EX-1.01 2 d479371dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Conflict Minerals Report of American Eagle Outfitters, Inc.

In accord with Rule 13p-1 under the Securities Exchange Act of 1934

This is the Conflict Minerals Report of American Eagle Outfitters, Inc. (“The Company”) for calendar year 2022 in accordance with Rule 13p-1 under the Securities Exchange Act of 1934 (“Rule 13p-1”). The intent of this Conflict Minerals Report (“CMR”) is to describe the Company’s due diligence process following Rule 13p-1 requirements.

 

1.

Design of Due Diligence Measures

The Company’s due diligence process is based on the Organization for Economic Cooperation and Development’s (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and accompanying Supplements. The Company engaged Assent Compliance, a third-party service provider, to assist in designing and implementing due diligence measures, including supply chain scoping, supplier engagement, data collection and reporting.

 

2.

Due Diligence Measures Implemented

The Company took the following Due Diligence measures:

Adopt a conflict minerals policy

The Company’s conflict minerals policy is publicly available at https://www.aeo-inc.com/responsible-sourcing. It states:

POLICY ON CONFLICT MINERALS LAW COMPLIANCE

I. SCOPE

This policy applies to all American Eagle Outfitters, Inc. (“AEO”) suppliers of branded and co-branded products.

II. BACKGROUND

AEO is committed to ensuring that metals and other minerals contained in its branded and co-branded products are obtained, produced and used in an environmentally and socially responsible manner.

Under the “conflict minerals” provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, AEO is required to conduct due diligence regarding its use of four metals: gold, columbite-tantalite (tantalum), cassiterite (tin) and wolframite (tungsten) (collectively, the “Conflict Minerals”) and whether those Conflict Minerals originated in the Democratic Republic of Congo or adjoining countries1 (collectively, the “Covered Countries.”) The goal of these regulations is to end the violent conflict in the

 

1 

Angola, Burundi, Central African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia

region, which has been partially financed by the exploitation and trade of Conflict Minerals originating in the Covered Countries. As a publicly traded company, AEO is required to request certain information from its suppliers and report on its inquiries and due diligence to the U.S. Securities and Exchange Commission.

III. POLICY

Each AEO Supplier will be required to provide information each year regarding the origin of any Conflict Minerals that are necessary to the functionality or production of AEO products. This inquiry should be reasonably designed to determine whether any such minerals originated in the Covered Countries or are from recycled or scrap sources. The required information will be collected by AEO via a survey, which will be facilitated by a third party company.

Verification efforts will be led by AEO and/or a designated third party company who will also be available to assist suppliers in their efforts to ensure that AEO products are Conflict Minerals free.

AEO does not ban the use of minerals that originate in the Covered Countries. However, suppliers must be able to show proof that the minerals can be traced back to registered conflict-free smelters.

In the event that our suppliers have a reason to believe that Conflict Minerals used in AEO products may have originated in the Covered Countries, we will assist in performing due diligence on our supply chain in a manner consistent with the guidance issued by the Organization for Economic Cooperation and Development (“OECD”) to ensure that they are Conflict Minerals free.

For more information on the OECD guidelines, please visit https://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf.

Assemble an internal team to support supply chain due diligence

The management of our Conflict Minerals policy lies within our Responsible Sourcing department, which reports into our Production department. The Responsible Sourcing team worked closely with Assent Compliance to design and implement the diligence activities surrounding our minerals supply chain. Additional oversight and input was provided by our Conflict Minerals cross-functional team, which includes representatives from our Finance, Legal, and Internal Audit departments.

Establish a system of controls and transparency over the mineral supply chain

To provide transparency within the Company’s mineral supply chains and to facilitate communication of policies and expectations, the Company engaged Assent Compliance to complement internal management processes. Assent Compliance’s online system is used to identify suppliers in our mineral supply chains and the relationships between them, collect, store and review information on 3TG mineral sourcing practices, track information on smelters and refiners (“SORs”), and flag risks based on SOR sourcing practices. This system utilized the Conflict Minerals Reporting Template (“CMRT”) 6.22 or higher for data collection. This system is designed to allow collection and storage of data on supply chain circumstances, which can be updated to reflect changing realities within the supply chain, such as new customer-supplier relationships, new products, etc.

