EX-1.01 2 sykconflictmineralsex101.htm EXHIBIT 1.01 Conflict Minerals Exhibit 1.01



Exhibit 1.01

CONFLICT MINERALS REPORT OF STRYKER CORPORATION
For the year ended December 31, 2014

We have made statements in this conflict minerals report that may constitute forward-looking statements about our plans to take additional actions or to implement additional policies or procedures with respect to our due diligence efforts to determine the origin of so-called conflict minerals included in our products.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.  Our reporting obligations under the conflict minerals rules may change in the future, and our ability to implement certain processes or obtain information from our suppliers may differ materially from those anticipated or implied in this report. In addition, there are factors that could affect the accuracy of statements made in this report, including, without limitation: incomplete or unavailable supplier or smelter data; errors, omissions, or fraud by suppliers or smelters; changing definitions or methodologies for confirming smelters; incomplete, unclear, or modified guidance from third party industry and other sources; continuing guidance regarding the conflict minerals rules and other issues.

This is the Conflict Minerals Report of Stryker Corporation for 2014 in accordance with Rule 13p-1 of the Securities Exchange Act of 1934 (“Rule 13p-1”). The term “3TG” as used in this report includes cassiterite, columbite-tantalite, wolframite, gold, and their derivatives tin, tantalum, and tungsten.

1.
Introduction.

1.1
Stryker Overview. Stryker Corporation is a global leader in the medical technology industry whose success is based on a diverse array of high-quality, innovative products that create cost-effective solutions and improve people’s lives. As used herein, and except where the context otherwise requires, “Stryker,” “we,” “us,” and “our” refer to Stryker Corporation and its consolidated subsidiaries.

1.2
Product Overview. Stryker’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialties. Many of those products - such as electronic devices, surgical instruments, beds, cots, stretchers, and implants - contain 3TG that are necessary to the functionality or production of such products.

1.3
Conflict Minerals Rule. Effective November 2012, the United States Securities and Exchange Commission (“Commission”) adopted Rule 13p-1 pursuant to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) relating to the use of conflict minerals. Section 1502 added Section 13(p) of the Exchange Act, which obligated the Commission to promulgate rules requiring public companies with 3TG that are necessary to the functionality or production of products that they manufacture to disclose annually whether those minerals originated in the Democratic Republic of the Congo or an adjoining country (“Covered Countries”). If an issuer’s 3TG originated in a Covered Country, Rule 13p-1 requires the issuer to file a report with the Commission that describes the measures it has taken to exercise due diligence to determine the source and chain of custody of 3TG in its products.

2.
Core Team and Scope.

2.1
Core Team. Stryker created a core team consisting of a dedicated program manager and experts in various functions and subject matters such as legal, supplier controls, and global sourcing. The core team is responsible for designing and executing the conflict minerals strategy. They meet regularly to coordinate and track supplier communications and review and compile related data. An executive committee (consisting of senior management) oversees the core team to ensure that the due diligence efforts align with Stryker’s Conflict Minerals Policy and the Act.

2.2
Scope. Based on the nature of Stryker’s products, the core team determined that during the 2014 reporting year Stryker manufactured and/or contracted to manufacture products containing 3TG that were necessary for the functionality or production of the products. Because Stryker offers a diverse array of finished products, the core team determined that the best method for isolating 3TG in the supply chain was to review materials





incorporated into Stryker’s products on a supplier-by-supplier basis. The core team analyzed Stryker’s supply chain and determined that 711 suppliers provided Stryker with materials or products that potentially contained 3TG (“In Scope Suppliers”) during the 2014 reporting year.

