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 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 (SBRs). 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 manufacturing suppliers. Manufacturing suppliers includes strategic suppliers who contribute materials that directly impact and become a part of AMD products. These include wafers, outsourced assembly and test (OSAT), direct materials (substrates, lids, capacitors, memory), and boards inclusive of components. To ensure 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.
Responsible Business Alliance (RBA)
AMD is a long-standing member of the RBA. We have adopted the standards within the RBA Code of Conduct and expect our suppliers to conform to them. Conformance to the EICC Code of Conduct is assessed annually for our manufacturing facilities, and we also require this of our manufacturing suppliers. High-risk facilities identified through this assessment program are required to undergo a RBA audit. In addition, AMD has also adopted the Principles of Social Responsibility issued by the Institute for Supply Management (ISM).
Each year, we communicate our expectations to our manufacturing suppliers for conformance to the Code, ISM principles, or equivalent standards.
In 2016, 100 percent of our manufacturing supplier facilities completed the RBA self-assessment questionnaire (SAQ) and no “high-risk“ supplier facilities (those facilities requiring audits) were identified.
"AMD’s leadership of the RBA has been instrumental in advancing corporate social responsibility throughout the global electronics supply chain.” – Rob Lederer, Executive Director, RBA
Corporate Responsibility Risk Management
We track potential corporate responsibility (CR) related risks in our supply chain by five main categories: Environmental, Social, Governance, Safety and Conflict Minerals. We track all risk categories, but prioritize specific types of CR risk based on the operation, location and results of prior reviews. Our current CR risk management process covers approximately 80% of our total annual supply chain spend.
Our long-standing commitment to upholding the highest standards of corporate responsibility. This commitment extends to respecting the human rights of all individuals directly impacted by our company’s global operations and throughout our business relationships.
“AMD’s leadership of the Electronic Industry Citizenship Coalition (EICC) helped convene a dialogue between industry and key stakeholders which made progress on the policy protecting workers rights to Freedom of Association and Collective Bargaining. We are hopeful this policy will translate into concrete benefits for workers in the electronics supply chain.” – David M. Schilling, Senior Program Director, Interfaith Center on Corporate Responsibility (ICCR).
Forced Labor and Human Trafficking
AMD strongly opposes the practice of forced labor or human trafficking. The company utilizes several approaches to communicate our expectations and verify the absence of such practices in our supply chain.
The company has adopted the EICC’s Code of Conduct and requires conformance with this code from its suppliers. The EICC Code of Conduct is based on international labor, environmental and human rights standards that prohibit forced labor and human trafficking.
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:
- A mineral certification program that enables the traceability and certification of minerals mined in the Democratic Republic of the Congo 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, and gold in AMD’s finished products can be traced to a certified conflict-free smelter.
- AMD is participating in the Electronic Industry Citizenship Coalition’s (EICC) Responsible Raw Materials Initiative and is exploring its dependence and sources of cobalt to ensure its procurement is not supporting child labor or other egregious health and safety concerns.
Environment, Health & Safety
Starting in 2014, AMD partnered with our wafer Foundry suppliers to establish “best-in-class” environmental, health and safety goals for AMD wafer production. The goals cover the bulk of AMD’s environmental footprint within our supply chain, and were designed to significantly outperform industry averages across environmental and safety performance metrics.
The greenhouse gas and electricity goals are verified “science-based targets” by the Science-based Targets initiative, meaning they are aggressive enough to avoid the worse effects of climate change by helping keep global temperatures from raising 2 degree Celsius.
An extension of AMD’s customer-centric focus is the belief that customers should experience excellence when designing in, manufacturing with, or supporting systems that include AMD products.
The company uses a multidimensional and cross-functional approach to produce high-quality and highly reliable products. AMD’s quality management system incorporates supplier quality control, stringent raw material and manufacturing process control systems, and final testing to ensure operational consistency, efficiency, and the ability to meet customer requirements. World Class Supplier, World Class Manufacturing, customer-quality and other quality processes drive continuous improvement in all aspects related to developing, manufacturing, and supporting products.
AMD is committed to our Supplier Diversity program for U.S.-based spending, focused on the following areas:
- Measuring AMD spend with our registered diverse business enterprises and minority-owned businesses.
- Promoting small businesses and encouraging job growth in the United States by working within Supplier Connection, an initiative to allow small businesses to more easily apply to become suppliers to large companies.
- Deploying our sourcing to give competitive consideration to using diverse suppliers and minority enterprises.