DIODES

Segment    Family    Class

32

11

15

Evaluate electronic options with reduced toxicity and improved longevity and efficiency

SDG Alignment

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

UN SDG Target

7.3

Target Description

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

Level of Effort

Level of Effort Scale

1

1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

Assessment

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

2. Inquire with supplier whether the diodes used by them are RoHS (Restriction of Hazardous Substances) compliant and evaluate or assess to ensure that they are halogen, lead, and silicon free.

Opportunity Identification 

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

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

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

Regularly inquiry datasheets on products from your suppliers to cross check on toxic chemical used during product manufacturing. Set a schedule (quarterly, bi-annually, yearly) to check your inventory levels, if you are placing a less purchase orders on your electronic components, that is evident that you require less over head and the turnover for replacing the components will determine the success of product standards. Integrate annual checks for conflict mineral reporting, reduced toxicity potential (hazardous waste treated), and compliance with warranty/quality assurance clauses.

Resource Links

Participate :

Did you implement this idea to your organization, find it helpful, or have feedback on ways we can improve? We want to hear from you!