ANNUAL REPORT 2018 - RESPONSIBLE MICA INTIATIVE

2018 ANNUAL REPORTHIGHLIGHTS AND MILESTONESBEFORE2016Growing awareness ofpoor working conditionsand child labor inIndia’s mica industryIndividual companiesundertake initiatives in IndiaInitial collective efforts toaddress child labor via NaturalResources Stewardship Circle201620172017Planning for action(continued)Multi-sector Delhi MicaJanuary 31st ResponsibleIntroduce RMI goals andInstall India-based ProgramSummit sets the stage forMica Initiative launched atstrategies to governments,ManagerRMI’s formationConstituent General Assemblyintergovernmental andTerre des Hommes20 founding members of RMIJoining forcesindustry organizationsPrepare responsibleBeauty and a Beastworkplace standards forCHILD LABOUR IN INDIA FOR SPARKLINGCARS AND COSMETICSLaunching programs6 program partners launchCommunity EmpowermentNetherlands publishesBEAUTYAND A BEAST2018Install RMI Executive DirectorForm member-based Actionprograms in 40 villagesmines and processing unitsBegin roll-out of Responsiblewith support of ASK-IndiaWorkplace Standards programwith ASK-IndiaGroups to develop and guideRMI programs1st RMI General Assembly36 Member companiesPresent RMI programs atparticipate in pilot mica supply8 intergovernmental andchain traceability projectindustry organization eventsForm Civil Society Task ForceTerre des Hommes Netherlandsand approval of 5-Year PlanRoadmapsSO M Oinitiates communityU.S. International Laborempowerment programs inAffairs Bureau recognizes RMIanother 41 villagesEstablish RMI Board ofas a case study in addressingDirectorschild laborBegin information sharingwith key ministries in BiharTerre des HommesConduct 5 media interviewsand Jharkhand39 members at year endForm Business CommitteeNetherlands starts community2nd & 3rd RMI General Assemblyempowerment programs in20 villagesConduct 10 media interviewsDevelopment of RMI charterUN Forum on Business andand budgetHuman Rights recognizesIdentification of initial RMIRMI’s multi-stakeholdermembers and collaborationapproach as best practicewith Terre des Hommes2018 LIST OF GOODS PRODUCED BY CHILD LABOR OR FORCED LABOR0607A47 members at year end

2018 ANNUAL REPORTPROVIDING RESPONSIBLEWORKPLACE STANDARDSSTEP 2D E V E L O P I N G R E S P O N S I B L E W O R K P L A C E S TA N DA R D SThe RMI workplace standards provide the central resource for preventing child labor and improving overallG O A L : Enable 100% of mica supply chain participantsin Bihar and Jharkhand to comply with globallyrecognized workplace employment, occupational healthand safety, and environmental standards that includeprohibitions on the use of child labor.working conditions at mica processors and mines. To develop the standards, RMI turned to the Association forStimulating Know-how (ASK-India), a prominent CSO, to develop the standards and oversee their implementationduring the pilot phase. ASK’s experience and expertise working with local businesses and community organizations across India will ensure that the scope of the standards is relevant to RMI’s stakeholders and, just asimportantly, that the standards will be adopted and adhered to.Workplace standards addressW O R K P L A C E S TA N D A R D S P R O V I S I O N Sfive dimensions of operationsat mines and processors.LEGAL REQUIREMENTSEnsure that businesses are duly registered, adhere to laws and regulationsIn 2018, RMI took the first steps in meeting its commitment to establish responsible workplace standards atand pay taxes.mines and processors that will create a responsible and sustainable mica supply chain free of child labor. To achievethis goal, RMI began a five-step pilot program that will provide a model for implementation and expansion in 2019S O C I A L O B L I G AT I O N Sand beyond.Cover a wide range of fair labor practices such as minimum age of employment,fair working hours, grievance mechanisms, freedom of association andSTEP 1diversity provisions, with special attention to women’s rights.T R A C I N G T H E S U P P LY C H A I NSu p ply Cha inTracea bilityO C C U P AT I O N A L H E A L T H A N D S A F E T Y P R O V I S I O N SThe first step in implementing workplace standards is to identify theAddress facility hygiene, the safe operation of equipment, personal protectionparticipants at each tier of the mica supply chain that need to adopt standards.requirements and access to first aid, child daycare and canteens.Mica is traced back from end-product and intermediate product manufacturersaround the world that use mica to exporters, processors and mines.END-PRODUCTM A N U FA C T U R E R SECONOMIC REQUIREMENTSEnsure that workers receive legal minimum wages and overtime, as a firstAll 36 companies that were RMI member companies at