CORPORATE RESPONSIBILITY

 
Product Delivery

We continually seek new ways to minimize our environmental footprint by consciously improving our product packaging and delivery methods. We comply with all applicable laws and regulations in the countries where we operate. And we diligently work with our suppliers to ensure a compliant supply chain.

Planning

Before we bring a new product to market, we produce a prototype and thoroughly qualify it. During the planning phase, we take compliance issues into consideration and screen each component for materials availability. Some product groups use tools, such as materials analyzers, to confirm that only non-restricted materials are used.

For our System Level Products, our manufacturing process engineers work with customers to diagnose problems and find solutions before the product goes to market. In Silicon Products, we work closely with contracted silicon suppliers and package and assembly houses to ensure that each new generation of product meets high standards of reliability before it is manufactured.

As part of the planning cycle, our teams confirm that we are adhering to all appropriate import and export licensing regulations so we can sell and ship our products to our customers worldwide without restriction.

Compliance

Reduced Hazardous Substances

Our regulatory and certification guidelines for hazardous substances include:

  • EU RoHS: European Union regulations for restricted hazardous substances.
  • EU REACH: European Union regulations for safe chemical use (regarding registration, evaluation, authorization and restriction).
  • EU ELV: European Union regulations for managing hazardous substances and end of life for automotive products.
  • Halogen-free: Products designed after 2008 are halogen-free. Our new-generation chip products also are free of brominated flame-retardants.
  • ISO 14001:2004: All key suppliers are required to be independently audited and certified for conformance to this standard.
  • OHSAS18001: All key suppliers are required to be independently audited and certified for adherence to this health and safety management system standard (GB/T28001-2011 in China).

The environmental performance section of this report contains information about the various compliance programs in which NVIDIA participates.
Our growing business in producing system-level products means that we have additional compliance responsibilities including:


In anticipation of the 2016 implementation of RoHS Recast III, we are voluntarily restricting the use of phthalates in our products.

Where appropriate, we review and make changes to bills of material to ensure that our products meet customer and legislative requirements while delivering optimal performance. In addition, we have specific agreements for environmental compliance with specialized suppliers.

We routinely incorporate third-party lab inspections into our process to verify compliance with applicable standards. We engage an external consultant to benchmark and review our practices, and we participate in joint industry training activities so we can align our practices with customer and industry expectations.

Conflict Minerals

We are taking an active role to support the Dodd-Frank Wall Street Reform and Consumer Protection Act with regard to conflict minerals. Visit the Supply Chain Responsibility section to learn more about our response.

Packaging

Every new product we ship provides an opportunity to reduce packing materials and increase the proportion of recyclable materials used. Whether products are packaged for end-users or prepared for bulk shipping, we design our containers to maximize package density and reduce overall package size. We also use recycled content in our packing materials and, for bulk shipments, we re-use materials as often as possible.

In 2014, we made progress toward reducing waste in our consumer packaging through consolidating printed legal documentation, designing more accurate box sizes, and designing greener packaging for items sold through e-tail channels. In 2015, we will strive to more closely align packaging needs with international product requirements and take a more global perspective with quick-start guides by adding more imagery and less translated text.

Examples of our efforts to recycle and reduce packaging include:

  • Using 100 percent recycled fibers for 80 percent of our consumer packages and 100 percent of bulk packaging.
  • Using printing inks that are vegetable-oil based, of petroleum based.
  • Reusing moisture-barrier bags, trays and cartons whenever feasible.
  • Designing our outer and inner boxes to increase units per pallet and eliminate end caps and packing foam.
  • Using suppliers that leverage distribution centers to minimize the shipping footprint of packing/packaging materials.
  • Shipping accessories directly to the distributor for end-point assembly, wherever possible.
  • Applying materials labels to 100 percent of our packages to simplify consumer recycling.
  • Leveraging existing packaging for return merchandise authorization support when feasible.

We strive to maintain a balance of protecting the environment and ensuring that our customers receive their products in excellent condition.

Our key bulk and consumer packaging suppliers are compliant with NVIDIA’s Environmental Compliance Certification for Forestry Stewardship Council, ROHS, and REACH certifications.

We closely monitor the cost savings associated with packaging-related process improvements, and our goal for future years is to track the environmental impact of these efforts.

Logistics

The methods we use to plan, pack and execute our raw material, work-in-progress, and finished-goods shipments have a significant effect on our carbon footprint. Fuel represents a major component of our overall freight costs, and our continuous focus on optimizing our supply chain and reducing freight expenditures has resulted in cost savings and a positive impact on the environment.

Logistics optimization efforts include:

  • Implementing consolidation programs to efficiently configure packing and reduce the number of pick-ups and deliveries.
  • Overseeing subcontractor packing to ensure that cartons and pallets are fully packed and efficiently unitized.
  • Using lightweight paper or cardboard pallets to reduce shipment weights, where feasible.
  • Implementing a multimodal (ocean/truck) replenishment program within the United States and retail distribution outside of the U.S.
  • Instituting a balanced supplier scorecard that includes a category awarding points for our suppliers’ participation in environmental initiatives.
  • Implementing reverse logistics solutions that use onsite or regional failure verification and/or repair to streamline product returns and eliminate international shipments.

We continue to gather data from shipping partners related to the carbon emissions of our shipments from air, land and sea. Our goal is to determine the appropriate metric by which to target reductions.