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Supply chain transparency
Labor | Metals | Chemicals | Paper
TI goes to great lengths to provide customers the kind of information and transparency we expect from our own suppliers. For example:
- Our external Eco-Info and Lead (Pb)-Free website and product content database allow customers to view information on the materials contained within our products.
- We engage suppliers continuously to discuss their contracts and delivery strategies, solicit their feedback, and address management issues.
- We detail our supply-chain management and monitoring programs and disclose our annual performance in this Citizenship Report.
- We share findings of the Electronic Industry's Citizenship Coalition/Global E-Sustainability Initiative's Conflict Minerals Reporting Template with customers as required. This template facilitates the disclosure of information regarding smelters that provide material to a company's supply chain.
- We meet with customers and suppliers to respond to questions about our environmental and social responsibility activities.
Responsible sourcing
TI's strategic procurement plan enables us to purchase intelligently and coordinate buying power globally. Our worldwide procurement teams oversee various categories of goods and services, set specific procurement strategies, and identify qualified suppliers and the best methods of fulfillment.
We procure the majority of our services and products locally to drive economic development and employment. Currently, more than half of our procurement occurs outside the United States.
TI also consciously considers sustainability in its purchasing decisions, and has guidelines in place for purchasing and using specific resources, detailed in the following sections.
Labor
TI is committed to protecting both our employees and those of our suppliers. TI's labor policies and guidelines are designed to ensure the humane and ethical treatment of both our own employees as well as suppliers' employees – no matter where in the world they are employed.
The California Transparency in Supply Chains Act requires companies doing business to report their efforts to eradicate human trafficking in that state. Our disclosures summary provides quick access to all relevant information about our practices.
TI requires its suppliers to certify compliance with applicable labor laws and support our "Values and Ethics" booklet and business practices statement. They also must affirm that their products will not be manufactured with the use of forced, prison and indentured labor or child labor.
When initiating relationships with suppliers, we begin by educating them on our standards and expectations for safe, humane and ethical labor practices.
These guidelines are also communicated in meetings; on our supplier website; and in purchase orders, supplier contracts and other related documentation. If suppliers have questions or concerns about doing business with TI, they can meet with our buyers or procurement representatives.
Our supply-chain management team can assist with identifying and addressing issues that are inconsistent with our ethics and values as well. If suppliers prefer, they can contact our Ethics Office to anonymously ask questions or discuss issues.
We continuously assess global labor risks and monitor supplier performance to ensure ongoing compliance. We do not currently conduct third-party audits to evaluate risks of human trafficking and slavery. However, if a supplier operates in a high-risk region or insufficiently demonstrates its adherence to viable labor, ethics and compliance practices, TI conducts announced, on-site inspections. If we find deficiencies, suppliers have 90 days to make corrective actions.
Tin, tantalum, tungsten and gold are integral to the manufacture of TI's products. Additionally, we use a very small amount of cerium and lanthanum. These metals are not sourced directly by TI, but are included in other materials that we purchase such as sputtering targets, which we use in manufacturing.
Conflict minerals
The U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act seeks to eliminate sourcing tin, tantalum, tungsten and gold from mines in the Democratic Republic of Congo or adjoining countries due to the region's human-rights abuses. When enacted into law, it will require publicly traded U.S. companies to disclose the extent to which their products contain conflict minerals sourced from Congo-area mines.
TI does not purchase these metals directly from any smelter or mine, so we must rely on source information that our suppliers provide. We are collecting this information using the Electronic Industry's Citizenship Coalition/Global E-Sustainability Initiative's Conflict Minerals Reporting Template, which helps companies trace metals back through their supply chain.
We also support industry initiatives, such as the Conflict-Free Smelter program, to validate responsible and sustainable sources of these minerals. When the program's list of validated smelters becomes available, TI will require its suppliers to implement their policies and source from approved smelters.
In addition, TI has a conflict minerals policy that addresses the procurement and use of specific materials and related supplier requirements.
Rare earth metals
In 2010, China stopped exporting rare earth metals, including cerium and lanthanum, to the U.S. and other countries. These elements are used to manufacture computers and electronics. We identified alternative suppliers and have not been impacted by this decision.
Chemicals
TI complies with chemical standards and regulations and uses benign chemicals where possible in our manufacturing processes. We screen all chemicals to ensure compliance with customer requirements and regulatory standards. We also ensure that any necessary environmental, safety and health controls are in place.
Paper
In the past decade, our procurement of eco-friendly paper has evolved from excluding old-growth forest products to purchasing more print and paper goods from Forest Stewardship Council (FSC)- and Sustainable Forestry Initiative (SFI)-certified distributors. Today, paper used at TI contains at least 30 percent postconsumer waste.
We continue to develop and implement purchasing policies that expand our use of these types of suppliers. By increasing our FSC- or SFI-certified supplier purchases to include other types of paper, like file folders and storage boxes, and by encouraging our global teams to do the same, we continue to improve our environmentally sustainable procurement practices.
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Citizenship Report Summary
See also
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