Sustainability: Supply chain accountability:
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 fulfillment methods.

We source the majority of our services and products locally to drive economic development, promote minority-and-women business development, and employment in communities where we operate. Approximately half of our procurement occurs outside the United States.

We also consciously consider sustainability in our purchasing decisions, and have guidelines in place for purchasing and using specific resources including human trafficking, labor, conflict minerals, rare earth metals, chemicals and paper.

Human trafficking

The California Transparency in Supply Chains Act of 2010 and the United Kingdom (UK) Modern Slavery Act 2015 require covered companies to disclose their efforts, if any, to eradicate slavery and human trafficking from their supply chains and businesses. Our disclosures summary provides quick access to all relevant information about our efforts on this point and the humane treatment of workers globally.

We continuously assess global labor risks and monitor supplier performance to ensure ongoing compliance.

Labor

TI is committed to protecting both our own employees and those employed by our suppliers. Our labor policies and guidelines are designed to ensure humane and ethical treatment of all employees.

We require suppliers to certify compliance with applicable labor laws and support our supplier code of conduct. Suppliers must affirm that their manufacturing processes do not include the use of forced labor (including prison and indentured labor) or child labor.

When initiating relationships with suppliers, we educate them about our standards and expectations for safe, humane and ethical labor practices. These guidelines are 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, we make our buyers or procurement representatives available to meet with them. Our supply chain management team can also assist with identifying and addressing issues that are inconsistent with our ethics and values. If suppliers prefer, they can contact our Ethics Office to anonymously ask questions or discuss issues.

Conflict minerals

TI is deeply concerned by reports that profits from the sale of certain minerals mined in the Democratic Republic of the Congo (DRC) or adjoining countries has helped fuel war and human rights violations in the eastern Congo. Tin, tantalum, tungsten and gold are metals that are derived from those minerals and are termed "conflict minerals" regardless of their country of origin or whether they are fueling armed conflict. These metals are all integral to the manufacture of semiconductors. Each of the metals has specific electrical properties which are necessary for the function of TI products. Read more about TI's policy on this critical issue here.

Rare earth metals

A small amount of cerium, which is a light rare earth metal, is critical for the fabrication of some of our semiconductor devices. In 2010, China constrained the mining and export of rare earth metals like cerium. Other regions initiated production of these materials, and existing mines increased output when prices rose dramatically.

These events led to an oversupply of light rare earth metals, including cerium, and a relaxation of Chinese export quotas that relieved the imbalances. By 2012, pricing pressures had subsided and the availability and cost of cerium no longer posed a concern for TI. This helped us continue meeting our customers' product expectations.

Chemicals

We comply with chemical standards and regulations and use 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 and Sustainable Forestry Initiative-certified distributors. Today, paper used at TI contains at least 30 percent postconsumer waste.

We continue to use eco-friendly paper products in our printers. We also are continuing the use of eco-friendly products globally, such as file folders, boxes and other items with significant paper content, to further support our environmentally sustainable procurement practices.