizations. We offer our products in four key business collaboration and communications categories:
•
Clients and Devices - which includes Unified Communications Desktop, Unified Communications for Mobile, Contact Center Agent Experience, Contact Center Supervisor Experience, Desk Phones, Wireless Phones, Conference Phones, and Video Endpoints;
•
Unified Communications and Contact Center Applications - which includes Conferencing, Messaging, Mobility, Contact Center Interaction, Contact Center Experience, and Contact Center Performance;
•
Collaboration Platforms - which includes Core Platform, Service Creation, Enterprise and Government Systems, Small/Mid-Market Systems, Management, Security, Video Infrastructure, and Gateways and Servers; and
•
Networking - which includes Unified Access, Edge, Wireless LAN, and Core & Center Switching.
These four categories are supported by Avaya’s portfolio of services including product support, integration, professional services and Cloud and managed services. These services enable customers to optimize and manage their communications networks worldwide and achieve enhanced business results.
Avaya’s Conflict Minerals Disclosures for the Period of January 1, 2013 to December 31, 2013
On June 2, 2014, the Company filed Form SD with the US Securities and Exchange Commission (the “SEC”) pursuant to Rule 13p-1of the Securities Exchange Act of 1934, as amended, and the instructions to Form SD (together, the “Regulations”). Pursuant to the Regulations, the Company conducted a reasonable country of origin inquiry (“RCOI”) with respect to “conflict minerals” (as defined in the Regulations) that are used in the Company’s products where the Company believes they are necessary to the functionality or production of such products; provided, however, the RCOI was limited to those products (i) manufactured by the Company or contracted by the Company to be manufactured and (ii) required to be reported herein (collectively, the “Products”).
Background on Avaya’s Conflict Minerals Program
The Avaya Conflict Minerals Program (the “Program”) includes Avaya’s Conflict Minerals Policy (located at
http://www.avaya.com/usa/about-avaya/our-company/corporate-responsibility/marketplace) and related Standard Operating Procedures (“SOP”) that together define Avaya’s process for maintaining the Program according to the following eight (8) steps:
1.
Determination of Product Applicability
2.
The RCOI
3.
Evaluation of Supplier Responses
4.
Avaya’s Due Diligence Program
5.
Internal Reporting of Results and Supplier Risk Mitigation
6.
Third-party Audit of Avaya’s Due Diligence Process
7.
Annual disclosure on the SEC Form SD, and if necessary the Conflict Minerals Report (CMR)
8.
Annual Review of the Conflict Minerals Policy, Standard Operating Procedures, and the Supplier Risk Assessment.
Calendar Year 2013 Results
Following the Company’s identification of Products covered by the Regulations, the Company conducted its RCOI. The scope of the RCOI included Avaya Electronic Manufacturing Services (“EMS”) providers, original design Manufacturers (“ODMs”),




and Avaya-controlled suppliers (collectively, with the EMS providers and the ODMs, the “Suppliers”) of parts and components used in Avaya-designed hardware Products that were sold to customers during calendar year 2013. Finished products obtained from original equipment manufacturers (“OEMs”) in which case the designs were not influenced by Avaya, (i.e. products which are purchased and included in Avaya solutions without modification or additional assembly), were excluded from the scope of the RCOI.
The RCOI was conducted via a survey distributed to the Suppliers that was based on the industry standard Conflict Free Sourcing Initiative (CFSI) Conflict Minerals Reporting Template (also referred to as the “EICC-GeSI survey template”). Survey responses that were received were analyzed for, among other things, completeness of information provided, information regarding smelters or refiners and certification status. The CFSI Conflict Free Smelter Program (“CFSP”) smelter lists were used to validate responses received.
Due Diligence Design
The RCOI and related due diligence were performed using the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, (2nd Edition, copyright 2013). The Avaya process consisted of the following due diligence elements:
1.
A conflict minerals management program that utilizes the industry standard CFSI template and smelter or refiner lists from the CFSI, the London Bullion Market Association (LBMA), and Responsible Jewelry Council (RJC) as key tools to determine the origin of the minerals used in our products.
