Suppliers

Our consultants will need to retrieve data from your internal departments and contact your suppliers. MobiCycle's consultants will require a level of trust from procurement. With procurement's buy in, MobiCycle can engage all relevant parties with confidence.  

We need to address the elephant in the room - transparency can unearth uncomfortable truths.

Your procurement officers may feel defensive. Of course they want to prioritize the ESG targets while achieving value for money. But their smaller suppliers may lack the financial or human resources to provide the necessary data.  The supplier data may also reveal counterproductive or unethical practices.

Any inefficiences or bad practices unearthed by MobiCycle, should not automatically result in procurement's censure, suspension or termination. We wish to avoid a reputation for getting people fired; or, for creating adverse consequences in exchange for their cooperation. We want to build a culture where procurement feel your suppliers' poor practices are their problem, too.

On a positive note, if your organization is large and trades on public markets, upstream suppliers are even more likely to respond to our requests. Downstream suppliers want to retain your business, and so are likely to respond in time and in full - provided they hold the relevant information.

Ultimately, the best outcome is one in which your suppliers manage electronics with little or no negative impact on the biosphere.

The below information is for example purposes only and does not reflect actual events.

ACME COMPANY REPORT

Delivered by MobiCycle Consulting on September 1, 2022

Mining

NOTES

MobiCycle's Consultants help you understand your electronics supply chain from start to finish. The first step is to care about how your supplier mines the critical minerals your devices rely on. Critical minerals supplies are volatile.

Steps to take
You may feel mining is outside of your scope. MobiCycle encourage you get involved. One, track and report the ESG ratings of the mining companies that supply your electronic and electrical devices. Two, undertake actitivities to clean up abandoned mining sites, restore habitats around mines, or clean the water. Three, fund scholarships to encourage students to pursue degrees in mining engineering. 70% of mining industry experts will retire within the next ten to fifteen years.

Sample Mining Companies

Area(s)

ESG Ratings Agencies

Arafura Resources

rare earths developer

Bloomberg

BHP Group

global miner

MSCI

Freeport-McMoRan

rare earths developer

Moody's

Iluka Resources

mineral sands miner

MSCI

Lynas Rare Earths

rare earths producer

FTSE Russell

Rio Tinto

global miner

S&P Global

Syrah Resources

graphite miner

Moody's

Vale SA

global miner

Bloomberg

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Manufacturing

NOTES

MobiCycle's Consultants help you as you determine which electronics manufacturers align with your climate goal(EMS, OEM, ODM, IDM)

A brief intro to semiconductor fabrication plants
(EMS, OEM, ODM, IDM)A semiconductor transmits electricity to help your device run. It is part conductor, part insulator. The degree to which it acts as a conductor versus an insulator, depends on what you need the electronic to do.   Semiconductors are made of pure, treated silicon. We get pure silicon from regular silicon. Regular silicon is found in sand. To get pure silicon from regular silicon, we remove oxygen attached to the regular silicon. The resulting pure silicon wafers power the microchips in your devices. A single microchip can take up to 26 weeks to make.

On China
China manufactures the majority of the world's electronics and electrical equipment. The Made in China policy has resulted in green factories, products, industrial parks and supply chain management companies.

Steps you can take

Given that manufacturing accounts for over 70 percent of global environmental pollution, buy products designed for disassembly. Determine if the manufacturer adopts best practices of ISO's TC 323 and ASTM International's E2979, E2986, E2987/E2987M, E3012, E3096.

