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For Silicon Chip Operations, NVIDIA’s social responsibility policy and the EICC Code of Conduct provide a framework for 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.
To accomplish these goals, we integrate EICC training into our quarterly business reviews with our suppliers.
EICC Smelter Auditing Program: This program has been developed to help EICC members prepare for compliance with the Dodd-Frank Act (Section 1502) with regard to Conflict Minerals. Prior to the roll-out of the auditing program, NVIDIA took action. We requested that all our direct suppliers report the name and location of mines and smelters (for all their tantalum, tin, tungsten and gold sources) to confirm that none are sourced from conflict regions of the Democratic Republic of Congo. Through the EICC, NVIDIA has collected initial information from 80% of smelter suppliers and we plan to complete the remaining 20% in 2011. The smelters will then be on the EICC list of smelters to be audited live. The majority of smelters for these metals have voluntarily joined this program.
EICC Validated Audit Program: In 2010 we requested suppliers to be audited by an independent third party on the treatment of their workers in their factories, plants or facilities. By Q1 2011, 90% of our suppliers had been audited. Issues are determined to be 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 findings of their audit and will initiate an action plan to prevent or correct any mistreatment of workers if necessary.
Identify and test restricted materials - 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 to provide certified lab test results for homogeneous raw materials yearly to demonstrate full environmental compliance.
Active membership of the EICC- NVIDIA has been an active participant in the Electronics Industry Citizenship Coalition since 2006. We have adopted the EICC Code of Conduct in our own company and requested our suppliers to follow the Code as well. 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 Carbon Reporting System.ISO 14001 Certification - All Chip Operations suppliers are ISO 14001 certified, which ensures the following programs are in place at our suppliers:
Engage suppliers to track and report their 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 that they provide will enable us to report on the carbon footprint of our suppliers and to 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:
Due to the large number of suppliers, management of compliance is critical to ensuring that we are responsive to shareholder concerns. We implement Manufacturer Component Approval Questionnaires for all Board Operations suppliers, and have specific agreements for environmental compliance and specialized suppliers such as automotive and contract 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.A Material Content Declaration program has been developed for the purpose of dispositioning all parts in NVIDIA's parts database. The program includes: