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Product Delivery

At NVIDIA, we are always seeking new ways to minimize our environmental footprint by consciously improving the methods we use to package and deliver our products. Additionally, we comply with all applicable laws and regulations in the countries where we operate and diligently work with our suppliers to ensure that our supply chain is compliant.

Planning

Before NVIDIA brings a new product to market, we produce a prototype and thoroughly qualify it. As materials are specified in the planning phase, we take compliance issues into consideration (see Compliance below for more information) and each component is screened for materials availability. Some product groups use tools such as materials analyzers to confirm that only non-restricted materials are used.

In Board Operations, our manufacturing process-engineers work with customers to ensure that problems are diagnosed and solutions found before the product goes to market. In Silicon Products, we work closely with contracted silicon suppliers and package and assembly houses to ensure that each new generation of product meets high standards of reliability before it is manufactured.

As part of the planning cycle, our teams confirm that we are adhering to all appropriate import and export licensing regulations so we can sell and ship our products to our customers globally without restriction.

Compliance
Reduced Hazardous Substances

Our regulatory and certification guidelines for hazardous substances include:

  • EU RoHS: European Union regulations for restricted hazardous substances.
  • EU REACH: European Union regulations for safe chemical use (e.g., registration, evaluation, authorization and restriction).
  • EU ELV: European Union regulations for managing hazardous substances and end of life for automotive products.
  • Halogen-free: Products designed after 2008 are halogen-free. Our new-generation chip products are also free of brominated flame retardants.
  • ISO 14001:2004: All key suppliers are required to be independently audited and certified for conformance to this standard.
  • OHSAS18001: All key suppliers are required to be independently audited and certified for adherence to this health and safety management system standard (GB/T28001-2011 in China).

The Environmental performance section of this report contains information about the various compliance programs in which NVIDIA participates.

Where appropriate, we review and make changes to bills of material to ensure that our products meet customer and legislative requirements while delivering optimal performance. In addition, we have specific agreements for environmental compliance with specialized suppliers.

We routinely incorporate third-party lab inspections into our process to verify compliance with applicable standards. We engage an external consultant to benchmark and review our practices, and we participate in joint industry training activities to help ensure that our practices are aligned with customer and industry expectations.

Conflict Minerals

NVIDIA is taking an active role to support the Dodd-Frank Wall Street Reform and Consumer Protection Act with regard to conflict minerals. Visit the Supply Chain Responsibility section to learn more about our response.

Packaging

Each year, with every new product we ship, we examine opportunities to reduce packing materials and increase the proportion of recyclable materials used. Whether products are custom packaged or prepared for bulk shipping, we design our containers to maximize package density and reduce overall package size. We also use recycled content in our packing materials and, for bulk shipments, re-use materials as often as possible.

Examples of our efforts to reduce packaging and recycle include:

  • Using 100 percent recyclable device trays made of paper pulp fibers instead of polymer resins.
  • Using 100 percent recycled fiber “gray board” for many of our packing structures.
  • Using vegetable oil-based instead of petroleum-based printing inks.
  • Reusing moisture-barrier bags, trays, and cartons whenever feasible.
  • Redesigning our outer and inner pack boxes to increase units per pallet and eliminate end caps and packing foam.
  • Using suppliers that leverage distribution centers to minimize the shipping footprint of packing/packaging materials.
  • Shipping accessories directly to the distributor for end-point assembly, wherever possible.
  • Clearly labeling packages that have recycled content so that all parties understand what elements can be re-used.
  • Leveraging existing packaging for return merchandise authorization support when feasible.

Recycled materials and packaging sometimes are not strong enough to protect sensitive computer equipment when it is shipped around the world. We strive to maintain a balance of protecting the environment and ensuring that our customers receive their products in excellent condition.

Our key bulk and custom packaging suppliers are compliant with NVIDIA’s Environmental Compliance Certification for ROHS, Halogen-free and REACH certifications.

We closely monitor the cost savings associated with packaging-related process improvements, and our goal for future years is to track the environmental impact of these efforts.

Logistics

The manner in which we plan, pack and execute our raw material, work-in-progress, and finished-goods shipments has a significant effect on our carbon footprint. Given that fuel represents a major component of our overall freight costs, our continuous focus on optimizing our supply chain and reducing freight expenditures has resulted in cost savings and a positive impact on the environment.

Logistics optimization efforts include:

  • Implementing consolidation programs to efficiently configure packing and reduce the number of pick-ups and deliveries.
  • Overseeing subcontractor packing to ensure that cartons and pallets are fully packed and efficiently unitized.
  • Using lightweight paper or cardboard pallets to reduce shipment weights, where feasible.
  • Implementing a multimodal (ocean/truck) replenishment program for U.S. and retail distribution outside of the U.S.
  • Instituting a balanced supplier scorecard that includes a category awarding points for our suppliers’ participation in environmental initiatives.
  • Implementing reverse logistics solutions that use onsite or regional failure verification and/or repair to streamline product returns and eliminate international shipments.

We continue to gather data from shipping partners related to the carbon emissions of our shipments from air, land and sea. Our goal is to determine the appropriate metric by which to target reductions.