By Evelyn Neumayr on Jan 05, 2015
By Marsha Ali, Supply Chain Social and Environmental Program Manager, Oracle
As a hardware manufacturer, Oracle is committed to socially and environmentally responsible business practices throughout its supply chain – and this commitment holds true with conflict minerals. The term “conflict minerals” refer to tin, tantalum, tungsten and gold sourced from the Democratic Republic of the Congo and nine adjacent countries in Africa. As part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, Oracle files a “Conflict Minerals Disclosure” statement with the U.S. Securities and Exchange Commission (SEC) – most recently in May 2014. This report is available on our Corporate Citizenship website and on the SEC website.
Oracle requires all of our direct hardware suppliers, including suppliers associated with recent acquisitions of ACME, Tekelec and Micros – representing at least 80 percent of direct spend – to complete a form developed by the Electronics Industry Citizenship Coalition (EICC) and provide this information to us. The EICC form is consistent with what the electronics industry uses to report on the use of conflict minerals in their supply chains. For our latest report, Oracle suppliers were asked to provide this information to us in September 2014 and again in January 2015. This Reasonable Country of Origin (RCOI) activity is already in progress to collect our suppliers’ data for our 2014 report.
To fulfill this request, our suppliers asked their suppliers for their usage of tin, tantalum, tungsten and gold. These suppliers then had to ask their suppliers, and so on and on, until the smelter location was identifiable at a country level. Some of the smelter operators have undergone an audit process to ensure that they have appropriate policies and programs in place. This required suppliers to retrace sourcing activity at least five levels back into the supply chain. Through Oracle’s participation in the EICC coalition’s Conflict Free Smelter Initiative group, we were able to share some of the best practices on understanding this data and the wide differences in industry approach to tackling this issue.