RBA 2021 Annual Report

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2021 A N N U A L

R E P O R T

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

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CONTENTS

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1

Message From The CEO

2

Responsible Labor Initiative

6

Responsible Minerals Initiative

14

Responsible Factory Initiative

16

Regional Networks

17

Advisory Services

18

Environmental Sustainability

20

Process Chemical Management

21

Public Policy

22

Stakeholder Engagement

23

Project Uplift: A Worker-Relief Fund

24

Training And Capability-Building

26

RBA Meetings And Events

28

RBA On The Move

35

Data Analytics In RBA-Online

35 Risk-Based Self-Assessment And Verified SAQ 36

Worker Voice Platform Rollout

37

Validated Assessment Program (VAP)

38

VAP Audits: By The Numbers

42

Biennial Sensing Project

44

Membership Growth

45

FY 2021 Financial Highlights

46

Board of Directors and Staff

48

RBA Members


MESSAGE FROM THE CEO Dear Colleagues, We began 2021 with hope that the global health pandemic would finally wane, and everyone could return to their normal lives and workplaces during the year. In case that did not happen, however, we prepared to continue operating as we had in 2020. Those preparations turned out to be prudent and necessary and resulted in a very successful year for the RBA despite the ongoing challenges associated with the pandemic. Travel restrictions, lockdowns, increased risks to workers, and the added precautions required to function around the world could not prevent the RBA from making tremendous progress in 2021. The RBA managed more third-party audits than ever before, while further enhancing the quality of its Validated Assessment Program and developing new risk assessment tools for members and their suppliers. We expanded our worker voice platform, added dozens of new analytical capabilities to our sustainability data management system, and launched regional networks in Europe, Southeast Asia, China, and Mexico to better serve our members. We continued to engage numerous governmental, intergovernmental, and non-governmental organizations worldwide to help workers and promote the vision and mission of the RBA. Outreach included engagement with multiple UN agencies, the European Commission, EU policymakers, the OECD, ILO, and government agencies in Germany, Malaysia, the Democratic Republic of the Congo, Mexico, the UK, the U.S. and others.

The RBA’s Responsible Minerals Initiative (RMI) added five new assessment standards to its portfolio, including for the first time a dedicated standard for ESG requirements for mineral and metal processors. Meanwhile, the RBA’s Responsible Labor Initiative (RLI) completed and implemented its Standard for the Investigation and Repayment of Fees and, to date, the RLI and its members have facilitated the repayment of recruitment fees to workers in excess of US$61M. Many supply chain workers and the nonprofits that support them were struggling in 2021, so the RBA launched its Project Uplift Worker-Relief Fund to help non-governmental and civil society organizations that bring relief or aid to workers in key geographical areas. The RBA has a long history of partnering with NGO and CSO organizations in support of workers and approved six projects for funding through Project Uplift. Our efforts in 2021 required substantial resources and the RBA was fortunate to have a record year in terms of membership growth, with 41 new members joining, bringing our total core membership to 200 companies, not counting the additional 300 companies that are initiative-only members. We are enormously grateful to our members for their unwavering support, which enabled us to accomplish the many achievements highlighted in the pages that follow.

Sincerely,

ROB LEDERER CEO, Responsible Business Alliance

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Reflective of the growing influence of the RBA in the environmental space was our participation at the 26th UN Climate Change Conference (COP26) in Glasgow, Scotland. The RBA took part in a number of activities including the Tech for Climate Action event hosted in partnership with the UK government’s Department for Environment, Food and Rural Affairs (DEFRA UK) and COP26 E-Alliance and Partners. The multiday event included an exhibition, an environmental conference, a CEO panel, and the COP26 Compass Award ceremony.


RESPONSIBLE LABOR INITIATIVE In 2021 trafficked and forced labor garnered additional attention from the international community due to greater risks to migrant workers during the global health pandemic and an evolving geopolitical landscape.

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The Responsible Labor Initiative (RLI) continued to provide support to its members by adapting and growing its due diligence approach and tools, as well as ensuring continued engagement with a broadening stakeholder community. In addition, RLI membership and partnerships grew and diversified during the year, adding to our ability to affect positive change in this critical area. To help support the RLI’s growth, we also launched a standalone website for the initiative. During 2021, the RLI’s key achievements included: • Measured progress of the initiative’s strategic priorities • Issued standards and guidance to further enable credible investigation and repayment of recruitment fees to workers • Launched membership levels within the RLI to encourage deeper supply chain due diligence and accountability • Advanced responsible employment and recruitment through regional programs

PROGRESS ON STRATEGIC PRIORITIES The RLI and its steering committee adopted a set of strategic imperatives in 2019 to guide the activities and engagement of the initiative. While the external landscape created headwinds to international efforts on this critical issue, the RLI continued to make progress in many areas of this five-year plan as detailed in the following sections.

BY THE END OF 2021, THE RLI AND ITS MEMBERS HAD FACILITATED THE REPAYMENT OF RECRUITMENT FEES TO WORKERS IN EXCESS OF US$61M TO DATE.


Collective influence through membership growth and partnerships The RLI worked to deepen its collective influence through engagement with additional leading companies and external partners. For example, a significant number of medical supply companies joined the initiative to strengthen the efforts of existing members in the electronics, automotive, toy, retail, food and beverage, footwear and apparel, telecommunications, and other sectors. In addition, the RLI advanced key partnerships with influential organizations, including those with seats on our multi-stakeholder steering committee. Transparency and impact measurement implemented the Standard for the Investigation and Repayment of Fees in 2021 to ensure that instances of fee charging in members’ supply chains are thoroughly investigated, a fair, credible repayment plan is developed and implemented, and long-term policy and management systems are established at sites with non-conformances in this area to prevent future instances. The Standard is now a fundamental aspect of due diligence for our members as we continue to work toward addressing forced and bonded labor in international supply chains.

In addition, in 2021, the RLI and its members combined to demonstrate progress on existing indicators including the repayment of recruitment fees to workers in excess of US$61M to date.

RLI MEMBERSHIP LEVELS

RBA-RLI STANDARD FOR THE INVESTIGATION AND REPAYMENT OF FEES Members of the RBA and RLI have consistently applied the RBA’s “no fees” policy for many years, providing remedy to thousands of workers at risk for bonded labor. Through these years of experience, it became apparent that a standardized methodology for identifying and repaying recruitment and employment fees charged to workers was vital for consistent, credible remediation. Working with members, staff and stakeholders, the RBA and RLI completed and

Companies seeking to apply internationally recognized forced labor due diligence in their supply chains may have different needs based on their industry, resources, maturity level and other factors. In 2021, the RLI introduced a tiered membership level structure, to provide an accountability framework for members that wish to demonstrate the performance of their due diligence systems while also preserving a community of practice that allows members to grow at their own pace. This provides a place for any company within the RLI as we work toward the vision and mission of the organization. The membership levels include: • RLI Supporter Level: consistent with traditional criteria for members to support the vision and mission of the RLI

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The RLI and its steering committee made significant progress toward establishing an industry and company-specific reporting framework to measure the impact of our collective efforts. In 2021, the RLI worked with international human rights NGO Shift to complete a detailed theory of change that identified key points in the overall recruitment and employment environment to measure. From this, a draft set of indicators has been developed and will be piloted in 2022 with real-world data to establish a sustaining set of Key Performance Indicators (KPIs) for the industries with which we work.


• RLI Regular Level: a new membership level that includes criteria for companies to publicly commit to forced labor standards and conduct appropriate supply chain due diligence on this topic.

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With the help of our multi-stakeholder steering committee members, the levels were developed and socialized with current and prospective members during a 6-month transition period ending in December 2021. Members are able to select their membership levels in 2022 and the RLI will provide public visibility to those levels in 2023.

ADVANCING RESPONSIBLE EMPLOYMENT AND RECRUITMENT IN MALAYSIA The RBA Foundation was awarded a $1.1 million grant from the Walmart Foundation in November 2020 to continue its efforts in promoting safe worker migration in the Nepal-Malaysia and Indonesia-Malaysia labor migration corridors through the transformation of recruitment practices in supply chains. This builds on the first phase of the Responsible Recruitment Program (RRP) that concluded in March 2021, which was funded by the same donor in a previous grant. The report for this grant, which also covers the earlier Responsible Workplace Program (RWP), is publicly available.

Under the new grant, the RBA Foundation and its implementing program partner, the International Organization for Migration (IOM), aim to achieve four key outcomes: • Risks of forced labor in Malaysia supply chains are reduced through empowerment of jobseekers and workers; • Rights and dignity of migrant workers in Malaysia are better protected through private recruitment agencies’ compliance to international standards on responsible recruitment; • Strategic multi-stakeholder partnership and advocacy to harmonize responsible recruitment standards and strengthen capacity for the implementation of responsible recruitment programs across the migration corridors; and • Jobseekers and workers are able to seek effective remedy, when their rights are violated, through better access to a grievance mechanism at every level of their migration journey.


Since August 2020, the RBA Foundation has worked with other partners to conduct studies on stakeholder mapping and feasibility of piloting an economic incentive model for zero-fees, as well as engaged with relevant stakeholders such as brands, suppliers, recruitment agencies, government officials and civil society organizations in countries of origin and destination prior to the implementation of the activities. These studies and consultations will help to enhance the program activities that are expected to be completed by December 2022. Some of the key activities to be implemented during this grant period are: • Continuation of the second phase of the RRP where 48 private recruitment agencies will be enrolled in an ethical recruitment maturity pathway that consists of capacity building, self-assessment and audits; • Piloting economic incentive models for ethical recruitment;

• Partnering with local civil society organizations in the countries of origin to conduct pilot preemployment and pre-departure orientation training for jobseekers and workers; • Partnering with government in the country of destination to pilot a post-arrival orientation training for workers; • Increasing engagement with stakeholders such as workers, civil society organizations and governments through various outreach and review meetings; and • Increasing worker voice through the expansion of the RBA Helpline to jobseekers.

For more information on the RLI, visit ResponsibleLabor.org. For more information on the RBA Foundation, visit RBAFoundation.org.

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RESPONSIBLE MINERALS INITIATIVE

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The RBA’s Responsible Minerals Initiative (RMI) continued to make great progress in 2021, releasing five new assessment standards to match its original standards portfolio, including, for the first time, creating a dedicated standard for Environmental, Social and Governance (ESG) requirements for mineral and metal processors.

The RMI also launched an All-Minerals Due Diligence Standard. In addition, the RMI continued its market acceptance efforts, receiving conditional approval of one of its standards by the London Metals Exchange (LME) in 2021 and pursuing LME recognition for other relevant standards in 2022. The RMI collaborated with a number of multistakeholder initiatives, civil society, governments and key stakeholders, culminating in the RMI governance structure expanding to include multi-stakeholder representation on the RMI Steering Committee with representatives from civil society and academia who started to serve their first term in January 2022.