2.
Assessment of supplier survey template responses against defined tools and criteria to identify Avaya’s supply chain risks.
3.
A defined strategy for responding to risks identified in the supply chain, including an ultimate exit strategy of a supplier relationship if corrective action is not executed after a reasonable period of time.
4.
To the extent required by the Regulations, provisions to have an independent private sector audit conducted of our process if the RCOI and due diligence identify minerals sourced from the designated conflict regions which would make our product conclusively conflict-free or non-conflict-free.
5.
Annual reporting of due diligence activities in accordance with applicable SEC rules.

Avaya Products Containing 3TG Minerals
The Avaya telecommunications Products consist of gateways, routers, servers, network infrastructure equipment, and endpoints, all of which were identified as containing the “3TG” minerals not from recycled or scrap sources and are therefore in scope for the purposes of this Rule.
Facilities used to Process Conflict Minerals and the Country of Origin of those used in the Products
As part of the survey process, Avaya’s suppliers provided us a list of the smelters or refiners (SORs) that they used to obtain 3TG minerals. The responses received from Avaya’s suppliers during the RCOI were provided at the supplier company level, instead of being specific to the product the supplier sells to Avaya. As such, Avaya cannot confirm that the SORs identified actually provide conflict minerals for a specific product. In addition, some SORs identified by the suppliers were not listed on any certified smelter or refiners lists by the CFSI, the LBMA, or the RJC and could not be confirmed as actual SORs through web research.
The following chart summarizes Avaya’s RCOI results as it relates to the processing of the 3TG minerals used in the manufacture of the Products, to the extent determinable as a result of the RCOI.
Smelters or Refiners Identified by Avaya Suppliers
Gold
Tantalum
Tin
Tungsten
Count of Smelters that are CFSI Conflict Free Smelters
38
22
10
8
Count of Smelters NOT on the CFSI Conflict Free Lists
58
5
61
20
Avaya’s suppliers identified many SORs as processing 3TG minerals used in the parts and/or components contained in Avaya Products. However, only 96 of the hundreds of SORs identified by the suppliers could be confirmed as SORs based on their presence on the CFSI Conflict Free Smelter (CFS) list or the CFSP list. Those 96 SORs and their country of origin are provided in the list included as Appendix A of this Report.
Effort to Determine the Mine or Location of Origin
Avaya used the EICC-GeSI survey template (and its associated list of smelters, including those in the CFSP) as the platform for its Suppliers to communicate information regarding the presence of 3TG and country of origin data for Products supplied to Avaya. Survey responses were reviewed for completeness of information and evaluated based upon level of risk posed to Avaya and its Program (e.g., was the declared smelter on the CFSI list, does the Supplier have key management systems in place, etc.). The




review helped to identify those Suppliers for which additional due diligence was required, and additional information was sought from those Suppliers as appropriate.
Actions Taken / to be Taken by the Next Conflict Minerals Reporting Period to Mitigate the Risk of Conflict Minerals Sourcing Benefiting Armed Groups
The Program specifies that the Company may choose to implement one or more of the following actions with respect to suppliers in its supply chain to help mitigate the risks associated with the potential sourcing of conflict minerals:
•
Require completion of the CFSI survey in applicable Requests For Quote (RFQ);
•
Require completion of the CFSI survey from applicable new suppliers upon award of contract (if not completed as part of an RFQ); and
•
Develop corrective action plans for non-responsive suppliers or suppliers that provide responses to CFSI surveys that are incomplete or otherwise insufficient to enable the Company to determine the sources of the minerals used in its Products.
With respect to the specific findings of the RCOI conducted for the calendar year 2013, the Company’s RCOI and due diligence activities identified suppliers who could potentially pose a risk to the Company’s Program. Based on its findings, the Company notified those Suppliers in writing of the steps necessary to correct potential areas of non-compliance with the Company’s policies and the Program.





