Issue Date：July 26, 2018
Apart from continuously implementing the CSR program, we guide suppliers to participate in and follow the program to enable suppliers to meet the delivery requirements, improve quality, and enhance competitiveness. We also guide business partners to improve and strengthen the management of employee care, environmental protection, public health, and occupational health and safety. By doing so, we hope to produce more excellent and more competitive products and create win-win supply chain management with suppliers and partners together.
Coretronic has 678 suppliers (including 419 domestic suppliers and 259 foreign suppliers). In order to grow up with suppliers, we establish complete supplier management specifications and measures, including new supplier evaluation, supplier management, supplier audit, and supplier consultation, so as to guide suppliers to build a sustainable supply chain and reduce potential risks.
Supplier Management Specifications
Economic
Norm
- Compliance with material supply general provisions.
- Non-disclosure agreement
- Supplier questionnaire surveys and notices
- Supplier audits and ratings
- Statement of C-TPAT compliance for supply chain safety management
Approach
- We conduct periodic supplier audits to ensure that the material quality, delivery time, price, and service of suppliers meet the requirements. We also arrange guidance, education, and training for suppliers to maintain and raise their competitiveness.
Standard
- IOS 9001
Environmental
Norm
- ESH policy leaflets
- Green Product Commitment
- Environmentally hazardous substances questionnaire survey
- Material Safety Data Sheet (MSDS)
- RBA Code of Conduct
- SVHC Guarantee (REACH)
Approach
- New suppliers must comply with the hazard-free substance standard
- Test reports are managed over a platform to ensure the up-to-date reports are obtained to ensure zero restricted substance is used.
- Suppliers certified with ISO 14001 and complied with the Hazardous Substance Process Management System will be accepted in higher priority.
Standard
- RoHs
- REACH
- RBA
Social
Norm
- Supplier Integrity Commitment
- RBA Code of Conduct
- Conflict mineral investigating
- Supplier management (reward/liunishment)
Approach
- Suppliers must comply with the EICC Code of Conduct and accept the conflict mineral investigation. They must pass the qualification before becoming qualified suppliers.
- Suppliers must perform the integrity terms and sign the Supplier Integrity Commitment, and establish a positive and good cooperation relationship.
Standard
- RBA
Procurement Practices
Based on the environmental footprint, we understand that material and part procurements 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 amount and proportion of local procurements in 2017.
Supplier Guidance
We build professional green platform and hold the supplier conference to assist suppliers to solve problems.
I Supplier Portal (ISP)
Comprising the purchase order (PO), Work in Process (WIP ), qualitative forecasting (QF), and mold management modules, ISP enables paperless processing for material suppliers and procurement staff and real-time processing of delivery time notification, QF confirmation, and inventory report. Apart from enhancing efficiency, ISP is an effective channel for communication and interaction with suppliers.
Green Product Management System (GPMS)
This platform includes a notice section, the MCD Request section, the supplier list section, and the homepage notice section where new green processes and forms are published. Apart from preventing suppliers from following incorrect regulations or using incorrect forms, the platform allows procurement staff and engineers to enquire the lead-free documents uploaded by suppliers, material suppliers to maintain contact information and upload and update lead-free documents.
In 2017, we published the Green Product Specifications and SOP, Supplier Water and Electricity Consumption and Green Performance Questionnaire, and revised version of the Substances of Very High Concern (SVHC) Data Sheet over the GPMS and send 528 notices to related suppliers.
Supplier Conference
In 2017, Energy-saving business group (including Young Lighting) held the supplier conference, and 23 suppliers joined this event. Based on the theme: Coherence Consensus for Sustainability, we explained to suppliers the instructions of the Green Product Management System (GPMS) and what they should cooperate on in the future. Furthermore, we communicated the new environmental issues that the industry was facing and exchanged opinions with suppliers, hoping that they could pay more attention to the need for sustainable development and so improve green competitiveness together with us.
Green Supply Chain
Coretronic requests suppliers to build the green supply chain and follow the measures below to develop a sustainable supply chain together.
Compliance with the Code of Green Product Procurement
Suppliers are required to promise and ensure their products comply with the Code of Green Product Procurement, and provide RoHS lab test and examination report from an accredited third-party unit, Green product commitment, Environmentally hazardous substance questionnaire, Lead-free part reliability report, Safety data sheet (SDS), Certificate of authenticity (COA), Test integrated form, and Conflict Minerals Statement. From the part confirmation system, engineers can confirm the green product supply capacity of suppliers. Coretronic’s top 100 suppliers in 2017 (except for OEM and customer-specified suppliers) have signed Green Product Commitment.
Compliance with RBA Code of Conduct
Visual Solutions Business Group has included RBA Code of Conduct as new supplier evaluation items to ensure compliance with the RBA Code of Conduct of the supply chain. In 2017, onsite audits of the premises of 17 new suppliers were done based on the RBA Code of Conduct.
Conflict Minerals and Responsible Cobalt Purchase Policy
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:
- Must fulfill social environmental responsibility
- Ensure that products do not use “conflict minerals” from Congo-King and its neighboring countries and regions
- Trace all sources of Au, Ta, Sn, W, and Co contained in all products
- Intolerance cannot be done in any way to benefit, encourage, assist or facilitate any party to commit serious human rights violations
- It will not tolerate any direct or indirect support from organized armed groups that have been mined, transported, traded, processed or exported through mineral resources
- Do not provide, promise, give or demand any bribe and resist bribery or extortion. It will not cover up or falsify the origin of mineral resources, and falsely report the taxes and expenses that mineral resources exploitation, trade, processing, transportation, export and other activities Bribery with royalties will pay to the government
- Do not participate or benefit from mining resources on land that does not receive free, prior, informed consent from local and indigenous peoples, including those with legal title, lease, and concession or permitted
- This requirement is communicated to its upstream supplier
In 2017, Visual Solutions Business Group requested 118 suppliers to fill in the Conflict Minerals Reporting Template (CMRT 5.1) released by the Conflict Free Sourcing Initiative (CFSI) to enquire the information of the smelters supplying the tantalum, tin, tungsten, and gold (collectively called 3TG) contained in their products. A total of 118 responses were recovered, with a response rate of 100%.
In 2017, the Energy-saving Solutions Business Group received the conflict materials statement (including electronic version) from 594 major material suppliers. Suppliers who did not send us the statement have posted related information on their corporate website. In the future, we will continue to keep track of conflict materials to relieve the impact from conflict minerals.