MEMBERSHIP OVERVIEW The RMI continued to experience strong membership growth in 2021 with 50 new members. These members represented a wide range of sectors that included electronics, energy, industrial, and minerals processing. The 2021 year-end RMI membership count was 437. Three new smelters or refiners (SORs) joined the RMI as Upstream Members in 2021. The RMI also welcomed two new Vendor Members and an Association Member in 2021. The RMI currently has 15 Upstream and 10 Vendor Members.

IN 2021, 309 OF THE 447 KNOWN TIN, TANTALUM, TUNGSTEN, GOLD, COBALT, MICA, COPPER, LITHIUM, NICKEL AND ZINC PROCESSORS, SMELTERS AND REFINERS WERE EITHER ACTIVE OR CONFORMANT TO THE RMAP OR A CROSSRECOGNIZED PROGRAM


PROGRAM INDICATORS The RMI also continued enhancing its two assessment programs: the Responsible Minerals Assurance Process (RMAP) and the Downstream Assessment Program (DAP).

allowing certain assessments to include a virtual component to minimize time on-site where possible, accounting for risk and the complexity of assessment. In 2021 this allowed for approximately 30 percent of the assessments to include both in-person and virtual components. The remaining 70 percent of assessments were done in-person.

During the COVID-19 pandemic, the RMAP and DAP successfully adapted to a rapidly evolving public health situation, tenuous business climate, changing travel requirements and shifting restrictions worldwide to maintain steady participation among auditees. In 2021, 9 percent of all RMAP assessments due for a re-assessment were delayed due to COVID. Affected RMAP participants moved forward with assessments as soon as was feasible and/or made active progress on any required corrective actions. Our COVID-19 Virtual Assessment Policy, which was published in 2020, outlined the process for

In 2021, 302 out of 418 known tin, tantalum, tungsten, gold and cobalt SORs were either active or conformant to the RMAP or a cross-recognized program. Fourteen cobalt refiners completed an on-site assessment in 2021, and several additional refiners and multi-metal processors should complete assessments in 2021. By the end of 2021, 56 percent of identified eligible cobalt refiners were participating in RMAP and 22 were conformant.

NUMBER OF CONFORMANT SMELTERS AND REFINERS By Geography (in 2021)

75

7

56

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33 25 18 6 China

Asia and Oceania

Europe and Russia

Japan

North America

Africa

South America

NUMBER OF ACTIVE & CONFORMANT SMELTERS AND REFINERS By Metal (in 2021)

107

n CONFORMANT n ACTIVE

55 42

39 22

6 Gold

13 Tin

7 Tungsten

18

0 Tantalum

0 Cobalt

Mica

1

0

1

Cooper

0

2

Nickel

0

1 Zinc


GLOBAL SMELTER PARTICIPATION IN DUE DILIGENCE PROGRAMS Conformant Smelters & Refiners

NUMBER OF COMPLIANT SMELTERS

300 250 200 150 100 50

0 2010

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8

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

n Co 0

0

0

0

0

0

0

0

0

2

10

21

n Au 0

0

11

31

56

78

90

98

103

105

107

107

n W 0

0

0

1

9

29

39

41

42

43

42

40

n Sn 0

0

3

9

22

56

66

69

74

45

50

53

n Ta 2

10

15

23

43

46

46

42

40

37

37

36

n Totals 2

10

29

64

130

209

241

250

259

232

246

257

In 2021, the RMAP continued expansion of its cobalt program to cobalt crude refiners located in the Democratic Republic of the Congo (DRC). The RMI has confirmed 13 crude refiners are eligible to undergo RMAP. Of the identified eligible crude refiners, two are currently active in RMAP and three are currently conformant in 2021. Several first-time assessments for newly rolled-out standards were conducted in 2021. The RMI added mica as a mineral under RMAP with the release of its new mica processor standard. By the end of 2021, 18 eligible mica processors had been identified and three mica processors were participating in RMAP. The first Environmental, Social and Governance (ESG) standard assessment was completed as an add-on to RMAP in 2021, in conjunction with 1 of the 4 total Joint Due Diligence Assessments conducted in 2021. In addition, the first Gold Aggregator pilot assessment was organized and scheduled to take place in early 2022. The RMI identified 49 new SORs across all minerals under RMAP scope in 2021, of which 12 were 3TG SORs, six were cobalt refiners, and 15 were mica processors. The RMI also identified three copper processors, eight lithium processors, four nickel processors, and one zinc processor. Eighteen tin

2021

smelters were added back as eligible due to returning to operations, while 11 SORs were considered no longer eligible due to a change or cessation in operations. Twelve SORs became conformant for the first time in 2021, and 21 joined the active list. The RMI issued updates to its Conflict Minerals Reporting Template (CMRT) in April 2021 and released the new Extended Minerals Reporting Template (EMRT) in October 2021. The EMRT combines the previously released Cobalt Reporting Template (CRT) and Mica Reporting Template (MRT). While the CRT and MRT will be phased out in 2022, new minerals will be added to the EMRT scope pending IPC1755 amendments and feedback from the Minerals Reporting Template workgroup. The Downstream Assessment Program (DAP) saw increased inquiries from downstream producers of tin, tantalum, tungsten and gold in response to the EU regulation and also received inquiries from downstream producers of cobalt as well. Eight downstream assessments were completed in 2021 and several are pending for 2022. All 3TG assessments in 2021 were conducted against the RMI Revised Standards for Tin, Tantalum, Tungsten and Gold (issued in 2017).


QUALITY ASSURANCE AND CONTINUAL IMPROVEMENT

RMAP ASSESSMENT NON-CONFORMANCE BY TYPE

The RMI also continued enhancing its two assessment programs: the Responsible Minerals Assurance Process (RMAP) and the Downstream Assessment Program (DAP).

1.85%

0.87%

1.96% 2.07%

0.54% 0.43% 0.11%

2.61% 3.37%

27.5%

3.59% 4.13%

5.87%

7.17% 14.46% 9.35%

9

14.13%

Due Diligence Management System Design

27.50%

In 2021 the RMI conducted a total of 16 shadow assessments, four of which were completed virtually. The RMI will continue to utilize a combination of in-person and virtual shadows as part of its quality assurance for RMAP and DAP assessments in 2022.

Supplier Relations

14.46%

Overall Conclusions

14.13%

Of the RMAP assessments conducted in 2021,13 resulted in corrective action plans (CAPs). The most common non-conformances included: • Supply Chain Policy missing critical elements • Procedure to Identify Conflict-Affected and High-Risk Areas (CAHRAs) missing critical elements and/or implemented inconsistently • Gaps in consistent implementation of Know-YourCounterparty (KYC) process • Company’s expectations that suppliers will undertake mineral supply chain due diligence and risk management consistent with the standards defined in Annex II of the OECD Due Diligence Guidance are not communicated to suppliers via contracts and/or written agreements • No Step 5 Public Due Diligence Report

Step 5 Report

9.35%

High Risk Sourcing

7.17%

Due Diligence Management System Implementation

5.87%

Assessment of Due Diligence Practices and Qualitative Conditions

4.13%

Transaction Review

3.59%

Internal Material Control

3.37%

Risk Mitigation

2.61%

Mapping of Factual Circumstances

2.07%

Identifying and Assessing Risks in the Supply Chain

1.96%

Red Flags

1.85%

Upstream Assurance Mechanisms

0.87%

Due Diligence Management System

0.54%

Due Diligence Management System Conclusions

0.43%

Review of On-The-Ground Assessments

0.11%

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The RMI continued to grow its internal quality team to ensure quality and consistency in the implementation of the assessment standards requirements and methodology. The RMI Quality Team added another internal quality assurance member to further enhance the overall quality of the RMI’s assurance program for RMAP and DAP assessments. Over the course of 2021, the RMI also worked with the RBA’s Operations Team under the umbrella of a shared audit services model, on a joint strategy to stabilize and scale RMI audit and QC programs, including cross-training RBA’s internal and external reviewers. These additional resources have led to improved rates of quality reviews and an increase in auditor capacity-building support from the RMI. DAP was also integrated into RBA’s end-to-end audit management tool, RBA-Online, in 2021 following RMAP, which was integrated for 3TG and Cobalt earlier. Complete workflow and operations management functions available on the new platform led to increased program efficiencies in tracking and expediting the quality assurance process. Newly implemented RMI standards will also be integrated into RBA-Online in 2022.

2021


• Missing chain-of-custody documentation • No on-the-ground assessments were completed where red flags were identified • No risk mitigation plan in place As part of the OECD-aligned approach to continual improvement and to support auditees’ successful closure of non-conformances, the RMI developed a series of trainings specific to common findings. The auditee trainings also included case study scenarios to help deepen the auditee’s understanding of supply chain due diligence and RMI standards requirements. The RMI continued free smelter access to its Global Risk Assessment and Grievance Mechanism tools, and offered extensive technical assistance to support auditees’ development of policies and procedures that would satisfy the Standard’s requirements.

MARKET ACCEPTANCE

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The RMI applied for recognition of the RMAP and DAP under the EU Delegated Act for Recognition of Industry Schemes in 2019. Throughout 2020, ECappointed assessors shadowed the RMAP and in 2021 the assessors shadowed DAP audits as part of the review process. At the end of 2021, the RMI received draft assessment results for RMAP and is anticipating final EC reports on RMAP and DAP in 2022. In 2021 the RMI also began its journey to have its standards recognized by the London Metal Exchange (LME). The RMI Joint Due Diligence Standard and the ITA-RMI Tin Assessment Criteria received conditional approval from LME and the RMI initiated the process for its ESG Standard ISO alignment assessment, as required by the LME. In 2022, the RMI also hopes to have its Tin and Tantalum Standard, Cobalt Standard and All-Minerals Standard conditionally approved and will move forward to have all standards fully recognized by LME.