3.
Reasonable Country of Origin Inquiry.

3.1
RCOI Process. To determine whether 3TG contained in Stryker’s products originated in the Covered Countries, the core team conducted a reasonable country of origin inquiry (“RCOI”). Using the Electronic Industry Citizen Coalition / Conflict Free Sourcing Initiative (“EICC/CFSI”) Conflict Minerals Reporting Template, the core team requested the In-Scope Suppliers to identify the smelters and refiners that contribute refined minerals that could qualify as 3TG and followed up with those that provided either ambiguous or inconclusive responses. The core team then compiled data for analysis and review. Throughout the reporting year, the core team reported its findings to employees in Stryker’s strategic sourcing function and the executive committee.

3.2
Results of RCOI. Stryker received responses from 688 out of 711 In Scope Suppliers, representing a response rate of 96.7%. Based on these survey responses, 12 suppliers did not supply materials or products to Stryker containing 3TG.

3.3
Conclusion. Based on Stryker’s RCOI, we have reason to believe that the 3TG in Stryker’s products may have originated in Covered Countries and may not have come from recycled or scrap sources. Therefore, in accordance with Rule 13p-1, Stryker conducted due diligence to determine whether the 3TG in Stryker’s products directly or indirectly financed or benefited armed groups in the Covered Countries.

4.
Due Diligence.

4.1
Due Diligence Framework. Stryker has designed its due diligence process to comply with the internationally recognized due diligence framework set forth in the Organization for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (“OECD Framework”) and related Supplements for each of the 3TG.

4.2
Strong Company Management Systems.

4.2.1
Conflict Minerals Policy. Stryker has instituted a supply chain policy for Conflict Minerals originating from the Covered Countries (“Conflict Minerals Policy”). The policy reinforces Stryker’s commitment to responsible supply chain management and preventing human rights abuses by avoiding the use of Conflict Minerals that could finance or benefit armed groups in the Covered Countries. The policy is publicly available on Stryker’s website at www.stryker.com.

4.2.2
Management Structure. As discussed in Section 2.2 above, Stryker has established an executive committee of senior leaders responsible for assuring alignment with the Conflict Minerals Policy. The executive committee appointed a core team consisting of knowledgeable and experienced personnel to oversee the supply chain due diligence process. The core team directs Stryker’s due diligence process and takes steps to ensure that important information, including the Conflict Minerals Policy, is communicated to relevant employees and suppliers.

4.2.3
Training. The core team conducted training of Stryker’s sourcing community with responsibility for In Scope Suppliers to underscore the importance of sourcing through suppliers that are committed to following Stryker’s Conflict Minerals Policy and to assist with Stryker’s compliance with Rule 13p-1.

4.3
Identification and Assessment of Risks.

4.3.1
Downstream Company. As a finished medical device manufacturer, Stryker is far removed from the mining of 3TG and does not directly purchase raw ore or unrefined minerals or directly purchase minerals in the Covered Countries. As a result, Stryker relies on information provided by its In Scope Suppliers to determine the origin of 3TG contained in its products and is a “downstream company” as contemplated by the OECD framework.

4.3.2
Identification of High Risk Suppliers. During the RCOI, Stryker sent surveys to all 711 In Scope Suppliers using the EICC/CFSI Conflict Minerals Reporting Template. The surveys asked to identify





the country of origin for 3TG. Using the information provided by suppliers in response to those surveys, Stryker assessed the risk that 3TG contained in materials supplied to it was sourced from Covered Countries and identified smelters and refiners used by these suppliers. A list of known smelters identified by Stryker’s suppliers is attached. Stryker followed up with suppliers for further information when initial responses were incomplete or unclear.

4.4
Risk Response.

4.4.1
Internal Communication. The core team has established a broad communication that is published to employees in its strategic sourcing function that tracks overall performance and responsiveness of suppliers during the RCOI. In addition, the results of Stryker’s RCOI and potential concerns regarding the existence of 3TG from covered countries are communicated to leaders in the global sourcing community.