the start of thestep, as well as benefits such as employer contributions to state insuranceprocess participated in the pilot supply chain mapping project. Confidentialityprograms and provident funds.was safeguarded to protect competitive information. RMI members at thetime of the survey represented 30 percent of India’s mica exports by volumeI N T E R M E D I AT E Sand 37 percent of exports by volume originating from the states of Bihar andM A N U FA C T U R E R SJharkhand.3 This ensured that findings would be relevant to the jurisdictionsE N V I R O N M E N TA L S TA N D A R D SCover both the impact from operations on the surrounding environments,which include forests where the mines in Bihar and Jharkhand are located,in India that present the greatest challenges to developing a supply chainand communities adjacent to the processors.free of child labor. At the conclusion of the six-month survey, RMI membersEXPORTERSPROCESSORSMINESidentified the processors and mines in their supply chains that could beinvited to participate in the pilot or adopt the workplace standards during theThe workplace standards incorporate current local, state and federal standards in India and take into considerationexpansion phase. Three processors volunteered to adopt the new workplaceworkplace and other social standards adopted by leading companies in the mining, cosmetics, automotive,standards for the pilot program, providing a sufficient sample size to assesselectronics and apparel industries. The standards also consider core provisions of globally recognized workplacethe standards. New RMI members will be required to share information aboutenvironment, health and safety (EHS) and labor standards including those of the ILO, OECD and Global Reportingtheir supply chains within three months of joining and commit to supportingInitiative (GRI) and criteria for ISO 14001 certification. Longer term, mines and processors that adopt the RMIthe adoption of the workplace standards by members of their supply chains.standards will be encouraged to comply with global standards as well.RMI memberscollectively represent337%of mica exports fromBihar and JharkhandBased on 2014 UN COMTRADE and RMI member data.0809

2018 ANNUAL REPORTSTEP 32018 ANNUAL REPORTOur members are excited to be part of the Responsible Mica Initiative programsthat will provide a sustainable future for our industry and the c ommunities we relyon. The collaborative process that has been established will be able to incorporateour experience and sector knowledge while broadening our understanding of ourworkers’ needs and how we can enable them to achieve their goals.I M P L E M E N T I N G R E S P O N S I B L E W O R K P L A C E S TA N DA R D SASK prepared training materials appropriate for management teams and workers alike to explain the workplacestandards and the obligations of both workers and management whose understanding and commitmentwould be essential for the success of the program. During its monthly visits to each of the three processingfacilities that volunteered for the pilot, ASK explained the program and also established baselines usingkey performance indicators that are part of the broader monitoring and evaluation framework that RMI applies— R A J E N D R A B A G A R I A , P R E S I D E N T, M I C A E X P O R T E R S A S S O C I A T I O Nto each program pillar. ASK helped establish worker committees to ensure ongoing feedback would be& D I R E C T O R , R U B Y M I C A C O . LT D . , I N D I Acollected and included in the subsequent evaluation and adaptation phase of the pilot before the standardsand training modules were finalized for the program scale-up in 2019 and beyond.A L I G N E D O R G A N I Z AT I O N P R O G R A M SIn a related study, Terre des Hommes Netherlands undertook an economicand social analysis of nine villages in Jharkhand’s Koderma district thatwould provide insights into the challenges and needs of the communitiesadjacent to the mines. The research revealed that 81 percent of familieswere dependent on mica for their livelihood, 70 percent owned less thanone acre of land and 72 percent of families lived below the poverty level.The findings highlight the important role of workplace standards in creatinga sustainable industry that can support communities that depend on micafor their livelihood. The data will help ensure that the workplace standardsadequately address conditions in mines and community households asL O O K I N G A H E A D T O P R O G R A M E X PA N S I O NHo usehol dB asel ine DataThe pilot program will continue into early 2019.MICA DEPENDENCYSTEP 4In 2019, the workplace standards will be fully implemented at the three processing facilities and implementation81%will be