Corporate Social Responsibility Report | 2017 Table of Contents
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Corporate Social Responsibility Report | 2017 Table of contents INTRODUCTION 3 GLOBAL COMMUNITY A message from Alain Monié 4 DEVELOPMENT HIGHLIGHTS 38 About Ingram Micro 5 How we deliver value 6 ENVIRONMENTAL AND SUPPLY CHAIN Our operations at a glance 7 RESPONSIBILITY 43 About our approach 9 Risks and opportunities 44 Corporate governance 9 Materials 45 External frameworks 9 Waste and recycling 46 Memberships 10 Water 50 Precautionary principle 10 Energy and emissions 51 Stakeholder engagement 11 Supply chain 56 Operational changes 16 Reporting scope and boundaries 16 OUR GOALS 58 Materiality 16 About this report 18 2017 MARTHA INGRAM LEADERSHIP AWARD 59 FAIR BUSINESS PRACTICES 19 Compliance risk management 20 APPENDICES 60 Fair business training and communication 21 Appendix A: Global subsidiaries 61 ISO 37001:2016 verification 22 Appendix B: Country-level data 65 At a glance 23 Appendix C: Data summary 67 Appendix D: GRI index 70 OUR ASSOCIATES 24 Our workforce by the numbers 25 Diversity and inclusion 27 Learning and development 31 Workplace safety management 33 Program expansion 33 Safety management approach 34 Occupational injuries and illnesses 34 Injury prevention and engagement 35 Community support and development 36 Introduction | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 3 A message from Alain Monié A message from Alain Monié Ingram Micro had much to celebrate in 2017. We grew our business to more than $46 billion in gross annual revenues, expanded our Advanced Solutions offerings, broadened our global logistics infrastructure and surpassed two million active seats on our cloud marketplace. In addition, we successfully completed ISO 37001:2016 verification of our anti-bribery management system, received TCO certification for our private label V7 displays and trained nearly 500 associates on our sustainability data management platform. In a year of geopolitical unrest, we continued an integrated sustainability management system in the long- to live our values through focused local term. We’ll continue to improve in the areas of corporate philanthropic outreach and other initiatives— responsibility that our stakeholders have identified as the connecting people across the world through most important, including energy and emissions, waste technology, growing our women’s leadership and materials, supply chain responsibility, safety, diversity initiative and following the principles of the and communities. In this report, we detail our 2017 CSR U.N. Global Compact. For the first time, we evaluated our performance, including accomplishments and challenges. corporate responsibility initiatives against the U.N. Sustainable Where we didn’t meet our objectives, we’ll explain why. Development Goals, as you’ll see throughout this report. While we’re proud of our achievements, we’re cognizant that Sadly, for many of the communities in which we operate, there’s more to do. We see opportunities to further leverage 2017 was a devastating year. Wildfires, floods, mudslides, technology to develop sustainable solutions in collaboration earthquakes and droughts caused damages in excess of $300 with associates and partners; improve data management, billion in the U.S. alone, with a long road to recovery still ahead. learning and knowledge-sharing; continue to expand It was a stark reminder that balancing economic endeavors with technology services as an alternative to the transactional sales environmental impact reduction must remain a priority for us model; and engage with additional stakeholders for feedback. all. In response to the effects of these disasters on some of our I believe our second annual CSR report provides clarity about own associates, and to better achieve our overall philanthropic our journey toward more sustainable practices as we continue outreach goals, Ingram Micro created a donor-advised fund to help businesses fully realize the promise of technology. with an initial deposit of $300,000, allowing us to provide financial relief directly to our associates and their families. As we look ahead, we’re building on the CSR strategy we developed in 2016: focusing on systems, standardization and awareness in the short-term; increasing engagement with external stakeholders in the medium-term; and developing | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 4 About Ingram Micro About Ingram Micro Ingram Micro’s core values guide Ingram Micro, headquartered in Irvine, Calif., delivers a operators and other customers through unique marketing all aspects of our full spectrum