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Improvements have been madeICT sector has d li d i l

... but much more needs to be done

delivered miraculous technology which benefits mankind

… the entire supply chain needs to commit

… however …

… we need a “climate change”

ICT sector is not viewed positively by many external

… we can be leaders in social responsibility !

stakeholders

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l h ll h l &&

EICC Code of Conduct• Freely Chosen Employment•Child Labor Avoidance•Working Hours•Wages and Benefits

• Freely Chosen Employment•Child Labor Avoidance•Working Hours•Wages and Benefits

• Permits & Reporting•Pollution Prevention •Hazardous Substances•Wastewater S lid

• Permits & Reporting•Pollution Prevention •Hazardous Substances•Wastewater S lid•Humane Treatment

•Non‐Discrimination• Freedom of Association

•Humane Treatment•Non‐Discrimination• Freedom of Association

• Solid Waste  •Air Emissions•Product Content

• Solid Waste  •Air Emissions•Product ContentLabor Environmental

Management

H lth &

ManagementSystems

•Business Integrity•No Improper Advantage•Business Integrity•No Improper Advantage

•Occupational Safety•Emergency Preparedness •Occupational Injury & Illness

•Occupational Safety•Emergency Preparedness •Occupational Injury & Illness

Health & Safety Ethics

No Improper Advantage•Disclosure of Information• Intellectual Property• Fair Competition•Protection of Identity

No Improper Advantage•Disclosure of Information• Intellectual Property• Fair Competition•Protection of Identity

Occupational Injury & Illness•Industrial Hygiene•Physically Demanding Work•Machine Safeguarding•Dormitory & Canteen

Occupational Injury & Illness•Industrial Hygiene•Physically Demanding Work•Machine Safeguarding•Dormitory & Canteen

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Protection of Identity•Community EngagementProtection of Identity

•Community EngagementDormitory & CanteenDormitory & Canteen

EICC Membership Scope

Brands Manufacturing  MaterialsComponents

Linking 4 Tiers of the Electronics Sector

• 40+ member companies:  Asia ‐ Americas ‐ Europe

• Extended reach through partnership with Global e‐Sustainability Initiative (GeSI) Supply Chain Workgroup

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EICC Members

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2009 Notable Accomplishments

• Annual report (1Q)

• Enhanced External / Internal Web‐based Communications (2Q)

• Code review process complete (2Q)

• Carbon Reporting System for supply chain (2Q)

• Stakeholder engagement sessions (2Q & 3Q)

• Working Hours taskforce (2Q‐3Q)

EICC/G SI E i d T Ti T l C b l (2Q 4Q)• EICC/GeSI Extractives study ‐ part Two: Tin; Tantalum; Cobalt (2Q‐4Q)

• Expansion of Board of Directors and Asia Network launch (3Q)

• EICC/GeSI Web‐based education for member’s and supplier’s management (3Q)

EICC/GeSI Validated A dit Process China and Me ico (4Q)

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• EICC/GeSI Validated Audit Process ‐ China and Mexico (4Q)

Expanded Organization: Addressing  more areas of Supply Chain Social Responsibility

EICC

DEVELOPMENT ACTIVITY IMPLEMENTATION ACTIVITY REGIONALDEVELOPMENT ACTIVITY

OVERSIGHT CODE MGMT

EXTERNAL RELATIONS

SPECIAL PROJECTS

IMPLEMENTATION ACTIVITY

OUTREACH CAPABILITY BUILDING

MEASURE-MENT

REGIONAL ACTIVITY

ASIA PROGRAM

Governance Code Review External Comms Extractives Internal

CommsLearning & Capability Building

SAQ Asia Work Group

Finance

G SI Alli

MembershipCompliance

Stakeholder Engagement Environment

Working

Membership Recruitment

Association

E-Learning

Supplier

Validated Audit

CorrectiveGeSI Alliance Working Hours

Academic Research

Association Networking

Supplier Training

Audit Preparations

Corrective Action

E-TASC2009

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2009

EICC Communications

EICC Website:  www.eicc.info EICC Weekly Bulletin

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EICC Carbon Reporting System

Why?GHG emissions are an increasing concern for the industry

How?Support for companies to calculate total emissions from factory data

Reduce reporting redundancies, costs, and complexity

What?

Focused on information that is important to IT industry and its customersWhat?

Factory‐level energy input, consolidated at enterprise level

Convert energy into common unit,

customers

Allows suppliers to report to customers of choiceConvert energy into common unit, 

then to GHG based on locationNo cost for EICC members (including 100 of theirdirect suppliers)direct suppliers)

The EICC tool is designed to produce emissions data that can be submitted directly to CDP

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Results and Summary of Benefits / Next Steps2009 Results

Participation: 21 members (customers), invited 375 suppliers (280 unique)

Response Rate: 

Partial data:  102 suppliers

Complete data:  75 suppliers

Data from facilities in 32 countries.  40% of data is for facilities in China;  13% for U.S.

