Engaging with Nvidia on Employee Wellbeing and Responsible Sourcing
Nvidia's rapid growth has helped make it one of the most influential companies in the world. With growth comes responsibility.
In this latest Castlefield stock update, we explore our recent engagement with the leading chip-maker on issues including employee wellbeing and responsible sourcing. Castlefield's Chief Stewardship Officer, Ita McMahon outlines why these topics matter for thoughtful investors.
We joined a call with around 60 other investors to hear from representatives of NVIDIA, the world's largest company by market capitalisation, on its approach to managing its environmental, social and governance impacts.
Chip-maker NVIDIA is held in our Thoughtful World Equity Fund. We have been working with several other investors over the past year to press for improved reporting by NVIDIA on employee mental health.
We took the opportunity to submit some detailed questions about the company’s use of minerals in its chip manufacturing and the measures it takes to avoid inadvertently purchasing conflict minerals.
In addition, we have been analysing our funds’ exposure to conflict minerals, so we took the opportunity to submit some detailed questions about the company’s use of minerals in its chip manufacturing and the measures it takes to avoid inadvertently purchasing conflict minerals.
On employee mental health, the company was reluctant to commit to more detailed reporting, pointing instead to its low employee turnover rates and positive employee survey results. NVIDIA was keen to stress that it places more emphasis on putting effective programmes in place rather than on disclosing information. We do take this point on board, but equally, as investors interested in a company’s broader social impact, we would like to see increased reporting to inform our own view of a company and its support for its employees.
On responsible sourcing, the company talked about the surveying that it has carried out with the tin, tantalum, tungsten and gold smelters in its supply chain. The company stated that it had removed certain smelters from its supply chain where standards were below NVIDIA’s expectations. The company went on to say that a priority for this year will be to extend its analysis to other minerals, namely cobalt, mica, graphite and copper.
The call also covered questions on NVIDIA’s carbon footprint and use of renewable energy.
Outcome: The engagement successfully raised annual director elections as a governance issue for future OECD consideration. While changes to the OECD Principles are not currently expected, the Secretariat agreed to consider the topic within future publications and ongoing policy discussions, creating a pathway for continued investor input on the issue.
Written by Ita McMahon
This article was originally published as part of our Q3 2026 Investment Management Report (IMR).
Information is accurate as at 19.10.2026. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.