APPENDIX A


List of Reported Smelters/Refiners Facilities Processing Minerals Used in Avaya Products and Confirmed on the Conflict Free Smelter (CFS) and Conflict Free Smelter Program (CFSP) Lists

Metal (*)
Smelter Reference List (*)
Standard Smelter Names (*)
Smelter Facility Location:
Country (*)
Smelter ID
In EICC
CFS/CFSP
List
Gold
Mitsubishi Materials Corporation
Mitsubishi Materials Corporation
JAPAN
1JPN039
CFS
Gold
Ohio Precious Metals LLC.
Ohio Precious Metals LLC.
UNITED STATES
1USA043
CFS
Gold
Royal Canadian Mint
Royal Canadian Mint
CANADA
1CAN050
CFS
Gold
Metalor USA Refining Corporation
Metalor USA Refining Corporation
UNITED STATES
1USA037
CFS
Gold
Johnson Matthey Inc
Johnson Matthey Inc
UNITED STATES
1USA025
CFS
Gold
United Precious Metal Refining, Inc.
United Precious Metal Refining, Inc.
UNITED STATES
1USA076
CFS
Gold
Umicore Precious Metals Refining
Umicore SA Business Unit Precious Metals Refining
BELGIUM
1BEL062
CFS
Gold
Asahi Pretec Corp
Asahi Pretec Corporation
JAPAN
1JPN005
CFS
Gold
Sumitomo Metal Mining Co. Ltd.
Sumitomo Metal Mining Co. Ltd.
JAPAN
1JPN057
CFS
Gold
JX Nippon Mining & Metals Co., Ltd
JX Nippon Mining & Metals Co., Ltd
JAPAN
1JPN028
CFS
Gold
Dowa Metals & Mining Co. Ltd
Dowa
JAPAN
1JPN015
CFS
Gold
Argor Heraeus
Argor-Heraeus SA
SWITZERLAND
1CHE004
CFS
Gold
Heraeus Ltd Hong Kong
Heraeus Ltd Hong Kong
HONG KONG
1HKG019
CFS
Gold
Ishifuku Metal Industry Co., Ltd.
Ishifuku Metal Industry Co., Ltd.
JAPAN
1JPN021
CFS
Gold
Tanaka Kikinzoku Kogyo K.K.
Tanaka Kikinzoku Kogyo K.K.
JAPAN
1JPN058
CFS
Gold
Matsuda Sangyo Co. Ltd
Matsuda Sangyo Co. Ltd
JAPAN
1JPN034
CFS
Gold
Mitsui Mining and Smelting Co., Ltd.
Mitsui Mining and Smelting Co., Ltd.
JAPAN
1JPN040
CFS
Gold
Xstrata Canada Corporation
Xstrata Canada Corporation
CANADA
1CAN064
CFS
Gold
Allgemeine Gold- und Silberscheideanstalt A.G.
Allgemeine Gold- und Silberscheideanstalt A.G.
GERMANY
1DEU001
CFS
Gold
Kojima Chemicals Co. Ltd
Kojima Chemicals Co. Ltd
JAPAN
1JPN074
CFS
Gold
Valcambi SA
Valcambi SA
SWITZERLAND
1CHE063
CFS
Gold
Materion
Materion
UNITED STATES
1USA033
CFS
Gold
AngloGold Ashanti
AngloGold Ashanti Mineração Ltda
BRAZIL
1BRA003
CFS
Gold
Chimet
Chimet SpA
ITALY
1ITA013
CFS
Gold
Nihon Material Co. LTD
Nihon Material Co. LTD
JAPAN
1JPN071
CFS
Gold
Rand Refinery
Rand Refinery (Pty) Ltd
SOUTH AFRICA
1ZAF049
CFS
Gold
W.C. Heraeus GmbH
Heraeus Precious Metals GmbH & Co. KG
GERMANY
1DEU018
CFS
Gold
Western Australian Mint trading as The Perth Mint
Western Australian Mint trading as The Perth Mint
AUSTRALIA
1AUS046
CFS
Gold
Solar Applied Materials Technology Corp.
Solar Applied Materials Technology Corp.
