Responsible Electronics: Human Rights Symposium - presentations

Photo courtesy of Edwards, Ltd.

Sponsor: Exhibitors:

Program Highlights

Wednesday 9:00 a.m. – 12:00 p.m. General sessions

12:00 p.m. – 1:30 p.m. Lunch 1:30 p.m. – 4:30 p.m. General sessions 4:30 p.m. – 5:30 p.m. Breakout sessions

5:30 p.m. – 7:30 p.m. Beers with VAP (EICC members only)

Program Highlights

Thursday 7:30 a.m. – 9:00 a.m. Networking roundtables (includes light breakfast) 9:00 a.m. – 11:30 a.m. General sessions 11:30 a.m. – 1:00 p.m. EICC Ignite/lunch (EICC members only) 1:00 p.m. – 5:00 p.m. EICC Membership Meeting (EICC members only)

Happy 10 Years, EICC!

•  It’s our 10th birthday! •  Participate in our “EICC memories”

video sessions here in Brussels •  Watch for the video montage, including

EICC memorabilia in at our September conference in San Francisco

•  Have memories to share? Contact Julie Schindall

CHRISTINE BRISCOEManager of Member Compliance

Tools & Training

BILLY GRAYSONProgram Director

MICHAEL ROHWER Program Director

KATIE SULLIVANCFSI Audit Program Coordinator

ROB LEDERERExecutive Director

ALEJANDRA GARZAMember Services Manager

JULIE SCHINDALLDirector of Communications & Stakeholder Engagement

STEVE MOLONEYChief Financial Officer

MEET THE TEAM

EICC New Strategic Direction

0 10 20 30 40 50 60 70 80 90

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2009 2010 2011 2012 2013 2014 # Didn't Renew 6 0 2 3 2 0 # New Members 5 16 9 14 8 8 Total 44 60 67 78 84 92

EICC Member Growth

NEW BOARD Tim Mohin, AMD (Chair) Kathleen Shaver, Cisco (Vice Chair) Deborah Albers, Dell"Tonie Hansen, nVidia Hamlin Metzger, Best Buy Bob Mitchell, Hewlett Packard Bruce Klafter, Flextronics (replacing Seb Nardecchia) "Judy Wente, Intel Corporation"Andy Cuthbert, Western Digital "Melinda Painter, Blackberry"Kevin Caffey, Qualcomm"John Gabriel, IBM Corporation (Immediate Past Chair)"

Status

•  2012 – New governance strategy

•  2013 –  Implement governance strategy

– Develop organizational strategy

•  2014 – Mature professional staff model –  Implement organizational strategy

•  Code review •  Stakeholder advisory committee •  Working hours task force •  Student labor task force •  UN Guiding Principles on Business and

Human Rights •  Transparency Task Force •  CFSI

In Play

On the horizon

•  Meeting in China – last half of June in Shenzhen – Theme: Managing today’s workforce –

evolving expectations – Educate and partner with government

officials – Work with EICC members in the field

•  Fall meeting in San Francisco – October

•  What we do is important: •  Our success makes the world better •  Our organization is unique •  There is HUGE potential for growth

•  I am honored to lead this organization

Last Words

[email protected]

Business and Human Rights Protect, Respect and Remedy Responsible Electronics Human Rights Symposium Brussels 19 March 2014 Ms. Lene Wendland Adviser on Business and Human Rights Office of the UN High Commissioner for Human Rights

Human rights and business: the links Emblematic cases demonstrating that companies can affect human rights negatively

Human rights and business – the challenge

States fail legal duty to protect “Permissive space”

Abusive practices, corruption, complicity

Multinational and national companies

International human rights law: not addressing

responsibility of business

“Protection and accountability gap”

UN Response 2005-‐2011

•  Human Rights Council mandates o  Iden%fy and clarify standards of Corporate Responsibility o  Clarify role of States o  Provide guidance on the implementa%on of the Protect, Respect, Remedy Framework

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2005 Deadlock

SRSG appointed

2008 Breakthrough

Protect, Respect, Remedy

2011 Culmination

Guiding Principles endorsed by HRC

John Ruggie Special Representa%ve of the UN Secretary-‐General (SRSG)

Development of the Guiding Principles •  Principled pragma4sm: “to

reduce corporate-‐related human rights harm to the maximum extent possible in the shortest possible period of Mme”

•  Evidence-‐based: extensive research, 47 mulMstakeholder consultaMons (by 2011), including extensive involvement of business

WHAT to Do – 3 Pillar Framework

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•  Policies •  RegulaMon •  AdjudicaMon

State Duty to Protect

•  Act with due diligence to avoid infringement •  Address adverse impacts on human rights

Corporate Responsibility to Respect

•  EffecMve access for vicMms •  Judicial and non-‐judicial

Access to Remedy

HOW to Do – Guiding Principles

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•  Unanimously endorsed by the UN HRC (HRC resoluMon 17/4) – strong government foundaMon

•  Endorsed by leading business organisaMons, individual companies, trade unions, civil society

•  AuthoritaMve global reference point: provide overarching standard and benchmarks for acMon and accountability

•  Structured on the three pillars •  31 Principles – 14 to business – to implement the Framework

Key features of the GPs

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•  All States. •  All companies, of all sizes, in every sector, in any country.

•  DisMnct, but complementary responsibility between States and companies

•  No new legal obligaMons – but elaborate on implicaMons of exisMng obligaMons and pracMces for States and business.

•  Do no preclude internaMonal or naMonal legal developments

•  Contains “smart mix” of regulatory and voluntary approaches

•  Human rights cannot be offset: doing good in one aspect cannot compensate human rights harms elsewhere.

Corporate Responsibility to Respect

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Respect: Do no harm and address impacts

Scope: all rights

Avoid causing/contribuMng + prevent/miMgate negaMve impacts by business relaMonships

Apply to all companies

ImplicaMons: Policies and processes

How can business be involved in adverse human rights impacts?

How can business be involved in abuses?

Be ProacMve – ‘Know & Show’

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Due diligence to idenMfy, prevent, miMgate and account for how impacts are addressed. 4 elements: 1.  Assessing impacts 2.  IntegraMng and acMng on

findings 3.  Tracking responses 4.  CommunicaMng on impacts

•  Taking all necessary and reasonable precauMons to prevent harm

•  Should cover impacts caused or contributed to through acMviMes or relaMonships

•  Varies according to size, risks, and context

•  On-‐going

StarMng Point: Policy Commitment

Convergence in global frameworks and standards

UN Framework & GPs

•  ResoluMon 17/4 –  Discuss trends and challenges in implementaMon

of UNGPs. –  Promote dialogue and cooperaMon on business

and human rights. •  Under guidance of the Working Group. •  Open to all relevant stakeholder groups: Including

States, business, civil society, affected individuals and groups and other relevant stakeholders.

B&HR Forum

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Status & Trends of CSR in Europe Examples from the electronics industry

Andreas Manhart Brussels, 19.03.2014

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Our Profile

Oeko-Institut is a leading European research and consultancy institute working for a sustainable future.

Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014

●  A non-profit association founded in 1977

●  Offices in Freiburg, Darmstadt and Berlin

●  Clients: European Union, national and state-level ministries, companies, foundations and non-governmental organizations

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Staff numbers at a glance

●  staff

2012 reference value


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Focuses of our research

Energy and climate protection (e.g. energy scenarios, emissions trading, renewable energies, grid integration)

Nuclear engineering and facility safety (assessment of nuclear power plants, concepts for repositories)

Sustainable consumption (product rating and development: Eco-design Directive, LCAs, carbon footprints, product sustainability assessments (PROSA), EcoTopTen)

Mobility (e.g. national transport data, e-mobility)

Resource management and industry (e.g. rare earth elements, urban mining, IT recycling)


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Focuses of our research

Companies (advice and organizational development for sustainability in management, production, technology development)

Law, policy and governance (draft laws, IMPACT CSR)

Immission control and radiation protection (e.g. rare earth elements, urban mining, IT recycling)

and technology assessment (e.g. implementation of REACH, RoHS, evaluation of nanotechnologies)

Chemical management

Sport and Cultural events (environmental concepts for major events…)


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Definition of CSR

Voluntary measures

CSR Regulatory requirements

The impact matters !


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Specific greenhouse-gas emission of the German electricity mix

Some observations on the impact of voluntary CSR

Many targets are not ambitious enough


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The impacts have found to be limited

Christoph Brunn Phone: +49-6151/8191-128 Email: [email protected]

•  Voluntary CSR-activities have a measurable positive impact. But this impact is not sufficient to achieve policy goals related to sustainable development.

•  This finding is supported by a comparable study by Accenture.