Assent Compliance helped us to engage with our manufacturing suppliers as part of its Conflict Minerals management system. Engagement consisted of multiple communication outreaches to educate suppliers on our expectations for sourcing and Conflict Minerals policy, and the SEC Rule 13p-1 rule requirements.

Supplier engagement followed these steps:

 

  1)

All applicable tier 1 apparel and non-apparel suppliers that shipped product to AEO during the 2022 calendar year were included in the supplier engagement process. Contact information for in-scope suppliers was provided to Assent for upload into their online platform.

 

  2)

Assent requested that the suppliers complete a CMRT. Suppliers are able to leverage Assent’s team of supplier support specialists to ensure they receive appropriate support and understand how to properly file a CMRT. Assent monitored and tracked all communications for future reporting and transparency.

 

  3)

Suppliers that responded as being out of scope of the reporting requirements were removed from the survey process upon review.

 

  4)

Non-responsive suppliers were contacted a minimum of 3 times. If the supplier remained unresponsive, then additional communication attempts were conducted in order to determine why a response was not provided and to offer assistance in completing the request.

Supplier responses were evaluated for plausibility, consistency, and gaps both in terms of which products were stated to contain or not contain necessary 3TG minerals, as well as the origin of those materials. Additional supplier outreach was conducted to address issues including implausible statements regarding no presence of 3TG minerals, incomplete data on CMRTs, responses that did not identify smelters or refiners, responses which indicated sourcing location without complete supporting information from the supply chain, and organizations that were identified as smelter or refiners, but not verified as such through further analysis and research.

A total of 164 suppliers were identified through the filtering procedures described above as being in-scope for conflict mineral regulatory purposes and were contacted by Assent as part of the “reasonable country of origin inquiry” (“RCOI”) process. The survey response rate among these suppliers was 56%. 13 suppliers responded yes as to having one or more of the 3TG minerals as necessary to the functionality or production of the products they produce. The Company has not received sufficient additional information from the responding suppliers to determine the origin of all of their 3TG minerals. We will continue our due diligence efforts in this regard.

SORs were matched against the Responsible Minerals Initiative’s (RMI) Standard Smelter List. SORs sourcing practices and “conflict-free” sourcing statuses were cross-referenced with the RMI’s Responsible Minerals Assurance Process (“RMAP”), which includes cross-recognized programs with the London Bullion Market Association (“LBMA”) Good Delivery Program and the Responsible Jewelry Council Chain of Custody Certification.

Since most of the CMRTs we received from our suppliers were made on a company level, rather than on a product or user-defined scope, we are not able to identify which smelters or refiners listed on Appendix A actually processed the 3TGs contained in our products. Therefore, our list of processing smelters and refiners disclosed in Appendix A may contain more facilities than those that actually processed the conflict minerals contained in our products.

Set forth below is the list of SORs identified in our supply chain so far and their conflict-free status:

Appendix A

 

Metal

   

Smelter Name

    Smelter ID   

RMAP Audit
Status

Gold    Umicore S.A. Business Unit Precious Metals Refining    CID001980    Conformant
Tin    Tin Smelting Branch of Yunnan Tin Co., Ltd.    CID002180    Conformant
Tin    PT Timah Tbk Mentok    CID001482    Conformant
Gold    Metalor Technologies S.A.    CID001153    Conformant
Tin    China Tin Group Co., Ltd.    CID001070    Conformant
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    CID001622    Conformant
Tin    Alpha    CID000292    Conformant
Tin    EM Vinto    CID000438    Conformant
Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.    CID000538    Conformant
Tin    Malaysia Smelting Corporation (MSC)    CID001105    Conformant
Tin    Mineracao Taboca S.A.    CID001173    Conformant
Tin    Minsur    CID001182    Conformant
Tin    Mitsubishi Materials Corporation    CID001191    Conformant
Tin    Operaciones Metalurgicas S.A.    CID001337    Conformant
Tin    PT Mitra Stania Prima    CID001453    Conformant
Tin    PT Refined Bangka Tin    CID001460    Conformant
Tin    PT Timah Tbk Kundur    CID001477    Conformant
Tin    Rui Da Hung    CID001539    Conformant
Tin    Thaisarco    CID001898    Conformant
Tin    White Solder Metalurgia e Mineracao Ltda.    CID002036    Conformant
Tin    Aurubis Beerse    CID002773    Conformant
Tin    Guangdong Hanhe Non-Ferrous Metal Co., Ltd.    CID003116    Conformant
Tin    Tin Technology & Refining    CID003325    Conformant
Tin    Jiangxi New Nanshan Technology Ltd.    CID001231    Conformant
Gold    Aida Chemical Industries Co., Ltd.    CID000019    Conformant
Gold    Agosi AG    CID000035    Conformant
Gold    AngloGold Ashanti Corrego do Sitio Mineracao    CID000058    Conformant
Gold    Argor-Heraeus S.A.    CID000077    Conformant
Gold    Asahi Pretec Corp.    CID000082    Conformant
Gold    Asaka Riken Co., Ltd.    CID000090    Conformant
Gold    Aurubis AG    CID000113    Conformant
Gold    Boliden AB    CID000157    Conformant
Gold    C. Hafner GmbH + Co. KG    CID000176    Conformant
Gold    CCR Refinery—Glencore Canada Corporation    CID000185    Conformant
Tin    Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.    CID000228    Conformant

