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Responsible sourcing

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Our reputation not only depends on what we do, but also the activities of our supply chain. We work with our customers and our suppliers to increase transparency and responsible business practices in our supply chain. We endeavor to put in place the processes, programs, procedures, and policies to mitigate supply chain risks, and provide remedy and collaboration with our suppliers to enable a more sustainable and transparent ecosystem. In the infographic below, you can see a summary of our approach to supply chain management and the various procedures and activities employed to help sustain a responsible supply chain. 

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In 2017, we had business with approximately 12 000 suppliers, 80% of our total supplier spend was distributed across approximately 435 suppliers. Below is an overview of the types of suppliers addressed through our corporate responsibility programs.

  • Over 90% of relevant supplier base is covered by Supplier Health and Safety Maturity Assessment
  • Over 50% of supplier spend is covered by CDP supply chain climate change program
  • 98% of relevant supplier spend is covered by Conflict Minerals program
  • 40% of supplier spend is covered by EcoVadis sustainability assessments.
  • 100% of supplier spend is covered by the Request for Information (RFI process, related to anticorruption due diligence, health and safety, and overall sustainability.

For onsite audits we do not measure the percentage as audits are risk-based. In 2017, we implemented 393 (390 in 2016) supply chain audits, which included 72 on-site audits on corporate responsibility topics; 47 were on-site audits against our full set of supplier requirements and 274 suppliers were assessed using the EcoVadis scorecards. We spent 187 auditor days conducting Corporate Responsibility in-depth audits (109 in 2016) at 71 supplier sites (39 in 2016) in Thailand, Philippines, Indonesia, China, Taiwan, India, UAE, Mexico, Brazil, Argentina, Iran, Nigeria, Algeria, and Romania, impacting a total of around 23 893 supplier employees. We found 591 instances of noncompliance of which 268 related to health and safety, 59 related to environment. Based on the findings, we made 913 recommendations for improvement, and these are being addressed through corrective action plans.

Training and awareness are also a key part of our supply chain engagement programs.

Health & Safety in the supply chain 

As we have equipment installation and maintenance contractors in our supply chain, who spend much of their time working at height, in confined spaces, and driving long distances, we place special emphasis on health and safety. In 2017, we conducted 975 health and safety maturity assessments (on-site evaluations conducted by our regional health and safety professionals) on suppliers providing us high risk activities such as working at height, transportation, and electrical work. 81% of assessed suppliers met H&S compliant supplier status. For more details see page 101 of the People & Planet Report 2017.

Combatting modern slavery in the supply chain

Current estimates suggest there are over 46 million modern slavery victims globally. We do not tolerate slavery, servitude, trafficking in persons, and forced or compulsory labor in our own operations or in our supply chain. In 2017, in our first Modern Slavery statement, we disclosed the risk map, our mitigation, and due diligence procedures.  

It is our mission to help find ways in which the technology we provide can be used to eradicate modern slavery. We work with others in the industry to identify ways through which we can, as an industry, contribute with concrete solutions to tackling some of the issues related to modern slavery. 

We co-hosted a multi-stakeholder event to increase the cooperation and dialog around the role of digital technology in tackling modern slavery at Wilton Park in the UK. The event cohosted with one of our service provider customers brought together expert representatives from law enforcement, government, international academia, and NGOs, dealing with the issue of human trafficking over a two-day period. To date, we continue to build on the important dialog initiated at the event with our stakeholders, and continue to encourage other technology companies to join us. We remain active in the industry events around this theme.  Read more here and on pages 102–104 of the People & Planet Report 2017.

Conflict minerals 

We see the potential risks associated with the mining and minerals trade of the metals from which key minerals in electronic components are extracted. These risks may include military conflict, human rights violations, and negative environmental impacts. Our conflict minerals policy outlines our commitment and our requirements towards socially and environmentally responsible sourcing of Conflict Minerals1 for our products. Conflict minerals are here defined as Columbite-tantalite (coltan) (or its derivative tantalum), cassiterite (or its derivative tin), gold, and wolframite (or its derivative tungsten). The policy can be found here.

We have developed a robust due diligence approach, aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals. In 2017, we set a firm requirement for our suppliers to establish full traceability of smelters in our supply chain, with those suppliers neither meeting the objective nor having a corrective action plan, being recommended for phase-out. As a result, 90% of our suppliers were able to meet the requirement. Our latest Conflict Minerals report can always be found here