We are committed to the Responsible Business Alliance (RBA) Code of Conduct and we hold our suppliers accountable to these same standards.
Our suppliers must adhere to certain standards and laws applicable in the countries in which they operate. We also work with suppliers to advance their sustainability efforts and environmental management, beyond the minimum legal requirements.
We understand that our sustainability performance is viewed by stakeholders as the combination of practices and actions by us and our outsourced supply chain.
Our supplier sustainability framework comprises the following elements:
All of our employees and management, who have direct responsibility for supplier engagement and selection, receive training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chain.
We focus our supplier assessment process on our key suppliers, which represent more than 85 percent of our supplier spend annually. To increase transparency and accountability, we engaged EcoVadis, an independent sustainability ratings company, to assess our suppliers’ sustainable business practices. We rely on this assessment protocol to identify strengths, determine what areas need to be addressed, and inform our sustainable supply chain strategy moving forward. The EcoVadis assessment results and trends are summarized below.
Respect for human rights is essential. Because we have an outsourced supply chain, we work hard to clearly communicate our expectations for human rights protections.
We operate in full compliance with the International Labour Organization’s workplace standards as well as any country-specific standards where we have operations. By confirming their compliance to the U.N. principles, our suppliers affirm their commitment to internationally recognized human rights standards. This includes the elimination of forced labor, child labor, and discrimination in the workplace, as well as upholding freedom of association. We also mandate training for our supply chain employees on how to eliminate forced labor, modern slavery, and human trafficking from the global supply chain. A copy of our most recent modern slavery statement can be found here.
Just as we are committed to sourcing our materials in an ethical and environmentally responsible manner, we expect our suppliers to have the same commitment. Although we do not directly purchase Tantalum, Tin, Tungsten, and Gold (3TG), we work with suppliers to ensure they are not procuring 3TG from sources that directly or indirectly support armed groups in the Democratic Republic of Congo or adjoining countries.
Our due diligence to ensure sustainably and ethically sourced minerals includes our company policy on conflict minerals, detailed conflict minerals risk analyses across our supply chain, and a grievance mechanism to voice and record concerns regarding conflict minerals. Our Supplier Guidelines require direct suppliers to source from smelters validated as compliant to a Conflict-Free Smelter protocol using the Compliant Smelter List, and we request that suppliers submit sourcing information via the RBA and Global e-Sustainability Initiative’s questionnaire. We endorse the Responsible Minerals Initiative and require our suppliers to provide a copy of the RBA/Global e-Sustainability Initiative Conflict Minerals Declaration. Suppliers also agree to cooperate with us to verify the information provided in the Conflict Minerals Declaration and take corrective action as needed.
Diversity in all forms drives innovation and creativity—key ingredients for our competitive, next-generation solutions. Having a supply chain that reflects the diversity of the communities in which we live and work is not only the right thing to do, but also good business. Our network of partners and suppliers is critical to our long-term success, and having a diverse supply chain improves our customer experience.
In FY2019, our total spend with diverse suppliers was more than $39 million. We proactively seek to recruit diverse businesses in the following categories:
As more diverse businesses emerge to provide products and services that fit our needs, we expect the funds spent on diverse suppliers to increase.
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