Gold

   

Chimet S.p.A.

    CID000233   

Conformant

Gold

   

Chugai Mining

    CID000264   

Conformant

Gold

   

Dowa

    CID000401   

Conformant

Tin

   

Dowa

    CID000402   

Conformant

Gold

   

Eco-System Recycling Co., Ltd. East Plant

    CID000425   

Conformant

Tin

   

Fenix Metals

    CID000468   

Conformant

Tin

   

Gejiu Zili Mining And Metallurgy Co., Ltd.

    CID000555   

N/A

Gold

   

Heimerle + Meule GmbH

    CID000694   

Conformant

Gold

   

Heraeus Metals Hong Kong Ltd.

    CID000707   

Conformant

Gold

   

Heraeus Germany GmbH Co. KG

    CID000711   

Conformant

Gold

   

Ishifuku Metal Industry Co., Ltd.

    CID000807   

Conformant

Gold

   

Istanbul Gold Refinery

    CID000814   

Conformant

Gold

   

Asahi Refining USA Inc.

    CID000920   

Conformant

Gold

   

Asahi Refining Canada Ltd.

    CID000924   

Conformant

Gold

   

JX Nippon Mining & Metals Co., Ltd.

    CID000937   

Conformant

Tin

   

Gejiu Kai Meng Industry and Trade LLC

    CID000942   

N/A

Gold

   

Kennecott Utah Copper LLC

    CID000969   

Conformant

Gold

   

Kojima Chemicals Co., Ltd.

    CID000981   

Conformant

Gold

   

LS-NIKKO Copper Inc.

    CID001078   

Conformant

Gold

   

Matsuda Sangyo Co., Ltd.

    CID001119   

Conformant

Tin

   

Metallic Resources, Inc.

    CID001142   

Conformant

Gold

   

Metalor Technologies (Suzhou) Ltd.

    CID001147   

Conformant

Gold

   

Metalor Technologies (Hong Kong) Ltd.

    CID001149   

Conformant

Gold

   

Metalor Technologies (Singapore) Pte., Ltd.

    CID001152   

Conformant

Gold

   

Metalor USA Refining Corporation

    CID001157   

Conformant

Gold

   

Metalurgica Met-Mex Penoles S.A. De C.V.

    CID001161   

Conformant

Gold

   

Mitsubishi Materials Corporation

    CID001188   

Conformant

Gold

   

Mitsui Mining and Smelting Co., Ltd.

    CID001193   

Conformant

Gold

   

Nihon Material Co., Ltd.

    CID001259   

Conformant

Tin

   

O.M. Manufacturing (Thailand) Co., Ltd.

    CID001314   

Conformant

Gold

   

Ohura Precious Metal Industry Co., Ltd.

    CID001325   

Conformant

Gold

   

MKS PAMP SA

    CID001352   

Conformant

Tin

   

PT Artha Cipta Langgeng

    CID001399   

Conformant

Tin

   

PT Babel Inti Perkasa

    CID001402   

Conformant

Tin

   

PT Babel Surya Alam Lestari

    CID001406   

Conformant

Tin

   

PT Bukit Timah

    CID001428   

Conformant

Tin

   

PT Prima Timah Utama

    CID001458   

Conformant

Tin

   

PT Sariwiguna Binasentosa

    CID001463   

Conformant

Tin

   

PT Stanindo Inti Perkasa

    CID001468   

Conformant

Tin

   

PT Tinindo Inter Nusa

    CID001490   

N/A

Gold

   

Rand Refinery (Pty) Ltd.