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Backlashes in the last years:

-  The Rana Plaza Collapse

-  The Chinese suicide series

These events massively eroded trust in voluntary CSR measures


Source: http://commons.wikimedia.org/wiki/File:Dhaka_Savar_Building_Collapse.jpg, CC-BY Rijans (http://www.flickr.com/people/40831205@N02)

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Sustainability issues for the electronics industry

Energy efficiency

Hazardous substances

Short life-times

Env. impacts

in production (non-OECD)

Social impacts minerals

Working conditions manufacturing

Crude Recycling (e.g. Ghana)

Losses of critical metals

RoHS REAHh WEEE

Ecodesign

Battery Directive (battery removability) + Univers. charging interfaces

WEEE II

WEEE II (reversed burden of prove)

Forthcoming

Green: Predominantly associated with environmental impacts Red: Predominantly associated with social impacts

Impacts outside EU jurisdiction (supply-chain + reverse supply-chain issues)

Impacts mostly within EU jurisdiction (mostly product related issues)


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Regulatory responses

Energy efficiency

Hazardous substances

Short life-times

Env. impacts

in production (non-OECD)

Social impacts minerals

Working conditions manufacturing

Crude Recycling (e.g. Ghana)

Losses of critical metals

RoHS REAHh WEEE

Ecodesign

Battery Directive (battery removability) + Univers. charging interfaces

WEEE

WEEE II (reversed burden of prove)

Forthcoming


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Trying to look into the future:

Supply-chain related issues

●  The due diligence concept well reflects the public opinion that companies – while not being fully responsible for all activities of their suppliers – have the moral responsibility to have a close look and to improve hot spots.

●  Moral responsibilities are often turned into legal responsibilities

(examples: EU Timber Regulation & planned Conflict Mineral Regulation)

Recommendation

●  Consider this trend as a chance to get clarity on expectations!


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Trying to look into the future:

Product related issues

●  Political pressure to improve recycling and recyclability of products (e.g. driven by agendas on resource-efficiency)

●  Debate on “planned obsolescence”

●  The limited scope of regulatory approaches is mostly due to the absence of measurable, enforceable and effective requirements.

●  One exemption: The battery recycling issue.


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The design of devices can be very important:

Taking out the battery: Only few seconds available

- Otherwise economically

not possible

●  Recycling is getting more difficult.

The battery recycling issue


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Some background on Li-Ion batteries:

●  Li-Ion batteries contain ~ 13.8 % cobalt.

●  Cobalt is on the EU list of critical metals

●  25 % of the world’s cobalt production is used for rechargeable batteries of mobile electronic devices.

●  There is 1 smelter in the EU capable of recycling cobalt from Li-Ion batteries.


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X



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Trying to look into the future: Product related issues

●  […]

Recommendations

●  Proactively address this battery issue

●  Proactively address the obsolescence debate (e.g. by offering very durable products → independent verification needed)

●  Continue your path on energy-efficiency & hazardous substances.


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General recommendation:

●  Concerted positive activities and flagship products are needed

●  is amazingly successful.

●  Competition for the most sustainable product & producer.

●  Positive marketing needs to be based on independent criteria.


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Thank you for your attention!

Andreas Manhart Öko-Institut e.V.

Phone: +49 89 125900-77 E-Mail: [email protected]

Social Europe

EICC – Responsible Electronics

2011 Communication on CSR

By Sue Bird DG Employment, Social Affairs and Inclusion

Brussels, 19 March 2014

Social Europe

A New Departure in CSR

•  Things have moved on since 2006 •  Response to the crisis

•  New opportunities

Social Europe

Why a New Communication on CSR?

•  … In the interests of enterprises: •  - Competitiveness •  - Anticipation •  - Trust

•  … and society: •  - Europe 2020 •  - Public services •  - Employment •  - Ethics

Social Europe

Progress in CSR within the EU since 2006

•  Transnational company agreements from 79 (2006) to 140 (2011)

•  EU enterprises in UN Global Compact from 600 (2006) to 1900 (2011)

•  Business Social Compliance Initiative Membership from 69 (2007) to 700 (2011)

•  European enterprises following Global Reporting Initiative from 270 (2006) to 850 (2011)

•  Environmental Management and Audit Scheme (EMAS) registration from 3300 (2006) to 4600 (2011)

Social Europe

…But more to be done

•  Balanced multi-stakeholder approach •  Clarify what is expected of enterprises •  Promote market reward •  Self and co-regulation •  Transparency •  Human rights

Social Europe

A New Definition of CSR

•  The responsibility of enterprises for their impact on society

•  Respect for legislation, collective agreements

•  Maximise shared value

•  Identify/prevent/mitigate adverse impacts

•  New legislation not excluded

Social Europe

CSR as Multi-dimensional

•  Human rights •  Labour and employment (training, diversity, gender

equality, health and wellbeing) •  Environment (biodiversity, climate change, resource

efficiency, life cycle assessment, pollution prevention) •  Bribery and corruption •  Consumer interests and privacy •  Volunteering •  Tax governance

Social Europe

Actions - Visibility

•  Dialogue on employability, demographic change, active ageing, workplace challenges - Seminar on youth, entrepreneurship, volunteering and CSR

•  Sectoral approaches

•  CSR Europe - Enterprise 2020

•  Commission intentions: sectoral multi-stakeholder platforms, award scheme

Social Europe

Actions - Trust

•  Irresponsible behaviour/exaggeration

•  Insufficient understanding by companies and consumers

•  Commission intentions: Ø “Greenwashing" and stepping up enforcement of the

Unfair Commercial Practices Directive Ø Debate on business in the 21st century, surveys of

citizens trust

Social Europe

Actions - Self and Co-Regulation

•  Promoting responsibility through accountability

•  Commission intention: code of good practice for commitments, performance indicators, monitoring and review

Social Europe

Actions - Market Reward

•  Consumption (information….)

•  Public procurement

•  Investment (invest for the longer-term)

•  Commission intentions: Ø Review public procurement Directives – adoption

foreseen March 2014 Ø Requirement to inform on responsible investment

criteria used

Social Europe

Actions - Company Disclosure

•  Engagement with stakeholders/risk management/accountability

•  Member States, GRI, IIRC initiatives

•  Legislative initiative from Commission April 2013

Social Europe

Actions - Education, Training and Research

•  Education establishments to integrate CSR, sustainable development, responsible citizenship into curricula

•  Horizon 2020 - building the European Research Area

•  Commission intention: financial support through education programmes and awareness-raising among educational professionals and companies

Social Europe

Actions - National and Sub-national CSR Policies

•  Commission intention: peer review mechanism with Member States

•  Commission invitation: Member States to update their own plans

Social Europe

Actions - Aligning European and Global CSR

•  Internationally-recognised principles and guidelines (OECD Guidelines, ILO Tripartite Declaration, ISO 26000, UN Global Compact)

Ø Commission intention: monitor commitments made

by major European enterprises Ø Commission invitations: 1) large European companies

to make a commitment to at least one standard, 2) European-based multinational enterprises to commit to ILO Declaration

Social Europe

Actions - Aligning European and Global CSR (continued)

• UN Guiding Principles on business and human rights

Ø Commission intentions: 1) sectoral and SME guidance,

2) report on EU priorities in implementation of GP Ø Commission expectations/invitations: 1) all European

enterprises to respect human rights, 2) Member States to develop national plans for implementation of GP

Ø New: possible initiative on responsible sourcing of

minerals originating in conflict-affected/high-risk areas. Public consultation undertaken

Social Europe

Actions - Aligning European and Global CSR (continued)

•  Relations with other countries and regions

─  Accession ─  Trade and other dialogues ─  Development policy

Ø Commission intention: identify ways to promote responsible business in sustainable growth initiatives in third countries

Social Europe

And finally…

•  Commission report and review meeting mid-2014

•  Open invitation to business leaders to foster more responsibility - targets for 2015 and 2020

Social Europe



EICC Conference 2014 Brussels, The State of CSR in Europe



ELEVATE by Numbers

300 factory improvement engagements, Improving performance for management and conditions for workers

6,400 factories using ELEVATE developed e-learning lessons

10,000+ attendees of ELEVATE seminar and webinar training

4,000+ factories assessed annually across 25 countries

100,000+ workers impacted annually

EICC Assessment Firm & Partners with the IDH on “Electronics Programme”


You can’t force change…..

…… but you can force bad behaviour.

Philosophical Point We Are Constantly Aware of


The Good and the Bad of CSR

Some very GOOD

Some very BAD

Some very UGLY

Everyone still searching for a “magic” solution

There is no one single approach that works !


•  Still compliance driven & does not look at root cause

•  CSR teams still isolated from core business function

•  CSR still perceived as a cost rather than a business function needing investment

•  Complex & diverse supply chains

What Are The Challenges?


•  Immature management systems in supply chains

•  Cheap labour prevents investment in better efficiencies •  Low cost labour contributes to the idea that workers are

commodities and easily replaceable.

