Wisconsin | 001-11084 | 39-1630919 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
N56 W17000 Ridgewood Drive Menomonee Falls, Wisconsin | 53051 | |
(Address of principal executive offices) | (Zip Code) |
Jason J. Kelroy (SVP, Assistant General Counsel) | (262) 703-7000 | ||
(Name and telephone number, including area code, of the person to contact in connection with this report.) |
√ | Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2014. |
/s/ Richard D. Schepp | June 1, 2015 | ||
By: Richard D. Schepp | Date | ||
Title: Senior Executive Vice President, Human Resources, General Counsel and Secretary |
Exhibit | Description |
1.01 | Conflict Minerals Report for the calendar year ended December 31, 2014 |
1. | Adopt and maintain a policy to reasonably assure that the Conflict Minerals in the products supplied to Kohl’s are conflict free. |
2. | Establish their own due diligence programs to ensure conflict-free supply chains and take any other steps necessary to abide by the contractual certifications, warranties, covenants and representations provided to Kohl’s. Supplier due diligence programs are expected to be designed in conformity with the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals From Conflict-Affected and High-Risk Areas (the "OECD Guidance"). |
3. | Cooperate with our Conflict Minerals due diligence process, including by providing us, from time to time, with written certifications and other information concerning the origin of Conflict Minerals included in products supplied to Kohl’s. As part of our process, suppliers of Kohl’s private and exclusive-brand products will be expected to complete the Conflict-Free Sourcing Initiative’s (the “CFSI”) Conflict Minerals Reporting Template. |
4. | Support industry efforts to enhance traceability and responsible practices in global mineral supply chains. |
1. | OECD Guidance Step One: “Establish strong company management systems” |
a. | We have a Conflict Minerals Policy. The Conflict Minerals Policy is posted on our website. |
b. | We have a working group led by our Senior Vice President, Assistant General Counsel charged with managing our Conflict Minerals compliance strategy. Some of the functional areas participating in the working group include Product Development, Social Compliance and Finance. We also include merchants and sourcing personnel in the compliance process. We supplement our compliance efforts with specialist outside counsel and the Service Provider. |
c. | We communicate to our relevant merchants and other selected internal personnel our commitment to compliance with the Conflict Minerals Rule. We do so by email, telephone and in-person meetings. In addition, our senior leadership, selected Product Development team members, merchants and selected other internal personnel are educated and briefed on the Conflict Minerals Rule and our compliance plan. |
d. | Our Merchandise Purchase Order Terms & Conditions contain terms to help ensure vendor compliance with our Conflict Minerals compliance expectations, including a provision requiring all suppliers to certify, warrant, covenant and represent that all merchandise sold to Kohl’s will be free of any Conflict Minerals financing conflict in the DRC or an adjoining country. |
e. | Through the Service Provider, we use the Conflict Minerals Reporting Template developed by the CFSI to identify smelters and refiners in our supply chain. |
f. | Records of due diligence processes, findings and resulting decisions and any other business records relating to Conflict Minerals due diligence are retained for at least five years. These records are retained on our behalf by the Service Provider and are generally stored in an electronic format. |
g. | We participate in the Conflict Minerals Working Group of the National Retail Federation. |
h. | We have mechanisms for employees, suppliers and other interested parties to report potential violations of our Conflict Minerals Policy, including e-mail and telephone hotline reporting mechanisms. |
2. | OECD Guidance Step Two: “Identify and assess risk in the supply chain” |
a. | The Service Provider requests by email that suppliers provide us with information, through the completion of a CFSI Conflict Minerals Reporting Template or its equivalent survey mechanism, concerning the usage and source of Conflict Minerals in their products, as well as information concerning their related compliance measures. Both we and the Service Provider follow up multiple times, if required, by email or phone with suppliers that do not respond to the request within the specified time frame. |
b. | The Service Provider reviews the responses received from suppliers for plausibility, consistency and gaps. It follows up by email or phone with suppliers that submit a response that triggers specified quality control flags. |
