Supply Chain

Addressing Conflict Minerals: Leading Collective Action Across Our Industry

Many industries rely on certain minerals that are mined in Africa to produce their products. These minerals include cassiterite, wolframite and coltan, which are ores that contain tin, tantalum and tungsten, respectively. Because such metals are used in many products — electronics, vehicle airbag systems, airplanes, jewelry and X-ray film — the demand for them is great.

The Democratic Republic of Congo (DRC) in Central Africa is one of the places in the world where these natural resources can be found and mined in abundance. The DRC has been mired in a brutal conflict since 1998 and the resulting hostilities and human rights abuses are largely fueled by the trade of these "conflict minerals."

Our Approach to Responsible Sourcing and Supplier Accountability

As a manufacturer of products that contain gold, tantalum, tin and tungsten, Dell is committed to operating in a socially responsible way. It’s Dell policy to refrain from purchasing from any known conflict sources, and we expect that our suppliers adhere to the same standards. We have notified all our suppliers of our policy on conflict minerals and have asked each supplier to provide us with a confirmation of their conflict-free status. Dell also works diligently to educate suppliers, investors and customers on this issue through speaking engagements, workshops and stakeholder engagements.

The complexities of the metal supply chain pose many challenges. The mining of these minerals takes place long before a final product is assembled, making it difficult, if not impossible, to trace the minerals' origins. In addition, many of the minerals are smelted together with recycled metals, and at that point it is virtually impossible to trace the minerals to their source. Another challenge is the informal nature of the DRC’s minerals economy. Tracing the source of these minerals — from mine through smelter to final product — is a complex challenge that we cannot address alone.
Conflict Minerals

We’re engaged with the Electronics Industry Citizenship Coalition (EICC), an organization devoted to improving social and environmental conditions in electronics supply chains, to develop a process that companies can use to track the origin of these minerals regardless of the industry they will be used in. In 2011, the EICC launched the world’s first conflict-free smelter (CFS) program, which tracks documentation from the smelter back to the mine of origin.

Dell has been involved in many other efforts to bring us closer to a conflict-free supply chain. We first noted our commitment to act on this issue in our 2010 Corporate Responsibility Report. Our current report continues to report on our commitment and recent efforts. In fall 2009, we reached out to our competitors and invited them to join us in issuing a call to action to other industries that use these minerals in their final products.

In October 2010, we hosted an international multistakeholder event on conflict minerals. The conference, which was tied to the Corporate Responsibility Officers (CRO) Summit in Paris, convened leaders from the IT industry, NGOs and the Organization for Economic Co-operation and Development (OECD) to drive other industries to take action on responsible sourcing.

Dell continues to collaborate within our industry and with others on this important issue. Industry research indicates that the electronics industry is responsible for only about 30 percent of the global usage of these minerals. The more industries that agree changes are needed to address conflict minerals, the greater the potential for marketplace incentives to drive those changes.

Beyond Our Supply Chain: A Timeline of Steady Progress in Promoting Collective Action

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Dell is working toward the goal of responsible sourcing globally, including from the DRC, through a conflict-free supply chain, confirmed by a robust verification system.

Dell is committed to working with other industries, the government and NGOs to reach an agreement on a solution to purchase conflict-free minerals and to help implement this solution. Dell will continue to participate in the industry conversation, proactively seek solutions and encourage everyone who has a final product that contains these minerals to join us in these efforts. Beyond responsible sourcing, we think about the big picture when it comes to supplier standards and accountability.