What Are The Challenges?


•  80% still spent on assessments •  20% projects / training / capacity building

Why ? •  Don’t know what else to do •  Only concerned about due diligence •  Compliance still the main driver for change

Common Approaches


•  Segmented Approach •  Measuring Business & Social Performance

•  Focus on ROI

•  Investor & Stakeholder Involvement

Trends We Are Seeing

Segmented Approach

Don’t Use The Same Brush


Segmented Approach

What gets measured gets managed

Measuring Business & Social Performance


•  Don’t’ measure compliance results….. that’s the output

•  Measure operational and business performance NOT just social

For OT & wage gaps….. measure Productivity / Re-work / New starters Just monitoring working hours tells you little about root causes

What Should Be Measured?

You can influence through showing benefits

Focus on ROI


From Compliance Cost to ROI •  Non compliances issues viewed separately from the business. As such, it

is seen only as a cost with the primary benefit being retaining the business.

•  Our experience has shown that compliance problems tend to be indicators of wider business issues.

•  Factory business has been built around cheap labour.

•  The labour shortage and increase in labour costs are forcing factories to change their thinking and focusing on fewer but more productive workers.


Money talks !

Investor & Stakeholder Involvement


Realisation of the impact on share price due to social issues Unpaid legal wages in a supply chain can be enormous and impacts profits We are seeing investors taking CSR as a higher priority in valuing portfolios. This pushes it up the agenda

Investor Involvement


•  Analyse the business case…does it exist….if not be realistic on level of change

•  Supply chain consolidation & increase leverage •  Take ownership of supply chain •  Measure & monitor the relevant business performance indicators •  Realistic and sustainable improvements •  Worker engagement

Maintaining The Right Environment For Change


Cecilia Berntsson Senior Manager, Projects +44 (0) 20 7993 5277 [email protected]

James McMichael Partner

[email protected]

Ian Spaulding Senior Partner [email protected]

Justin Bettey European Director

+44 (0) 20 7993 5277 [email protected]

Social Europe



WORKER MANAGEMENT COMMUNICATIONS PANEL

Worker – Management Communications Panel

•  Doug Cahn, The Cahn Group, moderator

•  Jenny Holdcroft, IndustriALL Global Union

•  Cimarron Nix, Hewlett-Packard

•  David Foust, Center for Labor Reflection and Action

Communication Theory

UN Guiding Principles

on Business and Human Rights

•  Legitimate •  Accessible •  Predictable •  Equitable •  Transparent •  Rights compatible •  A source of

continuous learning •  Based on engagement

and dialogue

Effective Grievance Principles

Worker-management communications

Jenny Holdcroft Policy Director IndustriALL Global Union

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• Worker-management communication

• Worker representation

• Grievance mechanisms

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These rights are included in all three instruments that comprise the International Bill of Human Rights: •  The Universal Declaration of Human Rights (Article 23) •  The International Covenant on Civil and Political Rights (Article 22) •  The International Covenant on Economic, Social and Cultural Rights (Article 8) These are elaborated by the ILO in: •  ILO Convention No. 87 (Freedom of Association and Protection of the Right to

Organise) •  ILO Convention No. 98 (Right to Organise and Collective Bargaining). These are included in the ILO Declaration on Fundamental Principles and Rights at Work, meaning that all ILO member states must respect, promote and realise them even if they have not ratified them

How are these addressed through international human rights standards? Through the right of workers to form or join trade unions and bargain collectively

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Have the same status as all other human rights: eg to life, education, liberty, equality before the law, freedom of speech, etc. Where these rights are recognised, there’s no need for social auditing, grievance mechanisms and alternative worker-management communications systems: •  ‘Freedom of association is significant not just as a right to be respected, but also as an

enabler of the process of human rights due diligence’ – Shift

•  ‘Operational-level grievance mechanisms can be important complements to wider stakeholder engagement and collective bargaining processes, but cannot substitute for either. They should not be used to undermine the role of legitimate trade unions in addressing labour-related disputes, nor to preclude access to judicial or other non-judicial grievance mechanisms.’ - UNGPs

•  ‘Trade union channels are a primary and preferable channel for grievance handling’ - Shift

Why are these rights so important?

The right of workers to form or join trade unions cannot be realised unless trade unions are permitted to exist and conduct their activities

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•  Interrogation or surveillance of workers about their support for trade unions

•  Intimidation of workers • Screening for trade union supporters during recruitment • Creating, circulating or using “blacklists” of trade union supporters • Dismissal of trade union supporters • Discrimination against trade union supporters through demotions,

less favourable assignments, less favourable conditions of work, reduction of wages, benefits, opportunities for training, transfers, and relocation

• Non-extension of employment contracts to trade union supporters on fixed term and temporary employment

How are they undermined by companies?

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•  Interference in the decision process by which workers choose whether to be represented by a trade union

• Conducting anti-union campaigns and “union avoidance” activities, including by engaging professional consultants;

• Actively pursuing legal and administrative delays in the process by which trade unions obtain recognition;

•  Isolating workers from trade union organisers/ representatives • Surveillance of trade union activities

• Setting up alternatives to trade unions

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Adverse impacts prevalent in the electronics industry:

•  failure of the state to perform its duty to protect the right

•  active violation of the right by employers

•  organisation of work that prevents the right from being realised Companies should establish a positive environment for workers to exercise their right to form or join a trade union and do nothing that would have the effect of discouraging workers from exercising this right

Due Diligence and the right to form or join a trade union

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Companies must: •  consider how the right can be guaranteed to

•  workers in Export Processing Zones •  workers with temporary fixed term contracts •  workers supplied by an agency or migrant workers

•  provide facilities to enable collective bargaining to take place •  allow workers to meet with their representatives to decide their positions •  provide workers or their representatives with sufficient information to enable

the workers to bargain on wages and conditions

Companies must not refuse any genuine opportunity to bargain collectively

Due Diligence and the right to collective bargaining

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•  undermine trade unions by negotiating directly with individual workers or by offering better terms to non-union members

•  create any other structures outside of the collective bargaining relationship to deal with issues that should be dealt with by management and the trade union

•  reach agreements with non-representative labour organisations in order to avoid genuine bargaining (protection contracts)

•  seek to place limits on the subjects of bargaining that would restrict this right

To ensure respect of the right to collectively bargain, companies should not:

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ILO Convention No. 135 (Workers’ Representatives) “(a) trade union representatives, namely representatives designated or elected by trade unions or by members of such unions; or (b) elected representatives, namely representatives who are freely elected by the workers of the undertaking in accordance with provisions of national laws or regulations or of collective agreements and whose functions do not include activities which are recognised as the exclusive prerogative of trade unions in the country concerned.”

Workers’ representatives

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•  Freedom of Association protocol

•  Right to Non Victimisation Guarantee

•  Union access agreements

Practical tools

‘Companies should establish a positive environment for workers to exercise their right to form or join a trade union and do nothing that would have the effect of discouraging workers from exercising this right’

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Agreement between buyers and local suppliers and global and local unions Covers: •  trade union recognition •  non-victimisation of trade union officers and members •  pledge by the employer not to intervene in union activities •  provision of access for union officials from outside the factory •  rights to facilities for a workplace trade union •  a duty for employers to engage in collective bargaining with

the recognised trade union

Freedom of Association protocol

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(Name of company), recognises under international law, your right to join or form a union of your choice for the purposes of bargaining collectively over the wages and working conditions at this establishment. (Name of company) will not discriminate against you nor victimise you for exercising this right and will adopt a positive attitude towards any trade union organisers granted access for the purposes of talking about the benefits of trade union membership. (Name of company) also undertakes to permit the formation of an organising committee in the factory free of hindrance or interference or victimisation of the members of such a committee. Signed Signed On behalf of (company) On behalf of (trade union)

Right to Non Victimisation Guarantee

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•  Establish conditions for access to the workplace for representatives of unions which have members, or workers aspiring to become members in the workplace

•  Ensure that the factory’s efficient operation is not impaired by covering where, when and how the union will access the workers on site

•  Include a mechanism for resolving disagreements about implementation of the agreement

•  Where workers reside on the premises of the factory, company or industrial zone, make arrangements for onsite access

Trade union access agreements

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‘Open communication and direct engagement between workers and management are the most effective ways to resolve workplace and compensation issues’ -  Unsubstantiated -  Sends the message to workers that they should not join unions

‘The rights of workers to associate freely, to join or not join labor unions, seek representation, and join workers’ councils in accordance with local laws shall be respected’ -  Sends negative message on a positive right -  There is no human right to join a workers’ council -  The human right to freedom of association has precedence over local laws

The ILO Conventions are not referenced The right to collective bargaining is not mentioned

How does the EICC code need to change?

