Sustainability Report 12 Our businesses have sophisticated supply chain management processes to ensure our supply chain meets these standards. Our supply chain management strategy includes risk-based due diligence to identify and address risks among potential suppliers. Most of our supply base is located in the United States, which presents a far lower risk of forced labor or human trafficking. Many General Dynamics prime contracts with the U.S. government contain Federal Acquisition Regulation (FAR) clause 52.222- 50 Combating Trafficking in Persons (48 C.F.R. ยง 52.222-50). We comply with this clause and require it of our suppliers, where applicable. A smaller portion of our supply base is located outside the United States. Wherever their location and whatever their role, our suppliers are held to the same high standards we uphold ourselves. Putting a stop to human trafficking and child labor, respecting human rights, and obeying applicable laws are important parts of our supply chain management process. Conflict Minerals As part of our commitment to responsible sourcing, we work with our supply chain to trace potential sources of minerals such as tantalum, tin, gold or tungsten, which are known to help finance conflict and contribute to the humanitarian crisis in the Democratic Republic of the Congo. We routinely conduct inquiries of our suppliers to identify potential use of these conflict minerals. In line with U.S. Securities and Exchange Commission (SEC) requirements, we submit a Specialized Disclosure Report and a Conflict Minerals Report. In our report to the SEC, we address our efforts to understand the presence of these minerals in our supply chain, including: y Surveying and working with our suppliers to identify the presence of conflict minerals in products that are supplied to us. y Engaging with many of our suppliers about the potential presence of conflict minerals in materials. y Introducing contractual terms and conditions as appropriate to urge suppliers to report responsibly. Virginia-class submarine
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