Apple, Dell and HP perform well on the disclosure of environmental and social issues in their supply chain including the level of child labour, health and safety and hazardous substances, while those headquartered in Asia including Canon, Panasonic and Samsung, are less transparent according to a new report from independent analyst firm Verdantix.
The 12 organizations in this report with aggregate revenues of US$977 billion — Apple, Canon, Dell, Hitachi, HP, LG Electronics, Microsoft, Nokia, Panasonic , Samsung, Sony, Toshiba — show a heavy contrast as to how much data they disclose regarding their sustainable supply chain programs, the firm says.
“If consumers want to buy their Christmas gifts from organizations who are being transparent about the social and environmental issues in their supply chains they should buy from — Apple, Dell and HP,” says David Metcalfe, CEO of Verdantix. “These brands have gone beyond adhering to the standards of the Electronics Industry Citizenship Coalition and have put in place their own audit programs. These leading firms also disclose a plethora of data on supplier compliance to their code of conduct showing willingness to confront the inherent challenges of a sustainable supply chain in markets with low regulatory standards such as China.’”
Firms such as Canon, Hitachi and Samsung are not only not disclosing their social and environmental supply chain issues but are not auditing and engaging their suppliers to the same extent as the leading US firms, he adds.
The “Sustainable Supply Chain Benchmark: Consumer Electronics” report uses a Verdantix benchmark methodology to cut through the complexity of sustainable supply chain programs and assist decision-makers to understand where and how to improve performance, says Metcalfe. Three categories of consumer electronics supply chain strategies have been identified using the Verdantix supply chain benchmark methodology: leading, opportunistic, and baseline strategies. These strategies vary on the standards set for suppliers, audit programs and disclosures, and engagement initiatives.
“Investors, NGOs, the media and consumers are increasingly holding global consumer electronics firms to account for the social and environmental issues in their supply chain,” says Abbie Curtis, Verdantix analyst and author of the report. “Firms that aren’t prioritizing on disclosure need to step up to the mark as reputational risk will only increase given the increasing demand for transparency.”
For more info go to www.verdantix.com .