(Conflict-Affected and High Risk Areas) Index
The TDi CAHRA (Conflict-Affected and High Risk Areas) Index is designed to support supply chain due diligence, and in particular “red flag assessment”, as described in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
The TDi CAHRA Index grades the likeliness that a country could meet the OECD definition of a CAHRA, as either high, moderate or low.
There is no universal list within the due diligence community of which countries (or areas within countries) constitute CAHRAs, and the OECD argues powerfully that such a list would be counterproductive. The country list produced by this index should not be considered definitive and ultimately companies must make their own determination of CAHRA locations.
We combine eleven indices published by international institutions and civil society bodies to produce the TDi CAHRA Index. The eleven indices measure the prevalence of conflict, corruption and governance weaknesses, and shortcomings in human rights and labour rights.
Each of the indices we include is regularly reviewed for suitability, and TDi CAHRA Index is refined and updated at least once a year. The index was last updated in November 2022.
The TDi CAHRA Index combines its underlying indices using the geometric mean, which is a more specialist mathematical tool than the common arithmetic mean. Using the geometric mean causes countries with significant governance weakness in every area to be rated worse than countries with a mix of governance strengths and isolated (but more severe) governance weakness. Averaging in this way reflects the reality of responsible sourcing, in which the greatest risk is presented by systemic weakness across all aspects of governance. High risk countries for responsible sourcing are typically those in which governance failings compound each other.
If you would like to learn more about this index, explore its applications, or discuss the methodology and approach it uses then we would be glad to hear from you. Please direct all correspondence to [email protected]