CAPACITY-BUILDING, TRAINING AND SMELTER FINANCIAL ASSISTANCE In 2021 the RMI held trainings for a record number of attendees globally. For the first time since the COVID-19 pandemic began, the RMI was able to offer an in-person training for auditors and auditees, held in Xiamen, China. The RMI also delivered virtual auditee and auditor trainings. In collaboration with Synergy, the RMI also delivered five virtual, interactive training sessions in June and July on the RMAP standards requirements and assessment approach. The RMI held a DAP training for 300 attendees including RMI members, suppliers to members and

other downstream companies interested in undergoing DAP, current DAP auditees, prospective DAP auditees, and RMI-approved auditors and technical assistance providers. To further increase the awareness of OECD Due Diligence Guidance expectations for downstream companies as well as of the RMI Downstream Assessment Program, the RMI delivered a training specific to meeting the RBA Code D7 requirements. The RMI also delivered training to the International Conference on the Great Lakes Region (ICGLR), focusing on the RMAP and linkages with ICGLR. The RMI also held its annual virtual Audit Townhall for fully approved and provisionally approved auditing firms, where key programmatic updates were covered. In total, the RMI delivered 12 trainings with more than 1,350 participants in 2021. The RMI will deliver an in-depth, advanced auditing techniques training in Q1 of 2022 and will continue its commitment to support auditors and auditees through various training opportunities in 2022. To continue supporting upstream due diligence, in 2021, the RMI expanded the use of Upstream Smelter Due Diligence Fund to upstream assurance mechanisms (UAMs) that requested financial assistance with their OECD alignment assessments. The purpose of the Fund is to support responsible sourcing from conflict-affected and high-risk areas (CAHRAs) for which there is not currently a recognized upstream assurance mechanism available. Recipients are required to provide deliverables that serve a public good, including on-the-ground risk assessments of mine sites, ongoing monitoring, capacity-building of local communities, development of template questionnaires or reports, or the publication of case studies. The RMI continued offering its Financial Assistance Program, which pays for 75 percent of the cost of re-assessments for smelters and refiners with low volumes. The RMI disbursed financial assistance to nine smelters and refiners since the inception of this policy. The RMI continued to disburse funds under the Initial Audit Fund, paying for the full costs of initial assessments. Since 2014, the RMI has disbursed nearly US$2M to smelters under the Initial Audit Fund and disbursed approximately US$216,328 in 2021.


The RMI and the Responsible Cobalt Initiative (RCI) continued their collaboration, which has facilitated validation of due diligence activities by companies in China and the DRC. The RMI and RCI worked from 2019 to 2021 to revise and update the Cobalt Refiner Due Diligence Standard, which was released in August 2021 and went into effect in January 2022. The RMI, in collaboration with the Copper Mark, the International Lead Association (ILA), the International Zinc Association (IZA), and the Nickel Institute, issued a Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc to enable companies to comply with the London Metal Exchange Responsible Sourcing requirements in February 2021. Covered metals processors can be audited to the standard using RMAP. The RMI conducted four pilot assessments against the Join Standard in 2021, and several of those were in combination with the RMAP Cobalt Standard. The Joint Standard underwent OECD alignment assessment and was reissued in a finalized version in December 2021 after receiving determination of full alignment for the standard portion of the assessment (the implementation assessment is planned for 2022). The RMI also worked with the Copper Mark to develop a series of virtual Joint Standard trainings for auditees and auditors, and expanded a suite of freely available, animated online training programs for Risk Readiness Assessment (RRA) topics. For 2021, the RMI produced RRA modules covering greenhouse gases, forced labor, waste management, pollution, remuneration, biodiversity and protected areas.

The RMI and the Responsible Mica Initiative released the Global Workplace Standard for Mica Processors in March 2021 after a member and public consultation process. The new Standard aims to improve conditions for workers in mica supply chains by leveraging the collective experience of these initiatives and benchmarking against internationally recognized frameworks. The RMI and the International Tin Association (ITA) co-developed Criteria for Tin Smelting Companies, underwent OECD alignment assessment and, in March of 2021, the Criteria was determined to be fully aligned (assessment of the implementation is planned for 2022). Subsequently, the RMI ITA Joint Criteria was recognized as a conditionally approved standard for Track A of Responsible Sourcing Requirements by the London Metal Exchange (LME).

STANDARDS DEVELOPMENT In addition to the publication/updating of four standards — the Cobalt Refiner Due Diligence Standard, RMI Joint Due Diligence Standard, Mica Standard, and ITA-RMI Tin Assessment Criteria — in 2021 the RMI finalized and published two other flagship standards that significantly expand the focus and reach of RMAP in terms of mineral scope and incorporation of environmental, social and governance indicators: • The Global Responsible Sourcing Due Diligence Standard for Mineral Supply Chains — All Minerals was launched in December 2021 and went into effect in January 2022. This

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PARTNERSHIPS


standard enables upstream companies, including processors, traders and mines, to be assessed on their responsible due diligence practices in the sourcing and processing of any mineral or metal. It complements the 3TGC-specific RMAP standards and can be used in conjunction with those standards by multi-metal facilities. It is designed to be aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance) and to help companies adhere to regulatory requirements such as the existing EU Conflict Minerals Regulation and pending EU Battery Regulation. • The Environmental, Social & Governance (ESG) Standard for Mineral Supply Chains was launched in June 2021. This standard marks an expansion of the RMI’s scope beyond OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, as it aims to guide businesses in the assessment and improvement of their performance against environmental, social, occupational health & safety and governance criteria. The first pilot assessment against the standard was conducted in November 2021.

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In addition to publication of the ESG standard, the RMI continued championing evaluation and revision of the Risk Readiness Assessment (RRA), widely used by RMI auditees as a self-assessment, and on which norms the ESG standard was based, reflecting an evolution of industry best-practices. The revision process for the RRA began in June 2021 and is an effort jointly led by the RMI and Copper Mark. The revision aims to strengthen the RRA criteria in line with the evolution of recognized standards and industry practices as it expands the criteria set where new requirements have emerged for mineral producers and processors. The revision process has been guided by expert inputs from a Technical Committee of industry representatives and will continue in 2022 with stakeholder consultations and the publication of the revised tool. The RRA continued to be utilized by downstream companies and upstream refiners and mining companies, with 366 RRA self-assessments completed as of 2021, compared with 341 completed as of 2020. The endeavor to expand audit and assessment tools has been accompanied by the build-up of internal and external capacities. Auditor guidelines and workbooks have been developed for the All-Minerals standard, the ESG Standard and the Mica Standard.


In Q4 2021, nine new applicants were accepted into the pool of approved auditing firms, bringing the total of fully approved and provisionally approved audit firms to 15. The larger number will help ensure auditor availability to cover the growing geographical breadth of the audit program, facilitate assessment scheduling despite any continued pandemic-related international travel restrictions, and expand mineral scope as well as a new focus on ESG.

sourcing expectations. While travel limitations and restrictions continued in 2021 due to the pandemic, the RMI was able to work with in-country partners in the DRC through its in-country CAP implementing partner UNICEF and in-country consultant, IMPACT Transforming Natural Resource Management, for the in-country component of the consultation on the ASM Cobalt Framework, which was implemented from June-July 2021.

SUPPORTING DUE DILIGENCE ACROSS THE SUPPLY CHAIN

RISK MANAGEMENT

IN-COUNTRY ENGAGEMENT In 2021 the RMI continued its role as the Project Management Office (PMO) for the Global Battery Alliance’s (GBA) Cobalt Action Partnership (CAP). The CAP is a broad-based and multi-sectoral, public-private coalition of organizations working toward a common vision to immediately and urgently eliminate child and forced labor from the cobalt value chain, contribute to the sustainable development of communities, and respect the human rights of those affected by the value chain in the DRC. The CAP’s mission is to enable and support a global sustainable cobalt supply chain that integrates responsibly sourced materials in the battery value chain, harmonizing responsible sourcing projects and initiatives, especially but not exclusively in ASM, to eventually contribute to local broader sustainable developments. Given the interconnected nature of large-scale and ASM mining in cobalt supply chains, and the importance of ASM to the economy of the DRC, the CAP engaged a range of stakeholders, including affected communities, relevant governments, industrial large-scale mining (LSM), and ASM, to bridge the gap between global, local, upstream, and downstream actors. As the lead organization coordinating the activities of the CAP, including the coordination of individual actors and organizations formally working as CAP implementing partners to advance its mission, the RMI led the development of in-country research, stakeholder and government engagement, and the development of responsible

In 2021, the RMI received no new notifications through the Minerals Grievance Platform (all MGP grievances are visible to RMI members) of grievances linked to RMAP-participating smelters’ or refiners’ supply chains. The five new grievances for 2021 were linked to SORs in cross-recognized programs. The grievances included complaints against SORs, upstream and downstream actors, and mining operations, with risks including human rights issues, 3TG from illegitimate sources, smuggling and other OECD Annex II risks. When a grievance is received, the RMI works with the parties in question to verify and mitigate the issues raised in accordance with the Grievance Mechanism, including reviewing corrective actions, commencing in-depth assessments, conducting legal reviews, facilitating stakeholder engagement, addressing the issues through the RMAP audit process, encouraging respondents to issue public statements, and referring to the grievance platform or partner mechanisms for resolution where appropriate.

For more information on the RMI, visit ResponsibleMineralsInitiative.org

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The RMI maintained active engagement with upstream partners and stakeholders in advisory and leadership roles, including in critically important programs that support the artisanal and small-scale mining (ASM) sector as a member of the OECD MultiStakeholder Group, a board member of the European Partnership on Responsible Minerals (EPRM), and as a member of the Public-Private Alliance for Responsible Minerals Trade (PPA).

The RMI continued to enhance and maintain the Minerals Grievance Platform (MGP), which is a channel for the identification, review and resolution of grievances, offering a connected and efficient system that benefits a wide range of stakeholders and builds on existing mechanisms. The Minerals Grievance Platform scope includes OECD Annex II risks, as well as environmental and occupational health & safety risks (OHS). The MGP is not limited to the RMI but includes third-party audit programs such as the London Bullion Market Association (LBMA) and the Responsible Jewelry Council (RJC). As of 2021, the MGP included 65 downstream company users and 22 in-scope grievances.


RESPONSIBLE FACTORY INITIATIVE

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In 2021, the RBA enhanced its Responsible Factory Initiative (RFI) tools, programs and services for individual factories seeking to improve labor conditions, environmental practices, and align with the standards set forth in the RBA Code of Conduct. The RBA also launched a standalone website for the RFI to serve as a central repository of information and make it easier for factories to interact with the Initiative.

RFI programs support factories regardless of their level of maturity related to corporate social responsibility. By joining the RFI, nonRBA member facilities receive specialized tools, tailored trainings, and expert guidance to advance responsible business conduct. Key programs include: • Factory Engagement Program (FEP): The FEP focuses on factories that are not yet ready to successfully complete an audit and includes access to the RBA Learning Academy and RBAOnline. Participating factories complete a Validated SAQ followed by the development of a Factory Improvement Plan supported by RBA staff. • Factory Lead Certification Program (FLCP): The FLCP is designed for the individual(s) at a factory responsible for implementing the RBA Code of Conduct and includes 30 hours of courses that can be taken on-demand in the RBA Learning Academy. Factories that have Certified Leads have average VAP audit scores that are approximately 26 percent higher than those that do not. • Factory of Choice (FoC): The FoC program is intended for factories with ambition to go beyond audits. FoC recognizes factories that commit to the RBA Code of Conduct and worker engagement. To be recognized, a factory must complete a highscoring VAP audit, with no open priority findings, have a Certified Factory Lead on staff, and have an active worker management forum that can drive changes to factory policies or procedures.


