Issue Date:July 29, 2022
Suppliers are important partners for the sustainable operation of the Company and the plants in Taiwan and China. We have a total of 1,639 suppliers (1,422 domestic suppliers reaching 87% and 217 overseas suppliers). We conducted the classification and management based on the characteristics of the supplier and the products and services provided by them while adopting local procurement as the priority to promote the development of local economy. We also ensured to maintain stable operation, accelerated the production efficiency and reduced the carbon emission generated during the transportation as much as possible.
To achieve the vision of “for a sustainable future” with suppliers, we have established the “Sustainable Supply Chain Management Regulations” for suppliers of production materials, with contents including legal compliance for suppliers; risk assessment, audit, and training and guidance for suppliers; and commendation of suppliers with outstanding performance and sharing information on the trends of sustainable development at the supplier annual conference to ensure the sustainable development of suppliers. Additionally, we have also established the “RBA Code of Conduct Management Handbook” according to the Code of Conduct (CoC) published by the Responsible Business Alliance (RBA) for supplier management and urging suppliers to emphasize ethics, labor human rights, environmental protection, health and safety issues to thoroughly implement risk management and the business continuity plan (BCP) in order to build a sustainable supply chain.
Coretronic Optics (Suzhou) and Coretronic Projection (Kunshan) completed the RBA VAP, achieved Silver Status and respectively earned a score of 170 and 164.2.
Conflict metal refers to minerals from the conflict mining area of the Democratic Republic of the Congo. These minerals are refined into tantalum (Ta), tin (Sn), tungsten (W) (referred to as tri-T mineral), gold (Au), and cobalt (Co), which are used in electronics and other products, respectively. Some of the metal minerals have become the main source of financial resources for armed rebel groups in the African Democratic Republic of the Congo. They are used to trade arms, carry out bloody conflicts with the government, and desecrate local civilians. As a result, international disputes have arisen. As a global citizen, we recognizes that the exploitation, trading, processing, and exporting of mineral resources in conflict-affected and high-risk areas have risks that may cause major adverse effects, and we recognize that we have respect for human rights, do not contribute to conflicts and are not environmentally friendly. And society has a negative impact. We declare and promise not to accept the use of metals from conflict mining areas. At the same time, we also require our suppliers to:
We established and added “Responsible Minerals Procurement Policy” and “Declaration on Non-Use of Conflict Mineral” based on RBA to “Supplier and Contractor Sustainability Commitment Statement” as well as announced the requirements above to all suppliers at annual supplier conference. All suppliers of production materials must sign and comply with “Supplier and Contractor Sustainability Commitment Statement.”
Moreover, in order to meet customers’ needs, our Visual Solutions Business Group uses ”Conflict Minerals Survey Form” based on CFSI CMRT Version 6.1 to investigate the information of smelters for the Tantalum, Tin, Tungsten and Gold required in the products. In 2021, we have successfully received responses from 208 suppliers, with the response rate of 100%.
Target | Strategy | Performance |
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【Visual Solutions Business Group】
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【Energy-saving Business Group】
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We build the professional on-line green platform and hold the supplier conference to assist suppliers to solve problems.
In order to carry through supply chain trade security management, AEO trade security training conference is held regularly with the attendance of 36 suppliers in 2021.
Since the promotion of the supply chain responsibility for the electronics industry in 2017, Coretronic worked together with the suppliers to improve aspects of quality, cost, delivery time, environmental protection, safety and health. By the on-site guidance and face-to-face communication, we improved the supply chain management capability to fulfill the sustainability commitment at the same time. In 2021 plants in Taiwan and Wujiang Plants held the Sustainable Supply Chain Online Conference with 112 suppliers to exchange opinions regarding sustainable development trends, directions and future planning for supply chain management, climate change mitigation for business operations, net zero targets, HSF & UL management. In the future, we will continue to grow with suppliers to develop better supply chain partnership. We also urge suppliers to emphasize climate change issues and take more eco-friendly actions to foster a sustainable supply chain together.
Location | Taiwan | China |
Session | 1 | 1 |
Total number of participants | 34 | 78 |
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To commend outstanding suppliers, both plants in Taiwan and Wujiang Plants presented the “Golden Award” and “Sustainable Development Award” to outstanding suppliers of the year at the annual supplier conference. The “Golden Award” was awarded to suppliers with outstanding performance in delivery time, cooperation, and product quality. The “Sustainable Development Award” was awarded to suppliers with specific performance in carbon reduction by recovering packaging materials and repeating container uses during the transactions. Wujiang Plans t even invited outstanding suppliers to share their achievements in energy conservation and carbon reduction, hoping to encourage more suppliers to join sustainable development.
We have implemented a waste recycling plan together with the supplies since 2017 to recycle plastic and paper wrappings. In addition, packaging materials that could be used to carry materials repeatedly were used for shipment and recovered after use to reduce consumption of wrappings and containers, promote the idea of circular economy such as recycling and reduction of waste, and act in a more environment-friendly manner. A total of 8 suppliers supported the idea with a recycle rate of 96% in 2021.
In the 2021 CDP supplier engagement rating report, Coretronic received the rating of Management B, exceeding the average of global enterprises (B-Level). Coretronic is committed to supplier partnership, and actively conducts value chain partnerships engagement for climate change mitigation and adaptation. The rating items of “Supplier engagement” and “Scope 3 emissions” were rated A. In the future, we will continue to actively work with suppliers to improve operation resilience and performance.
Based on the environmental footprint, we understand that material and part procurement can likely cause environmental impacts. Therefore, procurement localization is an important strategy for finding suppliers and partners. We also hope that suppliers can operate their business through local procurement, in order to contribute to environmental protection together. The figure below shows the proportion of local procurement in 2021. In order to maintain the quality of products, plants of Coretronic Visual Solutions Business Group in Taiwan and China (Kunshan) must purchase key components from specific foreign suppliers, thus, the proportion of local procurement is much lower, however, we will strive to buy the rest of components from local suppliers.