Responsible supply chain
Responsible supply chain management was identified as one of four areas for sustainability development. u-blox wants to
make sustainability issues an integral aspect of our choice of suppliers and our relationship with them, and we have charted a
clear course towards this goal.

In 2013 we laid the foundations for further engagement in our supply chain with the introduction of our Sustainable Supplier
Program. The program commits us to work with suppliers to ensure they operate in a socially and environmentally responsible
manner and enables us to systematically identify potential risks in our supply chain. The program consists of five phases:
pre-assessment, introduction, assessment, validation and improvement.

Phase 1 to 3 are designed to ensure that all suppliers comply with our defined sustainability standards. Through phase 4 and
5, we aim to work with our suppliers to improve sustainability standards in our supply chain – for example, through knowledge
transfer and discussions about process optimization, resource efficiency, and environmental and social standards.

Phase 1: Pre-assessment
In 2013, a risk profile of all tier-1 suppliers was created, identifying low, medium and high-risk suppliers. The assessment is based on
the supplier’s sustainability risk profile related to spend, country of production, criteria of human rights and corruption and type of
supplier relationship.

Phase 2: Introduction
u-blox’ Supplier Code of Conduct is based on the principles of the EICC Code of Conduct. EICC (Electronic Industry Citizenship
Coalition) is a coalition of the world’s leading electronics companies working together to improve efficiency and social, ethical, and
environmental responsibility in the global supply chain. The topics covered in the Code of Conduct include labor and human rights,
worker health and safety, environmental impact, ethics, and management systems. All existing and new suppliers are required
to comply with the principles. As of today, 83% of u-blox’ suppliers have committed to apply these principles to their production.

Phase 3: Assessment
Supplier compliance to the Code of Conduct will be monitored through a system of a self-assessment questionnaires and if
necessary, regular audits. The questionnaire provides a selfevaluation of suppliers’ sustainability management and activities.
We are aware that it will take time for suppliers who do not already have a system in place to embrace and institutionalize the code of
conduct and complete the assessment. In 2013, 83% of our tier-1 suppliers has completed the self-assessment questionnaire.
Our goal for 2014 is to have the remaining assessments completed and all participants analyzed.

Phase 4: Validation
If the self-assessment questionnaire identifies mid-level or low sustainability performance at the supplier’s facility, we plan to
carry out on-site audits at suppliers’ facilities. Audits will be conducted by a u-blox specialist and/or third party consultants.

Phase 5: Improvement and support
When the audit reveals areas of non-compliance, u-blox’ logistic team and suppliers develop a joint action plan for improvement.
We prefer to work together with our suppliers to ensure that sustainability in supply chains will be achieved.

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