c. | Smelter and refiner information provided by suppliers is reviewed against the Service Provider's internal database. To the extent not in that database, it requests that the supplier confirm that the listed entity is a smelter or refiner. |
d. | Smelter and refiner information also is reviewed by the Service Provider against the lists of compliant and active, or the equivalent, smelters and refiners published by the CFSI, the London Bullion Market Association (“LBMA”) and the Responsible Jewellery Council (“RJC”). |
e. | To the extent that a smelter or refiner identified by a supplier is not listed as compliant or the equivalent by an independent third-party, the Service Provider attempts to contact the smelter or refiner to gain more information about its sourcing practices, including countries of origin and transfer and whether there are internal due diligence procedures in place or other processes that the smelter or refiner takes to track the chain of custody on the source of its Conflict Minerals. Internet research is also performed to determine whether there are any outside sources of information regarding the smelter's or refiner’s sourcing practices. “Red flags” are assigned to smelters and refiners where there is evidence of sourcing from a “Level 2 country” (i.e., a known or plausible country for smuggling out of the DRC region, export or transit) or declaration of sourcing from countries which are unknown reserves for a given metal. Compliant smelters and refiners are reviewed against the Service Provider’s internal country of origin database. |
f. | If a supplier does not provide information concerning the processors of Conflict Minerals in its supply chain, the Service Provider requests information on the suppliers' Tier 2 suppliers. The Tier 2 suppliers, and subsequent tiers of suppliers as identified to the Service Provider, are then contacted by the Service Provider following the procedures described above. |
g. | Based on the information furnished by our suppliers, the Service Provider and other information known to us, we assess the risks of adverse impacts. |
3. | OECD Guidance Step Three: “Design and implement a strategy to respond to identified risks” |
a. | Our Senior Vice President, Assistant General Counsel charged with managing our Conflict Minerals compliance strategy periodically reports the findings of our supply chain risk assessment to our senior leadership. |
b. | We address identified risks on a case-by-case basis. This flexible approach enables us to tailor the response to the risks identified. |
4. | OECD Guidance Step Four: “Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain” |
5. | OECD Guidance Step 5: “Report on supply chain due diligence” |
a. | We file a Form SD, and to the extent applicable a Conflict Minerals Report, with the Securities and Exchange Commission, and make available on our website information from the Form SD and the Conflict Minerals Report. |
b. | We include information concerning Conflict Minerals compliance in our Corporate Social Responsibility Report, which we make publicly available on our website. |
1. | The Service Provider requested by email that the Suppliers provide us with a completed Conflict Minerals Reporting Template. An email also was sent that described our compliance program requirements and included a link to the Service Provider’s on-line supplier education portal and contact email addresses and telephone numbers for obtaining answers to questions and/or guidance on completing our survey request. |
2. | The Service Provider followed up by email or phone with all Suppliers that did not respond to the request within a specified time frame. To the extent that, after the foregoing efforts, the Supplier did not provide the information requested, an escalation process was initiated. The escalation process consisted of direct outreach by our personnel or our representatives to the Supplier. Responses were received from 93% of the Suppliers. |
3. | The Service Provider reviewed the responses received from the Suppliers based on its internally-developed written review criteria for plausibility, consistency and gaps. As part of that review, if a Supplier indicated that there were no Conflict Minerals in the products that it supplied to us, the Service Provider reviewed those responses for plausibility and Suppliers were also given an opportunity to provide a certification of that determination. The Service Provider followed up by email or phone with the Suppliers that submitted a response that triggered specified quality control flags. |
4. | The Service Provider reviewed the smelters and refiners identified by the Suppliers against those contained in its internal database. To the extent not in that database, it requested that the Supplier confirm that the listed entity is a smelter or refiner. |