TAIWAN
1TWN056
CFS
Gold
Johnson Matthey Limited
Johnson Matthey Limited
CANADA
1CAN024
CFS
Gold
LS-Nikko Copper Inc
LS-Nikko Copper Inc
KOREA, REPUBLIC OF
1KOR032
CFS
Gold
Metalor Technologies (Hong Kong) Ltd
Metalor Technologies (Hong Kong) Ltd
HONG KONG
1HKG036
CFS
Gold
Metalor Switzerland
Metalor Technologies SA
SWITZERLAND
1CHE035
CFS
Gold
Tokuriki Tokyo Melters Assayers
Tokuriki Honten Co. Ltd
JAPAN
1JPN060
CFS
Gold
SEMPSA Joyeria Plateria SA
SEMPSA Joyeria Plateria SA
SPAIN
1ESP052
CFS
Gold
Smelter Not Listed
Kennecott Utah Copper
UNITED STATES
1USA088
CFS




Gold
PAMP SA
PAMP SA
SWITZERLAND
1CHE045
CFS
Gold
Istanbul Gold Refinery
Istanbul Gold Refinery
TURKEY
1TUR069
CFS
Tantalum
F&X Electro-Materials Limited
F&X
CHINA
3CHN003
CFS
Tantalum
Smelter Not Listed
Mettalurgical Products India Pvt. Ltd. (MPIL)
INDIA
3IND027
CFS
Tantalum
QuantumClean
QuantumClean
UNITED STATES
3USA022
CFS
Tantalum
Conghua Tantalum and Niobium Smeltry
Conghua Tantalum and Niobium Smeltry
CHINA
3CHN019
CFS
Tantalum
Tantalite Resources
Tantalite Resources
SOUTH AFRICA
3ZAF024
CFS
Tantalum
LMS Brasil S.A.
LMS Brasil S.A.
BRAZIL
3BRA021
CFS
Tantalum
Taki Chemicals
Taki Chemicals
JAPAN
3JPN023
CFS
Tantalum
HC Starck
H.C. Starck GmbH
GERMANY
3DEU006
CFS
Tantalum
RFH
RFH
CHINA
3CHN017
CFS
Tantalum
Exotech Inc.
Exotech Inc.
UNITED STATES
3USA002
CFS
Tantalum
Cabot
Global Advanced Metals
UNITED STATES
3USA005
CFS
Tantalum
Ningxia
Ningxia Orient Tantalum Industry Co., Ltd.
CHINA
3CHN009
CFS
Tantalum
Ulba
Ulba
KAZAKHSTAN
3KAZ014
CFS
Tantalum
Mitsui Mining & Smelting
Mitsui Mining & Smelting
JAPAN
3JPN008
CFS
Tantalum
Zhuzhou Cement Carbide
Zhuzhou Cement Carbide
CHINA
3CHN015
CFS
Tantalum
Telex
Telex
UNITED STATES
3USA018
CFS
Tantalum
Hi-Temp
Hi-Temp
UNITED STATES
3USA016
CFS
Tantalum
Jiujiang Tanbre
JiuJiang Tambre Co. Ltd.
CHINA
3CHN007
CFS
Tantalum
Plansee
Plansee
AUSTRIA
3AUT011
CFS
Tantalum
Solikamsk Metal Works
Solikamsk Metal Works
RUSSIAN FEDERATION
3RUS012
CFS
Tantalum
Niotan
Kemet Blue Powder
UNITED STATES
3USA010
CFS
Tantalum
Duoluoshan
Duoluoshan
CHINA
3CHN001
CFS
Tin
Cookson
Cookson
UNITED STATES
2USA001
CFS
Tin
Thaisarco
Thaisarco
THAILAND
2THA046
CFS
Tin
Minsur S.A. Tin Metal
Minsur
PERU
2PER019
CFS
Tin
Malaysia Smelting Corporation Berhad
Malaysia Smelting Corporation (MSC)
MALAYSIA
2MYS016
CFS
Tin
Mitsubishi Materials Corporation
Mitsubishi Materials Corporation
JAPAN
2JPN020
CFS
Tin
PT Bukit Timah
PT Bukit Timah
INDONESIA
2IDN032
CFS
Tin
Yunnan Tin Company Limited
Yunnan Tin Company Limited
CHINA
2CHN048
CFS
Tin
Gejiu Non-ferrous
Geiju Non-Ferrous Metal Processing Co. Ltd.
