Electronics manufacturing is highly resource-intensive, which puts enormous strain on the environment and local communities. Pollution and health hazards can occur along the entire value chain all the way to final disposal. Upstream supply chains typically account for the majority of impacts and are frequently marked by poor working conditions.
IntegrityNext helps you manage the key sustainability risks and opportunities in your supply chain with minimal effort. Our solutions cover the topics most material to your industry and allow you to meet due diligence requirements and boost your sustainability performance:
and PBT regulations in the United States
Cobalt and mica
on critical upstream suppliers
Human and labour rights
Risks and Opportunities
The production of electronics requires significant amounts of energy, water, chemicals and plastics. Many products are highly complex and contain a multitude of raw materials, including metals and semiconductors which are essential components of most electronic devices. The industry therefore puts considerable strain on the environment. Air, water and soil pollution caused by (heavy) metals and an extensive spectrum of chemicals can occur at several stages of the value chain, from the mining of resources to manufacturing all the way to final disposal. Numerous cases of contamination have thus been documented. Sound precautions are indispensable to protect the environment, local communities and workers from toxic substances.
Many jurisdictions are acutely aware of the above-mentioned impacts and have implemented an array of regulatory requirements. They include legislation in the EU such as RoHS, REACH and WEEE, and provisions on product eco-design as part of the Circular Economy Action Plan. In the US, companies need to comply with requirements of the Toxic Substances Control Act (TSCA) or the Californian Electronic Waste Recycling Act (EWRA), among others. China’s RoHS 2 regulation and a host of international conventions are further examples.
Electronic waste is also becoming one of the fastest growing waste streams globally and it is estimated that approximately 80% is not collected and treated properly. All this makes a compelling case for the reduction of hazardous substances in production processes and products, a shift to alternative materials and an enhanced focus on circular design. Besides, the further optimisation of material use can go a long way in avoiding many of the afore-mentioned upstream risks and strengthening supply chain resilience.
Beyond issues of occupational health and safety, working conditions are frequently poor in the industry’s supply chains. They include excessive working hours, substandard pay, irregular employment relationships and obstructions to collective bargaining. In the lower tiers, forced and child labour as well as the financing of armed conflicts via the procurement of critical minerals are considerable risks that need to be managed accordingly.
Lastly, supply chains in the fast growing electronics industry typically account for the majority of GHG emissions and consequently represent a key lever for climate action. Improvements in the energy efficiency of manufacturing processes, devices and components can also help drive down Scope 3 emissions.
High energy- and resource-intensity of manufacturing
Pollution risks and safety hazards along the value chain
Inadequate working conditions in lower tiers
Supply chain as a key decarbonisation lever
Potential of supply chain sustainability to shape future sector growth
Electronics industry – Driving supply chain sustainability
Complex supply chains cause numerous adverse sustainability impacts in the electronics industry. Learn how ESG regulations are increasingly shaping the sector and which levers can help companies address the prime challenges.
IntegrityNext provides a platform for comprehensive ESG supply chain risk management that allows you to meet due diligence requirements and improve your sustainability performance:
- Carry out a carbon footprint assessment and benefit from enhanced visibility into your suppliers’ emissions data, reduction efforts and targets.
- Analyse the most relevant environmental, social and governance risks as part of a five-step risk management process.
It includes an abstract country and industry risk analysis to deliver initial insights into your supply chain’s risk exposure. Based on more detailed pre-built assessments, which draw on authoritative international standards and conventions, you can monitor your suppliers with respect to the main ESG risks:
Compliance with the European RoHS directive on hazardous substances and REACH
Compliance with the PBT regulation of the United States Toxic Substances Control Act (TSCA)
Use of 3TG, based on the RMI’s Conflict Minerals Reporting Template
Use of cobalt and mica, based on the RMI’s Extended Minerals Reporting Template
Carbon footprint: collection of emissions data, monitoring of reduction efforts and SBTi engagement targets (Science Based Targets initiative)
Adherence to universally accepted human and labour rights
Occupational health and safety
We help you identify suppliers with the most severe impacts so that you can develop a coherent strategy and target your preventive and remedial measures accordingly. The results gleaned from the assessments are synthesised in a GRI-certified report that can be readily used for your disclosures.
Ensuring regulatory compliance and ethical
"With the IntegrityNext solution, we can ensure that our direct spend suppliers across the globe share our values and meet our expectations in terms of regulatory compliance.”
Compliance with national, regional and international regulations is mandatory for Glamox and its suppliers. The company also recognizes, that business ethics go beyond simple compliance and makes a point of achieving sustainability for a better future.
Acknowledging the potential of digital solutions to support its mission, Glamox sought a solution to automate the supplier assessment process and ensure scalability and consistency across all divisions.
How IntegrityNext helps
Glamox uses the IntegrityNext assessments to continuously monitor its suppliers‘ compliance with the applicable regulations in terms of environment, human rights & labor, anti-bribery, anti-corruption and more. In the first step, the company monitored its direct spend suppliers on the platform, with the goal to extend this to other purchase categories as well.
IntegrityNext helped Glamox establish a consistent supplier assessment process globally and across all three company divisions.