    CID001512   

Conformant

Gold

   

Royal Canadian Mint

    CID001534   

Conformant

Gold

   

Solar Applied Materials Technology Corp.

    CID001761   

Conformant

Gold

   

Sumitomo Metal Mining Co., Ltd.

    CID001798   

Conformant

Gold

   

Tanaka Kikinzoku Kogyo K.K.

    CID001875   

Conformant

Tin

   

Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.

    CID001908   

N/A

Gold

   

Shandong Gold Smelting Co., Ltd.

    CID001916   

Conformant

Gold

   

Tokuriki Honten Co., Ltd.

    CID001938   

Conformant

Gold

   

United Precious Metal Refining, Inc.

    CID001993   

Conformant

Gold

   

Valcambi S.A.

    CID002003   

Conformant

Gold

   

Western Australian Mint (T/a The Perth Mint)

    CID002030   

Conformant

Gold

   

Yokohama Metal Co., Ltd.

    CID002129   

Conformant

Tin

   

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

    CID002158   

Conformant

Gold

   

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

    CID002224   

Conformant

Gold

   

SAFINA A.S.

    CID002290   

Conformant

Tin

   

PT ATD Makmur Mandiri Jaya

    CID002503   

Conformant

Tin

   

O.M. Manufacturing Philippines, Inc.

    CID002517   

Conformant

Tin

   

PT Cipta Persada Mulia

    CID002696   

Conformant

Tin

   

Aurubis Berango

    CID002774   

Conformant

Gold

   

WIELAND Edelmetalle GmbH

    CID002778   

Conformant

Gold

   

Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH

    CID002779   

Conformant

Tin

   

PT Menara Cipta Mulia

    CID002835   

Conformant

Gold

   

Degussa Sonne / Mond Goldhandel GmbH

    CID002867   

N/A

Tin

   

PT Bangka Serumpun

    CID003205   

Conformant

Tin

   

PT Rajawali Rimba Perkasa

    CID003381   

Conformant

Tin

   

Luna Smelter, Ltd.

    CID003387   

Conformant

Tin

   

CRM Synergies

    CID003524   

Conformant

Tin

   

Fabrica Auricchio Industria e Comercio Ltda.

    CID003582   

Conformant

 

*

Conflict-free status refers to the facility’s RMI audit status. Smelters that are Conformant to RMAP assessment protocols are considered DRC conflict-free. Factories that are not listed as “Conformant” are included in extra due diligence outreach steps throughout the program timeline. These designations are current as of May 5, 2023.

Report findings to senior management

All supply chain assessment findings are reported to American Eagle Outfitters’ Executive Vice President, Chief Operating Officer.

Devise and adopt a risk management plan

In addition to the system of controls previously described in this report, we have put in place several procedures to help mitigate the risk of Conflict Minerals entering our supply chain. First, our Conflict Minerals policy is listed in our Corporate Vendor Manual, which our suppliers agree to adhere to when they sign our master purchase agreement. The master purchase agreement is required of each supplier before any production can begin. The Corporate Vendor Manual is available to our suppliers through our Bamboo Rose sourcing system and is updated on a semi-annual basis.

Our suppliers are further reminded of this policy through emails from the Company and through the suppliers’ interaction with Assent Compliance.

In the event that 3TG minerals used in AEO products have been sourced in the DRC or surrounding areas, we work with the supplier to ensure that the minerals are sourced from registered conflict free smelters or are eliminated from use.

3. Steps to Improve Due Diligence

The Company will endeavor to continuously improve upon its supply chain due diligence efforts via the following measures:

 

  •  

Continue to compare RCOI results to information collected via independent conflict free smelter validation programs such as RMI’s Responsible Minerals Assurance Process (“RMAP”); and

 

  •  

Contact smelters identified as a result of the RCOI process and request their participation in obtaining a “conflict free” designation from an industry program such as the RMAP audit program.

4. Product Determination

Based upon its RCOI and due diligence efforts, the Company has been unable to determine the origin of all of the 3TG minerals used in its products.