CHINA
2CHN012
CFS
Tin
Mineração Taboca S.A.
Mineração Taboca S.A.
BRAZIL
2BRA018
CFS
Tin
OMSA
OMSA
BOLIVIA
2BOL022
CFS
Tungsten
Xiamen Tungsten Co Ltd
Xiamen Tungsten Co Ltd
CHINA
4CHN014
CFS
Tungsten
Wolfram Company CJSC
Wolfram Company CJSC
RUSSIAN FEDERATION
4RUS013
CFS
Tungsten
Fujian Jinxin Tungsten Co., Ltd.
Fujian Jinxin Tungsten Co., Ltd.
CHINA
4CHN022
CFS
Tungsten
Tejing (Vietnam) Tungsten Co Ltd
Tejing (Vietnam) Tungsten Co Ltd
VIETNAM
4VNM019
CFS
Tungsten
Kennametal Inc.
Kennametal Inc.
UNITED STATES
4USA026
CFS
Tungsten
Global Tungsten & Powders Corp
Global Tungsten & Powders Corp
UNITED STATES
4USA007
CFS
Tungsten
HC Starck GmbH
HC Starck GmbH
GERMANY
4DEU008
CFS
Tungsten
Wolfram Bergbau und Hütten AG
Wolfram Bergbau und Hütten AG
AUSTRIA
4AUT012
CFS
Gold
Heimerle + Meule GmbH
Heimerle + Meule GmbH
GERMANY
1DEU017
CFSP
Gold
Boliden Mineral AB
Boliden AB
SWEDEN
1SWE009
CFSP
Gold
Cendres & Métaux SA
Cendres & Métaux SA
SWITZERLAND
1CHE011
CFSP




Tantalum
JiuJiang JinXin Nonferrous Metals Co. Ltd.
JiuJiang JinXin Nonferrous Metals Co. Ltd.
CHINA
3CHN020
CFSP
Tin
PT Bangka Tin Industry
PT Bangka Tin Industry
INDONESIA
2IDN058
CFSP
Tin
PT Tambang Timah
PT Tambang Timah
INDONESIA
2IDN049
CFSP
Tin
PT Timah
PT Timah
INDONESIA
2IDN042
CFSP
Tin
PT Stanindo Inti Perkasa
PT Stanindo Inti Perkasa
INDONESIA
2IDN040
CFSP
Tin
PT Eunindo Usaha Mandiri
PT Eunindo Usaha Mandiri
INDONESIA
2IDN033
CFSP
Tin
PT Bangka Putra Karya
PT Bangka Putra Karya
INDONESIA
2IDN028
CFSP
Tin
CV United Smelting
CV United Smelting
INDONESIA
2IDN009
CFSP
Tin
Yunnan Chengfeng
Yunnan Chengfeng
CHINA
2CHN047
CFSP
Tin
Smelter Not Listed
Soft Metais Ltda.
BRAZIL
2BRA066
CFSP
Tungsten
Ganzhou Huaxing Tungsten Products Co. Ltd.
Jiangxi Tungsten Industry Group Co Ltd
CHINA
4CHN010
CFSP
Tungsten
Smelter Not Listed
Xiamen Tungsten (H.C) Co., Ltd.
CHINA
4CHN028
CFSP
Tungsten
Chaozhou Xianglu Tungsten Industry Co Ltd
Chaozhou Xianglu Tungsten Industry Co Ltd
CHINA
4CHN002
CFSP
Tungsten
Ganzhou Sinda W&Mo Co. Ltd.
Ganzhou Grand Sea W & Mo Group Co Ltd
CHINA
4CHN016
CFSP