Philips 2014 Annual Report Download - page 205

Sustainability statements 14.2.8
Annual Report 2014 205
Simplied tin supply chain
Mines
thousands
Traders
hundreds
Smelters
tens
Smelter is at key point
to enforce responsible
sourcing in long and
complex supply chains
Rener /
Alloy producers
hundreds
Sub- and component manufacturers
tens of thousands
Contract manufacturers,
assembly
tens of thousands
Philips
end-user company
After having identied smelters in our supply chain, we
published our smelter list . Back in 2012 Philips was the
rst company to make its smelter list public. We did this
to drive awareness and create a call for action for
smelters and all users of these metals. We regularly
update the Philips smelter list with new information
received from our suppliers. We request the identied
smelters to participate in the CFSP.
So far, a total of 257 smelters are included in the Philips
smelter list. Majority of these smelters are located in
Asia, especially China. 45% (116) of the identied
smelters in our chain completed the Conict-Free
Smelter audit (2013: 29%). Within the group of smelters
that successfully passed their conict-free smelter
audit, 14 smelters were sourcing conict-free minerals
from the DRC region.
Philips Group
Number of identied smelters per metal
2014
55
51
Gold
3
36
Tantalum
53
20
Tin
30 Not CFS compliant
9CSF compliant
Tungsten
Philips Group
Conict minerals
2014 - 2015
2014 Goals Progress
Publish a Philips Conict Minerals Report validated by external auditors First Conict Minerals Report was published and Philips was one of the only
4 companies that had their report audited
Implement augmented expectations for supply chain investigations,
including stricter criteria for data collection from priority suppliers
In 2014 we worked with suppliers to implement and roll-out a CM policy,
collect more information from their next-tier suppliers and disclose
additional smelters
Collect Conict Minerals Reporting Templates from at least 80% of priority
suppliers, applying stricter criteria on data quality and completeness than
previous year
98% of the priority suppliers lled out the template questionnaire. 86% were
meeting or exceeding the Philips minimum criteria
Conict Free Tin Initiative: include DRC tin in mainstream solder supply
(move from pilot to normal business)
CFTI tin is now part of the regular supply of solder and used in dierent
Philips products
2015 Goals
Request direct suppliers to steer their supply chain towards using only
smelters veried as conict-free by third-party auditors
Conrm that all active, identied tantalum smelters in our supply chain are
veried as conict-free by third-party auditors
For more details, see www.philips.com/suppliers and
the Philips position paper on Conict Minerals.