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ITUC-IndustriALL-UNI-CCC: The UN Guiding Principles on Business and Human Rights and the human rights of workers to form or join trade unions and to bargain collectively European Commission: ICT Sector Guide on Implementing The UN Guiding Principles on Business and Human Rights ILO sectoral meeting on temporary employment in the electronics sector, 9-11 December 2014

Resources

WORKER MANAGEMENT COMMUNICATION

Cimarron Nix Labor, Health & Safety Program Manager

Supply Chain Responsibility HP

CEREAL / CANIETI

•  Initial dialogue between the Center for Reflection and Action on Labour Issues (CEREAL) and the National Chamber of the Electronics, Telecommunications and Information Technology Industry (CANIETI) began in 2005 facilitated by HP and CAFOD

•  The partnership between CEREAL and CANIETI led to the establishment of an industry wide independent worker grievance mechanism with clearly defined escalation paths

•  This grievance mechanism has contributed to a significant improvement in resolution of specific worker issues over the past several years

Escalation Process 1.  Worker approaches CEREAL who

will investigate worker’s grievance; 2.  CEREAL will engage factory

management directly to try and work out a solution with the worker(s);

3.  If no solution is found, CEREAL will engage CANIETI to try and mediate a solution with the factory and worker(s);

4.  If still no resolution, CEREAL will escalate to brands with production in the facility

3rd Party Grievance Mechanism

China Worker Training

•  HP introduced worker management communication training in China factories in 2008

–  Training on workers’ labor rights under Chinese law and how to improve communication and raise grievances about their working conditions

–  Since 2008 we have trained over 26,000 workers and front line supervisors at 22 supplier sites

•  Training is conducted by local NGO partners including Home of New Citizens and Labor Education Service Network (LESN)

–  NGO partners also host independent worker hotlines for workers to raise grievances outside of factory systems

Capacity Building

Brazil 100 Day Rapid Results Program

•  Worker Engagement Program (WEP) launched in May 2013 by the Rapid Results Institute in partnership with Disney, SAI, The Cahn Institute and Labor Link

•  Goal of the program was to: –  Listen to workers –  Improve health & safety in factories

across São Paulo –  Establish systems to sustain

improvements after program conclusion

–  Form sustainable worker management social performance teams

•  Project focused on one discrete issue in each factory and set a 100 day time frame for analysis and improvement

Specific Topic Engagement

“The workshop is very productive, and has added value both for employees and managers. The methodology is very dynamic and engaging which

provides for great collaboration among the participants”

“The program / project has been very good and has benefited us so much we decided to keep this group for a while

and study new projects to be implemented in 100 days”

COMPARATIVE ANALYSIS OF THE CEREAL-CANIETI ESCALATION PROCESS FOR GRIEVANCES

Center for Labour Reflection

and Action (CEREAL) David Foust Rodríguez

Recap

•  The dialogue with the electronics companies began in 2005

•  The example of the dialogue between CEREAL and CANIETI has been cited as an example of a non-judicial grievance mechanism. It is important to be aware of the nature of the dialogue and the broader context of his work to draw accurate conclusions from this experience

The UN Guiding Principles

•  The effectiveness criteria for non-judicial grievance mechanisms listed in the UN Guiding Principles provide a helpful reference point for thinking about progress to date and identifying what needs to change

•  What needs to change from the point of view of CEREAL?

Comparative analysis of the CEREAL-CANIETI escalation process for grievance

Thanks!

Questions

Resources

•  Please see the post event websites for some materials related to this panel

SUSTAINABILITY AND IT-PRODUCTS – PROCUREMENT AND CERTIFICATION EICC Conference on Human Rights, Brussels March 19-20, 2014

TCO Development

Owned by TCO, Swedish Confederation for Professional Employees, a non profit trade union organisation based in Stockholm, Sweden

From safety, ergonomic and green to sustainable IT

WHY DO PURCHASERS FOCUS ON SUSTAINABLE IT?

Risk of violation of human rights (2012)

A notebook production routes

Source: sourcemap

Legislation in EU – reflects expectations from citizens and customers

•  EU directive •  2004/18/EG and 2004/17/EG •  January 15, 2014 EU-parliament replaced 2004/18.

•  Clarified acceptance to add social criteria and certifications into the procurement (articles 41, 15:2).

•  Legislation for each EU-country •  Local legislation for federal states

EU

Country

State

Legal possibilities and conditions for public procurement according to social standards – Germany (2013)

German state Commitment to conduct PP according to ILO core labour

standards

Berlin Yes, for certain products specified through a circular by government

Brandenburg Yes. can not buy products if manufacturing involves child labour

Bremen Yes

Hamburg Yes

Lower-Saxony Yes, but no legislation yet

North Rhine-Westphalia Yes

Mecklenburg-Vorpommern Yes

Rhineland-Palatinate Yes, can not buy products if manufacturing involves child labour

Saarland Yes

Saxony-Anhalt Yes

Schleswig-Holstein Yes. Act about guaranteed wages and procurement (2013)

Thuringia Yes

Baden Württemberg No

Bavaria No

Hesse No

Saxony No

Source: Bremen/ Landmark-project

German example

“For Bundesagentur für Arbeit it is important to be part in affecting the development of IT in general including smartphones in a sustainable direction. For us it is in line with our CSR policy to minimizing environmental impact and improving social conditions for employees in the production of smartphones. One way to realize this would be to use a certification for sustainable smartphones, like TCO Certified or equal, which includes both environmental and social criteria” Mr Berr, Responsible for IT procurement at Bundesagentur für Arbeit Estimated purchasing volume: 180.000 users

German example

"For Rheinland-Pfalz it is important to be part in affecting the development of IT in general including smartphones in a sustainable direction. For us it is in line with our coalition agreement to minimizing environmental impact and improving social conditions for employees in the production of smartphones. One way to realize this would be to use a certification for sustainable smartphones, like TCO Certified or equal, which includes both environmental and social criteria” Mr Kexel, Responsible for IT hardware procurement at Rheinland-Pfalz Estimated purchasing volume: 30.000 users

Risk analysis of procurement - Possible violations of human rights in production

•  SEMCo, Swedish government's expert body on environmental and sustainable procurement:

- Electronic products had a high risk (report 2010)

•  City of Malmö, third largest city in Sweden made a risk analysis from a human rights perspective of their purchased products (2011):

- IT-products ranked 2nd highest (1st is food)

•  Swedbank (private bank in Northern Europe), made a risk analysis of their purchased products (2012):

- IT-products ranked 2nd highest (1st is giveaways)

WHY USE CERTIFICATIONS?

Why do purchasers use certifications?

It is easy •  IT market is complex and develops quickly •  Many areas of competence needed •  Extremely difficult to follow up requirements (according to EU Law) Protect and build brand •  Media focus on IT → high risk •  Reliable third part certification

TCO Certified creates common rules between purchasers and brands

Why do brands use TCO Certified?

1.  Worldwide and complete

2.  Fast and reliable

3.  Trusted and quoted

One certification to cover everything, everywhere - Make it simple!

THE SOCIAL CRITERIA IN TCO CERTIFIED

A credible way to communicate social responsibility

- “Working with a third party verified program can provide brands with a credible way to communicate their social responsibility progress.” - “This is also a credible and transparent way to handle accidents and violations of human rights.” - “It is for credibility reasons that buyers choose 3rd party verified over self-declarations, which are also common among many brands.”

Structure and responsibility

Socially responsible production •  ILO 8 core conventions, •  UN - Right of the child, •  National health & safety, minimum wage and social security law Validated through (6 steps) 1.  The agreement 2.  Code of conduct communicated in the supply chain 3.  Annual identification of tier 1 factories and their audit status 4.  Annual 3:rd party tier 1 factory audit 5.  Annual spot checks 6.  Contact person on senior management level for long term

commitment

Be open about it – Violations occur, but we handle them in a responsible way

TCO Certified requires: •  A time-limited corrective action plan improving the management

system and opens up for actual improvements at the factory level

•  Corrective action plans must be shared between brand and manufacturer to increase the understanding of how to implement the policies at the factory level

•  A third party must assess the effectiveness of corrective action plans and share this information with the brand, manufacturer and TCO Development

Transparency

Unique annual report on social responsibility in IT-industry First report to be launched before the summer 2014

Includes: •  Anonymous information from 17 IT-brands •  Compilation from social audits done 2012-2013 •  Compilation of used routines and management system •  Compilation of the effectiveness of corrective actions •  Statistics on non-conformances in the IT industry •  Examples of good initiatives and remaining challenges

Example from our report covering 17 IT-brands

Health & safety Labor Laws Rights of the Child Freedom of Association

Discrimination Forced Labor

Number of audit criteria showing non-conformance, by category

Does TCO Certified create a change?

ü  17 IT brands committed to work proactively ü  17 brands shared third party social audits ü  2 brands developed system for third party auditing ü  30% of IT brands revised their CoC ü  2 brands have included ILO core conventions in CoC ü  3 brands have improved communication of CoC ü  4 brands have improved handling/sharing of corrective actions ü  5 brands have identified union representatives at first tier ü  3 brands have improved work to counter union discrimination

Thank you for your attention! TCO Development, www.tcodevelopment.com www.tcodevelopment.de Interested in the report? Please contact us at: [email protected] [email protected]

The missing pieces of the jigsaw – key points

1. Public and public buyers are calling for a focus on issues in the electronics industry

2. Public sector often has policy, and combined leverage, but sometimes verification and continuous improvement are missing

3. Electronics Watch aims to combine transparency, CSO monitoring & reform

How Electronics Watch aims to support the work of the European public sector

l  Eyes and ears of public sector on the ground – monitoring and verification

l  Going 'beyond the audit' – factory improvement, building basis for continuous improvement

l  Europe wide collaboration – common PQQs, contract provisions, monitoring, database

Electronics Watch - the eyes and ears on the ground

EW Head Office EW Field Staff - Full time, part time, or on a retainer basis EW Monitors and ‘Service Providers’ - Local labour groups, researchers, academics, civil

society actors, including legal support centres, community centres catering to migrant workers, existing hotlines…

Monitoring and Reform - how

Tools § EW Code of Conduct § Common contractual clauses § Conditions to be cascaded down to suppliers § Protocols, informed by best practices § Timelines § Factory-level improvement plans § Supporting workers to form self monitoring and improvement processes

What public sector organisations will ask for from ICT brands

l  Transparency and disclosure

l  Local CSO/monitor access to factories for worker training & monitoring

l  Support for remediation in, e.g. worker representation, H&S, national law on hours, etc

l  Ultimately buying practices reform – lead times and pricing, where they conflict with labour rights

Where we are in the project

•  EC funding •  Advisory Group of 45

organisations •  Recruiting Trustees and staff •  Founding Members in 2014 •  Starting operations in 2015

Discussion points 1. Social audits: social audits have been seriously criticised in press, reports,

academia.

What plans do EICC members have to involve civil society, worker representation, instead or in addition?

2. Buying practice reform.

CSR without reform in lead time and price requirements from brands.

What plans do EICC members have to look at buying practices? What would you need to make this possible?

3. Monitoring and reforming further tiers.

How do EICC members monitor further tiers, what requirements on transparency and worker conditions do you make on lower tier suppliers?

Questions?

Jim Cranshaw

[email protected]

electronicswatch.org

EICC Human Rights Symposium Deborah Albers

March 19, 2014

•  Dell - Internal Use - Confidential

Sustainability at Dell: It is about creating long-term stakeholder value and opportunities by integrating economic, social and environmental responsibility into everything we do.

160


Executive Summary Customers, NGO’s and Government aligned

Trends: •  Customers are increasingly focused on transparency in the supply

chain •  NGO’s have increased visibility to key supply chain issues like

working hours, working conditions and human rights •  Governments are engaging through mechanisms like UNGP

Implications: •  Customers and Reputation are directly impacted

Recommendation: •  Research: What are best in class companies doing? What do

worker want? What do our customers want? Where do we need to be long-term?

•  Reevaluate: What is the gap between now and long-term goals? •  Recreate: What are we going to do as a result of this shift? Result: 2020 Legacy of Good plan


Inquiries Addressed in 2013 50% increase in Supply Chain requests Y/Y

Environmental Focus l  Environmental goals and

progress l  Emissions l  Recycling l  Packaging l  Product Content

General CSR Requests l  Policies & commitments l  Governance & mgt systems l  Supplier evaluations l  Certifications (eg ISO) and

ecolabels (eg EPEAT) Supply Chain Focus l  Human rights l  Conflict minerals l  Supplier Practices

•  52%

•  18%

•  30%


163

Dell approach: Collaborate with Industry for Increased Influence & Long-Term Impact

•  Shift focus from audits to capability building

•  Address root causes, i.e. Management Systems

•  Improve on-going monitoring

•  Improve Worker management dialog

•  Participation in multi-stakeholder working groups like IDH

Dell 2020 Legacy of good


Dell 2020 Legacy of Good Plan Our strategy for bringing sustainability and business objectives together to benefit customers while simultaneously leaving a legacy of social and environmental good.

165

Dell Legacy of Good 2020 plan: ell 2020 Legacy of Good Plan Our strategy for bringing sustainability and business objectives together to benefit customers while simultaneously leaving a legacy of social and environmental good. www.dell.com/2020

165


166

1Promise: Creating a Legacy of Good


By 2020, the good that wi l l come from our technology will be 10x what it takes to create and use it.

Building a legacy of good. Learn more at Dell.com/2020


168 Confidential 3/28/

14

Environment goals

Reduce greenhouse gas emissions from our facility and logistics operations by 50% Reduce our water use in water-stressed regions by 20% Ensure 90% of waste generated in Dell-operated buildings is diverted from landfills

Develop and maintain sustainability initiatives in 100% of Dell-operated buildings Demonstrate 100% transparency of key issues within our supply chain, working with suppliers to mitigate risks in those areas Ensure 100% of product packaging is sourced from sustainable materials

Reduce the energy intensity of our product portfolio by 80% Use 50 million pounds of recycled-content plastic and other sustainable materials in our products Ensure 100% of Dell packaging is either recyclable or compostable

Phase out environmentally sensitive materials as viable alternatives exist Recover 2 billion pounds of used electronics Identify and quantify the environmental benefits of Dell-developed solutions


Specific goal discussion: We expect our suppliers to perform at their best while adhering to our SER standards. Key issues

›  Environmental: carbon, water, waste, material usage ›  Social: worker health and safety, human rights/dignity ›  Shared suppliers facing “audit overload” – trying to harmonize around EICC Code

of Conduct standards ›  Building requirements into future contracts

Strategies ›  Publish 100% of aggregated audit results ›  Ensure 100% of Tier 1 suppliers publish a GRI-based sustainability report ›  Require all Tier 1 suppliers to produce a water risk mitigation plan

Customer benefit ›  By increasing traceability and transparency throughout our supply chain, we

make it easier for customers to feel confident they have the insight they need.

169

100% transparency of key issues within our

supply chain

Going Beyond Tier 1: Driving Sustainability throughout the supply chain

Copyright © Sedex 2012. All Rights Reserved. No part of this document may be reproduced or redistributed in any form without wrinen consent from Sedex.

171

Responsible Electronics Human Rights Symposium Brussels March 2014

v  Extensive global expertise in supply chain risk and database management

v  Existing end-to-end process to report and manage on issues in global supply chains

v  Largest collaborative supply chain risk management tool

Addressing Global Supply Chain Risk

Sedex is an online tool for managing supply chain risk

2013

•  Product origin •  Building safety •  Bribery •  Workers rights •  Conflict minerals

The scale of the challenge

“At Diageo we talk about 70,000 suppliers and third parties, spread across over 100 countries of the world. When multiplied by the number of sub-suppliers in the supply chains, you get in to hundreds of thousands of people impacted by our global supply chain, so its vital to prioritise the key areas.” David Lawrence, Global Compliance & Ethics Programme Director, Diageo

Critical risks

Extract from ‘Sedex Transparency Briefing’ November 2013 hnp://ow.ly/tOtGX

Change?

Compliance Regulation/legislation Consumer pressure CSR programs Investor pressure Traceability Ability to find stories Power of the media New technology

What needs to be done?

•  Face direction of travel…..what's next?

•  Collaboration (cross industry, global) •  Don’t re-invent the wheel •  Integrate into procurement •  Work with suppliers

100% full transparency of your supply chain will not happen over-night

What is Sedex?

v  A not-for-profit membership organisation dedicated to driving improvements in ethical and responsible business practices in global supply chains

v  A secure web-based platform for sharing and viewing information on four pillars:

1. Labour standards 2. Health and safety 3. Environment 4. Business ethics

v  The largest collaborative platform for

sharing ethical supply chain data

v  Provides range of services that ensure your programmes are effective and efficient

Customer views informaMon for mulMple suppliers

Supplier enters informaMon on Sedex and shares with mulMple customers

A & AB Members includes…

Summary

For more information on Sedex go to www.sedexglobal.com To learn more about Responsible Sourcing please also see our new ‘Insights’ page with films, webinars and reports www.sedexglobal.com/films [email protected] +44 (0) 207 902 2327 @SedexTom

March 19, 2014

Going Beyond Tier 1: Driving Sustainability Throughout The Supply Chain Responsible Electronics Human Rights Symposium

Contents

1.  About BSR 2.  Driving Sustainability Throughout the Supply

Chain: An Integrated Approach 3.  Supplier Engagement for Environmental

Sustainability: EICC Supplier Carbon Performance Initiative

4.  Recommendations

183

1. About BSR

185

BSR’s Mission and Strategy

Membership Network

Consulting Services

Cross-Sector Collaboration Research

•  Insights gained from our research and collaborative partnerships feed our consulting work.