4.4.2
Supplier Communication. As a manufacturer and seller of medical devices, Stryker is subject to strict regulatory requirements in various jurisdictions around the world. Due to these regulatory requirements and the nature of Stryker’s products, Stryker is unable to switch suppliers without significant quality and safety related due diligence and, in some instances, a lengthy regulatory approval process. Accordingly, Stryker emphasizes supplier education to bring existing suppliers into conformance with its Conflict Minerals Policy. In the future, Stryker intends to include as part of its regular evaluation of strategic suppliers consideration of their responsiveness to the RCOI process, commitment to transparency, and alignment with the Conflict Minerals Policy.

4.4.3
Supply Contracts. Stryker has included in new supplier agreements provisions that obligate suppliers to comply with the Conflict Minerals Policy and to permit an audit that confirms compliance with the policy. Because many of our supplier agreements currently in effect have multi-year terms, it may take several years before we have the opportunity to include similar provisions in all agreements.

4.4.4
Ethics Hotline. Stryker maintains a compliance hotline as a mechanism for interested parties to voice concerns regarding compliance with its policies.

4.5
Audited Smelters. Stryker is not subject to the audit requirement for 2014 and continues to support the development and implementation of third party audits of smelters and refiners though its participation in the EICC - Conflict Free Sourcing Initiative.

4.6
Public Report. Stryker complies with its annual reporting requirements under Rule 13p-1 with this conflict minerals report, which is also publicly available on its website at www.stryker.com.

5.
Conclusions. Stryker’s due diligence efforts have yielded sourcing information on smelters that contribute to the processing of 3TG through In Scope Suppliers. However, the information obtained to date has been inconclusive. After performing the due diligence measures described above, Stryker was unable to determine whether the 3TG in Stryker’s products directly or indirectly financed or benefited armed groups in the Covered Countries for the year ended December 31, 2014. Stryker also was unable to determine all of the facilities used to process its 3TG or their countries of origin. Stryker’s efforts to determine the mines or locations of origin with the greatest possible specificity included the use of the due diligence measures described above.

6.
Future Risk Mitigation Efforts. Stryker continues to develop its due diligence processes described above to obtain accurate and complete information regarding 3TG sourcing and to mitigate the risk that 3TG contained it its supply chain finance or benefit armed groups in the Covered Countries. In addition, Stryker will continue to work with suppliers to stress the importance of compliance with its Conflict Minerals Policy.

The list of known smelters identified by Stryker’s suppliers referred to in Section 4.3.2 above, follows:

Metal
Company Name
Country
Gold
Aida Chemical Industries Co. Ltd.
JAPAN
Gold
Allgemeine Gold-und Silberscheideanstalt A.G.
GERMANY
Gold
AngloGold Ashanti Córrego do Sítio Minerção
BRAZIL





