Sustainability

Supplier Sustainability Declaration The declaration sets out the standards and behaviors we require from our suppliers – and their suppliers – to improve conditions for workers and promote a cleaner environment for local communities.

Regulated Substances List All suppliers must ensure that all products or parts and product packaging delivered to Versuni, as well as some manufacturing processes used to make Versuni parts and products, comply with the applicable requirements in this list.

We assess our suppliers against the industry standard formulated by the RBA (Responsible Business Alliance) and captured in Versuni Supplier Sustainability Declaration.

The Versuni Supplier Sustainability Declaration (SSD) covers labor and human rights, worker health and safety, environmental impact, ethics, and management systems. We require all our suppliers to comply with this Declaration. We monitor supplier compliance with the Declaration through a system of regular audits, which are performed by an independent audit firm. If non-conformances are identified, we require the supplier to draw up a corrective action plan. Versuni supports the supplier, for instance by providing training or sharing best practices. We monitor the implementation of corrective action plans until major non-conformances are resolved. Full-scope audits are conducted in a 3-year cycle.

If we notice a delay in the implementation of a corrective action plan, we require suppliers to commit a timeline and escalate to the management. In exceptional cases where a supplier is unwilling to improve, we end the business relationship. To prevent audit fatigue and limit the burden of audit preparation and follow-up at a single supplier site, Versuni has agreed with some of the other RBA members to share audit results. This eliminates the need for multiple audits and enables a stronger focus on corrective actions and their follow-up.

Conflict minerals are minerals mined in conditions where armed conflict and human rights abuses occur. The term is typically to refer to four minerals – tungsten, tantalum, tin and gold (also known as 3TG) – that are mined in the eastern region of the Democratic Republic of the Congo (DRC). These minerals are used in the production of various goods such as jewellery and virtually all electronic devices.

Responsible sourcing of minerals is an important part of our supplier sustainability commitment. We implement measures in our chain to ensure that our products are not directly or indirectly funding atrocities in the DRC. Even though Versuni does not directly source minerals from the DRC and the mines are typically seven or more tiers removed from our direct suppliers, we are working toward the following goals:

• Stop the trade in conflict minerals that benefits armed groups in the DRC or adjoining countries
• Enable legitimate minerals from the region to enter global supply chains, thereby supporting the Congolese economy and the local communities that depend on these exports.

Responsible minerals policy Versuni is committed not to purchase raw materials, subassemblies or supplies which we know contain conflict minerals. We do not directly source minerals from mines in the DRC or elsewhere, and the supply chain for these metals consists of many tiers, including mines, traders, exporters, smelters, refiners, alloy producers and component manufacturers, before reaching our direct suppliers.

Conflict-free smelters Smelters mix minerals from many sources and refine them into metal that is used in our industry. The smelter is at a key point in the supply chain to enforce responsible sourcing – by exercising due diligence in selecting their mineral sources. The Responsible Minerals Assurance Process (RMAP) identifies smelters which can demonstrate, through an independent third-party assessment, that the minerals they procure do not originate from sources that contribute to conflict in the DRC.

As sufficient validated conflict-free smelters for all four metals become available, we will direct our supply chain towards these smelters. We regularly update the Versuni smelter list with new information received from our suppliers and request the identified smelters to participate in the RMAP.

We require suppliers to comply with our substance requirements and disclose compliance data to get a complete picture of the chemical substances used in our products.

Regulated Substance List Guided by the precautionary principle, and as part of our chemicals management, Versuni requires all suppliers to comply with substance requirements in the Regulated Substance List (RSL). This listing of chemical substances brings together all the legal, industry, and voluntary requirements to which Versuni is committed with regard to the chemical substances contained in our products. Compliance with the RSL is an integral part of any commercial agreement between Versuni and its suppliers.

The RSL is updated regularly to ensure it captures the latest requirements and concerns. It includes substances banned or required to be monitored by law. It also contains a number of substances that Versuni voluntarily wants to phase out or monitor from a precautionary point of view. The substances that are voluntarily phased out by Versuni include, for example, polyvinyl chloride and brominated flame retardants, phthalates and antimony, phthalates and antimony in glass, and beryllium. The RSL applies to all products, parts, and packaging materials used to produce Versuni products and is part of Versuni global policy. Where there is a difference between the Versuni requirements and the local regulatory requirements, the most protective for health, safety and environment applies.

BOMcheck Versuni collects compliance data in accordance with the RSL at part level for every product and product-packaging by BOMcheck. The BOMcheck is a web-based declaration and regulatory compliance system designed specifically to enable suppliers to provide declarations for RoHS, REACH, and any other substance legislation through detailed substances reports. It provides an industry platform that standardizes the way in which companies collect chemical composition information from suppliers. BOMcheck allows suppliers to provide Full Material Declaration (FMD). By making an FMD, suppliers can upload the total chemical composition of their articles only once (unless the formulation of supplied articles changes), and BOMcheck will then automatically update a company’s compliance status every time regulatory changes are introduced. The RSL is aligned with the substances included in the BOMcheck system. Versuni requires its suppliers to provide compliance declarations to the RSL via BOMcheck.

Our commitment to sustainability obliges us to consider environmental impacts of our supply chain. Our current focus of attention is on engagement with suppliers to disclose their carbon emission.

Carbon disclosure Versuni not only reports its climate performance to CDP (formerly known as the Carbon Disclosure Project) but also motivates its suppliers to disclose and reduce their carbon footprint.

Through our partnership with the CDP Supply Chain program since 2011, we have invited many of our largest suppliers, including first-tier manufacturing and transportation-related suppliers, to disclose their environmental performance and carbon intensity.

We expanded our partnership with CDP beyond carbon emissions by requesting parts of our supply base to respond to the CDP water program in 2020.