•  Our real-world experience

working closely with member companies informs our research.

•  Our cross-sector efforts build

on our extensive network of members and stakeholders.

Our mission: We work with business to create a just and sustainable world.

Our strategy: We develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration with our global network of nearly 300 member companies.

BSR: A Leader in Sustainable Supply Chains

186

International Guidance and Standards Setting

BSR brings deep expertise and experience in supply chain sustainability across industries and geographies. Following is an overview of many of the initiatives that we have been intrinsically involved in.

Factory/Farm Assessment and Improvement Partner

Industry Collaboration and Thought Leadership

Strategy Implementation Partner

Pharmaceutical Supply Chain Initiative

Walmart Women in

Factory Leadership

Program

Clean Cargo Working Group

Supplier Carbon Performance

Initiative

2. Driving Sustainability Throughout the Supply Chain: An Integrated Approach

Sustainable Supply Chain Management

188

Accepted Best Practice

Sustainable supply chain management is accepted practice among today’s leading companies and is expected by recognized global initiatives, financial indexes, and regulation.

Supported internally by resources and policies

Aligned to strategy, championed by board

Measured and reported impacts

Reporting •  GRI Reporting Guidelines •  Dow Jones Sustainability

Index and other indexes Standards •  UN Global Compact •  UN Guiding Principles on

Business & Human Rights Regulation •  OECD Guidelines for MNCs •  California Transparency in

Supply Chain Act •  France’s Grenelle II

External Expectations

An Integrated System

189

Proactive management

of the supply chain, with processes and

practices in place that enable purchasing

decisions with a positive impact.

Supplier leadership in

sustainability, enabled through engagement and an understanding of sustainability from supplier and worker

perspectives.

Accountable collaboration with

others who share your drive and ambition to accelerate change.

Many of today’s challenges require a

collective commitment.

Sustainable supply chains depend on companies adopting and embedding an integrated system of internal, supplier-facing, and collaborative efforts across industries and geographies. Three pillars must work in tandem:

Fundamental elements of a good, holistic approach

190

Proactive Management

Supplier Leadership

Accountable Collaboration

•  Integrated Strategy •  Robust Risk Management

Tools •  Material issues mapped •  Sustainable procurement

policy •  Senior management

champions •  Sufficient resources

allocated

•  Supply chain mapped •  Clear Supplier

sustainability expectations •  Well-designed supplier

engagement program •  Regular communication

with supply chain •  Appropriate investment in

the supply chain

•  Stakeholders mapped and engaged, globally and locally

•  Collaborative initiatives with measurable impacts

•  Honest external reporting

In practice, companies with leading approaches to sustainability in their supply chains have these elements in place. BSR works with companies across industries to help them develop and improve this integrated system.

1. Supply chain data gathering

2. Develop criteria for issue ranking

3. Internal & external

interviews 4. Supply chain

matrix

Process and Scope: Analysis can be done by category, geography or product.

Supply Chain Materiality

191

•  Gather data on direct and indirect supply chain

•  Systems •  Audit results •  Desktop

•  Identify key categories, geographies, suppliers

•  Develop long list of material issues based on supply chain data

•  Determine a set of criteria to rank issues

•  Interview internal and external stakeholders, focusing on:

•  Criteria ranking •  Expert

knowledge: Category, geography, suppliers

•  Identify priority issues for impact

•  SC competency gaps identified

Focus on what is important •  This process enables a company to move beyond broad-based supply chain

sustainability risk assessment towards impact •  Identify the most material issues for specific supply chains •  Engage with stakeholders on where improvements can be made •  Invest and build more robust and transparent supply chains

3. EICC Supplier Carbon Performance Initiative

Supplier Carbon Performance Initiative

193

Increase understanding

Increase shared understanding about the most efficient investments to drive carbon reductions in the ICT supply chain.

Improve collaboration

Make collaboration among EICC companies and suppliers to reduce carbon easier and more effective.

Reduce carbon

Reduce climate impacts in the ICT supply chain through collaborative action.

The purpose of EICC’s Supplier Carbon Performance Initiative is to make meaningful positive changes towards climate sustainability in the electronics supply chain. Objectives:


A more collaborative environment for companies and stakeholders to share ideas and invest in opportunities.

Demonstrably reduced carbon throughout the ICT supply chain by driving energy management investments by EICC suppliers

Economically-efficient investment in climate opportunities

194

Impacts:


195

Project Phases:

4. Recommendations

Recommendations

1.  Conduct a supply chain materiality exercise by key market to identify the most material issues in the full supply chain

2.  Implement an integrated system of internal, supplier-facing and collaborative efforts across industries and geographies

Thank you. Alice Valvodova ICT Manager BSR Email: [email protected]

UL and the UL logo are trademarks of UL LLC © 2014

Responsible Electronics: Human Rights Symposium Fire Safety and Social auditing

March 19, 2014

Responsible Sourcing A SOLUTIONS PROVIDER

TO SOCIAL COMPLIANCE CHALLENGES

Disclaimer goes here

Since the Chicago World’s Fair we have been on the leading edge of safety science

201

4 Fire Safety Key Words

Containment

Detection

Suppression

Egress

202

Health & Safety - A continuum

1. Code of Conduct

2. Risk Mapping

3. Audit

4. Remediation

5. Capacity Building

6. Measurement and Evaluation

203

Health & Safety - A continuum

1. Code of conduct

2. Risk mapping

3. Audit

4. Remediation

5. Capacity Building

6. Measurement and evaluation

204

Example Question

“All fire extinguishers are properly installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m”

205

Example Question

“All fire extinguishers are properly " installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m”

206

Example Question

“All fire extinguishers are properly " installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m”

207

THANK YOU.

“Insert” then choose “Picture” – select your picture. Right click your picture and “Send to back”.

The world’s leading sustainability consultancy

EHS Future Trends

EICC Conference Brussels, March 2014



Trends

q  Integral approach to EHS Management q  Safety Transformation

q  Product Sustainability and Compliance

q Assessment of Non-technical Risks to ensure business continuity q  Climate Change Adaptation

q  Resource Management

212


Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into.

Individual Expectation

Collective Expectation

Individual Experience

Collective Experience

Integral approach to EHS Management

Culture

Mindset & Values

Behaviors &

Decisions

(IT)Systems, Processes,

Technologies

213


Body text_vertical image What’s this layout for? Use this slide to insert text on the left and a portrait image on the right

Safety Transformation

214

ü  Leaders adopting safety

ü Recognizing hazards

ü  Employee ownership

ü Changing culture



Product Sustainability

215

ü REACH / SVHC (safety of downstream users !)

ü Carbon footprinting of products

ü  Product labeling

ü Green chemistry



Risk Assessment

216

Climate Change Adaptation

ü Climate Risk Assessments

ü Climate Adaptation Plans

Resource Management

ü Water Risk Assessments

ü Water Conservation Plans

ü  Energy Efficiency


VAP Study - Specific requirements members are looking for

Environmental

Air emissions monitoring

Wastewater discharge compliance

Health and Safety

Fire and Life Safety

Fire Risk Management - Explosive flammable material

- Electricity Risk - HAVC Systems

Emergency Response

217


VAP Study - Auditor Skills and Qualifications

218

•  80% of the respondents rated VAP auditor skills and qualifications as average. Respondents did not feel auditor skills and qualifications were sufficient to fully assess EHS compliance.

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

No Response

Poorly qualified

Adequately qualified

Well Qualified

6.7%

6.7%

80.0%

6.7%

Do VAP auditors have the skills and qualifications to assess

EHS compliance?

Intel Confidential — Do Not Forward

Intel Environmental, Social, and Governance Judy Wente Supply Chain ESG Director

Our Vision

“In the coming decade, Intel will create and extend computing technology to connect and enrich the life of every person on Earth.”