Gold
Argor-Heraeus SA
SWITZERLAND
Gold
Asahi Pretec Corporation
JAPAN
Gold
Asaka Riken Co Ltd
JAPAN
Gold
Aurubis AG
GERMANY
Gold
Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
PHILIPPINES
Gold
Boliden AB
SWEDEN
Gold
Caridad
MEXICO
Gold
CCR Refinery - Glencore Canada Corporation
CANADA
Gold
Cendres + Métaux SA
SWITZERLAND
Gold
Chimet S.p.A.
ITALY
Gold
Chugai Mining
JAPAN
Gold
Daejin Indus Co. Ltd
KOREA, REPUBLIC OF
Gold
Do Sung Corporation
KOREA, REPUBLIC OF
Gold
Dowa
JAPAN
Gold
FSE Novosibirsk Refinery
RUSSIAN FEDERATION
Gold
Heimerle + Meule GmbH
GERMANY
Gold
Heraeus Ltd. Hong Kong
HONG KONG
Gold
Heraeus Precious Metals GmbH & Co. KG
GERMANY
Gold
Hunan Chenzhou Mining Group Co., Ltd.
CHINA
Gold
Hwasung CJ Co. Ltd
KOREA, REPUBLIC OF
Gold
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited
CHINA
Gold
Ishifuku Metal Industry Co., Ltd.
JAPAN
Gold
Istanbul Gold Refinery
TURKEY
Gold
Japan Mint
JAPAN
Gold
Jiangxi Copper Company Limited
CHINA
Gold
Johnson Matthey Inc
UNITED STATES
Gold
Johnson Matthey Ltd
CANADA
Gold
JSC Ekaterinburg Non-Ferrous Metal Processing Plant
RUSSIAN FEDERATION
Gold
JSC Uralelectromed
RUSSIAN FEDERATION
Gold
JX Nippon Mining & Metals Co., Ltd.
JAPAN
Gold
Kazzinc Ltd
KAZAKHSTAN
Gold
Kojima Chemicals Co., Ltd
JAPAN
Gold
Korea Metal Co. Ltd
KOREA, REPUBLIC OF
Gold
Kyrgyzaltyn JSC
KYRGYZSTAN
Gold
L' azurde Company For Jewelry
SAUDI ARABIA
Gold
LS-NIKKO Copper Inc.
KOREA, REPUBLIC OF
Gold
Materion
UNITED STATES
Gold
Matsuda Sangyo Co., Ltd.
JAPAN
Gold
Metalor Technologies (Hong Kong) Ltd
HONG KONG
Gold
Metalor Technologies SA
SWITZERLAND
Gold
Metalor USA Refining Corporation
UNITED STATES
Gold
Mitsubishi Materials Corporation
JAPAN
Gold
Mitsui Mining and Smelting Co., Ltd.
JAPAN





Gold
Moscow Special Alloys Processing Plant
RUSSIAN FEDERATION
Gold
Nadir Metal Rafineri San. Ve Tic. A.ª.
TURKEY
Gold
Navoi Mining and Metallurgical Combinat
UZBEKISTAN
Gold
Nihon Material Co. LTD
JAPAN
Gold
Ohio Precious Metals, LLC
UNITED STATES
Gold
OJSC Kolyma Refinery
RUSSIAN FEDERATION
Gold
PAMP SA
SWITZERLAND
Gold
Prioksky Plant of Non-Ferrous Metals
RUSSIAN FEDERATION
Gold
PT Aneka Tambang (Persero) Tbk
INDONESIA
Gold
PX Précinox SA
SWITZERLAND
Gold
Rand Refinery (Pty) Ltd
SOUTH AFRICA
Gold
Royal Canadian Mint
CANADA
Gold
Sabin Metal Corp.
UNITED STATES
Gold
SAMWON METALS Corp.
KOREA, REPUBLIC OF
Gold
Schone Edelmetaal
NETHERLANDS
Gold
SEMPSA Joyería Platería SA
SPAIN
Gold
Shandong Zhaojin Gold & Silver Refinery Co. Ltd
CHINA
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 and Silver Refinery of China
CHINA
Gold
The Refinery of Shandong Gold Mining Co. Ltd
CHINA
Gold
Tokuriki Honten Co., Ltd
JAPAN
Gold
Torecom
KOREA, REPUBLIC OF
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
Yokohama Metal Co Ltd
JAPAN
Gold
Zhongyuan Gold Smelter of Zhongjin Gold Corporation
CHINA
Gold
Zijin Mining Group Co. Ltd
CHINA
Gold
Yunnan Copper Industry Co Ltd
CHINA
Tantalum
Conghua Tantalum and Niobium Smeltry
CHINA
Tantalum
Duoluoshan
CHINA
Tantalum
Exotech Inc.
UNITED STATES
Tantalum
F&X Electro-Materials Ltd.
CHINA
Tantalum
H.C. Starck Smelting GmbH & Co.KG
GERMANY
Tantalum
Hi-Temp
UNITED STATES
Tantalum
JiuJiang JinXin Nonferrous Metals Co., Ltd.
CHINA
Tantalum
Mitsui Mining & Smelting
JAPAN
Tantalum
Ningxia Orient Tantalum Industry Co., Ltd.
CHINA
Tantalum
RFH Tantalum Smeltry Co., Ltd
CHINA





