Responsible supply chain
Setting the bar higher for the high-tech industry
Our world-class supplier network helps us to achieve the innovations we strive for
At ASML, we rely heavily on our supplier network to achieve the innovations we strive for. They are key to helping us achieve success by ensuring we conduct our business in a sustainable and responsible manner.
Working with our suppliers
We collaborate with our suppliers to develop, manufacture and deliver the innovative and unique parts used in our lithography systems. We build long-term and mutual beneficial partnerships with strategic suppliers, like our partnership with Carl Zeiss SMT.
To ensure a robust supply chain, we conduct annual risk assessments for our critical suppliers, evaluating risk areas such as our suppliers’ financial health, change of ownership, potential supply disruptions (for example, as a result of natural hazards), and situations where we depend on a single supplier for certain parts or modules.
Our ASML supplier profile outlines our approach to supplier management and development, providing an enhanced knowledge base to improve supplier performance dialogue. We use a single framework, which allows us to communicate our process requirements and compliance expectations clearly to our suppliers. We require our suppliers to meet our high standards regarding the quality, logistics, technology, cost, and sustainability of their products and services.
Sustainability of our suppliers
At ASML we are committed to conduct our business in a caring and accountable manner and be recognized as a responsible business partner.
Since 2011, ASML has been a member of the Responsible Business Alliance, the world’s largest industry coalition dedicated to corporate social responsibility in global electronics supply chains. We have adopted the RBA Code of Conduct which is a set of social, environmental and ethical industry standards.
To strengthen our commitment to a sustainable, resilient and responsible supplier network, we expect our major suppliers and their suppliers to comply with the RBA Code of Conduct as well. We encourage our suppliers to develop their own sustainability strategies, policies, and processes; set goals and report on their performance; engage with and audit their own suppliers; and develop, manage, and regularly test business continuity plans.
ASML Procurement Managers, with direct responsibility for supply chain management, receive RBA Code of Conduct compliance training, which includes how to assess and mitigate the risks of compliance. We assess our supplier’s compliance with the RBA Code of Conduct by a risk-based approach:
- Supplier due diligence, we scan new suppliers on potential high risks. We work with suppliers during the on-boarding process to remedy any issues identified.
- We expect our Strategic and high-risk suppliers to annually complete the RBA Self-Assessment Questionnaire (SAQ) to validate the implementation of the RBA Code of Conduct and to determine a supplier’s potential gaps to the RBA Code of Conduct. We work with suppliers to remedy any issues identified.
- High-risk suppliers are audited at our determination. We conduct supplier audits to address risks identified in our regular risk assessments. These audits also help ensure suppliers deliver what we expect. Lower-risk suppliers, as determined by the RBA Self-Assessment Questionnaire (SAQ), may also be audited at our determination.
Member of the Responsible Business Alliance commit and are held accountable to a common Code of Conduct and utilize a range of Responsible Business Alliance training and assessment tools to support continuous improvement in the social, environmental and ethical responsibility of their supply chains.
Like many companies in the electronics industry, ASML and our suppliers use minerals in manufacturing. We closely monitor the use of conflict minerals in our supply chain, originating from the Democratic Republic of the Congo or any neighboring countries. These include minerals mined under conditions of armed conflict and human rights abuses. The four main minerals concerned are tin, tantalum, tungsten and gold, also known as 3TG. We encourage our suppliers and sub-suppliers to have policies and due diligence measures in place to ensure the 3TG minerals we use are responsibly sourced.