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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 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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slide1

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

slide3

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

illustration of global tantalum supply chain
Illustration of global tantalum supply chain

Ten thousands of 1st tier suppliers globally

Tens of Ta smelters globally

slide7

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

slide10
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

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
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