One of the major challengefor ASML is that a large part of its product related parts, especially complexmodules like lenses, mirrors, drive lasers are delivered by suppliers, most ofthem do not have a direct relationshipto mines or smelters. To ensure thatASML’s does not use conflict materialsin its supply chain, ASML investigatesseveral tier 2 , 3 and sometimes 4 to suppliers in its supply chain to assess whether conflictminerals are present in its products or not. As suppliers are critical forASML, in 2010 ASML became member of EICC1, this demand also came from many of its customers which required ASML tocomply with EICC standards. In order to attain sustainable value chain, ASMLdeploys EICC.
The EICC is a coalition of the world’s leading electronicscompanies working together to improve efficiency and social, ethical, andenvironmental responsibility in the global supply chain (ResponsibleBusiness Alliance, n.d.). ASML has established a sustainable policy for itssupply chain.
This policy is applicable to all worldwide tier-1 product relatedand non-product related suppliers of ASML. Sustainability is an integral partof QLTCS supplier audit for all business-critical suppliers. ASML’s risk managementis in line with EICC risk assessment model.(text adapted from ASML,sustainable relationship with suppliers, n.d.).For every level in risk assessment ASML uses asustainability rating methodology and scores its suppliers on four elements (ethics, labor, health,safety & environment).
In case a supplier scores on 2 out 4 elements lowerthan 3 (on a scale 1-5) and shows insufficient progress on non- conformityresolution, this supplier is then put on high risk radar, next steps aredefined by sourcing management within ASML how to deal with such suppliers. Tocomply with EICC requirements ASML’s target is to have 100% of its majorsuppliers acknowledging the EICC code of conduct, at this moment 88% ofsuppliers have acknowledged the EICC code of conduct (text adapted from ASML sustainablerelationship with suppliers, n.d.).1ElectronicIndustry Citizenship Coalition