Sample Manufacturers

Area(s)

ESG Ratings Agencies

Acuity Brands

LED lighting, controls

MSCI

Amphenol Corporation

fiber optic connectors, cables

S&P Global

Asteelflash

circuit boards

Moody's

Celestica

automated manufacturing

FTSE Russell

Foxconn

OEM, ODM and IDM

MSCI

Hubbell Incorporated

construction, industrial

Moody's

Integrated Micro-Electronics

consumer electronics

S&P Global

New Kinpo Group

robotics

FTSE Russell

Sanmina

printed circuit boards

Moody's

Taiwan Semiconductor (TSM)

semiconductors

MSCI

TE Connectivity Ltd

connectors and sensors

FTSE Russell

Ultra Electronics

mission critical devices

MSCI

Universal Scientific Industrial Co

handheld devices, wireless

S&P Global

Wong's International Holdings

office electronics

FTSE Russell

Zollner Elektronik Group

industrial electronics

S&P Global

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Purchases

NOTES

You may purchase electronic and electrical equipment (EEE) as part of a product you sell to your customers. You may also purchase items for use in your operations. MobiCycle's Consultants can advise you on how to understand best practices in electronics handling and climate change in general.

Electronics retailers follow (Extended) Producer Responsibility Schemes. The regulations require electronics retailers to: minimise waste, promote recycling and reuse, treat the waste sustainably, and design for reuse and recyclability. Electronics retailers with strong ESG credentials are more likely to avoid or minimize supply chain disruptions.

Steps you can take
First, confirm your electronics supplier belongs to a Producer Responsibility Scheme. Second, determine if  steps your supplier takes to meet their PRS should be reflected in your Scope 3 reporting.  This task can be complex. No guidance exists to connect Scope 3 reporting of EEE and Producer Responsibility Schemes. Third, encourage your supplier to do sustainability beyond what their scheme requires. Co sponsor local community waste containers for eWaste. Offer to fund projects that track eWaste assets. MobiCycle can help you with these two projects via Where are WEEE? and MobiBins.

Sample Retailers

Headquarters

ESG Ratings Agencies

Amazon.com

USA

FTSE Russell

Apple Stores

USA

MSCI

Hewlett-Packard

USA

S&P Global

Hon Hai Precision Industry

Taiwan

Moody's

Samsung

South Korea

Bloomberg

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Sales*

NOTES

This section applies if the electronic and electrical equipment you purchase is an intermediary product in your manufacturing process. If you sell direct to the public, you may be required to join an Extended Producer Responsibility Scheme. If you sell indirect through a distributor, your electronics distributor may be already part of a scheme. The requirement to join a scheme depends upon your geographical exposure and location.

Steps you can take
Join an existing scheme. Encourage the scheme to collect data and add more activities that encourage urban mining. If a scheme is not in your area, start one.

Sample Distributors

Headquarters

ESG Ratings Agencies

Arrow Electronics

USA

MSCI

Avnet

USA

Bloomberg

Farnell

UK

Moody's

Future Electronics

Canada

S&P Global

WGP Holding

Taiwan

MSCI

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Disposals

NOTES

In the USA, the Resource Conservation and Recovery Act grants the US EPA authority to regulate hazardous wastes. RCRA applies only to items that are actually discarded or held for disposal. The SEC proposed rules around climate reporting for publicly traded companies. It includes a recommendation for Scope 3 reporting.

In Europe, eWaste is known as WEEE or Waste Electronic and Electrical Equipment. The WEEE Directive and the Restriction of Hazardous Substances (RoHS) address handling of eWaste. The EU Green Deal created a guide to define climate activities, called the EU Taxonomy.

The US and EU have yet to explain the relationship between the wider climate policies and policies related to the management of eWaste.

Steps you can take
Map your supply chain to determine all of the waste suppliers. Track your eWaste to its final destination. Keep eWaste separate from other waste streams. Purchase waste bins that are designed to handle eWaste. Encourage waste suppliers to recycle or reuse eWaste. Avoid use of landfills or incineration. Support government policies to fund urban mining initiatives. Teach employees about electronics repair through games. Record these activities as part of your Scope 3 reporting.

Sample Waste Suppliers

Headquarters

ESG Ratings Agencies

Clean Harbors

UK

S&P Global

Republic Services

USA

FTSE Russell

Stericycle

USA

MSCI

Veolia Environmental Services

France

Bloomberg

Waste Management

USA

MSCI

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