EICC and GeSI Extractives Working Group. External Training & Outreach Jerry Meyers, Intel Fab Materials EHS

Transcription

1 EICC and GeSI Extractives Working Group External Training & Outreach Jerry Meyers, Intel Fab Materials EHS

2 Agenda Position Statement Background EICC and GeSI members Conflict Minerals and the Democratic Republic of the Congo Usage of the 3 T s and Gold EICC and GeSI Approach to Conflict-Free Sourcing

3 Electronic Industry Citizenship Coalition (EICC)

4 Global e-sustainability Initiative (GeSI) Associate members:

5 Position Statement The EICC and GeSI are committed to improving conditions in the electronics supply chain and believe that mining activities that fuel conflict are unacceptable. In order to enable companies to source conflict-free minerals, we are taking action by: Implementing Conflict Free Smelter program to verify conflict mineral free Supporting itsci pilot to track legitimate trade from DRC Supporting OECD due diligence guidance and pilot Engaging with stakeholders for collaboration and efficiency 5

6 Democratic Republic of the Congo 3Ts (Sn, Ta, W), gold (Au) and Cobalt (Co) are all mined in the DRC There is ongoing conflict is in eastern DRC provinces where the 3Ts and gold are mined. Mining activity is crucial to the DRC economy. However, some mines are controlled by parties that are causing serious social and human rights violations in the region. These minerals are not unique to the DRC. The majority of the global supply of these minerals originates outside of the Great Lakes Region. (see back-up) Data source: US Geological Survey 6

7 Usage of the 3 T s and Gold Tantalum (Ta) Tin (Sn) Tungsten (W) Gold (Au) 9% 40% 36% 30% 60% 64% 70% 91% Electrical Non-electrical These metals are used widely in electrical products (including automobiles and appliances) Phase-out / substitution of some of these metals is not currently cost effective, or technically feasible The amount of these metals used in a typical electronic product are in the order of about 0.7 grams for tantalum, 10 grams for tin, grams for tungsten, and 0.3 grams for gold 7

8 EICC and GeSI Approach to Conflict-Free Sourcing Finished Product MINE SMELTER/REFINERY OEMS itsci Scheme Conflict Free Smelter Program Company Assurance EICC_ GeSI Confidential 8

9 Tantalum Supply Chain Ta supply chain is complex Other Sources Reuse material (some is closed loop recycling) MINES TRADERS SMELTERS COMPONENT SUPPLIERS SUPPLIERS OEMs/ Contract manufacturers Slag input (containing Ta) Sn Smelters K Salt Toll manufacturing Smelter is at key point in supply chain to enforce responsible purchasing EICC_ GeSI Confidential 9

10 DRC Conflict Free Smelter Program What: Multi-stakeholder developed audit process to assess whether smelters are sourcing DRC conflict-free minerals Why: To validate conflict-free sources of Tantalum, Tin, Gold, Tungsten How: Addressing each metal separately, but simultaneously Order of priority is Tantalum, Tin, Tungsten, Gold Validation protocol for each metal Tantalum protocol agreed and 3 rd party audits are in progress 10

11 Conflict Free Smelter Program Status Milestone Tantalum Schedule Tin Schedule Initial meeting of supply chain Sept 2009 May 2010 Smelter validation protocol agreed Q January 2011 Smelter 3 rd party validation start Q Q Compliant smelter list publically available Q TBD Discussions with Tungsten and Gold Industries well underway Conflict-Free Smelter Program is scalable to Tungsten and Gold. 11

12 Conflict Free Smelter Program Ta Validation Protocol Level 1 mine of origin certificate, all transport docs, export license Level 2 level 1, on site visit to mine, follow first shipment from mine to smelter, representative sample taken for comparison, mining license or certificate, tonnage capability assessment Level 3 level 1, level 2, determination of illegal taxation on trade route, mine of origin is not conflicted, itsci elements Raw Ore Ta Slag Trader Ksalt Other Low Risk } Level 1 Steps: General Information Business Processes Materials Purchases Raw Ore Ta Slag Trader Ksalt Other High Risk } Level 2 Scope - supplier must have conflict minerals policy - audit to cover 100% of raw material procurement - toll manufacturing, slag purchases covered - recycled materials out of scope Raw Ore Ta Slag Trader Ksalt Other Conflict Area (DRC) } Level 3 EICC_ GeSI Confidential 12

13 Conflict Free Smelter Program & Company Assurance Names of compliant smelters and elements of audit results to be posted on EICC and GeSI websites Companies will have option to direct suppliers to use compliant smelters/refiners Audit results and information on CFS Program will be available for use by other industries EICC and GeSI are developing an industry tool to engage suppliers

14 Key Efforts are Converging

15 About EICC & GeSI About EICC (Electronic Industry Citizenship Coalition) The EICC was established in 2004 to improve social, economic, and environmental conditions in the global electronic supply chain through use of a standardized code of conduct. The EICC was incorporated in 2007 as an association to ensure greater awareness of the code, and to expand its adoption across the industry. The EICC includes 40 global electronics companies. For more information or to view the EICC Code of Conduct, see About GeSI (Global e-sustainability Initiative) The Global e-sustainability Initiative (GeSI) is uniquely dedicated to information and communication technologies (ICT) sustainability through innovation. GeSI brings together leading ICT companies including telecommunications service providers and manufacturers as well as industry associations and non-governmental organisations committed to achieving sustainability objectives through innovative technology. In June 2008, GeSI became a legal independent entity, an international non-profit association (AISBL) with an office near the EU institutions in Brussels, Belgium. For more information, see