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NVIDIA Silicon Chip Operations is in full compliance with European Union RoHS and REACH regulations. We have committed through the JEDEC initiative to create new products that are free of halogenated flame retardants. We will continue to be vigilant and responsive to changes in the regulatory landscape that require reducing or eliminating hazardous materials in our products.We have tested our finished products at ISO 17025-certified laboratories for RoHS substances and halogens to demonstrate our compliance. We have also requested our suppliers provide certified lab test results for homogeneous raw materials yearly to demonstrate full environmental compliance.
Electronics Industry Citizenship Coalition – NVIDIA Silicon Operations joined the Electronics Industry Citizenship Coalition (EICC) in 2007. Since then, we have leveraged our membership as an opportunity to raise awareness among our critical manufacturing suppliers and to improve factory conditions in the areas of ethics, labor and working hours, environment, health and safety, and management systems. We integrate EICC training into our quarterly business reviews with our suppliers.
NVIDIA's global citizenship directive and the EICC Code of Conduct guide us in addressing factory working conditions in our supply chain. We believe that, through our participation in collaborative industry initiatives such as the EICC, we can have a greater positive impact on our supply chain.
NVIDIA is also helping to develop the EICC Water Use survey for establishing a baseline for water use by our suppliers. We are requesting suppliers to continue their participation in the EICC's Carbon Reporting System.
Excessive Working Hours – In cooperation with the EICC Validated Audit Program, we requested that an independent third-party audit our suppliers on the treatment of their workers in their factories, plants or facilities. By Q1 2012, 90 percent of our key manufacturing suppliers for Silicon Operations have been audited. Any issues found are classified as either major or minor, and NVIDIA works with each supplier to correct major issues as soon as possible. NVIDIA meets with each supplier to discuss the audit findings and will initiate a corrective action plan to prevent or correct any mistreatment of workers if necessary. Any new key suppliers from acquisitions will be evaluated to determine if a Validated Audit Program will be required.
Hazardous Waste – We have engaged our key Silicon Chip Operations suppliers to provide information about how they are disposing of the hazardous waste material generated at their facilities. We are sharing knowledge with our suppliers in Asia on the lessons learned from Superfund sites of electronics companies in the U.S.
Water – We have requested our key Silicon Chip Operations suppliers to disclose the amount of water used in their facilities, how much water they are treating internally and recycling, and the quality of their treated wastewater prior to discharge from their facilities. We are also encouraging our suppliers to share best-known methods with each other on how to better equip the infrastructure of their facilities to improve treatment and maximize recycling of process wastewater.
Carbon Footprint – We have requested all Silicon Chip Operations suppliers to participate in the Carbon Disclosure Project or the EICC's Carbon Reporting System to quantify the amount of carbon released from their facilities over the past year. The Scope 1 and Scope 2 data they provide will enable us to report on the carbon footprint of our suppliers and help generate ideas as to how they can reduce or eliminate their carbon emissions. We have not committed to a date at which we'll report our suppliers' emissions as our Scope 3 emissions.
NVIDIA is ISO14001 certified and we require all of our suppliers to be certified, as well.NVIDIA's Manufacturer Environmental Compliance specification MECS0001 includes:
Because we have so many suppliers, managing compliance is critical. We use Manufacturer Component Approval Questionnaires for all Board Operations suppliers. In addition, we have specific agreements for environmental compliance with specialized suppliers.
While we do not track water, waste and energy metrics of our suppliers, our PCB fabricators and contract manufacturers do communicate the efforts they undertake to reduce energy, reclaim and reuse water, and recycle materials in their manufacturing process.
To help our largest suppliers comply with RoHS, we've paid for handheld material analyzers that screen for hazardous substances.
We've also developed a Material Content Declaration program to aid in the disposition of items in NVIDIA's parts database. The program covers information such as: