Supply chain management

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Supply Chain Management

Policy
  • Improve the standards and implementation of environmental and social evaluation of suppliers, and guide suppliers to continue to improve in environmental and social aspects; initiate the strategic goal of optimizing local procurement, set specific measures to improve local procurement, andPromote local industry improvement and economic development
Short Term Goals
  • Incorporate sustainability requirements into supplier evaluation and establish a dynamic supplier mechanism
  • Promote the use of large-scale and small-scale projects to drive energy conservation and carbon reduction in the industrial supply chain, take inventory of suppliers’ carbon emission data, assist suppliers in formulating carbon reduction goals, and coach suppliers in implementing carbon reduction practices
  • Expand supplier exchange events in 2024 under the theme ‘Carbon Reduction Alliance, Harmonious Co-prosperity’. Collaborate with supplier partners to form a green carbon reduction alliance, aiming for 60% of suppliers to achieve Scope 1 and 2 carbon emissions disclosure targets by 2025. This initiative seeks to drive carbon management through the supply chain, collectively advancing towards a net-zero future.
Mid-Term Goals
  • Continue to expand the large-scale small-scale project, and it is expected to be completed in 2026 to drive industrial upgrading.
  • Develop ESG questionnaire content for suppliers to foster ongoing ESG awareness.
  • Establish a Supplier Management Policy within the Sustainable Development Practice Guidelines, alongside operational standards for raw material supplier assessment, integrity pledges, and supplier commitments to corporate social responsibility.

  • Require all suppliers to sign the Supplier Code of Ethical Conduct.

Long Term Goals
  • Supplier management – the company’s determination and attitude towards implementing ESG, tracking and updating the company’s ESG reform and improvement results, participating in establishing corporate culture, enhancing brand value, etc.
Management Evaluation Mechanism

  • In 2025, the Company completed the planning of its sustainable assessment mechanism for new suppliers, integrating environmental and social indicators into its selection criteria. The evaluation criteria encompass environmental management systems, greenhouse gas and carbon emission management, regulatory compliance, labor law compliance, occupational health and safety, and worker rights protection.This mechanism is scheduled to be fully implemented for all new suppliers starting in 2026, ensuring that supply chain management aligns with the Company’s sustainability principles.

Performance Adjustments
  • In 2025, the Company identified 123 key suppliers, of which 89 were audited, achieving an audit rate of 72.36%Suppliers that have not yet completed the audit will continue to be included in follow-up management and tracking..
  • Environmental considerations are incorporated into the evaluation criteria when selecting new suppliers.
  • Modify supplier auditing methods from time to time and conduct audits, including whether suppliers have violated laws and regulations related to the environment and labor rights.
Preventive Remedies
  • Through the collection of business information and development status, the technology and production units can respond in advance
  • Carefully and continuously develop alternative materials to avoid supply interruptions or material supply delays and reduce the risk of single supplier supply
  • Prioritize local procurement and flexibly adapt to production needs