Exhibit 1.01
ENERPAC TOOL GROUP CORP.
Conflict Minerals Report
For The Year Ended December 31, 2022
Introduction:
Enerpac Tool Group Corp. (“Company”, “Enerpac”, “we”, “our”, or “us”) is a premier industrial tools and services company serving a broad and diverse set of customers in more than 100 countries and a broad array of end-markets, including infrastructure, industrial maintenance, repair and operations, oil & gas, mining, alternative and renewable energy, and civil construction. Our products include branded tools, cylinders, pumps, hydraulic torque wrenches and highly engineered heavy lifting technology solutions, and our service offerings include supplying highly trained technicians to provide maintenance and manpower services on customer assets to meet their specific needs including bolting, machining, and joint integrity. We also provide rental capabilities for certain of our products. Our manufacturing activities primarily consist of light assembly of components we source from a network of global suppliers, although we also have machining and fabrication capabilities. For the calendar year ended December 31, 2022, the Company was organized in one reportable segment, Industrial Tools & Services.
Certain Enerpac products contain materials or components containing gold, tantalum, tin, and/or tungsten (collectively, "3TG"). Therefore, in accordance with Rule 13p-1 of the Securities Exchange Act of 1934 (the "Exchange Act"), we have investigated, and are reporting on, the origin of the 3TG used in our products to ascertain whether the 3TG originated from the Democratic Republic of Congo or adjoining countries ("Covered Countries").
Conflict Minerals Policy:
Enerpac is committed to ethical business practices and promoting the safety, health and well-being of the communities we impact. We are guided in our pursuit and implementation of these principles by our Code of Conduct and Conflict Minerals Policy, which are available in the Investors - Governance section of the Company’s website (www.enerpactoolgroup.com).
The Conflict Minerals Policy affirms our commitment to responsible sourcing practices for our components and raw materials. Consistent with the Conflict Minerals Policy, we direct our business to suppliers who can confirm their products are from conflict-free sources and eliminate non-conforming suppliers and products from our supply chain.
Supply Chain Due Diligence:
We conduct a country-of-origin inquiry and due diligence of our supply chain on an annual basis. We have designed our due diligence measures to be in conformity in all material respects with the Organization for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (2016) and related supplements for each of the Conflict Minerals (the “OECD Guidance”). Summarized below are the five-step framework set forth in the OECD Guidance and the corresponding due diligence measures we have undertaken.
Establish Company Management Systems:
We maintain a cross-functional 3TG compliance team that includes employees from our supply chain, trade compliance, legal, finance and operations functions. This team is responsible for administering our 3TG compliance program, including communicating updates to senior management and providing organizational guidance on the rules. Our compliance program includes supplier engagement and processes for reporting exceptions to our Conflict Minerals Policy. We also have included conflict minerals compliance clauses in purchase orders and supplier contracts to confirm our standards and enforce our requirements.
Identify and Assess Risk in the Supply Chain:
Our operations are several steps removed from the mining of minerals and we do not directly source minerals. As part of our diligence measures, we conduct a country-of-origin inquiry to determine whether any of the 3TG in our products originated in the Covered Countries. Because of the diversity of our products and the global nature of our supply chain, we rely on our suppliers to provide us with information about the source and content of components we purchase from them and incorporate into our products. Similarly, our direct suppliers also rely on information provided by their suppliers. This chain of information creates a level of uncertainty and risk related to the accuracy of the information we receive.
Our quality department performs the following as part of our country-of-origin inquiry and due diligence processes:
•manages the supplier solicitation process that includes sending a survey to selected direct material suppliers (391 suppliers) using the Conflict Free Sourcing Initiative Conflict Minerals Reporting Template (“CMRT”),
•aggregates CMRT responses for analysis and reporting,
•evaluates responses from suppliers and reviews the results of due diligence to ensure the completeness and accuracy of the responses received from our supply chain,
•identifies quality issues (e.g., incomplete CMRTs, inconsistent responses and red flags based on defined criteria),
•assesses whether the processing facilities reported to us by our suppliers are included on the list of Conflict Free Sourcing Initiative-compliant processing facilities,
•provides additional documentation and verifications, as required, and
•works with suppliers to confirm materials provided to us are not sourced from smelters located in Covered Countries.
We believe the inquiries and due diligence measures described above represent an appropriate and reasonable effort to determine the origins of the 3TG in our products. Most of the suppliers we evaluated provided comprehensive responses to the CMRT, although some only provided interim responses or incomplete information despite attempts to obtain comprehensive information.
Design and Implement a Strategy to Respond to Identified Risks:
We expect our suppliers to source minerals from responsible and Conflict Free Sourcing Initiative-compliant sources and believe in establishing and maintaining long-term relationships with compliant suppliers. If, as a result of our due diligence measures, we determine that a supplier is violating our Conflict Minerals Policy, we will either seek an alternate supplier or require a suitable corrective action plan. In limited cases, identifying alternate sources can be difficult and require lengthy implementation periods.
