AMD Response to UN Guiding Principles Reporting Framework

Transcription

1 AMD Response to UN Guiding Principles Reporting Framework PART A: Governance of Respect for Human Rights What does the company say publicly about its commitment to respect human rights? o A1.1 How has the public commitment been developed? Our values and approach to human rights issues are guided by the Universal Declaration of Human Rights, the United Nations (UN) Guiding Principles on Business and Human Rights and the UN Global Compact Principles. Our membership in the Responsible Business Alliance ( RBA ) and our adoptions of their Code of Conduct 6.0 ( Code ) further augments our efforts. o A1.2 Whose human rights does the public commitment address? This commitment extends to respecting the human rights of all individuals directly impacted by our company s global operations and in our employment. o A1.3 How is the public commitment disseminated? Our website, Human Rights Policy Statement, Statement on Forced Labor, and our RBA Code Adoption Letter. How does the company demonstrate the importance it attaches to the implementation of its human rights commitment? o A2.1 How is day-to-day responsibility for human rights performance organized within the company, and why? Leaders within our Human Resources, Supply Chain, and Legal departments have responsibility for the policies and programs that are designed to protect human rights for our employees and business partners. o A2.2 What kinds of human rights issues are discussed by senior management and by the Board, and why? Diversity & Inclusion efforts as they are pertinent to company culture, recruitment, and retention initiatives o A2.3 How are employees and contract workers made aware of the ways in which respect for human rights should inform their decisions and actions? AMD s Worldwide Standards of Business Conduct outline our expectations for ethical conduct and human rights commitments. Training on these standards is periodically required for all AMD employees. Furthermore, employees who manage supplier business relationships are required to take supply chain responsibility training courses provided by the RBA.

2 o A2.4 How does the company make clear in its business relationships the importance it places on respect for human rights? We reference the RBA Code in our master service agreements and share an annual Supplier Assurance letter with our direct suppliers that outlines our expectations based on the RBA Code. o A2.5 What lessons has the company learned during the reporting period about achieving respect for human rights, and what has changed as a result? AMD completed an update to our corporate responsibility issue prioritization process, commonly referred to as a materiality report, in early That process identified Human Rights & Labor Issues as one of four core issues for the company. AMD subsequently engaged with our external stakeholder advisory panel, led by Ceres, to further define expectations. Through that discussion and internal leadership reviews AMD has identified freely chosen employment as our salient human rights issue. As a result, AMD has included additional reporting requirements for our direct suppliers and has developed additional metrics to increase transparency and enable goal setting in future years. PART B: Defining a Focus of Reporting o Statement of salient issues: State the salient human rights issues associated with the company s activities and business relationships during the reporting period. Freely Chosen Employment o Determination of salient issues: Describe how the salient human rights issues were determined, including any input from stakeholders. Corporate responsibility prioritization process led by Sustainability and external stakeholder panel engagement led by Ceres o Choice of focal geographies: If reporting on the salient human rights issues focuses on particular geographies, explain how that choice was made. We are focusing across our direct materials supply chain that is largely based in Asia. o Additional severe impacts: Identify any severe impacts on human rights that occurred or were still being addressed during the reporting period, but which fall outside of the salient human rights issues, and explain how they have been addressed. No additional severe impacts were noted. PART C: Management of Salient Human Rights Issues SPECIFIC POLICIES: Does the company have any specific policies that address its salient human rights issues and, if so, what are they?