The RBA is updating several elements of the Factory Engagement Program to better support factories seeking to align their operations with the RBA Code of Conduct. Enhancements that began in 2021 and will continue in 2022 include:

• Enhancing the FEP’s Self-Assessment Questionnaire by revisiting the questions and modifying the weighting and scoring of key questions. We are also clarifying the types of evidence that can be submitted in response to certain questions. In addition to program enhancements, the RBA will be adding staff in 2022 to support the RFI program and service offerings globally.

For more information on the RFI, visit ResponsibleFactory.org

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• Integrating the Factory Engagement Program into RBA-Online, including the Self-Assessment Questionnaire and Continuous Improvement Plans.


REGIONAL NETWORKS

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In 2021, the RBA launched additional regional networks in key geographical areas: Europe, Southeast Asia, China and Mexico. Similar to RBA’s Japan Network, which was created years earlier, these networks serve to further enhance the experience and input of RBA members. The regional networks play an important role in meaningfully connecting RBA member companies and RBA staff on a regional basis, providing a platform for region-specific information flows and discussions. The regional networks are also a great way for regional members’ staff to get to know their peers through networking opportunities. The regional networks are facilitated by in-region RBA staff, in close collaboration with in-region RBA member representatives. They focus on trends and developments in those regions, how they impact company efforts there, and effective approaches to addressing those challenges, which may be unique to those regions.


ADVISORY SERVICES

In 2021, the RBA delivered 25 projects across multiple regions, which led to a variety of positive outcomes for workers, including corrective action planning and implementation (e.g., remediation of recruitment fees), customized training (e.g., capacity building utilizing the RLI’s Responsible Recruitment Due Diligence toolkit) and new supplier evaluation and onboarding. In 2022, RBA Advisory Services will further scale its ability to deliver meaningful projects to member companies by adding capacity in additional regions as well as other project types such as standards benchmarking and gap analyses versus membership requirements.

RBA ADVISORY SERVICES PROVIDE UNIQUE, CONTEXT-SPECIFIC ENGAGEMENT FOR COMPANIES, INCLUDING CAPACITY BUILDING, DUE DILIGENCE AND REMEDIATION, THROUGHOUT THEIR SUPPLY CHAINS, CREATING SUBSTANTIVE AND LASTING IMPROVEMENTS

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The RBA and its members have made significant progress over the years in promoting a common code of conduct and due diligence approach that is effective and scalable. As the organization has evolved this discipline, we recognized that some members and their suppliers may need more customized assistance from the RBA based on maturity level, geography, operating environment and other important factors. Piloted in 2020 and officially launched in 2021, RBA Advisory Services was designed to provide this level of unique, context-specific engagement for companies, including capacity building, due diligence and remediation, throughout their supply chains, creating substantive and lasting improvements.


ENVIRONMENTAL SUSTAINABILITY The RBA produced its first comprehensive guidance on greenhouse gas management to assist members and their suppliers in living into new requirements set forth in VAP 7.0; primarily that all companies measure, publicly report, and set reduction targets for their Scope 1 and 2 emissions.

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The inclusion of these essential practices deep within supply chains is even more critical as companies at all tiers seek to reduce the carbon footprint of their products and supply chains. The ability for the RBA to embed and verify these practices goes a long way toward empowering members to fulfill their sustainability strategies and potentially go carbon neutral or net zero. The RBA Greenhouse Gas Management Guide makes leading global practices more accessible to facilities of all levels of maturity, accompanying technical guidance with case studies and resources. The six chapters of the RBA Greenhouse Gas Management Guide include all required practices of RBA members and their suppliers, as well as aspirational objectives like Scope 3 accounting. In the coming year, the RBA will build upon this fundamental technical guidance with more complementary tools that continue to ease the implementation of these practices. Throughout 2021, the RBA explored ways to connect deeper tiers of supply chains to the resources and expertise that are most readily available to OEMs. The Alliance for Water Stewardship’s Water Risk in the ICT

Sector report is an example of where the RBA worked with members and industry experts to analyze further tiers of supply chains, in this case locational data, so that insightful water risk analysis could identify potential watersheds for current and future water shortages or quality challenges. The RBA will continue to work with partners to refine these practices, while also looking for more ways to leverage the wealth of data and participation from members so that supply chains become more visible and sustainable.

COP26 IN GLASGOW, SCOTLAND RBA staff shared industry success stories and perspectives at the 26th UN Climate Change Conference (COP26) in Glasgow, Scotland in November of 2021. The RBA participated in a number of activities including the Tech for Climate Action event hosted in partnership with the UK’s Department for Environment, Food and Rural Affairs (DEFRA UK) and COP26 E-Alliance & Partners. The multiday event included an exhibition, an environmental conference, a CEO panel, and the COP26 Compass Award ceremony. RBA CEO Rob Lederer delivered the keynote address at the Tech for Climate Action environmental conference, where he stressed the importance of collaboration and technology in addressing climate impacts throughout the global supply chain. He also talked about the circular economy as a way to meet climate, responsible business conduct, and capacity-


The Tech for Climate Action event was capped by the COP26 Compass Awards ceremony in the evening of November 5. Three RBA members won awards: Microsoft for Environmental Leadership, BT for Innovation, and Nokia for Capacity-Building.

CIRCULAR MATERIALS The RBA Circular Materials Landscape Assessment published in 2021 revealed that while many members expect circular supply chains to lower their carbon footprints and help them live into their sustainability strategies, reclaimed materials represent a significant risk due to the lack of transparency these reverse supply chains provide. Alongside the Circular Electronics Partnership (CEP), the RBA facilitated conversations on how to scale secondary material markets that practice responsible environmental health and safety practices established in the RBA Code of Conduct. The six recommended actions generated were included in the Circular Electronics Partnership’s 2030 Roadmap, which outlines actions for the electronics industry and encourages the private sector to commit to a roadmap action that contributes toward the industry’s advancement into the circular economy. The RBA’s own efforts to establish a supply chain environmental and social governance assurance system for all end-of-life processes, starting in 2022, has been

accepted as an affiliated CEP project. This distinction recognizes that the RBA’s efforts will create impact not only among its own members, but for the industry and circular economy at large. Until the same level of assurance, due diligence and visibility that is available in manufacturing supply chains is also available in reverse supply chains, certain circular economy principles will never become viable for the industry. The RBA is pleased to help lead its members in exploring and establishing RBA principles into new supply chains that are increasingly necessary for the industry to embrace in order to live into their global stewardship goals. In a truly circular electronics system, all recyclers are seen as the upstream suppliers of materials for manufacturers. The RBA envisions a circular and ethical supply chain for electronics, where incentives are aligned across the value chain to ensure products and materials circulate at their highest value for as long as possible, and responsible environmental, social, and health and safety practices are assured. The RBA can play a key role in bringing together stakeholders across the electronics value chain, galvanizing the collaboration and innovation required to achieve this vision for a circular electronics system. Barriers to Circular Supply Chain Design from the RBA Circular Materials Landscape Assessment: 1. Recycled materials need to compete with virgin materials on the market 2. Hazardous materials are difficult to track and monitor, particularly when recycling electronics with long lifetimes 3. Stakeholders across the electronics value chain are hesitant to engage with the informal sector 4. Producers and manufacturers can’t see the reverse supply chain as their upstream

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building goals. He later joined other executives for a panel discussion on key challenges and opportunities for industry to address climate challenges.


PROCESS CHEMICAL MANAGEMENT Throughout 2021, the RBA reaffirmed its dedication to ensuring that all workers, regardless of location or operation, are adequately protected from potential chemical exposures. Leveraging its position to create efficient and effective resources that can be rapidly deployed throughout multiple industries, the RBA invested in a suite of guidance that covers essential practices for chemical management systems. This resource represents a significant investment from the RBA to help ensure that management systems are resilient and robust, protective controls consider the most advanced practices available, and workers are informed and empowered regarding their protection.

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The RBA Process Chemical Management Resource Suite is targeted toward facility managers and directly to facility workers. It consists of 50 new and revised resources, more than 80 pages of technical written documents accompanied by eight new appendices and templates. All resources are available in English and Chinese, and sometimes four additional languages. Prior to designing the resource suite, the Clean Electronics Production Network (CEPN), the RBA’s primary external partner on the development of process chemical resources, provided an opportunity for the RBA and its members to engage with external stakeholders from the NGO community. Together, this multi-stakeholder group identified major challenges on adequately protecting workers to a level that respects their rights and meets the RBA Code of Conduct. The RBA received more than 50 comments on topics and materials that should be included in the resource suite – most notably, stronger recommendations for considering specific health impacts to young workers and nursing or pregnant women. The new Process Chemical Management Learning Pathway in the RBA eLearning Academy organizes all chemical management resources into eight topics that represent essential practices within every chemical management program. Core to the learning pathway

is the RBA Process Chemical Management Guide, which provides thorough written technical guidance and references for each topic. Each course within the learning pathway also features a newly developed training video that introduces essential practices and leads users to the more technical information provided in the written guide. Additionally, previously available training resources have been remodeled into 15 technical training videos that are more concise and topical and are now organized by topic alongside resource staples like the Process Chemical Data Collection (PCDC) Risk Assessment Tool and Facility Safety Fact Sheets. Included in the resources developed after the NGO engagement process, the RBA produced its first technical resources targeted specifically to workers in facilities. Three new courses on interpreting hazard information, preventing chemical exposure, and chemical first aid and emergencies are available to workers via the RBA Voices platform, which allows workers in facilities to directly access trainings and information through the Mobile Learning Library on their personal devices. The new chemical trainings, which represent over 35 minutes of new content in English and Simplified Chinese, cover topics that most directly affect workers.


PUBLIC POLICY Despite the ongoing pandemic, public policy issues related to responsible business conduct, due diligence and ESG remained a top priority for governments and policymakers in 2021. While the RBA does not lobby or take positions for or against specific regulations, it plays an important role in educating policymakers worldwide on industry challenges and best practices, to encourage greater harmonization of regulatory efforts and facilitate more effective outcomes related to their stated policy goals.

HIGHLIGHTS OF 2021 INCLUDED: • Actively tracked and engaged on key policy and regulatory initiatives across the world in the areas of responsible business conduct, due diligence and ESG, providing guidance to members on navigating an increasingly complex policy and regulatory landscape.

• Collaborated with the European Commission toward the promotion of the EU Guidance to Business on Tackling Forced Labor.

• Collaborated with the UK government around convening key events and activities at COP26, the global climate summit in November 2021, including an exhibition and conference featuring key climate solutions.

• Continued to engage U.S. government agencies, including the U.S. Departments of Homeland Security, State, and Labor, and the Office of the United States Trade Representative (USTR) on responsible sourcing issues.