Tantalum
Solikamsk Magnesium Works OAO
RUSSIAN FEDERATION
Tantalum
Taki Chemicals
JAPAN
Tantalum
Telex
UNITED STATES
Tantalum
Ulba
KAZAKHSTAN
Tantalum
Zhuzhou Cement Carbide
CHINA
Tin
Alpha
UNITED STATES
Tin
China Tin Group Co., Ltd.
CHINA
Tin
CNMC (Guangxi) PGMA Co. Ltd.
CHINA
Tin
Cooper Santa
BRAZIL
Tin
CV Serumpun Sebalai
INDONESIA
Tin
CV United Smelting
INDONESIA
Tin
EM Vinto
BOLIVIA
Tin
Fenix Metals
POLAND
Tin
Gejiu Kai Meng Industry and Trade LLC
CHINA
Tin
Gejiu Non-Ferrous Metal Processing Co. Ltd.
CHINA
Tin
Gejiu Zi-Li
CHINA
Tin
Huichang Jinshunda Tin Co. Ltd
CHINA
Tin
Jiangxi Nanshan
CHINA
Tin
Malaysia Smelting Corporation (MSC)
MALAYSIA
Tin
Metallo Chimique
BELGIUM
Tin
Mineração Taboca S.A.
BRAZIL
Tin
Minsur
PERU
Tin
Mitsubishi Materials Corporation
JAPAN
Tin
Novosibirsk Integrated Tin Works
RUSSIAN FEDERATION
Tin
OMSA
BOLIVIA
Tin
PT Artha Cipta Langgeng
INDONESIA
Tin
PT Babel Inti Perkasa
INDONESIA
Tin
PT Bangka Putra Karya
INDONESIA
Tin
PT Belitung Industri Sejahtera
INDONESIA
Tin
PT Bukit Timah
INDONESIA
Tin
PT DS Jaya Abadi
INDONESIA
Tin
PT Eunindo Usaha Mandiri
INDONESIA
Tin
PT Mitra Stania Prima
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 Tambang Timah
INDONESIA
Tin
PT Timah (Persero), Tbk
INDONESIA
Tin
PT Tinindo Inter Nusa
INDONESIA
Tin
Thaisarco
THAILAND
Tin
White Solder Metalurgia e Mineração Ltda.
BRAZIL
Tin
Yunnan Chengfeng Non-ferrous Metals Co.,Ltd.
CHINA
Tin
Yunnan Tin Company, Ltd.
CHINA
Tin
PT Stanindo Inti Perkasa
INDONESIA





Tin
Thaisarco
THAILAND
Tungsten
A.L.M.T. Corp.
JAPAN
Tungsten
Chongyi Zhangyuan Tungsten Co., Ltd.
CHINA
Tungsten
Dayu Weiliang Tungsten Co., Ltd.
CHINA
Tungsten
Fujian Jinxin Tungsten Co., Ltd.
CHINA
Tungsten
Ganzhou Huaxing Tungsten Products Co., Ltd.
CHINA
Tungsten
Ganzhou Non-ferrous Metals Smelting Co., Ltd.
CHINA
Tungsten
Global Tungsten & Powders Corp.
UNITED STATES
Tungsten
Guangdong Xianglu Tungsten Co., Ltd.
CHINA
Tungsten
H.C. Starck GmbH
GERMANY
Tungsten
Hunan Chenzhou Mining Group Co., Ltd.
CHINA
Tungsten
Hunan Chunchang Nonferrous Metals Co., Ltd.
CHINA
Tungsten
Japan New Metals Co., Ltd.
JAPAN
Tungsten
Kennametal Huntsville
UNITED STATES
Tungsten
Wolfram Bergbau und Hütten AG
AUSTRIA
Tungsten
Wolfram Company CJSC
RUSSIAN FEDERATION
Tungsten
Xiamen Tungsten Co., Ltd.
CHINA