Introduction to the Electronic Industry Citizenship Coalition

Transcription

1 Introduction to the Electronic Industry Citizenship Coalition Date: April 12, 2011 Presenter: Bob Leet, M.Sc. Company: Intel ELECTRONIC INDUSTRY CITIZENSHIP COALITION

2 Agenda Setting the stage for action EICC overview Highlighted tools Carbon Reporting Tool Conflict-Free Smelter Program

3 High Expectations In the globalized world society has high expectations of business to: create jobs and wealth address societal issues collaborate with public sectors use global span to accelerate change

4 The Electronic Industry Citizenship Coalition (EICC ) is a coalition of companies working together to create a comprehensive set of tools and methods that support credible implementation of the EICC Code of Conduct throughout the Information and Communications Technology (ICT) supply chain. Who is the EICC?

5 EICC Members (As of 3 Feb 2011)

6 Objectives of the EICC Develop and maintain a common Code of Conduct Facilitate a credible process for evaluation and management of supply chains covering labor, environmental, and sourcing topics Deliver shared training and education to improve social and environmental performance in the supply chain Build external awareness and participation through meaningful stakeholder engagement

7 Code of Conduct Elements Treat employees with dignity & respect Protect the environment Labor Environmental Management Systems Evaluate & control exposure to hazards Health & Safety Ethics Uphold the highest standards A management systems approach drives sustainable solutions

8 HIGHLIGHTED TOOLS

9 EICC Carbon Reporting System Why? Climate change is one of the top global environmental issues companies face Increasing pressure to report emissions from investors, customers, and consumers Governments at all levels are involved in potential regulation and voluntary initiatives Multi-stakeholder groups are leading the development of standards Lack of transparency in supply chain is a business risk to all companies Objectives Increase transparency of carbon and energy data in the ICT supply chain Increase data sharing efficiency Empower companies in the supply chain to measure their energy use. Create actionable information Increase awareness of the opportunities associated with improved carbon and energy management Expand data collection to include other environmental impacts, such as water use, waste generation, and recycling The program aims to provide a standardized approach for gathering emissions and water data from suppliers in the ICT supply chain.

10 Conflict-Free Smelter Program Why? Enable responsible sourcing: companies that want to source responsibly will be able to use the results of the smelter assessment in their own purchasing practices Currently no system in the global electronics industry that allows a company to determine the source of their material What? Independent third party assessment that evaluates a smelter s procurement activities Assessment determines if the smelter demonstrated that all the materials they processed originated from conflict-free sources CFS is a voluntary program The program aims to enable companies to source conflict-free minerals.

11 Questions? EICC Headquarters th Street, NW Suite 500 Washington, DC (202) phone Membership Contact:

12 Thank You! For more information on the EICC visit: ELECTRONIC INDUSTRY CITIZENSHIP COALITION

13 :: BACKUP, DELETE WHEN DONE REVIEWING

14 Successes Unprecedented industry adoption and collaboration Beginning to level playing field for suppliers Expanding portfolio of common tools and approaches Communication with critical stakeholders

15 Carbon reporting system info The EICC created the Carbon Reporting System to: Provide a low-cost system for measuring Scope 3 supply chain emissions by gathering primary data from suppliers (as opposed to using LCA models) Build supplier capabilities in carbon footprinting and reporting Establish dialogue with direct suppliers about carbon emissions, and build a foundation for working collaboratively to reduce emissions Take a coordinated approach reduce the likelihood of redundant and conflicting requests for supplier data Questionnaire collects info on: GHG emissions (direct and indirect) Electricity usage Renewable energy generated and purchased Carbon and energy management practices (e.g. reduction goals and activities) Water usage Water management practices Emissions calculator is consistent with the WRI GHG Protocol corporate accounting standard

16 More carbon reporting system info How is this different from the CDP Supply Chain initiative? Simplified questionnaire Free for EICC members to participate; Low-cost for non-eicc companies Suppliers have access to an emissions calculator that helps them measure their footprint for the first time How will Data Collected be Used? EICC members intend to use the data to: Better understand the current abilities of companies in the electronics supply chain to measure and disclose carbon emissions, and to identify what additional capability-building is needed Better understand individual companies and the collective supply chain footprint, as a prelude to working collaboratively to reduce emissions

17 Challenges Resource commitments Give up speed - consensus takes time! Varying Levels Of Expertise in Sourcing & CSR Cultural Differences Legal & Anti-Trust Issues 17

18 EICC Vision and Mission Vision - Through the application of high standards we can create better social, economic and environmental outcomes for all those involved in the Information and Communications Technology (ICT) supply chain. This includes: increased efficiency and productivity for customers and suppliers improved conditions for workers economic development a cleaner environment for local communities Mission - To deliver these benefits through a shared approach for implementation of the Code. This approach will: reduce duplication of effort focus efforts on positive social and environmental change and improvement build supply chain capability use a process that solicits feedback from stakeholders

19 EICC History Year Winter October 2004 November 2004 Activity NGOs publish reports targeting IBM, Dell, HP and five contract manufacturers: Flextronics, Celestica, Sanmina, Solectron and Jabil. Targeted companies form the EICC and develop a common Code of Conduct. Intel, Microsoft, Sony and Cisco join the coalition and begin implementation of the Code More companies recognize the impact of code proliferation on common supplier base and choose to join the EICC. The EICC establishes formal Memo of Understanding with Global E- Sustainability Initiative (GeSI) for common tool development The EICC develops common risk assessment, common audit tools, joint audit approach and auditor validation, web based data management tool, common reporting, capability building and training tools and conducts stakeholder engagement The EICC increases focus on extractives and working hours. Pilots Carbon Reporting Tool.