• Hosted an RBA European conference bringing together leading EU policymakers, industry experts and key international experts to discuss how to shape effective EU mandatory due diligence legislation.

• Increased strategic engagement with key UN agencies and UN experts in the area of business and human rights.

• Hosted an RBA Latin American Conference, bringing together key policymakers and experts from the region. • Continued to engage key leaders across European institutions as part of a wider outreach strategy in the context of the EU’s plans for EU-wide mandatory due diligence legislation that will apply to all companies active on the EU market. • Led the dissemination to senior leadership of the European Commission of a statement by a wide group of industry organizations and sustainability initiatives, calling for effective harmonization of EU due diligence policies and regulations.

• Continued active engagement with the Malaysian government, including input on the design of the Malaysian National Action Plan on Forced Labor. • Addressed the annual United Nations Business and Human Rights Forum as part of a plenary session dedicated to the design of emerging mandatory due diligence regulation. • Testified before the EU-US Trade and Technology Council on industry efforts regarding the protection of worker rights in global supply chains. • Continued to educate governments, stakeholders and members on issues related to the forced labor of ethnic minority workers.

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• Co-hosted a multi-stakeholder conference with the German government for more than 1,000 participants, to discuss how to ensure impactful and inclusive implementation in producing countries of the EU Conflict Minerals Regulation.


STAKEHOLDER ENGAGEMENT In 2021 the RBA continued its active engagement with key stakeholders, including nongovernmental organizations, civil society organizations, socially responsible investors, public buyers, and governmental and multilateral institutions.

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22 HIGHLIGHTS OF 2021 INCLUDED: • Signed terms of engagement with Electronics Watch to establish a process to facilitate effective collaboration, with the goal of improving compliance with relevant labor regulation and internationally recognized codes and worker rights standards for factories that make products for public buyer affiliates of Electronics Watch. • Continued to engage public buyers and the Organisation for Economic Co-operation and Development (OECD) on the increasing use of responsible business conduct measures for public procurement, encouraging the use of RBA tools for procurement purposes. • Launched an RBA investors dialogue series, featuring discussions with key representatives from the investor community on how the RBA can help investors and RBA members meet responsible business challenges in global supply chains. • Hosted an RBA stakeholder roundtable on responsible IT procurement in the Nordics, convening key private and public buyers to discuss trends and developments in the area of responsible IT procurement. • Continued to engage benchmarks, including Know the Chain (KTC) and the Corporate Human Rights Benchmark (CHRB), to provide input into their benchmark methodologies. • Published an RBA Statement in Support of Human Rights Defenders. • Published the RBA Practical Guide to Responsible Sourcing of Goods and Services, which maps standard procurement steps to appropriate RBA tools and resources, to help give buyers confidence the products they procure from RBA members are made in socially and environmentally responsible ways.


PROJECT UPLIFT: A WORKER-RELIEF FUND Building on a long history of partnering with NGOs/ CSOs and supporting workers, in 2021 the RBA allocated up to US$500,000 to positively impact the lives of workers, prioritizing civil society organizations and projects that benefit supply chain workers impacted by the COVID-19 pandemic.

The RBA received 15 applications in 2021 across several key sourcing regions for RBA and RMI members, including Malaysia, Thailand, India, and Uganda. By the end of 2021, six applications were accepted. The six approved projects range from disaster relief efforts to projects that prepared workers for employment abroad to others that seek to create economic opportunities for repatriated workers. Rationale in support of these applications included: • Projects were well-aligned with Project Uplift goals • Build on RBA objectives, including pre-departure orientation and working with government bodies to drive regulatory changes • Enable the RBA to establish, develop and enhance CSO connections with the view of long-term engagement • Represent a diversity of geographies that are critical sourcing countries for RBA and RMI members

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Over the course of the COVID-19 pandemic, supply chain workers have been negatively impacted by loss of income. Some are occasionally stranded in foreign countries, unable to return home and prevented from having access to basic needs. The RBA Project Uplift Worker-Relief Fund aims to support projects that bring relief or aid to workers.


TRAINING AND CAPABILITY-BUILDING In 2021 the RBA continued to expand its online Learning Academy for members and their suppliers, as lingering travel and in-person gathering restrictions due to the ongoing pandemic drove increased demand for online trainings.

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The following courses were developed and added to the Learning Academy in 2021. Most are available in English and Simplified Chinese: • Responding to an Infectious Disease • Quality of Life Measurement • Chemical Inventory • Process Chemical Risk Assessment • Chemical Risk Control • Hazard Communication • Process Chemical Management Training Programs • Medical Surveillance • Chemical Handling • Chemical Emergency Responses

accounts were created in 2021 alone and there were around 40,000 course completions. Monthly active users averaged close to 1,200. Within the Learning Academy in 2021, there were more than 100 completions of the Factory Lead Certification Program, a training and certification program for factory staff, including several completions of Level 2 (launched in 2020). Factory Lead is an important component of the Factory of Choice (FoC) and Responsible Factory Initiative (RFI) programs. • Factories with a Factory Lead have 26 percent-34 percent higher audit scores than those without a factory certified lead (varies by industry)

• Supply Chain Engagement

• Factories with a Factory Lead have fewer Priority Findings than those without a factory certified lead

By the end of 2021, there were over 70,000 user accounts and 155,000 course completions since the Learning Academy launched in 2014. Over 10,000 new

• Factories with a Factory Lead have fewer overall findings in the audit than those without a factory certified lead

BY THE END OF 2021, THERE WERE MORE THAN 70,000 USER ACCOUNTS AND 155,000 COURSE COMPLETIONS SINCE THE LEARNING ACADEMY LAUNCHED IN 2014


TOP 10 LEARNING ACADEMY COURSES IN 2021: 1. RBA Code of Conduct - Labor 2. RBA Introduction 3. RBA Code of Conduct- Ethics 4. RBA Code of Conduct - Health and Safety 5. RBA Code of Conduct - Environment 6. RBA Code of Conduct - Management Systems 7. Forced Labor 1: Recognizing Forced Labor In fall of 2021, RBA staff and members began preparing for the migration of the Learning Academy to a new platform in early 2022. The new platform includes a design and user interface overhaul, an enhanced dashboard, improved system speeds for China-mainland users, a fully functional mobile app, and stronger integration across RBA platforms. Some specific enhancements include: • Clearer display of course progress (Not Started, In Progress, Completed) and useful menus (certificates, certifications, user profile) • Course trailers • Fully translated interface (including sign-in page) • Certifications feature (for retraining) • Assign multiple courses to multiple users in one action • Customizable notifications (for course enrollment, due dates, and certification expiration) • Dashboard reports • In-system newsletters with attachments

INSTRUCTOR-LED TRAININGS In addition to the Learning Academy trainings, the RBA continually holds instructor-led training sessions in different time zones. Due to the pandemic, most of these in 2021 were held virtually, including 17 RBA Code of Conduct and VAP Audit Preparation Workshops for 522 participants. Additionally, we hosted six trainings on the RBA Supplemental VAP (SVAP) on Forced Labor for 234 participants.

8. RBA Validated Audit Process 9. Forced Labor 2: Preventing Forced Labor 10. RBA Corrective Action Plan

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LEARNING ACADEMY MIGRATION


RBA MEETINGS AND EVENTS RBA ANNUAL MEMBER MEETING

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RBA members who joined our virtual 2021 Annual Members Meeting on October 19 learned about the latest developments in RBA programs, initiatives and tools, and engaged in important discussions on due diligence, corporate responsibility, environmental impacts and other issues affecting global supply chains. The day concluded with a Town Hall where members asked questions of RBA staff. The RBA also hosted a virtual New Member Meet and Greet, in advance of the member meeting, to welcome new members who had joined in the past year. They heard from RBA CEO Rob Lederer and the membership team and had a chance to interact with one other in breakout rooms.

RMI ANNUAL MEMBER MEETING The RMI virtual 2021 Annual Members Meeting on October 20 began with a keynote speech and Q&A with Vicky Bowman, Director of Myanmar Centre for Responsible Business, who is a former UK ambassador to Myanmar and member of Cabinet for the EU Commissioner. Following the keynote, discussions were held on RMI progress, minerals due diligence and public policy, before participants broke into workgroup roundtables.

RBA-RLI FORCED LABOR EVENT On May 25-26, the RBA and its Responsible Labor Initiative (RLI), held an event on forced labor, titled “Public-Private Action on Forced Labor in International Supply Chains: Perspectives in Measuring Demonstrable Progress,” for stakeholders and members to share perspectives and maintain momentum on this crucial topic. The event featured remarks by key U.S. and other government leaders, stakeholder perspectives, industry best practices and breakout sessions. Thea Lee, Deputy Undersecretary for International Labor Affairs, ILAB, U.S. Department of Labor was a featured speaker. Others included representatives from the U.S. Department of State, CBP, and the governments of Australia, the UK and Canada.


OUTREACH MEETINGS In 2021 the RBA also hosted four virtual outreach meetings, of which three were regional (Latin America, Europe, and Asia) and one was country specific (Japan). A total of 950 participants attended these meetings.

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EXTERNAL EVENTS AND MEETINGS

RBA ON THE MOVE

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EU-U.S. Trade & Technology Council Consultation On December 2, the RBA was invited by EU authorities to speak at the EU-U.S. Trade & Technology Council’s (TTC) stakeholder consultation on labor rights and trade, a topic dealt with through the TTC’s Working Group on Global Trade Challenges. The EU-U.S. TTC was created earlier in 2021 by the U.S. government and EU with the aim of coordinating governmental policy approaches to key global trade, economic and technology issues. EU NGO Human Rights Forum On December 7, at the invitation of the European Commission, the RBA spoke at the annual EU NGO Human Rights Forum, dedicated to responsible recovery from COVID-19. The Forum highlighted pathways for a human rights-based recovery from the pandemic, including through EU legislation that promotes responsible business and through specific policies for the EU to further protect civic space worldwide. AAFA Webinar On December 2, the RBA participated in a panel discussion on the American Apparel & Footwear Association (AAFA) webinar, “Symphonizing to Enhance Worker Voice in Social Audits,” which was sponsored by Worldwide Responsible Accredited Production (WRAP). RBA and WRAP panelists spoke about the importance of adding worker voice to socially responsible production programs, the purpose of a new survey tool launched by six leading CSR compliance organizations, including the RBA and WRAP, preliminary data and potential next steps.


UN Forum on Business and Human Rights On November 30, during the 2021 UN Forum on Business and Human Rights, the RBA spoke about the implementation of mandatory due diligence legislation and how collaborative approaches like those facilitated by the RBA help drive effective due diligence. Malaysia National Action Plan Event The RBA attended the launch of Malaysia’s inaugural National Action Plan on Forced Labour (NAPFL), 2021-2025, on November 26, at the invitation of the Ministry of Human Resources (MOHR) in recognition of the RBA’s support and inputs to the development the NAPFL. The NAPFL sets out the commitments of the government of Malaysia to eliminate forced labor in the country.