221

222

Intel at a Glance

3

25+ years of positive net

income

105,000 employees 185 sites in 63 countries

4 million ft2 of manufacturing

space

Ireland Fab 24

Oregon D1C, D1D,

D1X*

Arizona Fab 12*

ADC

New Mexico Fab 11X Massachusetts

Fab 17

Costa Rica

Chengdu

Vietnam

Penang Kulim

Dalian Fab 68

Israel Fab 28

Manufacturing Sites Worldwide Wafer Factory Assembly Test/Major Warehouse Distribution

Amsterdam

223

Products

Electricity

Metals

Products

Water

Intel’s ESG Environmental Social Governance

Responsibility

ESG = Value through Indirect Value to Customers, Supply Chain and Intel

224

Intel Integrated Value Framework

225

Supply Chain Impact

RISK MANAGEMENT

License to Operate and Governance

OPERATIONS

Cost Savings and Continuous

Improvement

BRAND

Reputation and Goodwill

REVENUE

Growth and Innovation

Key Services Areas: §  Anti-Corruption §  Contingent WF §  Forced Labor §  Safety

Reduce, Reuse, Recycle Examples: § CPLG packaging & energy reductions § Hotel water programs

Examples: § Gov’t procurement requirements § Business Awarded § User Experience

§  Keep our promise §  Right to do

Business

226

Maturity Level: Understanding

TRANSPARENCY

Competitive Advantage: Lagging

INSTINCTUAL COMPLIANCE VALUE AWARENESS

ESG = Creating Indirect Supply Chain CSR Value

227

Maturity Level: Acceptance

TRANSPARENCY

Competitive Advantage: Following

INSTINCTUAL AWARENESS VALUE COMPLIANCE

ESG = Value Value to Customers, Supply Chain, and Intel

228

Maturity Level: Commitment

TRANSPARENCY

Competitive Advantage: Following

INSTINCTUAL AWARENESS COMPLIANCE VALUE


229

Maturity Level: Behavior

TRANSPARENCY

Competitive Advantage: Leading

AWARENESS COMPLIANCE VALUE INSTINCTUAL


What We’ve Accomplished So Far: Intel’s Indirect ESG Evolution

230

What We’ve Accomplished So Far: Intel’s Indirect SC ESG Evolution

231

Ahead of the Curve

• Target by commodity areas of concern

• Types of ESG risk

Piloted Audit Tool Assess Risk Approach

• Exclude all mfg.- dorm questions • Top 40 SAQ

232

Capability Building for the Future

Adaptation and Assimilation

• Target audits: internal/external site management

• Root cause analysis and corrective actions – continuous improvement

• Pareto based on site CW population/commodity

• Build knowledge: Ethics, Human Resource Management Systems, Safety, Working Hours

•  Increase focus on site management for site support

• Prioritize by Geo – Geo manufacturing sites

Where are we Focusing: Intel’s Indirect SC ESG Evolution

Gaps and Areas for Improvement

233

SAQ Ideal State Influence standards across Standardize Protocol

• Core set of risk types •  CW •  Size/service

• Prioritize with other mfg. audits in current process

• Efficiency gains removing Y/N in SAQ •  Combine documentation, proof of policy,

training records and indicators of violations to date

• Ability to track/report both direct/indirect SAQ/Audits together

• Align code to Labor laws across geos

•  Lock arms across industries/geos for commonalties

What opportunities exist : Intel’s Indirect SC ESG Evolution

234

The above statements and any others in this document that refer to plans and expectations for the first quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company’s expectations. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products. Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. The majority of Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. Intel’s results could be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the

annual report on Form 10-K for the fiscal year ended December 31, 2013.

Risk Factors

Intel Confidential — Do Not Forward

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REQUIRE sustainability commitments

ASSESS Supplier sustainability practices

IMPROVE sustainability performance

Contractual requirements based on our supplier code of conduct (EICC) and Environment, Health and Safety clauses

Product or service-specific sustainability requirements integrated into specifications, requests for purchase…

sustainability integrated as an element of supplier risk analysis and as a selection criteria

Assess supplier sustainability management systems

Audit sustainability practices to ensure they correspond to sayings

Minimum level of expectation of assessed suppliers

Require Improvement plans further to unsatisfactory sustainability ratings and audits

Support and communicate through workshops and exchanges

ALCATEL-LUCENT SUSTAINABLE PURCHASING APPROACH

FOR ALL SUPPLIERS

240


Code of conduct (company level)

Commodity-specific requirements

OUR REQUIREMENTS

EICC code of conduct

Energy Star

241


INDIRECT SUPPLIERS RISK IDENTIFICATION

Activity

Relationship

Environment

Labor, health & safety

Ethics

Spend

Level of Influence

Visibility

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ONLINE ASSESSMENT METHODOLOGY: ECOVADIS PROCESS

Analysis EcoVadis analyzes your answers and audits your

documents

Results Access to results on web plaporm in the form of a

Scorecard

Data collection Answer CSR quesMons and upload required documents

! Online process customized to companies size, industry sector and countries of operation

Platform Registration

Register directly online

! Registration on the Monitoring platform is

necessary to be assessed

1 2 3 4

+

! Performed by Sustainable Development

experts

! Access & share results online

POLICIES 25% • Mission Statement • Endorsement of CSR initiatives

ACTIONS 35% • Measure/Actions • Implementation coverage

• Certificates/Labels

RESULTS 40% • Reporting /KPI’s • 360°

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ASSESSMENT METHODOLOGY: CATEGORY-SPECIFIC ANALYSIS

A specific evaluation model is generated according to the supplier: (1) INDUSTRY SECTOR: >100 predefined sectors available (2) SIZE: 3 predefined sizes (3) COUNTRY OF OPERATIONS: activation of issues according to country

Tailored questionnaire and evaluation criteria

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ASSESSMENT METHODOLOGY CRITERIA

Energy consumpMon & GHG (CO2) Water

Biodiversity Local PolluMons

Materials, Chemicals, Waste

Product Use Product End-‐of-‐Life

Customers Health & Safety Sustainable ConsumpMon

Employees Health & Safety Working CondiMons

Social Dialog Career Management & Training

Child & Forced Labor

DiscriminaMon Fundamental Human Rights

CorrupMon & Bribery AnMcompeMMve pracMces Responsible MarkeMng

IV. SUPPLY CHAIN Suppliers Environmental performance Suppliers Social pracMces

I. ENVIRONMENT III. ETHICS II. SOCIAL

Only criteria which are relevant to the supplier sector specific CSR challenges are taken into account

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ECOVADIS ASSESSMENT OUTCOME

246


  D

"Dialogue"

Stakeholder Involvement"

Workshops"

Seminars"

Good practices examples"

Trainings"

IMPROVE: TOOLS TO SUPPORT SUPPLIER SUSTAINABILITY DEVELOPMENT

Recommend weaknesses to address "

Improvement Plans"

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CONTACT INFORMATION

ALCATEL-LUCENT SUSTAINABLE PURCHASING INTERNET PAGE: HTTP://WWW.ALCATEL-LUCENT.COM/CSR/HTM/EN/RESPONSIBLEPURCHASING.HTML CONTACT: [email protected]

CSR/Third Party Risk Perspectives from a global real estate firm

Responsible Electronics / EICC March 2014

Diverse services and locations deliver investment grade ratings: Moody’s: Baa2 (stable outlook)

S&P: BBB- (stable outlook) 251

Who is JLL? A STRONG

FOUNDATION FOR PARTNERSHIP

2013 revenue

$4.0B

S.F. under management

2.6B

Employees

48,000+

Corporate offices

200+

LEED APs

1,250+

Six Sigma Green or Black Belts

220+

Americas •  8 countries

•  86 owned offices

EMEA •  32 countries


Asia Pacific •  14 countries


SUPPORTING THE GLOBAL REAL ESTATE LIFE CYCLE

500 Strategic Consultants

Balancing long-term strategy with practical

execution

3,670 Transaction Specialists

Best portfolio results through local market expertise and action

460 Lease Administrators

Portfolio transparency

eliminates business risk

2,500 Project Managers

Fast, flexible and on-time delivery

32,830 Facility & Property Mgmt.

Staff Safe, reliable, expert and productive work

environments

2008 & 2007 100 Fastest Growing Companies

2008, 2009 Americas Most Admired Companies Platinum 400 Best Big Companies

2006, 2007 and 2008 (U.S.) 2013, 2012, 2011, 2010, 2009

Global outsourcing 100 list Only real estate firm listed

six years running

What do we do?

•  Agency Leasing

•  Capital Markets

•  Construction

•  Corporate Finance and Net Lease

•  Corporate Solutions

•  Energy and Sustainability

•  Facility Management

•  Government Investor Services

•  Investment Management

•  Investment Sales

•  Lease Administration

•  Project and Development Services

•  Property Management

•  Public Institutions

•  Real Estate Investment Banking

•  Special Asset Services

•  Tenant Representation

•  Transaction Advisory Services

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One-stop source for a world of real estate services

What industries do we serve?

•  Associations and Not-for-profits

•  Banking

•  Call Centers

•  Clean Tech

•  Data Centers

•  Government

•  Healthcare

•  Higher Education

•  Hotels

•  Industrial and Logistics

•  Law Firms

•  Life Sciences

•  Multifamily

•  Port, Airport and Global Infrastructure

•  Retail

•  Retail/e-commerce Distribution

•  Self Storage

•  Supply Chain and Logistics

253

Expertise across all assets and industries

How is JLL Connected to the EICC?