On average, “suppliers“ shared data with ~3 “customers” g pp(satisfying multiple customer needs and reducing duplicate requests for information!)

Summary of System Benefits and Next Steps:

Lower threshold for company reporting (cost and content)

Produces data compatible with CDP and other voluntary reporting schemes

Positions companies for future GHG requirements

Survey participants (and non‐participants) regarding their experience

Consider expansion to water and other reportable aspects

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EICC A i W k G

GoalsEICC Asia Work Group

Goals of the Asia Program

Code AwarenessIncrease awareness

• Focus on outreach1 Committee

Increase awareness  of EICC and the Code

2Increase adoption of the

Code AdoptionCommitteeadoption of the 

EICC Code • Focus on implementation

Code Compliance

3Ensure conformance to the EICC Code • Focus on measurement 

and improvement

Code ComplianceCommittee

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p

EICC Asia Work Group

Steering Mission

• Chair (Flextronics)• Six members 

(Dell Foxconn HP Intel

Committee1) Increase membership in EICC

2) Increase levels of seniority among(Dell, Foxconn, HP, Intel, Jabil, Sony) 

• Senior Level executives

2) Increase levels of seniority among member representatives in Asia

3) Increase participation from outside China

About the Steering Committeed b b ( )•Nominated by EICC members (primary representatives)

•Advise Board on Asia issues via Director for Asia Programs (Richard Wong – Flextronics)•Guide the EICC in the region

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2010 Outlook

• Membership reporting on implementation activities (1Q)

• New member recruitment – expand scope to drive change (1Q)  

• EICC/GeSI 3rd party auditor training and certification program (1Q)

• Annual report (2Q)

EICC/G SI E t ti t t l id tifi ti d l• EICC/GeSI Extractives – tantalum source‐identification model 

• Expansion of EICC/GeSI Validated Audit Process to other countries

• Recognition program for facilities participating in an EICC/GeSI Validated Audit 

• EICC/GeSI e training expansion of topics• EICC/GeSI e‐training – expansion of topics  

• Stakeholder collaboration in focused initiatives  

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EICC – Journey of Implementation

P i A hProgressive Approach….Drive Continuous Improvement Activities with Self & SuppliersConduct

Validated AuditsValidated Audits

Company ManagedEICC Managed

Risk Assess Supply Chain

Self-Assessment Q ti iAdopt EICC Code of QuestionnaireAdopt EICC Code of

Conduct Internally

Expand to Supply ChainJoin the EICC

Active Involvement

….We have the means to improve

Access Best Practices

….We have the means to improve

… Are you ready?

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… Are you ready?

EICC Membership Information

dEICC Headquarters1155 15th Street, NW

Suite 500Washington, DC 20005(202) 962 0167 h(202) 962‐0167 phone

M b hi C t t b hi @ i i fMembership Contact: membership@eicc.info

Ri h d W (Di t f A i P )Richard Wong (Director of Asia Programs):  Richard.Wong@hk.flextronics.com

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Questions?Questions? 

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Closing Comments on the SessionClosing Comments on the Session….

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Background SlidesBackground Slides

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Objectives of the EICC

1. Credible process for evaluation and management of supply chains

2. Establish a governance structure to support the organization 

3. Build external awareness, participation; stakeholder engagement

4. Code of Conduct, implementation applications, change control, and continuous4. Code of Conduct, implementation applications, change control, and continuous improvement

5 Shared training and education to improve social and environmental performance5. Shared training and education to improve social and environmental performance in the supply chain.

6 R i f i bj i i i h i6. Reporting of progress against objectives consistent with anti‐trust

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Supply Chain Engagement Model

TOOLS

Self 

Assessment 

Questionnaire

Electronic Industry 

Code of Conduct

Validated 

Audit

Aggregate 

Industry data 

analysis

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Questionnaire analysis

EICC/GeSI Validated Audit Process

A facility is audited once (rather than multiple times), using common criteria, the audit report shared among multiple customers –

A facility is audited once (rather than multiple times), using common criteria, the audit report shared among multiple customers –

Member Notification Member Notification 

driving efficiency – saving resources for improvementsdriving efficiency – saving resources for improvements

Supplier NotificationAudit Guidance DocumentFacilities DemographicsPre‐audit Checklist

Supplier NotificationAudit Guidance DocumentFacilities DemographicsPre‐audit Checklist Pre‐auditPre audit ChecklistPre audit Checklist

Audit QuestionsScoring

Audit Report

Audit QuestionsScoring

Audit Report

Communication

Auditor CapabilityAuditor Capability Audit ReportAudit Report

Auditor Audit

ValidatedAudit

Auditor Capability & Quality

Auditor Capability & Quality

SelectionAudit

Checklist

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Where is CSR heading?

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