Carry Out Independent Third-Party Audit of Smelter/Refiner’s Due Diligence Practices:
We do not perform direct audits of 3TG smelters and refiners within our supply chain since we are a downstream consumer and several steps removed from smelters and refiners that provide minerals and ores.
Report on Supply Chain Due Diligence:
We are filing this report (and the related Form SD) with the SEC and are making it publicly available on the Investors - Governance section of our website at www.enerpactoolgroup.com.
Due Diligence Results:
The most frequently utilized smelters in our supply chain, as reported by our suppliers, are included in Schedule A to this Conflict Minerals Report. Our review of the most frequently utilized smelters generally did not identify any facilities considered to be at risk of violating our Conflict Minerals Policy.
Our comprehensive review of all responses did identify 10 suppliers whose supply chain includes a smelter or refiner in Covered Countries. Due to incomplete information provided by those suppliers (including in response to our follow-up inquiries), we cannot definitively say whether the components or parts supplied to Enerpac from these suppliers contain 3TG from these smelters or refiners. We are continuing to evaluate whether products supplied by those suppliers contain 3TG originating in the Covered Countries.
Ongoing Steps to Mitigate Risk:
We continue to evaluate our due diligence program to enhance the information available to us and better mitigate risks in our supply chain. We will continue to communicate the expectations to our suppliers that all products containing conflict minerals must be sourced from Responsible Minerals Assurance Process compliant smelters. Additionally, we will request that suppliers confirm that our products do not contain 3TG from non-compliant or high-risk smelters or that said smelters and refiners be removed from their supply chain. Where warranted, the supplier will be made aware that if it does not commit to removing a smelter or refiner, we will look for alternative sources for the product.
Independent Audit:
For the year ended December 31, 2022, pursuant to SEC rules and related guidance, an independent private sector audit of this report was not required.
Schedule A to
Conflict Minerals Report of
Enerpac Tool Group Corp.
For the Year Ended December 31, 2022
The following smelters and refiners were most frequently reported by our suppliers as being in their supply chains.
| | | | | | | | |
| METAL | SMELTER/ REFINER NAME | FACILITY LOCATION |
| Gold | Metalor USA Refining Corporation | United States |
| Gold | Tanaka Kikinzoku Kogyo K.K. | Japan |
| Gold | Shandong Zhaojin Gold & Silver Refinery Co., Ltd. | China |
| Gold | Umicore S.A. Business Unit Precious Metals Refining | Belgium |
| Gold | Western Australian Mint (T/a The Perth Mint) | Australia |
| Gold | Jiangxi Copper Co., Ltd. | China |
| Gold | Metalor Technologies S.A. | Switzerland |
| Gold | Metalurgica Met-Mex Penoles S.A. De C.V. | Mexico |
| Gold | Shandong Gold Smelting Co., Ltd. | China |
| Gold | Asahi Refining Canada Ltd. | Canada |
| Gold | Metalor Technologies (Suzhou) Ltd. | China |
| Gold | Metalor Technologies (Singapore) Pte., Ltd. | Singapore |
| Gold | Royal Canadian Mint | Canada |
| Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation | China |
| Gold | WIELAND Edelmetalle GmbH | Germany |
| Gold | CCR Refinery - Glencore Canada Corporation | Canada |
| Gold | Chimet S.p.A. | Italy |
| Gold | Dowa | Japan |
| Gold | Heimerle + Meule GmbH | Germany |
| Gold | Heraeus Precious Metals GmbH & Co. KG | Germany |
| Gold | Ishifuku Metal Industry Co., Ltd. | Japan |
| Gold | Japan Mint | Japan |
| Gold | Asahi Refining USA Inc. | United States |
| Gold | JX Nippon Mining & Metals Co., Ltd. | Japan |
| Gold | Materion | United States |
| Gold | Metalor Technologies (Hong Kong) Ltd. | China |
| Gold | Rand Refinery (Pty) Ltd. | South Africa |
| Gold | Solar Applied Materials Technology Corp. | Taiwan |