Global HR Forum The RBA participated virtually in the Global HR Forum, which took place in Seoul, Korea, November 10-11. The Forum was co-hosted by The Korea Economic Daily and its theme was Digital Transformation, ESG, and Sustainable Future. The RBA’s presentation, “Advancing ESG Due Diligence and Human Rights in the Global Supply Chain,” focused on how the RBA helps companies and their suppliers advance ESG due diligence and human rights worldwide.

Public Procurement Conference The RBA was invited by the Czech government to speak at the 2021 Responsible Procurement Conference in Prague on November 4. The conference brought together participants from 10 Central and Eastern European countries to discuss responsible procurement policies, and experiences with practical implementation. The Czech Republic will be presiding over the EU during the second half of 2022.

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Human Rights Commission Event On November 25, the RBA participated in a Stakeholder Consultation on Forced Labor Issues in the Manufacturing Industry, organized in Kuala Lumpur by the Human Rights Commission of Malaysia. Among the key objectives of the event were to discuss and obtain views on forced labor issues as well as to identify the role of businesses, government and other stakeholders in tackling forced labor issues in the manufacturing industry in Malaysia.


TIC General Assembly On November 16, the RBA’s Responsible Minerals Initiative (RMI) discussed industry practices and challenges related to expanding due diligence requirements in mineral supply chains at the 62nd General Assembly of the Tantalum-Niobium International Study Center (TIC) and presented RMI tools that help companies identify and address ESG in their operations and supply chains.

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COP26 - Tech for Climate Action The RBA was in Glasgow, Scotland, November 1-5, for COP26 and participated in a number of activities including the Tech for Climate Action event hosted in partnership with the UK’s Department for Environment, Food and Rural Affairs (DEFRA UK) and COP26 E-Alliance & Partners. Tech for Climate Action featured an exhibition, an environmental conference, a CEO panel, and the COP26 Compass Award ceremony.

ILO Training Centre Event On October 28 the RBA shared its experience implementing due diligence mechanisms to prevent forced labor, as part of the course on International Labour Standards and Corporate Social Responsibility: The Labour Dimension of Human Rights Due Diligence, organized by the ILO’s International Training Centre (ITCILO). The course was attended by corporate responsibility and sustainability professionals, government officials, international organizations, employers’ organizations and trade unions from nearly 30 countries. Meeting with DRC Government On October 13, RBA and RMI staff met with a DRC delegation including the leadership of the DRC’s Center of Expertise, Evaluation and Certification of Precious and Semi-Precious Minerals (CEEC). It was an opportunity to update the DRC delegation on recent developments in global RBA and RMI efforts, with particular focus on recent milestones in our upstream engagement, including through collaborative efforts such as the Cobalt Action Partnership.


Meeting with Malaysia Government On September 20, RBA staff met with representatives from various Malaysian government agencies, including the Ministries of Human Resources, Home Affairs and International Trade and Industries, to discuss the Malaysian National Acton Plan on Forced Labor as well as the role of RBA tools and programs to combat forced labor.

National Science and Technology Event On July 20, the RBA’s Responsible Minerals Initiative (RMI) provided a technical briefing to the United States government’s National Science and Technology Committee’s Sub-Committee on Critical Minerals. This briefing came on the heels of The White House’s 100-Review of Executive Order 14017, which includes recommendations to support secure and resilient supply chains. The RMI discussed a number of resources and tools the government can leverage and support to accomplish its policy objectives. ILO Labour Law E-Academy Event On July 19, the International Labour Organization (ILO) Labour Law E-Academy invited RBA staff to address participants, consisting of around 50 labour officials from around the world, on the role of private regulation mechanisms in improving labor rights globally. This was an opportunity to detail RBA tools, programs and approaches to government officials while highlighting areas for greater public-private cooperation.

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Netherlands Embassy Event in Kuala Lumpur On September 15, the RBA participated in an event on “Responsible Business Conduct in Malaysia’s Manufacturing Sector,” organized by the Embassy of the Kingdom of the Netherlands and the Malaysian Dutch Business Council (MDBC). The event, targeted at Dutch companies in the manufacturing sector and companies in their supply chains in Malaysia, presented practical tools and shared experiences on how organizations can put responsible business first.


U.S. Foreign Service Event On July 12, for the fourth year in a row, RBA staff presented on trends in labor and human rights issues to U.S. Foreign Service Labor Affairs Officers. The course is an opportunity to inform officers who are heading out to embassies all over the world on RBA tools and programs as well as how to engage the private sector on key issues.

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32 ITA International Tin Seminar On June 29, the RBA’s Responsible Minerals Initiative (RMI) spoke at the International Tin Association’s 2021 Tin Seminar about the implications of emerging EU mandatory due diligence legislation on tin value chains and the responsible sourcing of tin in scope of mandatory due diligence rules, including environmental due diligence, and a global responsibility that extends across tiers.

VivaTech 2021 On June 17, the RBA’s Responsible Minerals Initiative (RMI) participated on a panel at VivaTech 2021 titled, “Producing Responsibly, From the Ground Up.” The RMI discussed how it helps companies evolve in terms of responsibility and sustainability, common challenges companies face when it comes to responsible sourcing and production, and how we help ensure accountability.

ICC Meeting The RBA was invited to present its approach to supply chain due diligence to the International Chamber of Commerce’s Commission on Corporate Responsibility and Anti-corruption on May 27. RBA staff outlined RBA tools and programs, stressing how they help bridge policy and practice on supply chain due diligence.


Regional Conference on Migration On May 26, the RBA participated in the Central and North America Regional Conference on Migration (RCM) on “Exchange of Good Practices on Recruitment and Labor Protection of Migrants,” hosted by the government of Mexico (as the current President Pro Tempore of the RCM) and co-organized by the International Labour Organization (ILO) and the International Organization for Migration (IOM).

Cobalt Institute Conference On May 18 the RBA’s Responsible Minerals Initiative (RMI), as the Project Management Office for the Global Battery Alliance’s Cobalt Action Partnership, participated in the Cobalt Institute conference on the “ASM Contribution to Sustainable Development” panel, which focused on the contribution of ASM to sustainable livelihoods and how the industry is collaboratively engaging to achieve positive outcomes on the ground.

CLEPA Conference On May 5 the RBA’s Responsible Minerals Initiative (RMI) spoke at the annual CLEPA (European Association of Automotive Suppliers) conference, which brought together European automotive suppliers and stakeholders to discuss the latest trends in materials sourcing and regulation and their implication for the automotive value chain.

OECD Minerals Forum The RBA’s Responsible Minerals Initiative (RMI) co-hosted side sessions at the OECD Forum on Responsible Mineral Supply Chains, April 26-30. The topics included OECD-based due diligence in base metal supply chains, incorporating ESG into responsible sourcing and production, driving responsible ASM cobalt sourcing, and environmental due diligence, among others.

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AIAG CR Summit The RBA’s Responsible Minerals Initiative (RMI) spoke at the AIAG 2021 Corporate Responsibility Summit that was held on April 14-15. Nearly 1,700 automotive executives from several countries participated in this virtual event. RMI staff presented on requirements for compliance with the EU Regulation, tools for identifying high-risk areas and implications for Conflict Minerals Reporting Template (CMRT) completion.

IOE Event The RBA was invited to present its views during the Digital Consultation organized by the International Organization of Employers (IOE) on April 9, to inform the subsequent report of the UN Working Group on Business and Human Rights to the UN General Assembly on “International Investment Agreements (IIAs) and Human Rights.”

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

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ILO Sri Lanka Event On March 26 the RBA participated in an ILO event in Colombo, Sri Lanka on “Market Diversification from a Fair Recruitment and Decent Work Perspective.” The event was part of a series of moderated discussions aimed at informing key recruitment industry actors in Sri Lanka on labor market trends and stakeholder expectations related to forced labor, human trafficking and modern-day slavery.

UNU Country Policy Research Workshop The RBA’s Responsible Labor Initiative (RLI) was invited to participate in the United Nations University (UNU)’s Delta 8.7 Country Policy Research Workshop on Malaysia, held on January 21. Delta 8.7 is a global knowledge platform by UNU that explores what works to eradicate forced labor, modern slavery, human trafficking and child labor.


DATA ANALYTICS IN RBA-ONLINE Throughout 2021, the RBA Data Science team continued to add new capabilities to the organization’s online sustainability data management system, RBA-Online, in order to help member companies make better and more timely decisions. RBA members benefit from access to highly detailed data on their own audits and facilities as well as aggregate data from other factories and workforces around the world, for benchmarking and comparison purposes. The Data Science team has added dozens of new analytical capabilities including analyses of worker days of rest, consecutive days of work, Corrective Action Plan (CAP) analysis, facility Self-Assessment Questionnaire (SAQ) tracking, and more. The Data Science team also significantly upgraded the export function to give members greater control of and visibility into the raw data powering RBA-Online, which in turn provides members with greater insight and flexibility to craft their own solutions to complex operational issues.

RISK-BASED SELF-ASSESSMENT AND VERIFIED SAQ The RBA’s traditional self-assessment questionnaire (SAQ) was developed more than a decade ago, and updated in the years since, to support members in identifying risks in their supply chains. An obvious complication with using self-reported data to determine risk is that customer and stakeholder confidence in that data may be lower due to the self-reported nature of the disclosure. To improve the statistical correlation between SAQ scores and RBA’s comprehensive, third-party VAP audits, RBA staff engaged an expert on risk assessment to build a new SAQ that is more predictive of risk. This resulted in members having many more suppliers categorized as high-risk, and they were therefore required to audit more suppliers as part of their membership requirements. To help members narrow down the list of high-risk suppliers to a manageable number of audits, the RBA implemented controls in the SAQ to assess how well the supplier is mitigating the risks inherent to their business, in the country in which they are located. In association with the control questions, factories using the SAQ are now required to provide evidence of their mitigation efforts. For example, if they declare they have a policy of no recruitment fees, they are asked to provide the RBA with a full copy of that policy by uploading it in the system. To further assist members, the RBA is offering an SAQ verification service. This fee-based service provides a Quality Check of the evidence provided by the site to validate that the control measures in place adequately address the risk. This new process was piloted in Q3 and rolled out in Q4 2021.

