Sustainable Supply Chain Management
We expect our suppliers to be committed to the values reflected in our Principles of Procurement and to fulfill our Purchase Specifications. Infineon requires that its suppliers and vendors comply with all applicable laws, including those relating to labor practices and forced labor.
These and other expectations towards suppliers including Environmental Protection, Health&Safety, Human Rights, Fair Business Practices, among others are reflected in our Principles of Purchasing. Furthermore, we expect them to support the principles of the UN Global Compact Initiative.
How do we manage our suppliers?
Supplier Management is the organization, controlling and development of supplier relationships. Supplier Management is based on four interlocking modules, through which uniform sourcing, evaluation, classification and development of suppliers is achieved. For more information please click here.
At Infineon, old and new suppliers have to fulfill a Corporate Social Responsibility questionnaire including Environmental Sustainability, Ocupational Health and Safety, and Business Continuity questions among others.
These questionnaires are then evaluated by Infineon specialists. Upon receipt and review of the questionnaire, if any answers appear to be unacceptable for Infineon, an improvement process is defined and communicated to the supplier. Infineon reserves also the right to audit such supplier.
Principles of Procurement
The Principles of Procurement reflect the essential business behavior requirements as outlined in our Business Conduct Guidelines. As stated there, all of our Suppliers shall comply with all requirements described herein. In addition, each of our Suppliers shall ensure that its affiliates, contractors and subcontractors also comply with all requirements described herein. Read our complete Principles of Procurement
Our principles of procurement cover the following topics:
Businesses should support and respect the protection of internationally proclaimed human rights. Businesses should make sure they are not complicit in human rights abuses. Our Suppliers shall comply with these principles.
- Forced Labor
- Child/ underage Labor
- Working Hours
- Wages and Benefits
- Freedom of Association and Collective Bargaining
- Grievance mechanisms
- Third party employment agencies
- Migrant workers
Our reputation depends on how we treat people we deal with every day in the conduct of our business.
Our employees are not allowed to accept any gifts other than gifts of nominal value. This includes the acceptance of any favors that might give rise to the appearance of improper influence.
Our Suppliers shall comply with this business practice.
Our employees shall never use their employment with us for any unjust enrichment. Our Suppliers shall ensure that their employees adhere to the aforementioned principles. In addition, the employees of our Suppliers shall refrain from offers that could give rise to the appearance of a conflict of interest for our employee.
Our Suppliers shall provide a safe and healthy working environment for all their employees and minimize all risks and hazards at all workplaces in order to protect the health and well-being of their employees, contractors and third parties visiting the premises.
Our Suppliers shall assume global and local environmental responsibilities and take the necessary steps to protect the environment in the various regions of the world in which they are operating and manage its business in a sustainable and transparent way.
We expect suppliers to support our effort to identify the origin of designated minerals used in our products by having due diligence measures in accordance with OECD Guidelines ensuring that direct materials, parts, components, sub-assemblies supplied to Infineon are DRC Conflict Free.
Our Suppliers shall strongly support our efforts regarding security in the supply chain and the protection of our assets, in particular our intellectual property and products. Our Suppliers shall ensure that their security policies are effectively implemented, regularly checked and continuously improved. Furthermore, our Suppliers shall participate in relevant government security initiatives that are designed to strengthen the security of their supply chains and national borders and comply with security regulations defined by these initiatives.
Our Suppliers shall establish a robust and resilient supply chain and adequate processes to ensure uninterrupted product delivery and provision of services. We recommend that our Suppliers implement and administer appropriate plans to ensure business continuity.
All key suppliers are required to provide us with sufficient proof of business continuity management systems or planning, control and mitigation. Proof can be provided in the form of plans, concepts or measures that are product specific, while strategic enough to encompass risk assessment measures, disaster prevention and business interruption avoidance.
For more information, please click here.
Our Suppliers shall adopt or establish documented and adequate management system processes designed to ensure compliance with these Principles of Procurement and with all applicable laws, regulations and standards to identify and mitigate related risks and to facilitate continuous improvement.
Our commitment towards Conflict Minerals and Cobalt
DRC Conflict Minerals
Respect for human rights is a matter of course for Infineon. Avoiding conflict minerals in the supply chain means that we are contributing towards the prevention of human rights abuses.
Infineon is not listed on US stock exchanges and therefore not legally required to publish a report on conflict minerals. Nevertheless, as a member of the Responsible Minerals Initiative, we uphold our voluntary commitment to responsibility within the supply chain. At the same time, our comprehensive declaration on the use of conflict minerals supports those of our customers who are required to perform due diligence within their supply chains to fulfill their reporting duties in accordance with the requirements of the United States Securities and Exchange Commission (SEC).
Since Infineon does not source these metals directly from mines or smelters, we identify their origin in close cooperation with our direct suppliers. For this purpose, we have introduced a standardized process throughout the organization based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas in order to create the necessary transparency within our supply chain. Our targets and our requirements of our supply chain are set forth in the Infineon Conflict Minerals Policy and the Supplier Code concerning the Responsible Sourcing of Conflict Minerals. Read our Conflict Minerals Policy and our Supplier Code for a Responsible Sourcing of Conflict Minerals.
Voluntary cobalt assessment in our products
The Democratic Republic of the Congo has around 50 percent of global cobalt reserves and produces the largest quantity of cobalt in the world.
As a responsible company, Infineon has therefore, on a voluntary basis, expanded its activities relating to social and environmental responsibility in the supply chain by including cobalt in our due diligence program for the responsible procurement of minerals. In the course of our investigation, we identified all suppliers of material containing cobalt and questioned them about cobalt smelting in the supply chain. To ensure transparency, we are making the result of our review available to our customers in the form of a Cobalt Declaration (Cobalt Reporting Template).