5. | With respect to those completed responses that identified a smelter or refiner, the Service Provider also reviewed that information against the lists of compliant and active, or the equivalent, smelters and refiners published by the CFSI, the LBMA and the RJC. Of the five smelters and refiners identified by Suppliers as having supplied Conflict Minerals contained in our in-scope products, three were listed as compliant or the equivalent by an independent third-party as of April 14, 2015 and two were listed as active by the CFSI. |
6. | With respect to those smelters and refiners identified by a Supplier that were not listed as compliant or the equivalent by an independent third-party, the Service Provider attempted to contact the smelter or refiner and/or consulted publicly available information to attempt to determine the minerals processed by the smelter or refiner, the country of origin, whether the Conflict Minerals were from sources that directly or indirectly financed or benefitted armed groups in the DRC or an adjoining country and the smelter or refiner's due diligence measures. |
7. | For those Suppliers that did not provide information concerning the processors of Conflict Minerals in their supply chain, the Service Provider requested information on the Suppliers’ Tier 2 suppliers. The Tier 2 suppliers, and subsequent tiers of suppliers as identified to the Service Provider, were then contacted by the Service Provider. |
8. | Our Senior Vice President, Assistant General Counsel charged with managing our Conflict Minerals compliance strategy periodically reported the findings of our supply chain risk assessment to our senior leadership. |
9. | We included information concerning Conflict Minerals compliance in our 2014 Corporate Social Responsibility Report, which is publicly available on our website. |
10. | In addition, to mitigate the risk that the necessary Conflict Minerals contained in our in-scope products directly or indirectly finance or benefit armed groups in the DRC or an adjoining country: |
a. | We published an updated Conflict Minerals Policy, which was communicated to the Suppliers. |
b. | As part of its outreach on our behalf, the Service Provider furnished the Suppliers with or made available to them written information discussing the Conflict Minerals Rule, the OECD Guidance and our compliance requirements. |
c. | Through the Service Provider, compliance training and other compliance resources were made available to our Suppliers. |
Compliant | |||
DRC Region Sourced | Non-DRC Region Sourced | Active | |
Tantalum | 0 | 0 | 0 |
Tin | 1 | 1 | 2 |
Tungsten | 0 | 0 | 0 |
Gold | 0 | 2 | 0 |
(a) | The smelters and refiners reflected in the table were identified by the Suppliers. However, not all of the included smelters and refiners may have processed the necessary Conflict Minerals contained in our in-scope products, since Suppliers may have reported to us smelters and refiners that were not in their supply chain due to over-inclusiveness in the information received from their suppliers or for other reasons. The smelters and refiners reflected above may not be all of the smelters and refiners in our supply chain, since the Suppliers were unable to identify all of the smelters and refiners used to process the necessary Conflict Minerals content contained in our products and not all of the Suppliers responded to our inquiries. |
(b) | All compliance status information in the table is as of April 14, 2015. |
(c) | “Compliant” means that a smelter or refiner was listed as compliant with the Conflict-Free Smelter Program’s (“CSFP”) assessment protocols, including through mutual recognition, or was indicated as “Re-audit in process.” Included smelters and refiners were not necessarily Compliant for all or part of 2014 and may not continue to be Compliant for any future period. |
(d) | “Active” means that the smelter or refiner was listed as having submitted a signed Agreement for the Exchange of Confidential Information and Auditee Agreement contracts to the CFSP. |
(e) | “DRC Region” means the DRC and its adjoining countries. Origin information was derived from information provided by the Service Provider. Smelters and refiners are listed under each region from which they are believed to source. |
(f) | The compliance status reflected in the table is based solely on information made publicly available by the CFSI, LBMA and/or RJC, without independent verification by us. |
1. | Utilize Revision 4.0 of the CFSI Conflict Minerals Reporting Template for our 2015 supplier outreach. |
2. | Encourage Suppliers that provided company level information for 2014 to provide product level information for 2015. |
3. | Engage with Suppliers that provided incomplete responses or that did not provide responses for 2014 to help ensure that they provide requested information for 2015. |
4. | Communicate to new in-scope suppliers our sourcing expectations, including through the dissemination of the Conflict Minerals Policy to them. |