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

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WORKER VOICE PLATFORM ROLLOUT RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

36

In 2021 the RBA rolled out its RBA Voices worker voice platform, launched at the end of 2020, which enables workers to answer customized survey questions and take trainings via more than 300 learning modules, all from their personal mobile devices. Since the rollout, workers have completed more than 50,000 surveys and 200 trainings. Worker surveys have also been integrated into the standard RBA VAP audit process and are now required as part of every VAP audit. In order to reach more workers, the RBA partnered with other organizations such WRAP, SAI, ICTI, Amfori and GAA, with a common goal of advancing worker voice in our respective industries. The group has worked to develop and deploy a worker survey tool, using the RBA Voices platform, which will assess the baseline of worker well-being in supply chains. The survey focuses on worker health, worker satisfaction, health & safety, working hours and worker engagement. It was deployed in Q4 2021, across multiple industries, reaching workers in Turkey, Bangladesh, Vietnam, Mexico, Italy, India, El Salvador, Guatemala and Indonesia. The initial results indicate the most prevalent problem, across all regions and industries, is excessive working hours. We are in the first phase of a planned multiyear effort and look forward to jointly publishing initial results from the survey in 2022.


VALIDATED ASSESSMENT PROGRAM (VAP) Audit quality and integrity is a top priority for the RBA, its members and their customers. The RBA met with experts in law enforcement, non-governmental organizations, and audit quality organizations to develop our VAP Integrity Assurance Program, which we rolled out in 2021. As part of this program, there are multiple integrity tests that could be applied to an audit to verify, to the best of our ability, the information provided in the final report. Some of the tests utilized by RBA staff include: Semi-Announced Audits and Shadow Audits For high-risk audits, the RBA may shadow an audit with or without prior notification to the auditor or the auditee. The shadow audit is outlined in the Operations Manual and is used as an oversight mechanism and auditor training tool. Shadow audits have a report of the auditor’s performance at the end, complete with a score. Depending on the score, the auditor could be required to take training to improve the quality of the audits.

Audit Score Alert The RBA has built-in notifications if an audit score is unusually high for the region where the audit was conducted. If an audit scores above the average for the region an alert is sent to the Director of Audit Operations to review the audit. If the audit score is significantly above the average, a notification is sent to the VP of Operations to review the audit. This ensures that audits with statistically higher scores than average for the region are reviewed to ensure the audit score is reflective of the site’s performance. Audit Scorecard Starting in 2022, each audit is given a score that rates the quality, time and professionalism of the auditor. Specific items rated include but are not limited to: on-time arrival by the auditor, correct VAP protocol applied, accurate assignment of severity to non-conformances, and meeting or exceeding the audit cycle time SLA. Each quarter, the auditor data is aggregated and provided to the audit firm as part of the Quarterly Business Review. Audit firms are also stack-ranked for quality and shown their place in the ranking.

37 RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

Double Quality Check A Double QC may be conducted after the final audit is complete. This could be done on an audit that receives a Platinum Recognition, or scores higher than the average audit score of the country, or for a high-risk site. During the double QC process, at least three pieces of evidence are selected by the Director of Audit Quality and acquired from the auditee, then a member of the QC team reviews the three pieces of information and cross-checks it with the data points in the audit reports.


VAP AUDITS: BY THE NUMBERS VAP AUDITS PERFORMED

AVERAGE AUDIT SCORE

n INITIAL AUDITS n CLOSURE AUDITS

n INITIAL AUDITS n CLOSURE AUDITS

1,304 348

1,013 352

984 266

956

172

168

161

139

136 122

661

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

38

2019

718

2020

2021

2019

2020

2021

The total number of VAP audits conducted increased from 984 in 2020 to 1,304 in 2021 and average audit scores continued to improve slightly compared with prior years

2021 AUDITS BY LOCATION

In 2021, factories in China continued to represent the majority (49 percent) of all audits conducted, with the next highest percentages of audits conducted in Chinese Taipei (7%), Thailand (5%), and India (5%).


VAP AUDITS: BY THE NUMBERS 2021 VAP FINDINGS BY SECTION

• Working Hours

17.95%

Other (29 sections below)

Energy Consumption • and Greenhouse Gas Emissions

1.81%

Legal and Customer • Requirements

1.86%

• Emergency Preparedness

Management • Accountability and Responsibility

11.19%

2.03%

Non-Discrimination •

2.11%

2.18%

• Food, Sanitation and Housing

3.41%

• Occupational Safety

8.53%

• Hazardous Substances

4.01%

• Wages and Benefits

• Occupational Injury and Illness

4.12%

7.32%

• Supplier Responsibility

• Freely Chosen Employment

6.37%

4.76%

Audits And Assessments

1.66%

Environmental Permits And Reporting

0.85%

Disclosure Of Information

0.40%

Industrial Hygiene

1.62%

Machine Safeguarding

0.81%

Intellectual Property

0.38%

Worker Feedback And Participation

0.79%

Company Commitment

0.31% 0.31%

Risk Assessment And Risk Management

1.51%

Child Labor Avoidance

1.33%

Pollution Prevention And Resource Reduction

0.73%

Protection Of Identity And Non-Retaliation

Improvement Objectives

1.26%

No Improper Advantage

0.69%

Humane Treatment

0.30%

Training

1.26%

Physically Demanding Work

0.54%

Privacy

0.26%

Communication

1.18%

Corrective Action Process

0.46%

Materials Restrictions

0.19%

Freedom Of Association

1.01%

Documentation And Records

0.46%

Water Management

1.01%

Responsible Sourcing Of Minerals

0.45%

Health And Safety Communication

0.91%

Solid Waste

0.90%

Fair Business, Advertising And Competition

0.41%

Business Integrity

0.40%

39 RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

Air Emissions •


VAP AUDITS: BY THE NUMBERS TOP FINDINGS IN COUNTRIES WITH THE MOST RBA AUDITS COUNTRY

SECTION

Freely Chosen Employment CHINA

Emergency Preparedness

5.6%

Occupational Injury and Illness

4.9%

Wages and Benefits

4.2%

Freely Chosen Employment CHINESE TAIPEI

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

40

5.6%

Occupational Injury and Illness

5.0%

Industrial Hygiene

4.3% 16.5%

Emergency Preparedness

5.6%

Wages and Benefits

4.6%

Occupational Injury and Illness

4.6%

Freely Chosen Employment MALAYSIA

16.0%

Emergency Preparedness

Freely Chosen Employment THAILAND

16.1%

16.1%

Emergency Preparedness

5.5%

Occupational Injury and Illness

4.9%

Supplier Responsibility

4.2%


VAP AUDITS: BY THE NUMBERS TOP 10 AVERAGE WEEKLY WORKING HOURS IN 2021

In 2021, Poland led with the highest number of average working hours per week (71.4), followed by China (54.8), Vietnam (53.2), Thailand (52.3), and Cambodia (52.2).

WORKING HOURS AT MEMBER AND NON-MEMBER FACILITIES

47.5

51.3

On average, workers in RBA member facilities work nearly four fewer hours per week than their counterparts in nonmember facilities. Member

Non-Member

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

41


BIENNIAL SENSING PROJECT The RBA has been conducting and refining its sensing assessment exercise since 2014. Results were so consistent year-over-year that in 2019 we decided to change this from an annual to a biennial project. Therefore, we are comparing 2021 results with those in 2019. Of course, since the last study in 2019, we had a global pandemic that caused massive disruptions to supply chains. We also witnessed a growing sense of urgency on multiple fronts related to climate change. As a result, we expected to see more movement than usual this time around, and the study did not disappoint. The study consists of quantitative and qualitative inputs to measure the importance/relevance of 32 issues to companies and stakeholders. Every one of these issues is important, but some were more relevant to our members’ supply chains in 2021 and thus more of a focus than others. For 2021 we added “Supply Chain Resilience” to the list of issues tested and removed “Biodiversity;” because that issue ranked lowest every year since we started this in 2014. In the sensing maps on the opposite page, the further to the right an issue is, the more important it is to our members and the higher it is, the more important it is to stakeholders. For the purposes of this exercise, we are most interested in identifying issues that are in, or are moving toward, the upper-right quadrant because those are most important to members and stakeholders.

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

42

Forced Labor and Human Trafficking remained the top-rated issue for the fifth time in a row and rose on the heat map both in 2019 and then again in 2021. Three of the top five issues for 2021 also appeared in the top five in 2019 – Forced Labor and Human Trafficking, Climate Change, and Conflict Minerals. In fact, Conflict Minerals has appeared in the top five for the past four times in a row. Climate Change, which was the first environmental issue ever to make it to the top five in 2019, rose to number two in 2021. And the newest addition to our issue list, Supply Chain Resilience, made it into the top five in its debut showing.

TOP 5 ISSUES OVERALL FOR 2021 AND 2019 in descending order

2021

2019

1. Forced Labor and Human Trafficking

1. Forced Labor and Human Trafficking

2. Climate Change

2. Working Hours

3. Ethical Sourcing of Raw Materials

3. Safe Use of Hazardous Substances and Chemicals

4. Conflict Minerals 5. Supply Chain Resilience

4. Conflict Minerals 5. Climate Change

The biggest movers in a positive direction (upward and/or toward the right) in 2021 were: Nondiscrimination, Ethical Sourcing of Raw Materials, Climate Change, and Emergency Preparedness. The biggest movers in a negative direction (downward and/or to the left) in 2021 were: E-waste, Waste and Effluents, Young (Student) Workers, Safe Use of Hazardous Substances and Chemicals, Diversity and Equal Opportunity, and Child Labor.


RBA 2021 SENSING ASSESSMENT MAP

n

Labor and Human Rights

n Health and Safety

n Environment

n Governance and Ethics

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

43 RBA 2019 SENSING ASSESSMENT MAP

n

Labor and Human Rights

n Health and Safety

n Environment

n Governance and Ethics


MEMBERSHIP GROWTH The RBA’s membership experienced extraordinary and unprecedented growth in 2021, with 41 companies joining to bring the total number of RBA members, not counting RLI, RMI and RFI member companies, to 200 by year end. The RBA saw continued growth from Europe (specifically, Denmark, Germany, Sweden, Switzerland and the UK) and Japan, South Korea, Chinese Taipei, the U.S. and Canada. New members also joined for the first time from Finland and India. The chart below displays distribution of all RBA members’ headquarters in 2021.

RBA MEMBERS’ HEADQUARTERS IN 2021

NORWAY, MALAYSIA, INDIA, HONG KONG, FINLAND, DENMARK, BRAZIL, AUSTRALIA FRANCE

0.5% each

1.0%

SWITZERLAND

1.5%

UNITED KINGDOM

2%

CHINA

2.0% SINGAPORE

2.0%

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

44

CANADA

2.5%

NETHERLANDS

3.0%

SWEDEN

3.0%

KOREA

3.5%

2021

GERMANY

4.0%

CHINESE TAIPEI

9.5%

JAPAN

10.0%

• USA

52.0%


FY 2021 FINANCIAL HIGHLIGHTS 13%

OTHER

FY 2021 OPERATING REVENUE

$21,129,850

17%

• •

RMI

36%

MEMBERSHIP DUES

34%

VAP AUDITS

FY 2021 OPERATING EXPENSES

31% •

ISSUES MANAGEMENT

$19,082,458

53%

COMPLIANCE

9% •

ADMINISTRATION

5% •

LEARNING & CAPABILITIES

*The RBA’s fiscal year runs from January 1 through December 31.

