The supply chain is an extension of the production system, we regards suppliers as a community of life, adhering to the concept of coexistence, co-prosperity and sustainable development& working with suppliers to implement green supply chain management
Supply Chain Management Policy
Sustainable supply chain management practices involve a series of actions that incorporate environmental protection, social feedback, and organizational economics into traditional supply chains. These practices include both internal and external efforts within the Company and can achieve true sustainability in the supply chain from environmental, social, and economic aspects. The implementation scope of sustainable supply chain management practices ranges from green procurement to product lifecycle management, flowing through suppliers, manufacturers, and customers. This approach enhances partner relationships by improving the flow of goods and information, as well as promoting sustainable practical actions.
According to the latest global CEO survey by PwC, supply chain disruption is one of the top 10 threats to enterprises. Over 50% of CEOs have begun to adjust supply chain management and procurement strategies. Sustainable supply chain has become an important part of enterprise practice for continuous operations. Procurement management is a key mechanism for enterprises to fulfill social responsibility and drive the supply chain to achieve sustainable goals. The U.S. National Institute of Standards and Technology (NIST 800-161) includes sustainability as a key issue in supply chain risk management practices.
The Company has established a sustainable supply chain management mechanism focusing on three major aspects: product quality, legal compliance, and social responsibility. We have formulated requirements and evaluation standards for operating conditions, manufacturing and supply capabilities, technology development capabilities, quality assurance capabilities, management system performance, environmental management capabilities and trade security. New suppliers must pass an evaluation to be registered on the “Qualified Supplier List.” Additionally, suppliers are randomly inspected each year to ensure they continue to meet our evaluation standards. Only those confirmed to pass the evaluation are eligible for continued cooperation. We aim to improve supply chain management through pre-assessment, supplier commitments, and regular audits. Considering ESG trends, employee rights, alongside corporate governance and environmental protection, are also key priorities. We will reference international regulations such as the “United Nations Guiding Principles on Business and Human Rights,” the International Labor Organization’s “Declaration on Fundamental Principles and Rights at Work” and the “Universal Declaration of Human Rights” as well as labor laws in various regions. All suppliers will be required to adhere to the Company’s standards and commitments in business practices related to labor rights, health and safety, and employee benefits, ensuring full compliance with the laws and regulations of the regions where they operate.
The Company is committed to practicing corporate social responsibility and aims to expand partnerships with suppliers that closely cooperate in our business. We are gradually integrating corporate social responsibility terms into our supplier contracts, with the long-term goal of requiring 100% of suppliers to fulfill ESG clauses. If suppliers violate the terms of the agreement, we will require them to make improvements within a specified timeframe. Those with serious violations may have their cooperation terminated and dissolved. We actively communicate and share information related to social responsibility with our suppliers, encouraging them to develop materials that reduce environmental impact, or to implement energy saving and carbon reduction measures in their processes or equipment, thereby creating a win-win partnership.
When selecting suppliers, our plants set scoring indicators based on quality, price, environmental accreditation, pollution incidents, labor dispute incidents, non-use of child labor, corruption/bribery incidents, and ethical management. We conduct a strict review process, allowing only qualified suppliers to provide samples for testing.
In addition, before signing contracts and commencing supply, suppliers must sign commitment letters on topics such as integrity, environmental issues, and material composition declarations, affirming their dedication to ethical management and environmental protection.
<< For details, please refer to: The latest version of the ESG Sustainability Report: Sustainable Supply>>