Together towards sustainable production

We do not own any factories, but we carefully choose our long-term partners and work closely with them to maintain and develop sustainable business. We work together to improve health, safety and working conditions, and environmental responsibility.

Commitment

Take full responsibility throughout the supply chain.

Measurable goals

• 100% sustainability-audited and approved main factories
• Continuously improve sustainability performance throughout the supply chain.

• Increased energy efficiency and use of renewable energy in PCB production

• Environmentally appropriate materials used in production and in products
• Scope 3 emissions – related to PCB manufacturing and transportation of PCB

Actions and achievements 2024:

• Continuing our sustainability audit programme in factories, improving factories’ conditions of health and safety, and working conditions, and environmental performance.
• In 2024, we performed 21 sustainability audits, of which 2 in new potential factories and 2 in new manufacturing sites in previously approved factories, as well as 5 follow-up audits.
• Our target that all main factories in China should undergo a sustainability audit every second year was achieved.
• High quality performance – 99.5% – continued developing our quality processes and performance to keep high quality and reliability level, and to minimize scrap and resources used.
• Scope 3 emissions from supply chain – continued dialogue and activities together with the main factories to jointly strive to reduce emissions in the value chain. Focus set on improved energy efficiency and increase of renewable energy, and waste reduction.
• More factories install solar panels (now 9 in total), steps in the right direction, but still cover a very small part of the energy consumption.
• Increased portion of fossil free energy (renewable + nuclear) in manufacturing our PCBs, 41% (38% in 2023).
• A slight increase in ocean freight (4 percentage points, cargo weight) compared to last year, which reduces the emissions from transporting the PCBs.

Best-in-class factories only

We work with our factories in long-term partnerships. As part of NCAB Group’s sourcing process, potential factories are assessed from a quality and environmental perspective, and since 2015 sustainability performance is also a part of the approval process. Our audits take place on site. In addition to this all our factories have to:

• be ISO 9001 certified (quality management system)
• be ISO 14001 certified (environmental management system)
• be ISO 45001 certified (occupational health and safety management systems ), required for main factories in Asia
• sign and comply with NCAB Code of Conduct for Suppliers
• report on conflict minerals and cobalt according to the framework provided by the Responsible Minerals Initiative (RMI) and follow the Responsible Minerals Assurance Process (RMAP)
• comply with legislation covering raw material content (RoHS, REACH, TSCA, California Proposition 65, POPs (Persistent Organic Pollutants))
• comply with local regulations covering social compliance and environmental impact

Code of conduct

During 2009 we implemented a Code of Conduct which forms part of the contracts we have with our factories. The requirements in the code are inspired by the ten principles of the UN Global Compact and cover:

• Business ethics and principles
• Labor and working conditions
• Environmental responsibility

NCAB expects all of our suppliers to follow our Supplier Code of Conduct. For more information, download the NCAB Group Code of Conduct for Suppliers.