2%

MARKETING & COMMUNICATIONS

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

45


BOARD OF DIRECTORS AND STAFF BOARD OF DIRECTORS 2021 Joan Motsinger RBA Board Chair, and Senior Vice President, Business Sustainability and Transformation Seagate Technology

Adam Schafer RBA Board Vice-Chair, and Director, Supply Chain Sustainability Intel Corporation

Kathleen Shaver RBA Board Treasurer, and Director, Environment and Supply Chain Innovation Apple Inc.

HyeJu Lee Vice President, Compliance Amkor Technology, Inc.

Joel Eurich

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

46

Vice President, Global Compliance and EH&S Molex

Anna Meegan Head of Sustainability, Google Hardware Google

Susan Moore Corporate Vice President, Corporate Responsibility & Government Affairs AMD

Eric-Paul Schat Senior Director, Sustainability, Environmental Health & Safety NXP Semiconductors

Larry Senger Vice President, Supply Chain Assurance Dell Technologies

Mitsu Shippee Senior General Manager, Head of Sustainability Dept. Sony Group Corporation

Sue Slaughter Global Director, Supply Base Sustainability Ford Motor Company


RBA STAFF AS OF MAY 2022 Rob Lederer

Andy Chiu

Ronnie Tan

Deborah Albers

Daniel Reid

Cinlla Huang

Vice President of Operations

Bob Mitchell

Director of Audit Assurance Director of Environment and Circularity

Vice President of Human Rights and Environment

Alexandra Cech

Hamlin Metzger

Bobby Terrell

Vice President of Membership and Stakeholder Engagement

Anna Pienaar

Executive Director of the Responsible Labor Initiative

Jennifer Peyser

Vice President of Responsible Sourcing

Christine Briscoe

Sr. Director of Member Services

Jarrett Bens

Sr. Director of Communications

Kenneth Anderson

Sr. Director of Information Technology

Jack Cutts

Sr. Director of Data Analytics

Marianna Smirnova

Sr. Director of Standards and Assurance

Fabiana Di Lorenzo, Ph.D. Sr. Director

Bart Devos

Director of Responsible Sourcing Director of IT Operations

Yakut Oktay

Director of Audit Operations – Automotive

Khai Yau Chua

Senior Program Manager

Ka Ea Lim

Senior Program Manager

Sandra Carvalho

Asia Compliance Manager Quality Assurance Manager

Whitney Chan

Quality Assurance Manager

Madeleine Richter-Atkinson Membership Coordinator

Adriana Escobar

Events and Membership Coordinator

Prudence Ukwishatse

RMI Quality Assurance Specialist

Eric Lin

RMI Program Specialist

Charles Teh

VAP Program Specialist

Senior Audit Program Manager – Minerals

Shelita Bradshaw-Cortez

Sherlin Shi

Kyle Rand

Mann Chyun Sim

Jacob Lee

Neil Humphrey

Chee Keong Lai

Ross Landis

Steve Moloney

Surya Herny Mahdzir

Malcolm Boardley

Senior Account Manager Senior Account Manager Marketing Manager Database Project Manager VAP Program Manager

RMI Audit Program Coordinator Software Support Technician Software Support Technician Senior Consultant

Chief Financial Officer Senior Accountant

Sr. Director of Public Policy and European Affairs

Manager of RMI Member Services

Gavin Wu

Anastasiia Olvera

Juan Carlos Martinez

Diana Trigo

Alexi Holmes

Laura Landrau

Anna Stancher

Director of Audit Operations Director of Events and Internal Operations

David Yeung

Director of Training Services

RMI Quality and Training Manager RMI Project Manager

Dana Battistello

IT Service Manager

Cici Ye

Quality Assurance Manager

Sr. Accounting Manager Accounting Clerk

47 RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

Chief Executive Officer


RBA MEMBERS AS OF MAY 2022 The RBA has four membership categories: Full, Regular, Affiliate, and Supporter. View the requirements of each category on our website. Full and Regular members as of May 2022 are designated by an “F” or “R” following their company names below. The most current list can be found on our member page. AcBel Polytech Inc. - R

Fabrinet - R

Media-Saturn-Holding GmbH

Sierra Wireless, Inc. - R

Acer Inc. - R

Fairphone B.V.

Meta

Signify - R

Advanced Micro Devices - F

First Solar Inc. - R

Silicon Motion Technology Corp.

Advania AB - R

Fitbit, Inc. - R

Microchip Technology Incorporated

Allegro MicroSystems

Flex - R

Micron Technology, Inc. - R

Simatelex Manufactory Co. Ltd.

Alphabet Inc. - R

Ford Motor Company - R

Altria Client Services LLC

Foxconn - R

Mitsubishi Electric Corporation

Amazon.com Inc. - R

FUJIFILM Business Innovation Corp.

ModusLink Molex - R

Fujitsu Limited

Monolithic Power Systems, Inc.

Funai Electric Co., Ltd. - R

Motorola Solutions, Inc. - R

GlobalFoundries - R

Navico

HARMAN International

NetApp - R

Hasbro, Inc. - F

Netgear - R

Hewlett Packard Enterprise - F

New Kinpo Group - R

Hexagon AB

Nexperia

Sumitomo Electric Industries, Ltd.

Hi-P (Xiamen) Precision Plastics Manufacturing Co., Ltd.

Nielsen

Symantec

Hisense USA Corporation - R

Nikon Corporation

Synopsys, Inc.

Nokia Solutions and Networks Oy

Taiwan Chinsan Electronics Industrial Co., Ltd. - R

Huawei Technologies Co., Ltd. - R

Nordic Semiconductor ASA

Hyve Solutions - R

NXP Semiconductors - F

Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) - F

Amkor Technology, Inc. - R Amphenol Corporation ams OSRAM Analog Devices, Inc. - R Apple, Inc. - F Applied Materials - R Arista Networks, Inc. - R ARRIS - F ASE Technology Holding Co., Ltd. ASM International - F ASML Holding - R ASUSTeK Computer Inc. - F Atea ASA - R Avaya Inc.

RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

48

Best Buy - F Beyondsoft International (Singapore) PTE LTD

HP Inc. - F

IBM Corporation - R Infineon Technologies Americas Corp. - R

Nvidia Corporation - F onsemi - F Onto Innovation Inc. Oracle America, Inc.

Simplo Technology Co., Ltd SK hynix Inc. - R Sky CP Ltd Skyworks Solutions, Inc. - F SMART Global Holdings - R Snap, Inc. - R Sonos, Inc. Sony Group Corporation - F STMicroelectronics N.V. - F

TCL North America - R TDK Group Technicolor SA - R

Palo Alto Networks

Techtronic Industries Company Limited

Panasonic Holdings Corporation

Teradyne, Inc.

Pegatron - R

Tesla, Inc.

Philip Morris International

Texas Instruments - R

Philips - R Plexus Corp. - R

3M Electronics and Energy Business Group

Polestar Performance AB

Tokyo Electron Limited

Poly

Toshiba Corp. - R

Positivo Tecnologia S.A.

Trimble Inc. - R

Powertech Technology Inc. - F

TT Electronics Plc

Pure Storage, Inc.

Universal Electronics, Inc.

Qorvo, Inc. - R

Veritas - R

Qualcomm - F

VIAVI Solutions Inc.

Quanta Computer Inc. - R

Vishay Intertechnology, Inc. - R

Rambus, Inc. - R

Vitesco Technologies GmbH

Renesas Electronics Corporation

VIZIO Inc. - R

Ricoh Company Ltd.

Volvo Car Group

Roku, Inc.

V.S. Plus Sdn Bhd

Compal Electronics, Inc. - R

KYOCERA Document Solutions Inc. - R

Samsung Display

Walmart

Continental AG

Lam Research Corporation

Samsung Electronics - R

Western Digital - R

Dell Technologies - F

Lenovo - R

Sanmina - R

Wistron Corp. - R

Dustin AB

Lexmark - R

Schneider Electric

Xerox - R

Easee - R

LG Display

Seagate Technology - F

XP Power - R

Eaton Corporation

LG Electronics - R

Seiko Epson Corporation - R

Zagg Inc.

ecobee, Inc.

LG Energy Solution

Semtech Corporation

Edwards Ltd - R

Logitech Inc. - R

EIZO Corporation

Longwell Company - R

Senju Metal Industry Co., Ltd. - R

Zebra Technologies Corporation - R

Element TV Company, LP

Lumentum Holdings Inc. -R

SFO Technologies Pvt Ltd

Ericsson - R

Marvell Technology Group Ltd - R

Sharp Corporation

Block, Inc. BMW Group Bosch Sensortec GmbH - R Bose Corporation - R Broadcom Inc. Brother Industries Ltd. BT plc Bullitt Group Ltd Cadence Design Systems Canon Inc. - R Celestica - R ChargePoint, Inc. Chicony Electronics Co., Ltd. - R Ciara Technologies Ciena Limited - R Cirrus Logic, Inc. Cisco Systems Inc. - F Citrix Systems

Insulet Corporation

Microsoft - R

Siltronic AG

Intel Corporation - F Inventec Corporation - R iRobot Corporation Jabil - F JB HI-FI Limited JK Imaging Ltd. - R Juniper Networks - R Keurig Dr Pepper Key Foundry Co., Ltd. Keysight Technologies, Inc. Kingston Technology Kioxia Holdings Corporation - R KLA Tencor - R Konica Minolta, Inc. - R Kyndryl KYOCERA AVX Components Corp.

Zhen Ding Technology Holding Ltd ZTE (USA), Inc. - R ZT Systems


RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

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To learn more about the RBA, visit ResponsibleBusiness.org and contact us at membership@responsiblebusiness.org.


RESPONSIBLE BUSINESS ALLIANCE 2021 ANNUAL REPORT

4

responsiblebusiness.org


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Articles inside

RBA Members

3min
pages 50-52

Validated Assessment Program (VAP

2min
page 39

Worker Voice Platform Rollout

1min
page 38

Stakeholder Engagement

1min
page 24

RBA On The Move

10min
pages 30-36

Project Uplift: A Worker-Relief Fund

1min
page 25

RBA Meetings And Events

2min
pages 28-29

Training And Capability-Building

2min
pages 26-27

Public Policy

2min
page 23

Responsible Labor Initiative

6min
pages 4-7

Responsible Factory Initiative

2min
pages 16-17

Responsible Minerals Initiative

18min
pages 8-15

Regional Networks

1min
page 18

Environmental Sustainability

4min
pages 20-21

Advisory Services

1min
page 19

Process Chemical Management

2min
page 22

Message From The CEO

2min
page 3
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