monitored against the baselines. Working with ASK-India, feedback will continue to be obtained fromboth worker groups and management that participated in the pilot program, and any necessary changes in thestandards and training materials will be incorporated before the materials are finalized.of income is dependentsolely on micaSTEP 5well as provide a baseline to assess progress.BUILDING CONSENSUSIn an effort to build wider understanding and support for the newworkplace standards, RMI met with regulators in Bihar and Jharkhand withoversight of mines and processors. They provided valuable insights intoE VA L U AT I N G I M P L E M E N TAT I O NE X PA N S I O NBy mid-year 2019, the RMI workplace standards will be available to70%additional processors with the accompanying training curriculum and willbe extended to include mines once they begin to be formally regulatedwith the support of RMI’s legal frameworks program pillar. At the sameof families own less thantime, ASK will continue to evolve both the standards and training materialsone acre of landto ensure program components remain relevant.the weaknesses of current legal frameworks, the way regulations couldbe strengthened and how voluntary adoption of RMI standards wouldcomplement provisions of both current and future regulatory frameworks.Finally, RMI facilitated the formation of a local business committeedrawing interest from approximately 40 participants in 26 organizations.Industry leaders shared their perspectives on how others in the micasector could contribute to the project and offered expertise based on theiroperations and experience.COMPLIANCESELF-ASSESSMENTThe workplace standards training program will be available to both72%RMI members and non-members. RMI members will be required to havemica processors in their supply chains implement the standards. Allprocessors that adopt the standards will also be required to perform aCompliance Self-Assessment to identify gaps between the requirementsof families live below theof the workplace standards and their current policies and procedures.poverty levelThe Compliance Self-Assessment will be reviewed and provide the basisfor Suggestions for Improvement Areas that owners will need to implementto ensure compliance with the standards. To support adoption of theSuggestions for Improvement Areas, RMI’s Program Manager will facilitatetraining on the workplace standards for both management and workers atparticipating processors.In alignment with RMI’s holistic approach, the standards and implementationprogram will also be available and encouraged at mines and processors thatdo not supply RMI members or that have not joined RMI independently. Nonmembers will be required to pay a nominal fee to participate. Interactionswith regulators and the business community will continue to provide valuableperspectives on the program and facilitate RMI’s efforts to strengthen thelegal frameworks affecting the mica industry.1011SUGGESTIONS ONI M P R OV E M E N T A R E AS

2018 ANNUAL REPORTEMPOWERING COMMUNITIESCONDUCTING RESEARCH ANDDEVELOPING BASELINESG O A L : Enable 100% of the communities in micacollection areas in Bihar and Jharkhand to be reachedby inclusive empowerment programs that provideimproved standards of living, including additionalsources of income.While the implementing partners were already aware of generaleconomic and social conditions across the mica belt, they conducteddetailed survey-based research and interviews to identify the uniqueneeds of each village in order to develop programming that will addresstheir specific circumstances. The process also provided an opportunity forRMI partners to establish the relationships and build a rapport withinthe communities that will be essential for the successful implementationThe results of the research confirmed the breadth of the challengesthat the villages face. Mining is the primary source of income forThe village communities that populate the mica belt and provide the93 percent of households and the secondary source in the remaining 7human resources to collect mica lack the means to improve their livingpercent. Subsistence farming and other manual labor tasks provide limitedconditions. In 2018, RMI launched a five-year program to developalternative sources of income, primarily during the July to Septemberinnovative and scalable solutions that will address the situation, improvingmonsoon season when mines are inaccessible. At the mines, health andthe wellbeing of both the children and adults in the communities andsafety risks, coupled with the lack of transparency surrounding mica pricesenabling a sustainable mica industry. The program envisions enhancedand wages, produce poor health and unstable economic