Conflict Minerals: Procurement Stress? Experience from Philips
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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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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

What minerals?What sector?

Tungsten (W)

Gold (Au)

Tantalum (Ta)

Tin (Sn)

Electrical Non-electrical


Conflict minerals procurement stress experience from philips jan willem scheijgrond philips

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


Conflict minerals procurement stress experience from philips jan willem scheijgrond philips

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


Illustration of global tantalum supply chain

Illustration of global tantalum supply chain

Ten thousands of 1st tier suppliers globally

Tens of Ta smelters globally


Actions that need to be taken by us stock listed companies for df1502

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


Conflict minerals procurement stress experience from philips jan willem scheijgrond philips

EICC and GeSI Approach to Conflict-Free Sourcing

Finished Product

MINE SMELTER/REFINERY OEMS

‘bagging & tagging’

Conflict Free

Smelter Program

Due Diligence


Philips responsible sourcing of minerals

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


Due diligence at philips results summer 2013

Due diligenceat Philips – results Summer 2013


Conflict minerals procurement stress experience from philips jan willem scheijgrond philips

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


The conflict free tin initiative with support of dutch government

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


Cfti travelling to the mine site

CFTI: Travelling to the mine site


At the mine site

At the mine site

  • 800 workers are working at the mine site

  • Children and pregnant women are not allowed at the mine site.


Bagging tagging

‘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


Bags are sold to traders negociants who further filter the minerals

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


The comptoir further processes and exports the minerals to the smelter

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


What should eu do follow de gucht s six principles and

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


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