For more information, download the Supplier Responsibility section of our 2012/2013 Annual Corporate Responsibility Report
Our goal is to deliver high-quality products while ensuring that working conditions throughout our supply chain are safe, that workers are treated with respect and dignity and that manufacturing processes are environmentally responsible. We believe that the most effective and efficient way to achieve these goals is by placing responsibility with the entities that have authority to institute and manage robust programs—our suppliers.
AMD incorporates corporate responsibility expectations into the same business processes we use for all supplier performance – the supplier business reviews (SBR). The SBR is the forum where senior leaders from both companies come together on a regular basis to discuss a broad range of topics relevant to our business relationship. Corporate responsibility is an integral part of these relationships and thus included in the SBR for all of AMD’s top-tier suppliers. To assure that our responsibility standards are being accomplished, we set clear expectations, ask our suppliers to report on their performance during SBRs and review third-party audit information.
Read more in the sections below:
AMD’s Conflict Minerals Policy
Beliefs: AMD is taking steps to break the link between the trade in minerals and ongoing conflict and human rights abuses in Central Africa. To this end, AMD believes that an effective approach has three fundamental elements:
- An “in-region” mineral certification program that enables the traceability and certification of minerals mined in the DRC and adjoining countries (the “DRC region”);
- A conflict-free smelter program that enables third-party validation of each smelter’s sourcing practices and a determination of whether its sources are conflict-free; and
- Due diligence to verify that tin, tantalum, tungsten or gold in AMD’s finished products can be traced to a certified conflict-free smelter.
Definitions: For the purposes of this policy, AMD defines “Conflict Minerals” the same as the SEC rule and which generally consists of cassiterite, columbite-tantalite, wolframite or gold determined to be financing conflicts in the DRC or an adjoining country. Finished metals potentially derived from Conflict Minerals in AMD products are tin, tantalum, tungsten and gold. For the purposes of this policy, these finished metals and the minerals from which they are derived are referred to as “Subject Materials.”
Supplier Requirements: AMD suppliers shall not knowingly contribute to conflict or human rights violations in the DRC region through trade in Subject Materials;
- AMD suppliers shall have documented policies and procedures to demonstrate that the Subject Materials they procure are sourced in accordance with this policy; and
- AMD suppliers, to the extent reasonably practicable, shall trace the Subject Materials they supply to AMD to a smelter certified under the EICC/GeSI Conflict-Free Smelter Program.
AMD Actions to Implement Policy: AMD is implementing procedures designed to ascertain the sources and conflict status of Subject Materials in AMD products;
- AMD is a founder and supporter the public-private alliance (PPA) for Responsible Minerals Trade focused on helping the DRC and other governments in the region break the link between the illicit minerals trade and the ongoing violence and human rights abuses, and;
- AMD is an active participant in the EICC/GeSI Conflict Free Sourcing Initiative (CFSI). Through this collaborative approach we have developed a system for tracking the Subject Materials from the smelter through the electronics industry’s supply chain.
AMD’s progress to date: Within our supply chain, AMD is developing processes to identify the smelters of origin for Subject Materials utilizing the standardized tracing processes developed by EICC/GeSI. Using this method, we have identified more than 100 smelters that we compare against the conflict-free smelter list.
California Slavery and Human Trafficking Law
The California Transparency in Supply Chains Act of 2010 (SB 657) (the “Act”) requires manufacturers and retailers doing business in the State of California to disclose information regarding their efforts to address the issues of slavery and human trafficking in their supply chains. In accordance with the requirements of the Act, AMD offers the summary below of our activities to identify and prevent human trafficking and slavery activities by our vendors.
AMD Policies and Actions
AMD strongly opposes the practice of slavery or human trafficking. AMD utilizes several approaches detailed below designed to ensure and verify the absence of such practices in our supply chain.
AMD is an active member and Chairs the EICC. AMD has adopted the Electronics Industry Code of Conduct (the EICC Code of Conduct) and generally requires conformance with this code from its suppliers. The EICC Code of Conduct is based on international labor, environmental and human rights standards that clearly prohibit slavery and human trafficking.
Risk-based supplier assessments: As a part of AMD’s supplier management process, we assess our suppliers to evaluate their conformance to the EICC Code of Conduct. This approach includes preliminary risk assessments as well as more detailed supplier self-assessment questionnaires. The results of each method are scored utilizing the EICC scoring system to verify the suppliers’ risk of non-conformance.
Supplier audits: Based on the results of the risk assessment, AMD may require a third-party on-site audit of supplier practices and management systems to evaluate supplier compliance with the EICC standards including avoiding human trafficking and slavery in our supply chain and with applicable laws and regulations. These audits may be announced or unannounced depending on the circumstances.
Supplier assurance: Each year, AMD communicates with suppliers in writing to ensure our expectations are clear and up to date with regard to responsible social, ethical and environmental conduct. This letter requires suppliers to comply with international standards, applicable laws and regulations as well as the EICC Code of Conduct. Additionally, AMD’s standard terms and conditions for the procurement of goods and services require conformance to applicable laws and regulations, and reinforce our expectations regarding responsible social, ethical and environmental conduct.
Accountability: In addition to risk assessments and audits, AMD discusses conformance to the EICC Code of Conduct as well as related management systems with our suppliers during regular business reviews. Our supplier business reviews are the optimal venue for accountability with regard to responsible social, ethical and environmental conduct because senior management participates in these meetings and future business awards are at stake.
Training: AMD suppliers have access to information and training regarding conformance expectations through the EICC learning and capability activities.
AMD Standards of Business Conduct: AMD’s Worldwide Standards of Business Conduct establish mandatory rules and guidelines for AMD’s employees. These standards are substantially equivalent to the EICC Code of Conduct and specifically prohibit forced and compulsory labor practices. These standards apply to all AMD employees. Every AMD employee has access to, and receives mandatory training on these standards. In the event an employee violates these standards, AMD will take immediate and appropriate action, which may include termination of employment.