Supply Chain and Procurement

Supply Chain and Procurement

Sustainable Supply Chain
and Procurement Practices

Defining Industry Standards and Best Practices

Hardware Supply Chain

Oracle employs socially and environmentally responsible business and sourcing practices throughout its hardware supply chain.

We manage our hardware supply chain to comply with applicable regulations, and sustainability is a consideration throughout every phase of our product lifecycle.

Supply Chain Organizations

Oracle engages with numerous industry, trade, and government organizations and associations to define standards and best practices for sustainable IT solutions.

EICC
EPEAT
ITI
ISO
IPC Association Connecting Electronics Industries
JEDEC
PCI Industrial Computer Manufacturers Group
Silicon Valley Leadership Group
CESSI
USITO
The Green Grid
  • Electronic Industry Citizenship Coalition (EICC)
  • Electronic Product Environmental Assessment Tool (EPEAT)
  • Information Technology Industry Council (ITI)
  • International Standards Organization (ISO)
  • IPC Association Connecting Electronics Industries
  • Joint Electronic Device Engineering Councils (JEDEC)
  • PCI Industrial Computer Manufacturers Group
  • Silicon Valley Leadership Group
  • Software & IT Services—Chamber of Commerce from Argentina (CESSI)
  • United States Information Technology Office (USITO)
  • The Green Grid

Oracle Statements

We work with our suppliers and other industry groups to advance ethical standards and business practices. The following documents outline our approach to responsible supply chain management.

Supplier Code of Ethics and Business Conduct

Supplier Code of Ethics and Business Conduct

Oracle’s Supplier Code of Ethics and Business Conduct requires suppliers to observe the law and conduct business in an ethical and responsible manner. Where local laws are less restrictive than Oracle’s code, suppliers must comply with the code, even if their conduct would otherwise be legal. Where local laws are more restrictive than Oracle’s code, suppliers must always, at a minimum, comply with the law. Where permitted by law, we enable the anonymous reporting of noncompliance incidents through the Oracle Integrity Helpline.

Oracle has adopted the Electronic Industry Citizenship Coalition (EICC) Code of Conduct and actively participates with other industry groups to leverage industrywide approaches aimed at reducing duplicative efforts and promoting continuous improvement in factory working conditions across the electronics industry.

Oracle has incorporated assessment of the following issues into quarterly evaluations of our hardware supply chain vendors.

  • Labor and working conditions
  • Ethics, environment, health and safety
  • Human trafficking (California SB 657)
  • Conflict minerals (Dodd Frank Act/SB 861)
  • Supplier carbon, water, and waste footprints
  • Documentation of management systems and processes

As part of our commitment to the EICC Code, we have incorporated scorecards for our hardware supply chain suppliers based on their compliance with country and local laws, as well as the EICC Code of Conduct.

Social and Environmental Responsibility Program

In 2014, Oracle initiated audits based on the EICC Code of Conduct at various supplier factory locations that support our direct hardware supply chain operations.

Oracle has taken various measures based on the audit finding, including, but not limited to, the following:

  • Ensure that the suppliers develop and complete any necessary corrective action plans in a timely manner.
  • Encourage the suppliers to participate in training sessions held by the EICC and other relevant organizations.

We encourage all our direct hardware manufacturing suppliers to disclose their environmental sustainability performance metrics using the EICC assessment tools. Seventy-five percent of Oracle’s tier 1 direct hardware manufacturing suppliers currently publish their environmental sustainability performance.


Procurement

Sustainable Procurement Practices

Oracle’s commitment to sustainability extends to the products and services we purchase.

We employ a supplier qualification program that requires our suppliers to demonstrate environmentally responsible business practices.

Furthermore, we are committed to empowering and supporting small and diverse suppliers through our Supplier Diversity program. The program supports corporate sustainability initiatives by working with our suppliers on climate change issues. For more information, visit the Supplier Diversity program website.

Procurement Achievements

  • certifications of environmental sustainability

    90 percent of Oracle’s suppliers possess certifications such as ISO 14001 and strong track records of environmental sustainability.

  • ISO 14001 certified

    100 percent of Oracle’s technology recyclers are ISO 14001 certified.

  • laptops are ENERGY STAR and EPEAT certified

    100 percent of the laptops we purchase are ENERGY STAR and EPEAT certified.

  • 30% of the hotels recommended by Oracle Travel are LEED certified

    30 percent of the hotels recommended by Oracle Travel are LEED certified.

  • The carpeting at our facilities in North America consists of 54% recycled content

    The carpeting at our facilities in North America consists of 54 percent recycled content, equaling 228,649 pounds.


Leveraging Technology to Reduce Travel

In FY13 and FY14, we continued our work to reduce travel by leveraging Oracle products and updating our travel-related business practices.

  • We ask employees to travel only when necessary and employ Oracle Web Conferencing and Cisco TelePresence across our enterprise to ensure that virtual meetings are highly effective. Many internal meetings that were previously conducted face to face have been replaced by teleconferences. When employees book business travel, they are required to submit a business justification, and their managers are immediately notified about their trip. This practice helps Oracle managers both to ensure that employees travel only when necessary and to monitor the number of employees traveling to any single event or meeting.
  • We use Oracle Business Intelligence tools to create expense summaries for each Oracle line of business. These summaries are automatically generated and e-mailed to Oracle executives quarterly, enabling them to better track and manage their organization’s travel-related activities.
  • Oracle strives to recover, reuse, or recycle 100 percent of its workplace tools such as copiers, computers, and paper.

    • In FY13 and FY14, we replaced nearly 3.2 million manual software installations with electronic installations, eliminating nearly all the physical media previously necessary
    • 100 percent of the copy paper we purchase and use includes certified postconsumer recycled content
    • We recycle 71 tons of paper, cardboard, cans, bottles, and plastic at Oracle headquarters annually
Recycling and Recovering Assets
  • Oracle’s Asset Sale, Donation, and Disposal policy outlines what employees should do with technology assets that are not being fully utilized or have reached their end of useful life. Computers, monitors, computer accessories, printers, projectors, and more are collected and managed by Oracle’s Technology Recovery and E-Waste Recycling program. Surplus equipment from one Oracle department is given to another for immediate use, and assets that must be retired are mined for their useful parts before being donated or recycled.

    In FY13 and FY14, Oracle’s Asset Management team collected almost 145,000 technology assets, weighing more than 5 million pounds, for recycling or reuse. Additionally, the team recycled nearly 72,000 batteries.

Recovering Office Equipment
  • Oracle and its mobile phone providers—AT&T, Sprint, and Verizon—offer trade-in programs for employee cell phones and handheld devices. Phones that are traded in are refurbished and made available to customers who seek to purchase preowned equipment at a reduced rate.

Refurbishing Phones

Learn More