CDMA is a major wireless communications standard that enables mobile devices to send and receive voice or data. In essence, cellular phone vendors are unable to have their phones connect to 3G networks without paying a royalty to Qualcomm. Qualcomm operates in a “fabless” production model, meaning the company outsources the production of its integrated circuits. With this production model, strong supplier guidelines are imperative for good environmental management. All of Qualcomm’s suppliers are required to have environmental management systems certified to ISO 14001 standards. The company is currently an applicant for membership in the Electronic Industry Citizenship Coalition (EICC) and will move towards full membership when all of its suppliers adopt the EICC’s Code of Conduct, which promotes safe working conditions, respectful treatment of workers, and responsible environmental operations. Qualcomm also requires its suppliers to source minerals from smelters and refiners on the Conflict-Free Smelter list when applicable.
Portfolio 21 has asked the company to further improve upon its supply chain initiatives by initiating third-party audits and disclosing key performance indicators for its suppliers’ environmental metrics.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/13 and may not reflect current opinions or subsequent events.