We enforce this commitment through the Supplier Sustainability Declaration policy that sets standard labor, environmental, ethics, and health and safety requirements for suppliers. Our Supplier Sustainability Declaration is based on the Responsible Business Alliance (RBA) (formerly the Electronic Industry Citizenship Coalition) code of conduct Version 6.0 (2018). In accordance with the California Supply Chain Transparency Act (SB 657), the Supply Chain Transparency statement provides information on our efforts to address the issues of slavery and human trafficking in the supply chain.
Additionally, Lumileds oversees a Conflict-Free Minerals Program that ensures that our supply chain is conflict free. Our Conflict-Free Minerals Program follows the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas. To support the program, we require suppliers to perform supply chain due diligence, identify all smelters in their supply chain, and take corrective actions when needed.
2017 Supply Chain Actions
90% supplier compliance with the Supplier Sustainability Code of Conduct by 2020
To support supply chain responsibility efforts, Lumileds carries out selective monitoring and auditing to make sure that suppliers live up to their commitments. The audits cover areas such as safety and health, environmental issues, child labor, working hours and more.
Conflict minerals are natural resources that ethical companies seek to avoid purchasing because they have been extracted in conflict zones and are used to finance and perpetuate armed conflicts. The most prominent contemporary example has been in the Democratic Republic of the Congo (DRC), where various actors have profited from mining while contributing to violence and exploitation during wars in the region.
The four most commonly mined conflict minerals are tin, tungsten, tantalum, and gold. Each of these metals are used in the manufacturing of LEDs. As outlined in our Conflict Minerals Position Statement, Lumileds is committed to not purchasing raw materials, subassemblies, or supplies that contain conflict minerals that directly or indirectly finance or benefit armed groups. Lumileds also asks our suppliers to establish their own Conflict Minerals Policies and to only use validated smelters. Further, Lumileds supports organizations including the Responsible Minerals Initiative that seek to prevent minerals that directly or indirectly finance the DRC conflict from entering the electronics supply chain.
The Responsible Minerals Initiative helps companies make informed choices about responsibly sourcing minerals in their supply chains. The organization conducts independent third-party audits of smelter and refiner management systems and sourcing practices to form a comprehensive list of conformant companies. Lumileds uses this list to assess our suppliers and will not work with any that use non-conforming smelters and refiners.
Lumileds is committed to continuously reducing the environmental impact of our supply chain. To support this, Lumileds oversees an audit program designed to hold suppliers accountable and guide them in improving the sustainability of their products and operations.
After completing an assessment, we determined that our existing auditing process was focused too closely on short-term compliance requirements, preventing Lumileds from effectively driving longer-term change in our supply chain. In 2017, Lumileds developed a new audit scoring process that took a more systemic approach. We focused our new approach on rewarding strong management practices and improvement initiatives that better drive long-term continual improvements.