Issue Date:August 6, 2019
 

Coretronic(including Visual Solutions and Energy-saving Solutions), Young Green Energy and Champ Vision Display have a total of 451 suppliers (including 254 domestic suppliers and 197 foreign suppliers), and in order to pursue mutual development and sustainable business operations, we have stipulated comprehensive supply chain management regulations and measures, including the assessment of new suppliers, management of suppliers, audit and counseling of suppliers, to choose the suppliers that can meet our requirements of quality and technology, hence the standards of product quality can be ensured. In addition, we have stipulated a “Management Handbook of Code of Conduct for Responsible Business Alliance” according to the Responsible Business Alliance (RBA) Code of Conduct, to manage our suppliers, request our suppliers to focus on topics such as ethics, labor rights, environmental protection, health and safety, carry through the risk management and continual business planning, and to become a sustainable green supply chain. Coretronic Intelligent and Cloud Service was launched in 2018 and it has a total of 22 supplier vendors; the supplier management regulations have been stipulated and they will be implemented in 2019, so that the green supply chain of the Group will be even more comprehensive.

   

 

Supplier Management Specifications

经济面
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
环境面
Environmental
Norm
  • ESH policy leaflets
  • Green Product Commitment
  • Environmentally hazardous substances questionnaire survey
  • Safety Data Sheet (SDS)
  • 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
社会面
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 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 2018. The main product of Coretronic Intelligent Cloud Service is software, and Young Green Energy manufactures power suppliers, thus, both of them purchase equipment from Taiwanese manufacturers and continue to establish the local supply chain system(the proportion of local procurement is 100%).


在地采购

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.


绿色供应链

Green Product Management System (GPMS)

This platform includes the announcement area, MCD Request area, and the list of supplier’s area. The announcement area on the homepage provides the new version of green product specifications and notification of educational training videos on the GPMS platform, to prevent suppliers from following the incorrect regulations or using the incorrect forms; at the same time, it also displays the upload status of supplier files for the procurement department and engineers, as well as to upload files to maintain and update the liaison information for the suppliers of raw materials. In order to enhance the internal work efficiency as well as the convenience of management, the GPMS platform was upgraded in 2018, to allow the suppliers to online fill in the RoHS 2.0, SVHC and SDS information and the supervisors can also download reports based on to the BOM of model types.
 

Supplier Conference

Corporation Coretronic (Energy-saving Solutions ) &
Champ Vision Display
Coretronic (Visual Solutions )
Session 1 1
Total number of participants 18 suppliers 47 suppliers
Main Issues
  • Latest RoHS 2.0 and RBA Specifications
  • Global Environmental Trend
  • Waste Recycling and Reuse
  • Product Quality Requirements and Specifications
  • Matters need to be coordinated for carbon footprint verification of products
  • Latest RoHS 2.0
  • Global Environmental Trend
  • GPMS

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. All of Coretronic (Energy-saving Soutions) and Champ Vision Display's top 100 suppliers in 2018 (except for OEM and customer-specified suppliers) have signed Green Product Commitment, and 95% Coretronic (Visual Soluionts) suppliers have signed Green Product Commitment.

Compliance with RBA Code of Conduct

The RBA 6.0 specifications have been fully implemented and the supplier assessment will be officially implemented in 2019, to ensure that the all suppliers meet the requirements of the Responsible Business Alliance Code of Conduct. In 2018, the RBA 5.1 audits were conducted in 19 of the suppliers and all 19 suppliers were qualified, with a qualification rate of 100%.

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 order to practically implement the corporate social responsibility and international justice, we follow the Responsible Business Alliances (RBA) Code of Conduct – “conflict-free minerals statement,” to request our suppliers to provide declarations according to the procedures management of parts recognition operations; and we also carry out investigations through the electronic information system to fulfill the requirements of customers and legislation.

In order to investigate the information of smelters for the Tantalum, Tin, Tungsten and Gold required in the products, Coretronic(Visual Solutions) and Young Green Energy have successfully received responses of the “conflict minerals survey form” based on CFSI CMRT version 4.10 from 80 suppliers. Moreover, we will proactively request suppliers to sign a conflict-free minerals statement from 2019, with a target response rate of 100%.

In 2018, the Energy-saving Solutions Business Group received 32 conflict materials statement (including electronic version). 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.