conditions.access to quality education, improved economic conditions as well asThe research revealed limited or no access to health care for womenimproved access to health services.and children, with less than 30 percent of the population served bygovernment health programs. Access to other government socialE S TA B L I S H I N G P R O G R A M PA R T N E R S H I P Sprograms such as food ration cards, toilet construction, disability pensionsand health insurance was also poor. Combined, these inadequaciesTo begin the process, RMI solicited proposals from leading India-basedEducational resources were also found to be inadequate. In thefor their development work and familiar with conditions in Bihar andaggregate, only 50 percent of village children attend school. The lack ofJharkhand. The Association for Stimulating Know-how (ASK) and CARE-print-rich resources and classroom learning tools made for poor learningIndia were selected as lead technical partner and education coordinatingenvironments. Schools also lack the means to engage parents and onlypartner, respectively. Four additional organizations were chosen to join54 percent of families are able to support their child’s education at home.the consortium as implementing partners. Each will conduct the programTeachers received inadequate training and other government servicesprojects in 10 villages located across three districts for a total of 40underserved village schools.villages and benefit more than 2,500 households.A SKLea d tec hnic al p ar tnerAT – G R A S S R O O T SF O U N D AT I O NSAMAJIKPA R I S H A DSANSTHANaccess to adequatehealth careOnly50%of village childrenattend schoolOnlybids, RMI selected a consortium of six CSO partners, each highly regardedPA R I VA R TA N1/3of the population hasperpetuate development hurdles.implement the community empowerment programs. From a total of 15B H A R T I YALess thanexacerbate the dependence of the communities on mica mining andorganizations that specialize in development and capacity building toJAN UTTHAN93%of the populationof the programs. The findings will also establish baselines for subsequentprogram evaluation.A B H I V YA K T IMica is the primarysource of income forC A R E Ind iaLea d ed uc atio n p ar tner121354%of families cansupplement educationat home

L O C AT I O N S O F V I L L A G E S S U P P O R T E D B Y R E S P O N S I B L E M I C A I N I T I AT I V E A N D T E R R E D E S H O M M E S N E T H E R L A N D S2018 ANNUAL REPORT2018 ANNUAL REPORTSTRENGTHENING THE CIVIL SOCIETYO R G A N I Z AT I O N S N E T W O R KConsistent with RMI’s holistic strategy and to garner a wider range ofperspectives on potential community empowerment solutions, RMIestablished the CSO Committee comprised of a number of organizationsKO D E R M Aknowledgeable about the mica belt and with expertise in communitydevelopment and capacity building, health, education and alternativeincome generation. Working together, the Committee pledged not onlyto support RMI’s program objectives but also to create efficiencies, shareexperiences, coordinate actions for the benefit of the local communitiesand serve as a vital ongoing link between village and government leaders.A L I G N E D O R G A N I Z AT I O N P R O G R A M SDuring this inaugural year in the development of communityempowerment programs, RMI was grateful to have been able to learnfrom Terre des Hommes Netherlands, which began its communityempowerment programs in the mica sector in 2016. Working throughdifferent CSO partners in India, Terre des Hommes Netherlands hasestablished programs in 61 villages that benefit more than 5,800households. The Natural Resources Stewardship Circle also sponsorsMICA REGIONcommunity empowerment programs in 150 villages. The challenges thatOF BIHAR ANDTerre des Hommes and NRSC met and overcame will continue to informJHARKHANDand facilitate the design and implementation of RMI’s initiatives.L O O K I N G A H E A D T O P R O G R A M I M P L E M E N TAT I O NR M I P A R T N E R V I L L A G E S prog ram star ted in 2018During the fourth quarter of 2018, RMI evaluated the data from its own multi-village baseline study, the findingsand recommendations from the CSO Committee and the data provided by Terre des Hommes Netherlands and itsconsortium. The results defined the scope of four components of RMI’s community empowerment strategy thatwill begin to be implemented in 2019.RMI’s communityI M P R OV E D

2018 ANNUAL REPORT. 03. ANNUAL MESSAGE . Dear Members and Friends, Welcome to the first Responsible Mica Initiative (RMI) annual report. Our organization was conceived just two years ago with a single purpose in mind. Our goal is to enable a responsible mica supply chain in India that can