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2016 SUSTAINABILITY REPORT

Managing our supply chain to
promote responsible behavior and
reduce impacts from sourcing
raw materials.

Supply Chain Practices
To meet the needs of our diverse markets, ESCO sources a wide variety of raw materials and components. We carefully select suppliers that meet our standards for ethics, quality and responsibility. As we continue to advance our work, we are confident this approach will best position ESCO for long-term growth and success.
Our Supply Chain

Our subsidiaries require a wide variety of materials to meet our customers’ needs. While we source some components from multiple vendors, we rely on a limited number of suppliers for others. ESCO monitors the risks and benefits of these partnerships and works to maintain a balanced, sustainable supplier portfolio.


Supplier Responsibility & Expectations

ESCO expects our suppliers to operate with the same commitment to integrity and respect as do our own employees. We have worked to build a stable supply chain that minimizes environmental impact and respects human rights. Our Vendor Code of Conduct details the sustainability standards we expect all suppliers to meet. These include:

  • Compliance with anti-corruption laws
  • Compliance with fair competition laws,
    Environmental Health & Safety (EH&S) regulations, trade controls and export/import requirements
  • Maintaining a professional demeanor
  • Refraining from offering gifts, bribes or
    other incentives
  • Respecting ESCO’s intellectual property rights
  • Honestly billing for products and services
  • Refraining from public communications about
    ESCO unless authorized
  • Sharing ESCO’s commitment to human rights
    and fair labor

In addition, ESCO’s Transparency in Supply Chains Disclosure states our promise to refrain from doing business with any vendor we know to be involved in human trafficking or slavery.


Conflict Minerals

At the core of ESCO’s culture is our commitment to creating products and solutions that advance society. In doing so, we have a responsibility to prevent any indirect impacts of our work that could cause harm to others. ESCO is sensitive to the human suffering and environmental damage associated with mining activities in the Democratic Republic of Congo and adjoining regions.

Eliminating conflict minerals is a complex endeavor, especially for companies such as ESCO that have thousands of suppliers. Nevertheless, we are collaborating with our suppliers to identify and correct the unintentional procurement of products with conflict minerals. Our Conflict Minerals Policy outlines ESCO’s expectation that all suppliers cooperate in this effort.

In collaboration with suppliers, we use a five-step approach to conflict minerals management:

  • Establish strong company management systems
  • Identify and assess risks in the supply chain
  • Design and implement a strategy to respond to identified risks
  • Carry out independent, third-party audits of smelters’/refiners’ due diligence practices
  • Report annually on supply chain due diligence

Our ESCO Conflict Minerals Report for 2015 provides additional discussion on our actions in each of these areas. It also includes a comprehensive list of each of the smelters from which we source, and their compliance status with our standards.


Corporate Resources

Corporate Resources


ESCO Conflict
Minerals Report for 2015

ESCO Transparency in
Supply Chains Disclosure

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