254

Non EICC clients also drive our thinking

255

A few thoughts on CSR/third party risk

•  Third party risk now a top corporate ERM risk and a primary concern of CRE executives

•  Third party risk can be perceived very differently (reputational, regulatory & performance risk comprise a “risk mix”)

• Optimization of a corresponding “risk management mix” is the holy grail - Insurance programs, operational excellence, contract management /

procurement - Risk tiering / avoiding a one size fits all approach - Accept that no single tool does it all

• Must be able to demonstrate holistic program and policy set

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With regard to real estate partners…

• When risk tiering suppliers à Start with core risk attributes (spend, location, criticality of service, number of sites serviced, type of sites serviced, etc.)

• Match risk tier with appropriate set of compliance/oversight services à Intense audits make sense in some cases; not all

• Don’t reinvent the wheel à Leverage existing industry certifications, credentials, benchmarks to complement or replace self-defined standards

• Elevate CSR/risk in the procurement function à Value is a function of price, quality, & CSR/risk

257

Thank You

Seth Weinert Senior Vice President & Director of Professional Standards, JLL

+1 312 228 2695 [email protected]

UN Global Compact‘s Approach to Business and Human Rights

EICC Responsible Electronics: Human Rights Symposium

March 20, 2014

THE UN GLOBAL COMPACT Overview

Launched on 26 July 2000 in New York with roughly 40 businesses

UN Convention Against Corruption

Rooted in universally accepted conventions: Universal Declaration of Human Rights

ILO Declaration Rio Declaration

More than 8,000 businesses participants in 145 countries

World’s largest voluntary initiative

262

The Global Compact clarified

The Global Compact is...

…a voluntary initiative to promote and advance responsible business.

…a universal value framework to help business get organized.

…a global network of like-minded businesses and other stakeholders.

…a platform for innovation.

…a regulatory body.

…a substitute for regulation at the national or international level.

…a UN seal of approval or label

The Global Compact is not...

UN Global Compact’s Ten Principles

Guiding Principles on Business and Human Rights

•  Endorsed by the UN Human Rights Council in June 2011

•  Provides a global standard for preventing and addressing the adverse impacts of human rights linked to business activity

•  Consists of three pillars –  State Duty to Protect Human Rights –  Corporate Responsibility to Respect

Human Rights –  Access to Remedy

Relationship between the Global Compact’s human rights principles and the Guiding Principles

Relationship to the Guiding Principles

The UN Global Compact’s approach to Business and Human Rights

•  Raise awareness of what human rights are, why they are relevant for business, and how business can respect and support human rights within their own operations and their sphere of influence

•  Develop, refine and disseminate practical tools and guidance to assist business in respecting and supporting human rights and developing the business case for human rights

•  Promote the implementation and uptake of the Guiding Principles on Business and Human Rights

•  Explore areas of specificity (geographical, issue and sectoral) to increase understanding by business about human rights and how to respect and support human rights

•  Collaborate with the UN Office of the High Commissioner for Human Rights and other UN agencies to ensure coherence on business and human rights within the UN system

•  Good Practice Notes –  Identifies general approaches that have

been recognized by a number of companies and stakeholders as being good for business and human rights

•  Case Studies series: Embedding Human Rights in Business Practice –  Explores how companies implement

human rights, the challenges that companies face in addressing human rights and how they are endeavoring to address these challenges.

•  Human rights and Business Learning Tool –  5 modules to help managers in companies

understand the importance and relevance of human rights.

Practical Tools and Guidance

Business & Human Rights Dilemmas Forum

•  Interactive multi-stakeholder platform

•  25 Different Dilemmas

•  Training tools •  Forum •  Case Studies

Anti-Corruption

Environment

Labour Standards

Human Rights

Su

pply

Cha

in S

usta

inab

ility

‘Management of environmental, social and economic impacts, and encouragement of good

governance practices, throughout the lifecycle of goods

and services.’

Supply Chain Sustainability

UN Global Compact Supply Chain Sustainability Advisory Group

UN Global Compact Advisory Group on

Supply Chain Sustainability

v Practical Guide for Continuous Improvement •  Features numerous good corporate practices and other initiatives •  2011: Developed SME Quick Guide: Supply Chain Sustainability – A

Practical Guide for Continuous Improvement for Small and Medium Enterprises

v Human Rights •  Webinar Series •  Good Practice Note “A Principled Approach to Prioritizing and

Responding to Human Rights Risks Throughout the Supply Chain - in collaboration with HRWG” (under review)

v Issue Specific Activities •  Practical Guide on Product Traceability – By April 2014 •  Stand Together Against Corruption –A Practical Guide – Launched

September 2013

Supply Chain Sustainability Tools and Resources

Thank you!

Elena Bombis Legal & Policy Advisor

Supply Chain Sustainability [email protected]

www.unglobalcompact.org

3/28/14 275

The aim of UNICEF’s CSR strategy is to promote the corporate responsibility to respect and support children’s rights in the workplace, marketplace and community in conjunction with the government duty to protect and safeguard children’s rights.

Vision

Corporate Social Responsibility (CSR) within UNICEF refers to efforts towards positively changing business behaviour and practices as they affect children in collaboration with a range of stakeholders, including companies, government, civil society, children and young people.

Definition

UN Guiding Principles on Business and Human Rights

Children’s Rights and Business Principles

ConvenMon on the Rights of the Child

General Comment on Children’s Rights and

Business

GOVERNMENT BUSINESS

Framework for UNICEF CSR engagement

Implementing the UNGP with a child rights lens

Workplace impacts Child labour, EducaMon, Freedom of associaMon

Marketplace impacts Privacy, InformaMon, Non-‐discriminaMon

Community impacts ParMcipaMon, Standard of living, ProtecMon from violence

Environmental impacts Survival and development, Health, Leisure and recreaMon

The Children’s Rights and Business Principles place the content of the CRC in a business context in the workplace, marketplace, community and environment within the UNGP implementaMon framework.

Business impacts on children across these contexts touch on many different rights. For example:


Consultancies Academia SRI ESG research CSR index vendors 50 pilot companies Business plaporms Industry associaMons

Work in progress: Children’s rights in stakeholder consultaMons Children's rights in remedies

UNICEF CSR work with the ICT sector

•  Mobile Operators •  ISPs •  Online service providers •  Hardware manufacturer •  Component manufacturers

Child protecMon online/offline

Young workers

ICT – access to social services


TRAVEL company – UNGP implementaMon Dilemma: Industry leadership in sustainability and human rights •  Human rights materiality analysis as basis

•  Young workers, workplace issues, child labour and child sexual exploitaMon, community impact

•  Country and issue risk analysis •  High risk country level human rights impact assessment •  AcMon plan

•  Sphere of influence and severity of impact •  Capacity building, The Code •  Addressing root causes behind issues/incidents

•  Policy revision •  ReporMng and communicaMon -‐ transparency •  Remedies to follow


TEXTILES company – UNGP implementaMon Dilemma: Labour issues in the supply chain •  HQ level risk and human rights self-‐assessment supported by stakeholder

engagement as driver (child labour, WFCL, Young workers, MigraMng workers, Family friendly workplace)

•  Country level impact assessment •  Policy revision •  Re-‐build of the global risk management framework

•  Product, procurement and distribuMon risk elements incorporated into one plaporm

•  AcMons: Labour T&C and training, living wage, EHS, Community impact •  Addressing root causes and in government policy level dialogue •  Industry coaliMons and collaboraMon •  CommunicaMon and reporMng transparency •  Measuring impact at country level •  Marketplace self-‐assessment to follow

•  Challenges: Transparency in communicaMon increases media criMcism


MOBILE OPERATOR– Child rights as entry point for HR Dilemma: Child labor in the distribuMon network •  HQ level HRIA self assessment with focus on policies and processes •  Stakeholder consultaMons •  Country level risk assessment

•  Focus on children’s rights (child rights, labour rights) •  3rd party led CRIA in DRC as pilot •  AcMons: policy review, management systems, capacity building •  Model to be replicated in all countries

•  Next steps: Broader HQ HRIA including children’s rights

Np


FINANCIAL ins4tu4on– UNGP implementaMon Dilemma: Industry collaboraMon to scope the boundaries for human rights impacts •  Industry coaliMon •  Academia as facilitator •  Common industry framework for UNGP implementaMon •  Discussion paper

•  Common business driven benchmark for industry •  Sharing resourcing and building joint capacity •  Defining processes and pracMcaliMes for implementaMon

•  Bank level integraMon of children’s rights into UNGP •  Child rights as outcome from materiality analysis •  CRIA self-‐assessment and stakeholder consultaMons •  Policy revision , products review, ESG review, risk management

systems, support elements idenMfied •  ReporMng and communicaMon on child rights •  Country level analysis to follow (high risk/opportunity)

Responsible Electronics: Human Rights Symposium - presentations

Technology

Transcript of Responsible Electronics: Human Rights Symposium - presentations