3 o C1.1 How does the company make clear the relevance and significance of such policies to those who need to implement them? AMD has formally adopted the RBA s Code as our supplier code of conduct. The code specifically defines the issues, expected behaviors and working conditions. AMD shares the code through our master services agreements and our annual Supplier Assurance letter. STAKEHOLDER ENGAGEMENT: What is the company s approach to engagement with stakeholders in relation to each salient human rights issue? o C2.1 How does the company identify which stakeholders to engage with in relation to each salient issue, and when and how to do so? Working with Ceres, an award-winning, non-profit group focused on business and sustainability, AMD has established a stakeholder advisory panel consisting of experts from industry partners, advocacy groups and socially responsible investment firms. We typically meet with the panel once to twice a year to share our progress against goals and to gain insight on how we can improve our corporate responsibility strategies, communication and performance. o C2.2 During the reporting period, which stakeholders has the company engaged with regarding each salient issue, and why? AMD met with the external stakeholder advisory panel on human rights and labor issues to further define expectations. This engagement led to the identification of our salient human rights issue, freely chosen employment. o C2.3 During the reporting period, how have the views of stakeholders influenced the company s understanding of each salient issue and/or its approach to addressing it? The stakeholder advisory panel helped AMD to understand and prioritize the issue of freely chosen employment as there are serious challenges to vulnerable workers in the technology industry. ASSESSING IMPACTS: How does the company identify any changes in the nature of each salient human rights issue over time? o C3.1 During the reporting period, were there any notable trends or patterns in impacts related to a salient issue and, if so, what were they? The 2018 reporting period marked the first year we collected data specific to freely chosen employment. As such, we can t identify trends, but only establish a baseline for future pattern recognition. o C3.2 During the reporting period, did any severe impacts occur that were related to a salient issue and, if so, what were they? No severe impacts were noted.

4 INTEGRATING FINDINGS AND TAKING ACTION: How does the company integrate its findings about each salient human rights issue into its decision-making processes and actions? o C4.1 How are those parts of the company whose decisions and actions can affect the management of salient issues, involved in finding and implementing solutions? AMD s supply chain responsibility program is a partnership between the Corporate Responsibility and Supply Chain teams. We meet regularly to review progress against goals and identify opportunities for continuous improvement. o C4.2 When tensions arise between the prevention or mitigation of impacts related to a salient issue and other business objectives, how are these tensions addressed? AMD has not directly encountered this issue. Any dispute between a supplier and AMD will be settled through our Supplier Business Review process and subsequent leadership escalations, if needed. o C4.3 During the reporting period, what action has the company taken to prevent or mitigate potential impacts related to each salient issue? AMD reviewed each supplier s self-assessment questionnaire ( SAQ ) to identify those facilities that employ foreign migrant workers. Those suppliers were then required to complete a supplemental SAQ on labor practices related to those contract employees with their labor brokers. If it exists, AMD will engage with each supplier whose responses identify a higher risk of forced labor conditions. AMD will require additional training or potentially audit those suppliers depending on the outcome of the engagement. TRACKING PERFORMANCE: How does the company know if its efforts to address each salient human rights issue are effective in practice? o C5. issue is being managed effectively? In general, the requirement to complete the supplemental SAQ forces the discussion of labor practices between our supplier and their labor broker. If any issues are identified through this process AMD may require an onsite audit to identify non-conformance issues and develop a corrective action plan. REMEDIATION: How does the company enable effective remedy if people are harmed by its actions or decisions in relation to a salient human rights issue? o C6.1 Through what means can the company receive complaints or concerns related to each salient issue? The AMD AlertLine is a multilingual web portal and telephone service that accepts anonymous reports about suspected illegal activity or violations of AMD s Worldwide Standards of Business Conduct, as permitted by law.

5 o C6.2 How does the company know if people feel able and empowered to raise complaints or concerns? AMD requires direct suppliers that employ foreign-migrant workers to complete a supplemental self-assessment questionnaire (provided by the RBA) in conjunction with any third-party labor brokers who manage that labor force. The results of which provide insight into how the labor conditions and worker s rights are protected by the supplier and their labor broker. Any indication of non-conformance to the RBA Code of Conduct will be further investigated by AMD and may include an on-site audit (RBA VAP). o C6.3 How does the company process complaints and assess the effectiveness of outcomes? The Board of Directors receives summaries of all calls. o C6.4 During the reporting period, what were the trends and patterns in complaints or concerns and their outcomes regarding each salient issue, and what lessons has the company learned? AMD s salient issue, freely chosen employment, was defined in late AMD started collecting associated information from suppliers in 2018 and expects to report against our salient issue in o C6.5 During the reporting period, did the company provide or enable remedy for any actual impacts related to a salient issue and, if so, what are typical or significant examples? AMD s salient issue, freely chosen employment, was defined in late AMD started collecting associated information from suppliers in 2018 and expects to report against our salient issue in 2019.