Google - SRR - 2023 - FNL - 112023 2
Google - SRR - 2023 - FNL - 112023 2
Google - SRR - 2023 - FNL - 112023 2
Responsibility
Report
2023
Supplier Responsibility Report 2023
2 Supplier responsibility at Google
3 About our suppliers
4 About this report
Our approach
7 Building the inclusive, tech-forward supply chain of the future
8 Meeting today’s urgent global needs
9 Focusing on our people, communities, and planet
10 How we make it happen
11 2022 highlights
Strengthening communities
31 Overview
32 Sourcing minerals responsibly
34 Increasing community resilience
35 Advancing supplier diversity
Spyro Karetsos
Chief Compliance Officer
Ana Corrales
Chief Operating Officer, Devices & Services
Monique Picou
VP, Cloud Supply Chain & Operations
We work with
suppliers in over
80
countries.
We’re committed to a fair and inclusive supply chain that creates shared
value everywhere we operate.
• Treating the people in our supply chain fairly
• Operating ethically
Strengthening communities
These areas are interwoven and mutually reinforcing. For example, treating
the people who work in our supply chain with dignity and respect creates
stronger, more empowered communities. Investing in infrastructure in
supplier communities generates more social and economic opportunities
and helps reduce reliance on extractive industries such as mining. Replacing
dirty energy sources with renewable options reduces greenhouse gas
emissions and increases community and global well-being.
85 4,500+ 789
We performed on-site or remote assessments Through third-party surveys and interviews, At our annual Supplier Responsibility Summit,
at 85 supplier sites, giving us a cumulative we engaged more than 4,500 people who 789 participants from 234 unique supplier
total of 479 site assessments since launching work in our supply chain, giving us important organizations gathered to advance our
our program.1 insights into priorities. commitment to supplier responsibility, foster
collaboration, and promote ethical practices
across our supply chain.
Strengthening communities
100% 15,000
For the fifth year in a row, 100% of the The 12 projects completed by the
smelters or refiners we used for four conflict Congo Power program between 2018 and
minerals—tantalum, tin, tungsten, and 2022 have provided renewable energy access
gold—were Compliant.2 to nearly 15,000 people in the Democratic
Republic of Congo.
Learn how our recent work with suppliers minimize the risks of and phase out restricted substances.
ChemForward is improving access to After completing FMD training and data collection for 21 key contract
essential assessment data and tools
to develop safer products.
manufacturing facilities in the first year, we expanded the program to new
final assembly manufacturing sites. In 2022, we evaluated 23 additional
facilities and broadened our evaluation to include 156 chemical processes
that we assess for their applications and exposure control measures. Based
on follow-up investigations with suppliers, we’ve provided consultation and
facilitated safer substitutes for chemicals of higher toxicity. This effort has
helped create safer working conditions for the nearly 2,800 people who
work directly with the chemicals.
In addition to performing ongoing assessments, maintaining safe chemical
management also hinges on comprehensive supplier education. In 2021,
we issued two new guidance and specification documents aimed at helping
suppliers identify, assess, and mitigate occupational risks related to chemicals
used in the manufacturing process. The new guidelines require suppliers to
comply with Google’s MRS specifications for all products and components
they manufacture or provide to Google. Manufacturing sites must establish
and implement a chemical management program to evaluate the purchase,
use, transportation, and disposal of all hazardous chemicals. In addition to
training and engaging the people who work with chemicals, suppliers must
also perform job hazard assessments to ensure control mechanisms protect
their people and the environment.
Building on this foundation, we made significant strides in supplier
education during 2022. We enhanced our online training on responsible
chemical management (RCM), incorporating it into the RBA platform in
both English and simplified Chinese versions. Since the program’s inception,
nearly 250 suppliers have successfully completed our RCM training, with
45 completing it in 2022 alone. These trainings are mandatory for selected
suppliers, which we determine based on MRSL responses and RCM guidance.
In 2022, we also began identifying strategic suppliers to promote RCM
practices throughout their own supply chains.
• Country-level risks. Are certain countries at higher risk for certain types
of social or environmental risks?
• Supplier fines or convictions. Has the supplier previously been fined for
human rights, environmental, or corruption violations?
Increasing risk
Site
assessments
& CAP
management
1,111
suppliers’ facilities. We prioritize on-site audits for our contract manufacturers,
original equipment manufacturers, and suppliers identified as high risk.
Every SCOC audit is conducted by an approved third-party audit firm
Nonconformance issues identified
to assess conformance with Google’s SCOC and applicable laws and
regulations. We also encourage our suppliers to participate in RBA Validated
Assessment Program (VAP) audits. The audits include in-depth factory,
facility, and dormitory tours; management meetings; on-site worker
interviews; and reviews of the supplier’s documents and records.
In 2020, we implemented remote assessments that have since allowed
us to continue evaluating high-risk suppliers in locations where COVID-19
made it difficult for our third-party assessment teams to visit sites. Our
Targeted Desktop Assessments (TDAs) focus on a remote desktop review
of a supplier’s management system to assess whether that supplier has
policies and procedures to address our SCOC requirements.
These assessments of our suppliers’ facilities allow us to determine
whether the supplier is meeting our standards, hear directly from the
people in our supply chain (in the case of on-site assessments), and identify
opportunities for our suppliers to address issues. Our audits also provide
valuable opportunities to raise suppliers’ awareness of their social and
environmental responsibilities, promote accountability, understand leading
practices, and encourage greater transparency.
Since the inception of our program in 2013, we have performed 479 on-site
and remote assessments.4
Nonconformance category
0.2%
15.6% Labor
Environmental
10.6% 40.1% Ethics
Management System
Other
30.4%
12% 7%
Freely Chosen
Emergency
14.9%
Employment
Preparedness
Working Hours
6.8%
9.7%
Wages and
Occupational
Safety
Benefits
Emergency Preparedness
Our audits aim to protect the people in our supply chain from threats to
workplace health and safety wherever possible—including those beyond
our control. Emergency Preparedness was the second most common area
where we found nonconformance issues in 2022. We require supplier facilities
to adhere to fire codes, maintain adequate fire alarm systems, and practice
emergency-response drills. Facility managers must train their employees to
sufficiently detect potential emergency situations and follow response plans
and procedures that focus on minimizing harm to people, property, and the
environment. After CAP implementation, we found 91% of audited suppliers
in conformance with these standards.
Occupational Safety
To prevent injury and illness from workplace hazards—chemical, electrical,
fire, vehicular, and others—suppliers must provide employees with
appropriate protective equipment and procedures in compliance with our
Occupational Safety requirements. When supplier facility managers cannot
eliminate hazards or control them with procedural redesigns or substitutions,
suppliers must provide all employees working directly with the hazards with
sufficient protection, such as personal protective equipment and ongoing
training. More than 95% of audited suppliers were in conformance with
our Occupational Safety requirements.
Labor
Freely Chosen Employment 49.41% 90.59%
Ethics
Business Integrity; No Improper Advantage 92.94% 97.65%
Management System
Company Commitment 95.29% 100.00%
100%
Compliant5 smelters or
conformant, active,6 or verified by a third party as sourced from countries
other than those covered in the 2010 Dodd-Frank Act (collectively referred
to as “Compliant” smelters or refiners for the purposes of this report).
refiners of tin, tungsten,
tantalum, and gold We are committed to zero child labor in our supply chain, including in
mining. In addition to focusing on tin, tantalum, tungsten, and gold, we are
working with peer companies and partners to help ensure zero child labor
in cobalt mining and to strengthen cobalt tracing. In 2022, we joined the
Fair Cobalt Alliance (FCA), a multi-stakeholder initiative that seeks to drive
the development and supply of fair cobalt by remediating the root causes of
its highly hazardous working conditions: widespread poverty. By mobilizing
the resources of the whole supply chain, the FCA is driving the development
of the DRC to create sustainable livelihoods for as many community
members as possible.
$2.8 billion
with suppliers from diverse
services. That’s why we’re providing access, development, and investment
in diverse-owned companies through our Supplier Diversity program.
Diversity in our supply base helps us create better products and services
backgrounds, exceeding our
2022 goal. for Googlers and our users. In 2022, we set a public commitment of spending
$2.5 billion with diverse-owned suppliers, while expanding our program
beyond the U.S. to include suppliers from historically underrepresented
groups around the world. We exceeded that goal by spending $2.8 billion
with diverse-owned suppliers.
For more detailed information on our specific commitments, please see
our most recent Diversity Annual Report.
Continue to integrate our Supplier Code of Conduct In 2022, we successfully incorporated Google’s SCOC into our contractual
expectations into all contractual agreements with agreements, so we will no longer be tracking this target moving forward.
our suppliers.
Conduct assessments of our higher-risk supplier In 2022, we completed 85 SCOC assessments to continue to work with our
sites to identify and improve conformance with suppliers on providing fair, healthy, and safe conditions for their workers.
our Supplier Code of Conduct expectations. Build
capabilities with our suppliers by providing training
and tools to address higher-risk topics and common
nonconformance issues.
Empower the voices of the people in our supply In 2022, we conducted worker surveys at 10 supplier sites. The information we
chain using various tools to gather anonymous gathered is helping suppliers maintain healthy working conditions and address
feedback and identify improvement opportunities; workers’ concerns. Although we covered fewer sites than in the previous year, we
promote worker capacity building by enabling digital reached the same number of workers, enabling us to provide more comprehensive
and direct worker training for personal and career feedback to supplier management.
development.
While we prioritized identifying areas for improvement over launching new supplier
training, we continue to explore opportunities to enhance worker capacity within
our existing supplier initiatives.
Conduct a Supplier Sustainability Summit covering In April 2022, 789 participants attended our Supplier Sustainability Summit. During
topics such as Google’s Supplier Code of Conduct, the Summit, we conducted two sessions about supplier responsibility to support
anti-modern slavery, and human rights. our higher-risk suppliers in developing the knowledge and building the capability
to mitigate the potential risks in their own operations and supply chains.
Scale our Process Chemicals FMD Data Collection In 2022, our program expanded to evaluate 156 chemical processes and extended
and Assessment to additional strategic suppliers training to more suppliers, encouraging Tier 1 suppliers to disseminate their
to improve safe chemistry through verifying their knowledge to Tier 2 suppliers.
conformance with the MRSL requirements, using
safer alternatives, and controlling chemical hazards
to eliminate exposures.
Grow our spending with diverse suppliers to We spent $2.8 billion with suppliers from diverse backgrounds, exceeding our
$2.5 billion, while expanding our Supplier Diversity 2022 goal. In 2022, we also piloted extending our supplier diversity programs
program beyond the United States to include beyond the United States.
suppliers from historically underrepresented
For more detailed information on our specific commitments, please see our most
groups around the world.
recent Diversity Annual Report.
Achieved In progress Missed
Ensure that our suppliers source from smelters that For the fifth year in a row, 100% of the smelters or refiners we used were
are 100% conformant with the Responsible Minerals conformant, active,10 or verified by a third party as sourced from countries
Assurance Process assessment protocols for tantalum, other than those covered in the 2010 Dodd-Frank Act.
tin, tungsten, and gold.
Expand the Congo Power program to focus on In 2022, we successfully reached our 2023 goal by concluding three Congo Power
conservation and community health partnerships projects that had been initiated in late 2021. We also transitioned responsibility
that improve alternative livelihoods and gender of oversight of the Congo Power program to the Public-Private Alliance for
outcomes and that reinforce responsible supply Responsible Minerals Trade, which will be in charge of managing the program
chains of conflict minerals. going forward.
Implement collaboration framework with We have made strides in enhancing cobalt traceability within our own supply
the Responsible Minerals Initiative to increase chains, but we have yet to establish a collaboration framework with RMI.
transparency and accountability between
upstream and downstream partners that
depend on responsible cobalt supply chains.
Complete third phase of digital traceability project Blockchain testing remains an ongoing initiative, and suppliers that participated
and expand supplier campaign to increase smelters in Phases 1 and 2 continue to successfully generate traceable QR codes.
and downstream partners using end-to-end data
In 2022, we began Phase 3 of our blockchain traceability project to pilot tracing tin
monitoring tools.
from products to smelters.
Additional resources
Statements Against Modern Slavery (2022, 2021, 2020, 2019, 2018, 2017)
Supplier Code of Conduct
SEC filings (2022, 2021, 2020, 2019, 2018, 2017)
Supplier Responsibility Reports (2022, 2021, 2020, 2019, 2018, 2017)
Sustainability Reports