20 EICC Organizational Structure EICC DEVELOPMENT ACTIVITY IMPLEMENTATION ACTIVITY REGIONAL ACTIVITY OVERSIGHT CODE MGMT EXTERNAL RELATIONS SPECIAL PROJECTS OUTREACH CAPABILITY BUILDING MEASURE- MENT ASIA PROGRAM Governance Code Review External Comms Extractives Internal Comms Learning & CB SAQ Asia Work Group Finance Membership Compliance Stakeholder Engagement Environment Membership Recruitment E-Learning Validated Audit GeSI Alliance Working Hours Association Networking Supplier Training Corrective Action Academic Research Audit Preparations E-TASC As of 30 Oct 2009

21 Code of Conduct Elements Treat employees with dignity & respect 1. Freely Chosen Employment 2. Child Labor Avoidance 3. Working Hours 4. Wages and Benefits 5. Humane Treatment 6. Non-Discrimination 7. Freedom of Association Evaluate & control exposure to hazards 1. Occupational Safety 2. Emergency Preparedness 3. Occupational Injury & Illness 4. Industrial Hygiene 5. Physically Demanding Work 6. Machine Safeguarding 7. Dormitory & Canteen Labor Health & Safety Management Systems Environmental Ethics A management systems approach drives sustainable solutions 1. Company Commitment 2. Management Accountability and Responsibility 3. Legal and Customer Requirements 4. Risk Assessment and Risk Management 5. Performance Objectives with Implementation Plan and Measures 6. Training 7. Communication 8. Worker Feedback and Participation 9. Audits and Assessments 10. Corrective Action Process 11. Documentation and Records Protect the environment 1. Permits & Reporting 2. Pollution Prevention 3. Hazardous Substances 4. Wastewater 5. Solid Waste 6. Air Emissions 7. Product Content Uphold the highest standards 1. Business Integrity 2. No Improper Advantage 3. Disclosure of Information 4. Intellectual Property 5. Fair Competition 6. Protection of Identity 7. Community Engagement

22 EICC Journey of Implementation Progressive Approach. Conduct Validated Audits Drive Continuous Improvement Activities with Self & Suppliers Risk Assess Supply Chain Company Managed EICC Managed Adopt EICC Code of Conduct Internally Self-Assessment Questionnaire Join the EICC Active Involvement Access Best Practices Expand to Supply Chain.We have the means to improve Are you ready?

23 Corporate Social Responsibility Value Curve Corporate responsibility enables a shift from cost to returns Legal and Compliance Adherence to law in the countries of operation Strategic Philanthropy Alignment of charitable activities with social issues Values-based Self Regulation Incorporate the company's value system to guide business behavior Efficiency Measurable cost savings through efficient or winwin scenarios Growth Platform Access to new markets, or innovations that generate revenue

24 EICC Membership Scope BRANDS PRODUCTION COMPONENT MATERIALS LINKING FOUR TIERS OF THESUPPLY CHAIN 60+ member companies across Asia, the Americas, and Europe Extended reach through partnership with Global e- Sustainability Initiative (GeSI) Supply Chain Workgroup

25 Why are companies undertaking a joint effort? Rapid growth of initiatives to create better social and environmental outcomes in the supply chain. Suppliers may have different customers each with their own code of conduct and implementation. Multiple codes can lead to multiple assessments, questionnaires and audits that create wasted resources and generate duplicated results. By establishing a common approach we can: reduce duplication make implementation less burdensome focus efforts on real improvement

26 Stakeholder Engagement Model As part of our joint efforts, we seek input, in a structured and collaborative way, from credible/ knowledgeable stakeholders who can add value. Regulators NGOs Industry Groups Customer Engagement Principles: Collective, Transparent, Credible Socially Responsible Investors Media Gov t Community Groups

27 The Global e-sustainability Initiative (GeSI) Partnership Objective: Create a partnership to develop and deploy a consistent set of tools and processes to measure, monitor and enhance supply chain social responsibility performance across the Information and Communications Technology (ICT) sector. WHO WHAT WHY a coalition of companies in the Information and Communications Technology (ICT) supply chain from the EICC and the Global e-sustainability Initiative (GeSI), two global industry organizations working together to create a comprehensive set of tools and methods that support a credible implementation of the Code of Conduct to improve Social & Environmental practices and performance in the global electronics industry