Focus area SUPPLY CHAIN
Protecting workers and the environment in the IT supply chain
Ensuring responsible practices in the IT product supply chain is a constant challenge. Issues such as excessive overtime, health and safety risks, resource overuse, pollution and waste generation need to be addressed to protect both workers and the environment.
While comprehensive and regular audits of manufacturing facilities are a good start, strict follow-up and accountability are also needed to drive long-term, positive change.
Thousands of people are involved in the production of computers, phones and other IT products, from the miners who dig up the minerals used in electronic components all the way to the workers in the final assembly factories. The supply chains are complex and often employ workers in countries where the labor market lacks clear regulation, or legislated labor rights are not enforced. This results in poor working conditions where human health and lives are at risk. Workers face various difficulties and injustices, such as forced labor, lack of freedom of association, health and safety risks, and the inability to earn a living wage without agreeing to excessive overtime. Further up the supply chain, the mineral industry is linked to armed conflicts, human rights abuses, child labor, severe health problems for workers, and environmental degradation. Bribery is a risk present in many industries, and the IT supply chain is no exception. Counteracting bribery is crucial as it hinders development, erodes justice, undermines human rights, and interferes with the fair and efficient operation of markets.
The production of IT equipment also has significant environmental consequences, including resource depletion, pollution, and waste generation. Continued reliance on virgin materials contributes to environmental degradation and water contamination. Additionally, the use of hazardous chemicals in manufacturing causes air and soil pollution. To mitigate these impacts, manufacturers must adopt sustainable product designs that extend product life, reduce material consumption and facilitate recycling.
Gaining influence in the complex supply chain
When comparing product supply chains, the IT industry exceeds all others. Production is a step-by-step process: from mines and oil fields to smelters where raw materials are refined, to the production of materials such as plastics, that are in turn supplied to component manufacturers. Finally, the components are assembled into the final product in one or several final assembly factories. A single computer or smartphone can contain thousands of components, and the network of subcontractors providing these components and raw materials includes many companies on several continents.
Long-term, systematic work brings change
Driving supply chain responsibility in the IT industry requires extensive effort on multiple levels. Clear and relevant criteria, sharper than legislation, need to be set. When requesting change, independent verification of compliance is always needed. This means carrying out regular high-standard audits. During audits, issues are often found, and it is vital to establish corrective action plans that can be implemented quickly and credibly. Follow-up of the plans and clear consequences for deviations are necessary to ensure progress.
Some issues are easy to detect and solve but tend to reoccur. Others are more complex and require greater focus and effort. In both cases, systematic work and an ongoing dialog with the responsible IT brand are essential to anticipate emerging risks and support positive, lasting change at the factory level and further up the supply chain.
Focus areas for supply chain responsibility
Labor law violations
When wages are too low, and local authorities and employers fail to enforce working hour boundaries, workers are pressured to work excessive overtime in order to earn a living wage. This leads to health problems including stress, fatigue and risk of injury. Other labor rights violations include young workers being put in dangerous situations, unclear employment contracts, harassment and discrimination.
Health and safety risks
The work environment can sometimes risk workers’ health and life. For example, machines used in manufacturing may be dangerous to operate, and workers may not be trained to operate them, or lack protective equipment. Workers may come in contact with hazardous substances. Another risk is when emergency exits are blocked, or too few.
Forced labor
Work without voluntary agreement is forced labor. This includes work carried out to avoid punishment, physical or sexual violence, or confiscation of belongings such as ID papers or passports. Migrants, students and temporary workers are particularly vulnerable and more often subject to discrimination and unfair terms of employment.
Freedom of association
In some countries, the right to form unions and bargain collectively with employers is restricted by law, which increases the risk that workers’ rights are violated. Employers need to offer other ways for workers to freely and democratically elect representatives who can defend the rights and interests of workers. They should also support suppliers in facilitating open communication between management and employees.
Purchaser demand sets the process in motion
To influence the IT supply chain, you need expertise and industry access. Independent proof of corrective actions is also crucial to avoid false claims, greenwash and bluewash. A credible sustainability label helps you address issues in a systematic and comprehensive way.
By clearly stating relevant criteria in your procurement specifications, you encourage IT brands to prioritize sustainability within their supply chains. The impact is strongest when multiple organizations use the same criteria; collaborating with other purchasers increases your collective leverage. Therefore, it is more effective to support a credible sustainability certification rather than developing your own criteria.
The joint effort also makes the industry’s sustainability work more efficient. Instead of trying to meet individual requirements that may contradict each other, the industry can focus on making continual improvements that matter.
Ensure that any ecolabel or certification you choose includes mandatory verification of supply chain criteria. TCO Certified offers comprehensive criteria and independent verification of compliance, empowering purchasers worldwide to send a strong, unified message to the IT industry about the importance of sustainability.
TCO Certified’s three pillars ensure progress
TCO Certified’s three pillars ensure progress
TCO Certified helps you influence the supply chain
Using TCO Certified means getting your voice directly into the IT supply chain, where our comprehensive criteria and independent verification ensure social and environmental progress. We’re now moving further up the supply chain to give 100,000+ more people a safer working environment.
By choosing to buy certified products, you ensure that a continuous process is in place to improve working conditions and environmental aspects in the supply chains of the IT products you procure.
Supply chain criteria in TCO Certified
An incentive system for more responsible factories
Factories are categorized by risk level and high-risk factories are monitored more often. IT brands can select factories with a good rating, which is an incentive for factory owners to prioritize their work with sustainability.
Social supply chain responsibility
The manufacture of certified products must comply with local labor and health and safety laws, the ILO’s core conventions, and the UN Conventions on the Rights of the Child.
Worker well-being and compensation
To improve worker safety and well-being, and promote raised wage levels, workweeks are limited to 60 hours.
Anti-bribery management system
Brand owners must have an anti-bribery management system (ISO 37001) to prevent all forms of bribery in their operations.
Supply chain transparency
To improve transparency, major sub-suppliers must be declared. Brand owners must appoint a Senior Management Representative to monitor and ensure compliance with supply chain criteria.
Audits and corrective action plans
To ensure steady progress in supply chain responsibility, factories are audited regularly. High-risk factories are audited more often, and all issues must be corrected within a set timeframe.
Responsibly sourced minerals
We are driving industry engagement to responsibly source 3TG and cobalt by creating a structured system that promotes the use of RMAP conformant mineral smelters and refiners.
Environmental and energy management systems
Final assembly factories and display panel factories must systematically manage environmental responsibilities in line with ISO 14001 (environment) and ISO 50001 (energy management).
Explore our roadmap
TCO Certified evolves continuously to address the sustainability challenges of IT products. Our roadmap outlines detailed plans for the years ahead, driving progress toward more sustainable IT solutions.