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Conflict Minerals: Procurement Stress? Experience from Philips Jan-Willem Scheijgrond, Philips

Conflict Minerals: Procurement Stress? Experience from Philips Jan-Willem Scheijgrond, Philips 24 October, Bern. What minerals? What sector?. Tungsten (W). Gold (Au). Tantalum (Ta). Tin (Sn). Electrical Non-electrical. Simplified supply chain for electronics.

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Conflict Minerals: Procurement Stress? Experience from Philips Jan-Willem Scheijgrond, Philips

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  1. Conflict Minerals: Procurement Stress? Experience from Philips • Jan-Willem Scheijgrond, Philips • 24 October, Bern

  2. What minerals?What sector? Tungsten (W) Gold (Au) Tantalum (Ta) Tin (Sn) Electrical Non-electrical

  3. Simplified supply chain for electronics Finished Product Mine Trader Smelter Component producer Contract manufacturer / assembly End-user Typically 7+ tiers between mine and end-user

  4. Smelter is at key point in supply chain to enforce responsible purchasing

  5. Illustration of global tantalum supply chain Ten thousands of 1st tier suppliers globally Tens of Ta smelters globally

  6. Actions that need to be taken by US Stock-listed Companies for DF1502

  7. EICC and GeSI Approach to Conflict-Free Sourcing Finished Product MINE SMELTER/REFINERY OEMS ‘bagging & tagging’ Conflict Free Smelter Program Due Diligence

  8. Philips’ Responsible Sourcing of Minerals • Responsible sourcing of Minerals Program Due Diligence (OECD compliant) Risk based approach 360 risk suppliers EICC/GeSI template ID CFSP compliance Smelter list online Conflict Resolution Conflict Free Tin Initiative Indonesia Conflict 3rd party audit SEC Conflict Minerals Report

  9. Due diligenceat Philips – results Summer 2013

  10. Conflict Free Smelters in Philips supply chainnumber of identified smelters per region (yes/no CFS compliant, total: 231)

  11. The Conflict Free Tin Initiativewith support of Dutch Government Finished Product Mine in Congo Solder manufacturer AIM Alpha End users Philips, Tata, Blackberry, Intel, Motorola Solutions Exporter Smelter MSC (Malaysia Smelting Corp.) Downstream: create a market with industry partners Upstream: implement traceability mechanism

  12. CFTI: Travelling to the mine site

  13. At the mine site • 800 workers are working at the mine site • Children and pregnant women are not allowed at the mine site.

  14. ‘bagging & tagging’ • Minerals are weighed and tagged at the mine site • ID tags, quantities, prices, miner, trader, date, etc. are administered • Data is entered in a database to enable traceability. • Minerals without a tag cannot be sold

  15. Bags are sold to traders (negociants), who further filter the minerals

  16. The ‘comptoir’ further processes and exports the minerals to the smelter

  17. What should EU do?Follow De Gucht’s six principles and…

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