1. EICC Action on Public Procurement
November 2016

4. EICC VAP Recognition Program
Factories who successfully complete a VAP, closing audit findings and verify closure through a VAP Priority Closure or VAP Closure audit, are recognized with a certificate valid for 2 years from last day of initial audit.**
Must be VAP (no CMA/AMA)
Must close all findings and submit CAP in EICC-ON
Must have VAP closure Audit
Must have a score of 200
Platinum
EICC Framework  Site Level Recognition
Minimum
VAP SCORE
Social & Environmental Leader
Closes All Audit Findings
Platinum
Above Average Sustainable Factory
Closes Priority & Major Findings
Gold
Sustainable Factory
Closes Priority Findings via VAP
Silver
200
Must be VAP (no CMA/AMA)
Must close Priority & Major findings, submit CAP in EICC-ON
Must have VAP closure Audit
Must have a minimum score of 180
Gold
180
Must be VAP (no CMA/AMA)
Must close all Priority findings and submit CAP in EICC-ON
Must have VAP Priority Closure Audit
Must have a minimum score of 160
160
Silver
** Recognition expires when the audit expires
* If there are Priority Findings in Forced Labor or Child Labor, the site is subject to an unannounced audit over the next 12 months

5. Public Procurement
The requirements to be an IT provider to public authorities in countries like the US, UK, Sweden, Denmark, Norway, France and Germany are becoming more socially motivated. Many public authorities are not subject to confidentiality rules and require transparency of supply chain violations found in audits. To assess the risk in their supply chain many public buyers are depending on NGO's as a third-party supply chain responsibility “consultant”.

6. EICC
The EICC member companies, public buyers and NGO’s have approached EICC to get involved in the changing landscape of public procurement. This is an issue which impacts members now and in the future. The EICC took a different approach to the challenges globally changing, socially motivated, public framework agreements.
EICC looked at this as a journey, where possible, we aimed to harmonize the many different sets of requirements globally, identify those points where there was agreement and create a multi-year path forward. Giving the IT industry time and space to create the infrastructure to support the advancing requirements. Where there are challenges, we aim to find a way to close the gaps over time.
EICC actions to date include:
Stakeholder Engagement
Member Survey
Panel discussions at two EICC events
Board Discussions

7. IT Industry is Prepared to Move Forward
EICC Members are willing to work with public buyers to assess risk and act on non-conformances in the supply chain
Survey Question:
Are you willing to use your leverage with suppliers to conduct audits to identify actual and potential non-conformances with the Public Procurement Authorities requirements?

8. Areas of Alignment Audits Transparency Engagement
EICC members are willing to conduct audits
Audits
Audits cover all aspects of the EICC Code of Conduct including Labor, Health and Safety, Environment, Ethics and Management Systems
EICC Offers a Recognition Program for suppliers who close their audit findings which are validated by a third-party, through our VAP Audit Program
EICC members are willing to share results with public buyers
Transparency
Audit results, Corrective Action Plans (CAPs) and Corporate CSR data are all examples of data that EICC member companies are willing to share with public buyers who are their customers
EICC Members are willing to engage with suppliers to drive improvements in the supply chain
Engagement
EICC members are willing to ensure remedy of identified non-conformances to Public Procurement requirements.

9. Areas Open for Consideration
EICC members are willing to collaborate on wages
Audits
Working hours have long been a top finding in audits for many years
Working hours and wages are closely linked; the industry is willing to collaborate with multiple stakeholders on this important topic
EICC members are willing to sharing aggregated results
Transparency
Aggregated audit results, possibly by region, are examples of data that EICC member companies are willing to consider sharing publically
EICC Members are willing to collaborate on delivery times
Engagement
EICC members are willing to discuss the challenges of demanding delivery requests and the changes that would be needed to ensure a delivery schedule for products which makes it possible to be in compliance with Public Procurement Authority requirements on working hours and overtime.

10. Areas of Challenge Relationships Transparency Engagement
Sharing confidential supplier information is not likely
Relationships
Specifics of the relationship with the supplier are considered private, this includes
Key supplier lists
Volume of business
Length of relationship
Sharing results with NGOs
Transparency
Complete audit reports, Specifics of the Corrective Action Plans (CAPs) are covered under NDA and considered private
Providing NGOs access to suppliers is not likely
Engagement
While multiple NGOs request access to supplier facilities, both announced and unannounced, this not scalable and is disruptive to the suppliers.

11. Stakeholder Engagement and Next Steps
The EICC has been engaged with stakeholders, including public buyers and NGOs, on this topic for a year. In 2017 we will formalize this effort. The objective is to create a roadmap to 2020, where public buyers, members and NGOs can harmonize and prioritize these requests into a list of agreed upon actions. To quote John F. Kennedy “A rising tide lifts all boats”. Once the roadmap is set, we will choose the first action, both simple and actionable, to propose to the industry through the 2017 EICC Code revisions process to be voted on by members. The outcome will be effective January 2018.

12. EICC Public Procurement Work
November 2016