of global technology and commerce and programs, outsourced logistics and device lifecycle services, business and include: fulfillment services to businesses around the world. Our technical support, financial services, product aggregation and global infrastructure and deep expertise in technology distribution, solutions creation and cloud service models. We’re • Innovation solutions, mobility lifecycle services, commerce and fulfillment a privately held portfolio company of HNA Group. • Accountability solutions, and cloud services help our business partners to operate efficiently and successfully in the markets they serve. Ingram Micro operates advanced logistics centers in the United • Integrity We’re the largest wholesale technology distributor based on States, Canada, Australia, Germany, the Netherlands, France • Teamwork and respect revenues and a global leader in supply chain management, and the United Kingdom, as well as three shared services • Learning commerce and fulfillment, and device lifecycle services. As a centers in Bulgaria, Costa Rica and the Philippines. Our largest vital link in the technology value chain, we create sales and administrative offices are in the United States (Irvine, Calif., • Social responsibility profitability opportunities for vendors, resellers, mobile network and Williamsville, N.Y.) and in Germany (Dornach). | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 5 How we deliver value How we deliver value In 2017, we combined our mobility and lifecycle services and our commerce and fulfillment solutions businesses to accelerate growth, promote best practices and further elevate service excellence. In addition, our cloud marketplace surpassed 2 million active seats. Ingram Micro now operates three distinct business units: Technology Cloud Services Commerce & Lifecycle Solutions Enablement Solutions (a newly formed business unit) Technology and value-added Solutions for communication services to simplify and accelerate and collaboration, Commerce and fulfillment services, complex sales channels, increase security, infrastructure, leveraging our global network of efficiency and create a competitive business applications, and distribution centers, robust service- edge for our partners cloud management delivery platform, enhanced order fulfillment, returns logistics and online payment services as well as IT asset disposition (ITAD), lifecycle services, onsite data destruction and e-waste recycling services Together, these businesses employ more than 33,000 associates in 57 countries and generated over $46 billion in net sales in 2017. We’ve also delivered social value by investing more than $740,000 into disaster relief and local community development. | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 6 Our operations at a glance OUR OPERATIONS Total compensation paid 200+ $ CLOUD SOLUTIONS AT A GLANCE: 34 1.74 billion DISTRIBUTION CENTERS 138 ADMINISTRATIVE FACILITIES 110 WAREHOUSES APPROXIMATELY 3,000 14 SUPPLIERS ADVANCED LOGISTICS CENTERS Net sales: $46.63 billion 2,000 VENDORS NEARLY 20 million ft2 /1.86 MILLION M2 IN TOTAL FLOOR SPACE 200,000+ CUSTOMERS 26 Gross profit REPAIR CENTERS $2.95 billion 700,000+ CATALOG ITEMS Number of associates: CUSTOMERS IN ~160 33,000+ COUNTRIES SHIP 500+ million ITEMS PER YEAR | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 7 NORTH AMERICA Canada Our customers United States ` Resellers of IT products and services ` Mobility companies COUNTRIES ` Value-added and OF OPERATIONS corporate resellers ` Retailers BY REGION ` Custom installers LATAM ` Systems integrators Argentina Brazil ` Mobile (virtual) Chile network operators Colombia Ecuador ` Direct marketers Mexico Peru ` Internet-based resellers Uruguay ` Independent agents and dealers EMEA Norway ` Product category specialists Austria Oman Belgium Pakistan APAC Australia ` Reseller Croatia Poland Bangladesh purchasing associations Czech Portugal Cambodia Republic Russia China ` Managed Denmark Saudi Arabia Hong Kong services providers Egypt Serbia India Finland Slovakia ` Cloud services providers Indonesia France Slovenia Malaysia Germany South Africa ` PC assemblers New Zealand Hungary Spain Philippines ` IT and mobile Italy Sweden Singapore device manufacturers Lebanon Switzerland Sri Lanka Luxembourg Turkey Thailand ` Other distributors Macedonia United Arab Emirates Vietnam Morocco United Kingdom Netherlands | Introduction Fair business practices Our associates Environmental and supply chain responsibility Our goals Appendices 8 About our approach Ingram Micro’s executive leadership team Corporate governance External frameworks About our approach Corporate governance