Corporate Responsibility

Sourcing of Metals

Motorola Solutions is extremely concerned about the social and environmental conditions in some mines that supply metals to the electronics industry. Mining activities that fuel conflict are unacceptable. Together with our peers, we are working to support the development and implementation of a tracking and validation system to ensure these raw materials come from responsible sources.

We require high labor and environmental standards in our own operations, and make concerted efforts to drive improvements. We expect our suppliers to do the same, as reflected in our supplier code of conduct.

Our products contain various metals, including tantalum, tin, tungsten and gold, which originate in mines around the world. Some mining operations have been linked to poor labor and environmental practices, and there is evidence that some mining activities and transportation of minerals in the Eastern provinces of the Democratic Republic of Congo (DRC) are fueling conflict in the country by funding illegally armed groups.

We do not procure these materials directly; however, we are working to effect positive change. For more than five years we have asked our tantalum capacitor suppliers to identify which smelters their raw materials come from and have required these suppliers to certify in writing that they are not sourcing conflict materials from the DRC.

Motorola Solutions supports the development of regulations and standards that help companies determine whether the materials they use are associated with conflict. We are very concerned that currently a credible, independent system that enables companies to verify the source of the metals in their products does not exist.

Motorola Solutions is collaborating with others in the industry to tackle the challenges of traceability/tracking and other issues through the Global e-Sustainability Initiative (GeSI) and Electronic Industry Citizenship Coalition (EICC) extractives workgroup, which we co-lead. We believe this effort will drive greater transparency in the electronics industry supply chain and provide opportunities for individual companies to bring improvements.

Recent progress

Independent efforts
Motorola Solutions has been working to identify which of our products could potentially contain conflict-related minerals. Our rigorous material declaration process has enabled us to better understand the applications of many different types of metals, including metals associated with the conflict in the DRC and included in the recent legislation.

Motorola Solutions is working to increase awareness of the conflict minerals issue among the electronics industry and other sectors. We have updated our supplier training and communication materials and have accepted several opportunities to engage through industry groups and supply chain meetings. We have sponsored several conflict minerals meetings to raise awareness in other industries and have participated on several panels at conferences, such as the SRI in the Rockies conference.

We recently added a clause to our standard supplier contracts stating that we will only source products that are free from minerals that directly or indirectly finance or benefit illegally armed groups.

Supporting industry efforts
In addition to our independent activities, we are an active contributor to industry efforts to the tackle conflict minerals problem. We believe working together will improve our capability at a faster pace than if we tackled these challenges alone. With that in mind, we are preparing our supply chain management processes to best leverage the industry-wide approach.

We are working with other companies in our industry to develop a tracking and assurance system to enable our suppliers to validate that the materials they buy are from responsible sources. The legitimate mining industry in the DRC is vital to the economic stability of the region, and a tracking system is essential if sourcing of metals from the region is to continue.

Motorola Solutions co-leads the GeSI and EICC extractives workgroup, which has made progress in driving greater transparency in the electronics industry supply chain. In 2010, the extractives workgroup conducted a project to improve visibility in the minerals supply chain, with particular focus on identifying sources of specific minerals and understanding how these minerals move through their lifecycles — from mine to electronics manufacturing.

Using the results of this project, the workgroup initiated a conflict-free smelter process in 2010 to identify tantalum mineral smelters/processors that can demonstrate through third-party validation that they source only conflict-free material. The smelters were asked to demonstrate the sources of their materials and seven sites were visited to increase understanding of how smelters trace the source of the materials used in their refining process. Motorola participated in three of these visits, two in China and one in the U.S.

The information gained through the site visits was used to develop the scope of work for an audit program to validate the claims made by the tantalum smelters that they source only conflict-free material. The audits of tantalum smelters are in progress. The process is now being repeated with tin smelters, with plans to expand to gold and tungsten.

Motorola Solutions supports the ITRI Tin Supply Chain Initiative (iTSCi) process that allows for tracking/tracing of materials from the mine to the point of export. The Motorola Solutions Foundation provided a $30,000 grant to support ITRI’s traceability work. The iTSCI process represents an important first step toward establishing a program to enable the responsible sourcing of materials from the region. Motorola participated in an iTSCI fact-finding mission to the DRC and Rwanda to better understand the conditions on the ground. The delegation met with numerous provincial governmental officials, visited multiple mineral trading houses, a tin and gold mine and met with local non-governmental organizations in North and South Kivu.

Engaging with stakeholders
The problem of mining and conflict minerals cannot be solved by one company or a single industry. To succeed, other industries, governments and civil society also must do their part. Motorola Solutions is engaging widely to inform regulation, to gain consensus around an approach to the problem and to encourage all stakeholders to play their part. In 2010 we:

• Convened workshops to gain consensus around the tantalum and tin smelter validation processes
• Participated with the Organization of Economic Co-operation and Development (OECD) in the development of its guidelines on due diligence relating to conflict minerals
• Demonstrated our support for conflict mineral regulations in the U.S. and worked with other regional and international governmental bodies on this issue
• Co-sponsored multi-industry sessions to bring awareness of this issue to other industries that use metals, such as the jewelry and automotive sector
• Engaged a coalition of NGOs working on this issue

Plans and goals

We will continue to champion more responsible metal sourcing by engaging our suppliers and by participating in collaborative efforts with other stakeholders including, mining companies, non-governmental organizations, labor organizations involved in mining, other industrial sectors that purchase and use metals, the governments and multi-government organizations with jurisdiction over these issues, and end users.

We are working to support the following goals:

• Continue to participate in industry conflict-free smelter program
• Continue to support the implementation of the In-Region Sourcing program being implemented by iTSCi
• Develop a due diligence process for sourcing of metals in collaboration with our industry partners, by the end of 2011
• Implement the due diligence process for sourcing of metals, by the first quarter of 2012
• Include questions on conflict minerals in our supplier self-assessment questionnaire by the end of 2011

U.S. legislation on conflict minerals

In 2010, a U.S. law was passed that requires companies to report to the Securities and Exchange Commission (SEC) and disclose on their websites whether any materials in their products originate in the Democratic Republic of Congo or its adjoining countries. The law applies to publicly traded U.S. manufacturing companies that use certain metals in their products.

If companies are using materials from the identified countries, they are required to describe the steps they have taken to ensure the metals are from responsible sources and to give details about the location of the mine from where they originated.

Motorola Solutions supports the development of legislation that helps companies determine whether or not the sources of the materials they use are associated with conflict. Together with our industry partners, we are working to develop the systems to enable companies to verify the sources of the metals in their products.

Related links and resources

• GeSI statement on the mining of metals
• GeSI/EICC Extractives working group report