Supplier sustainability audits
The Supplier Sustainability Program includes an audit cycle in order to provide both NXP and Suppliers with a regular status overview of conformance with the Declaration.
The audit is the evaluation process conducted by an NXP in-house or external EICC-certified auditing body in order to determine the Supplier‘s level of conformance and the critical areas of improvement. NXP auditors are qualified auditors. In order to give a representative picture of a Supplier‘s overall sustainability performance, audits are not restricted to production lines which are set up exclusively for NXP products but cover an entire Supplier site.
Audits will be based on the EICC audit tool. Suppliers who have more EICC members as customers will be audited by EICC-certified third-party audit firms because such audits allow Suppliers to share the audit reports with the EICC organization. For the purpose of confidentiality, results of audits performed by NXP auditors are shared with the Supplier but are not disclosed to the public or to other EICC members without permission of the Supplier.
Audit selection
The Suppliers to be included in the audit program are determined centrally based on the individual Supplier‘s risk profile.
Audit preparations
The Supplier is encouraged to use both the EICC Supplier Self-Assessment Questionnaire as well as the EICC audit tool as an audit-preparation instruction. This is to allow the Supplier to prepare the audit properly, to have the necessary documentation and relevant information available, and to take corrective action where necessary before the actual audit takes place.
The audit process may be aborted if the information required is not available on site. NXP will treat such absence as a major non-conformance.
Audit scheduling
Suppliers will be informed by their NXP Lead Buyer when an audit is required, including the related timeline within which an audit is to take place.
The audits are scheduled by the auditing body in consultation with the Supplier within the timelines indicated by NXP.
Announced versus unannounced audits
As a rule, audits are announced to the relevant Suppliers beforehand. However, NXP reserves the right to conduct or have conducted on its behalf unannounced audits. NXP may conduct unannounced audits particularly to substantiate specific Supplier-related allegations concerning unsustainable practices.
These audits are initially financed by NXP. NXP will claim back the audit costs from the Supplier if major non-conformances are established during these audits.
Audit team
The composition and qualifications of the audit team are to be determined by the auditing body. The NXP Lead Buyer cannot be a member of the audit team. He or she will only have an observational role and will limit his or her activities to the logistics arrangements to prevent any possible conflict of interest.
Audit procedure
Each audit will include the following standard elements:
- Introductory meeting
- Management interviews
- Evaluation of documentation
- Factory tour
- Employee interviews
- Feedback session
Audit report
The audit report provides a detailed overview of all audit findings, as discussed in the feedback session.
Upon receipt of the audit report, Supplier will immediately grant NXP access to this report, either by providing a copy or by granting digital access through the EICC database in order to enable evaluation of the draft CAP.
Audits
There are three types of audits:
- Initial Audit: conducted with all NXP Suppliers who are eligible for such an audit
- Resolution Audit: performed to formally review and ‘close‘ any ‘major non-conformances‘ that are raised in the Initial Audit
- Conformance Audit: conducted to ensure continuous Supplier conformance with the Declaration
Initial Audit
An Initial Audit is conducted with all NXP Suppliers who are eligible for such an audit.
The Initial Audit is a full audit, which means that during this audit the Supplier‘s business conduct is evaluated and conformance levels with respect to the Declaration are established.
Resolution Audit
A Resolution Audit is performed to formally review and ‘close‘ any ‘major non-conformances‘ that are raised in the Initial Audit.
The Resolution Audit is a focused audit, which means that the audit will focus on the ‘major non-conformances‘ that were found during the Initial Audit.
Continuing Conformance Audit
Conformance Audits are conducted to ensure continuous Supplier conformance with the Declaration. The Continuing Conformance audit is a full audit.
Timeline Resolution Audit
If there are one or more “major non-conformances”, the Resolution Audit will be performed 3 months after the agreed resolution time documented in the CAP. In the event of more than one non-conformance, the longest resolution time will be used to determine the Resolution Audit date.
In the event of “minor non-conformances”, no Resolution Audit is required. In that case resolution will be monitored by the Programs & Systems Management Office of NXP Purchasing.
Timeline Continuing Conformance Audit
12 months
If the Initial Audit has shown “major non-conformances with zero tolerance”, the Continuing Conformance Audit is to be conducted at most 12 months after the Resolution Audit date.
24 months
If the Initial Audit has shown “major non-conformances with limited tolerance”, the Continuing Conformance Audit is to be conducted at most 24 months after the Resolution Audit date.
48 months
If the Initial Audit has raised only “minor non-conformances” or no or only low-risk violations, the Continuing Conformance Audit is to be conducted at most 48 months after the Initial Audit date.
Frequency of Audits
| Progress check against milestones | Resolution Audits | Continuing Conformance Audits | |
| Major non-conformances with zero tolerance | According to milestones determined in CAP | 3 months after the longest resolution time laid down in the CAP | 12 months after the Resolution Audit date |
| Major non-conformances with limited tolerance | According to milestones determined in CAP | 3 months after the longest resolution time laid down in the CAP | 24 months after the Resolution Audit date |
| Minor non-conformances | No Resolution Audit, monitoring takes place in QBRs | 36 months after the Initial Audit date |