Issue Date：August 17, 2020
Suppliers are important partners for the sustainable operation of the Company and the plants in Taiwan/China, Young Green Energy, Champ Vision Display and Coretronic Intelligent Cloud Service. We have a total of 1,852 suppliers (1,648 domestic suppliers reaching 89% and 204 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 pursue mutual development and sustainable operation for both parties, we have established comprehensive supply chain management regulations and measures for raw material production suppliers, including the assessment of new suppliers, supplier management, supplier audit and guidance to screen suppliers that can meet our requirements of quality, delivery time and technology. Therefore, we can ensure the stable supply of products with quality meeting the required standards. In addition, we have established a “Management Handbook of Code of Conduct for Responsible Business Alliance” for the supplier management according to the Code of Conduct of the Responsible Business Alliance (RBA) and strove to urge our suppliers to focus on issues such as ethics, labor rights, environmental protection, health and safety. By fully carrying through the risk management and continual operational plan, we expect to build a green supply chain.
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 2019. In order to maintain the quality of products, plants of Coretronic Visual Business Group in Taiwan and China 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. The proportion of local procurement of Optoma is 100%.
We build professional green platform and hold the supplier conference to assist suppliers to solve problems.
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.
This platform includes the announcement area, MCD Request area and the supplier list area. The announcement area on the homepage provides information such as the new version of green product specifications and the educational training videos on the GPMS platform to prevent suppliers from following the incorrect regulations or using the incorrect forms. Meanwhile, it also provides the upload status of the supplier documents for the inquiry of the procurement department/engineers, maintain the directory of the raw material suppliers, the RoHS 2.0, SVHC and SDS information filled by the suppliers and the report downloading for the supervisor based on to the BOM of model types.
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. After three years of collaborative discussion on issues of environment changes and international environmental protection laws with the suppliers, we shared and delivered the awareness and results of Coretronic regarding the green environmental protection and energy saving. We first incorporated issues such as corporate social responsibility, social participation and energy management in 2019. In addition, the Wujiang Plant not only praised the outstanding suppliers but also invited suppliers with excelling performance to share their experience in energy saving and carbon reduction in hope of bring more supplier partners to respect the sustainable operation and promote their competitiveness in green energy conservation. In this case, we can jointly implement the commitment for sustainability.
(Energy Saving Business Group)
(Visual Solutions Business Group )
|Total number of participants||23 suppliers||47 suppliers||17 suppliers|
Coretronic requests suppliers to build the green supply chain and follow the measures below to develop a sustainable supply chain together.
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 Business Group in Taiwan and Wujiang) and Champ Vision Display's top 100 suppliers in 2019 (except for OEM and customer-specified suppliers) have signed Green Product Commitment, and 99% Coretronic (Visual Solutions Business Group in Taiwan and Kunshan), Young Green Energy, and Coretronic Intelligent Cloud Service suppliers have signed Green Product Commitment.
The plants of Coretronic in Taiwan and China, Young Green Energy, and Coretronic Intelligent Cloud Service have fully introduced RBA 6.0 in the assessment procedure of new suppliers to ensure all the suppliers are compliant with the RBA Code of Conduct. 36 suppliers were arranged to undergo RBA audit in 2019. 36 suppliers passed the audit with a pass rate of 100%.
Coretronic's Kunshan Plant applied for a voluntary RBA VAP audit in 2019. 223 suppliers signed the RBA Code of Conduct with a signing rate of 86%. This demonstrated the leadership of a green enterprise. A score equivalent to the level of 174 and a rating of Silver was acquired. The Wujiang Plant asked suppliers to sign the “Subcontractor/Supplier Social Responsibility Commitment.” A total of 109 suppliers affixed their signatures with a signing rate of 100%.
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:
To fulfill CSR and international justice, we follow the RBA Code of Conduct to develop our Declaration of Minerals Conflict-Free. To meet customer and regulatory requirements, the Part Approval Procedure requires our suppliers to provide a declaration and the electronic information system is used to perform the survey. In 2019, the response rate of the suppliers who were asked to sign the Declaration of Minerals Conflict-Free reached 97%.
In order to investigate the information of smelters for the Tantalum, Tin, Tungsten and Gold required in the products, Coretronic(Visual Solutions Business Group in Taiwan and Kunshan), Young Green Energy, and Coretronic Intelligent Cloud Service have successfully received responses of the “conflict minerals survey form” based on CFSI CMRT version 5.11 from 31 suppliers, with the response rate of 100%.
In 2019, Coretronic (Energy Saving Business Group in Taiwan and Wujiang) and Champ Vision Display received 103 conflict materials statement (including electronic version) , with the response rate of 100%. 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.
Coretronic’s Energy Saving Business Group, Wujiang Plant, and the plants in Taiwan 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 25 suppliers supported the idea with a recycle rate of 93% in 2019.