The use of conflict minerals from the Democratic Republic of the Congo and neighboring countries in Africa continues to be an important human rights concern for the electronics manufacturing industry. Despite indications in 2017 of relaxed enforcement of U.S. due diligence and reporting requirements by the Securities and Exchange Commission, Jabil has not let up on our press for increased transparency on this issue in our, and our customers’, supply chains.
In most cases, Jabil is several or more levels removed from directly purchasing tin, tantalum, tungsten and gold (3TG) from mines, smelters or refiners. However, we continue to report the origins of 3TG in our supply chain by requiring conflict minerals declarations from our in-scope suppliers. In Fiscal 2017, we received declarations from 7,688 in-scope suppliers, representing 98 percent of our total spend of applicable in-scope materials subject to conflict minerals legislation.
In addition to our industry’s long-time focus on 3TG, human rights abuses have also been increasingly documented for cobalt mining in the Congo, prompting Jabil to consider expanding our due diligence and reporting on mineral supply chains to include cobalt. As a first step, in Fiscal 2017, we launched a responsible minerals sourcing survey to a limited number of suppliers in our supply chain to increase the visibility of cobalt management.
|Suppliers providing completed conflict minerals declaration||3,815||3,121||7,688**|
|Percent of total spend of applicable in-scope materials subject to conflict minerals legislation||89%||93%||98%|
* In Fiscal 2016, we evaluated our suppliers to determine if they qualify as in-scope, narrowing the number of requests for conflict mineral declarations.
** The significant increase from 2016 to 2017 is due to the inclusion of three acquisitions (including Nypro) into in-scope purchasing materials for conflict minerals compliance.
In addition to the standards we uphold for Jabil’s own supply chain, our customers rely on us to help them meet their own responsible sourcing goals. Our Intelligent Digital Supply Chain (IDSC) capabilities allow Jabil to be a trusted and ethical source for unparalleled reach to suppliers and supply chain information in real-time. We are helping ensure better management of social and environmental risks while supporting sustainable business growth. We currently manage supply chain risk for a diverse set of industries that represents over US$13B of spend globally.
Our IDSC solutions include comprehensive supply chain services that ensure full compliance with regulations that relate to chemicals, hazardous substances and conflict minerals. For example, we provide clear and actionable performance reports that show our customers’ supplier conflict-free status and supplier risk assessments. Our scalable service packages also provide training and outreach to suppliers to continually improve performance. This program is a win-win shared service that is succeeding in tackling human rights issues and sourcing risks across the manufacturing supply chain—lowering risk not only for Jabil but also for our customers.
Jabil is leading the industry in driving new supply chain thinking for the digital economy. Our Intelligent Digital Supply Chain solutions include Jabil InControl™, a cloud-based risk platform and decision-support tool that provides Jabil with increased supply chain visibility through actionable analytics and alerts. Through Jabil InControl™, we are not only supporting improved risk management decisions for our own supply chain, but we’re also exploring ways to improve the sustainability of our customers’ supply chains.