| Gold | Sumitomo Metal Mining Co., Ltd. | Japan |
| Gold | Tokuriki Honten Co., Ltd. | Japan |
| Gold | Valcambi S.A. | Switzerland |
| Gold | Gold Refinery of Zijin Mining Group Co., Ltd. | China |
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | China |
| Tantalum | Changsha South Tantalum Niobium Co., Ltd. | China |
| Tantalum | F&X Electro-Materials Ltd. | China |
| Tantalum | Telex Metals | United States |
| Tantalum | Global Advanced Metals Boyertown | United States |
| Tantalum | Jiujiang Tanbre Co., Ltd. | China |
| Tantalum | NPM Silmet AS | Estonia |
| Tantalum | Yanling Jincheng Tantalum & Niobium Co., Ltd. | China |
| Tantalum | D Block Metals, LLC | United States |
| | | | | | | | |
| METAL | SMELTER/ REFINER NAME | FACILITY LOCATION |
| Tantalum | FIR Metals & Resource Ltd. | China |
| Tantalum | KEMET de Mexico | Mexico |
| Tantalum | TANIOBIS Co., Ltd. | Thailand |
| Tantalum | H.C. Starck Hermsdorf GmbH | Germany |
| Tantalum | XIMEI RESOURCES (GUANGDONG) LIMITED | China |
| Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. | China |
| Tantalum | Mitsui Mining and Smelting Co., Ltd. | Japan |
| Tantalum | Taki Chemical Co., Ltd. | Japan |
| Tantalum | Ulba Metallurgical Plant JSC | Kazakhstan |
| Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd. | China |
| Tantalum | XinXing HaoRong Electronic Material Co., Ltd. | China |
| Tantalum | Jiangxi Dinghai Tantalum & Niobium Co., Ltd. | China |
| Tantalum | TANIOBIS GmbH | Germany |
| Tantalum | H.C. Starck Inc. | United States |
| Tantalum | TANIOBIS Japan Co., Ltd. | Japan |
| Tantalum | TANIOBIS Smelting GmbH & Co. KG | Germany |
| Tantalum | Global Advanced Metals Aizu | Japan |
| Tantalum | Resind Industria e Comercio Ltda. | Brazil |
| Tantalum | Jiangxi Tuohong New Raw Material | China |
| Tin | Malaysia Smelting Corporation (MSC) | Malaysia |
| Tin | Thaisarco | Thailand |
| Tin | Mineracao Taboca S.A. | Brazil |
| Tin | Minsur | Peru |
| Tin | PT Timah Tbk Mentok | Indonesia |
| Tin | Metallo Belgium N.V. | Belgium |
| Tin | Fenix Metals | Poland |
| Tin | Operaciones Metalurgicas S.A. | Bolivia (Plurinational State Of) |
| Tin | PT Mitra Stania Prima | Indonesia |
| Tin | PT Refined Bangka Tin | Indonesia |
| Tin | PT Timah Tbk Kundur | Indonesia |
| Tin | White Solder Metalurgia e Mineracao Ltda. | Brazil |
| Tin | Yunnan Chengfeng Non-ferrous Metals Co., Ltd. | China |
| Tin | PT Menara Cipta Mulia | Indonesia |
| Tin | Alpha | United States |
| Tin | EM Vinto | Bolivia (Plurinational State Of) |
| Tin | PT ATD Makmur Mandiri Jaya | Indonesia |
| Tin | Mitsubishi Materials Corporation | Japan |
| Tin | PT Prima Timah Utama | Indonesia |
| Tin | Rui Da Hung | Taiwan |
| Tin | Tin Smelting Branch of Yunnan Tin Co., Ltd. | China |
| Tungsten | Masan High-Tech Materials | Viet Nam |
| Tungsten | Ganzhou Seadragon W & Mo Co., Ltd. | China |
| Tungsten | H.C. Starck Tungsten GmbH | Germany |
| Tungsten | Global Tungsten & Powders Corp. | United States |
| Tungsten | Niagara Refining LLC | United States |
| Tungsten | Kennametal Huntsville | United States |
| Tungsten | Chongyi Zhangyuan Tungsten Co., Ltd. | China |
| Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd. | China |
| | | | | | | | |
| METAL | SMELTER/ REFINER NAME | FACILITY LOCATION |
| Tungsten | Xiamen Tungsten (H.C.) Co., Ltd. | China |
| Tungsten | Asia Tungsten Products Vietnam Ltd. | Viet Nam |
| Tungsten | A.L.M.T. Corp. | Japan |
| Tungsten | Hunan Chunchang Nonferrous Metals Co., Ltd. | China |
| Tungsten | Japan New Metals Co., Ltd. | Japan |
| Tungsten | Kennametal Fallon | United States |
| Tungsten | Wolfram Bergbau und Hutten AG | Austria |
| Tungsten | Ganzhou Jiangwu Ferrotungsten Co., Ltd. | China |
| Tungsten | Jiangxi Yaosheng Tungsten Co., Ltd. | China |
| Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd. | China |
| Tungsten | TANIOBIS Smelting GmbH & Co. KG | Germany |
| Tungsten | Jiangwu H.C. Starck Tungsten Products Co., Ltd. | China |
| Tungsten | Guangdong Xianglu Tungsten Co., Ltd. | China |