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DIODES

7. Ensure Access to Affordable, Reliable, Sustainable and Modern Energy for All

Evaluate electronic options with improved longevity and efficiency

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SDG Alignment

Target Description

Level of Effort

UN SDG Target

7.3

By 2030, double the global rate of improvement in energy efficiency.

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Category Assessment

Assessment

Q

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(1) Evaluate options with higher longevity and quality assurance - check and ensure that the supplier of choice is ISO-14001, ISO 9001 compliant.

Opportunity

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Business:
The increased value created from the use of devices developed with a longer lifespan and processing capability.

Sustainability:
Increased longevity and quality of electronic products will increase the life of the device, reduced maintenance, and waste.

Strategy Build & Execution

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(1) Align with your engineering team to identify the requirements for end-product use (required application of electronic components for the final product to function) and develop a budget for commercial product needs (volume and budget for parts purchases).
(2) Ask the supplier for a toxic minerals report of current/prospective electronic components.
(3) If toxic chemicals are present, then evaluate sourcing from other options that fit the requirements set out by your engineering team without lead, halogens, or other toxic chemicals.
(4) Create a proposal for procedure change on the decision criteria for purchasing electronic components or devices (which includes toxic chemicals as a limitation in consideration for consumption).
(5) Get alignment with your engineering team, and other stakeholders/decision-makers to be on board this proposal.
(6) Execute new procedure change in purchasing and track value creation.

Supplier Negotiation & Contract

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(1) Negotiate with suppliers on value-added components in their service including shipping and handling, installation (LED lights), and recycling.
(2) Establish Contract Supplier Performance Measures where possible.
(3) Ask the supplier for visibility into conflict minerals reporting, ISO-14001, ISO 9001, and ROHS compliance. If commercially feasible, consider negotiating the downstream, product end of life recuperation program with the supplier. Depending on the OEM/reseller, they might derive value in receiving technology end of life.
(4) Include quality assurance and warranty clauses in the contract to ensure an extended higher quality of the product.
(5) Consider purchasing in bulk to maximize leverage.

Supplier Performance & Management

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Integrate annual checks for conflict mineral reporting and compliance with warranty/quality assurance clauses.

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