Promotion of “Supplier’s Code of Conduct” (Supplier CSR Commitment)

Sustainable development indicators including environment, labor practices, human rights, and social impacts have become the social focus in recent years.

Currently, apart from including these sustainable development indicators as part of the criteria for new supplier selection and supplier evaluation, we request new suppliers to sign related undertakings to comply with the following:

Labor and human rights No forced labor; no child labor; provision of due wages and benefits; guarantee for working hours and breaks; elimination of workplace sexual harassment, bully, and discrimination; and no conflict minerals.
Health and safety Measures required for occupational safety, emergency response, occupational health, protection against machinery injuries, public health, food and accommodation, and health and safety information.
Environment Operation permit; pollution prevention and resource conservation; hazardous substances; effluents; non-toxic solid waste; noise; exhaust emissions; product and service limitation; energy/resource consumption; and GHG emissions.
Ethics and integrity Ethical corporate management; respect for intellectual property rights; abidance by non-disclosure agreements; privacy protection; and avoidance of the conflict of interest.

Apart from requesting existing qualified suppliers to sign and comply with the Commitment, we have started revising some SOPs to include the Commitment as part of a new supplier submittal. Currently, major suppliers of bulk materials and the top five materials suppliers are requested to sign the Commitment. After all suppliers sign the Commitment, unannounced onsite supplier audit for compliance with the Commitment will be implemented from time to time.

The revision of internal SOPs has not yet been completed. For new suppliers recruited in 2020, we encouraged them to sign the “Supplier CSR Undertaking." For those that have not signed the Undertaking, we will include the process for them to sign it alongside existing suppliers in the future.

2020 new suppliers 68
New suppliers that have signed the undertaking 11
Existing suppliers that have signed the undertaking 16
Investigating suppliers with potential/negative impacts 124

Currently, major feedstock suppliers and contractors Taiwan CPC and Dairen Chemical and partner CTCI have become our sound sustainable developer corporate suppliers. We adopt the “active risk management” policy to investigate suppliers with potential/negative impacts, including irregular visit of THAU BING to check for the offences or news regarding suppliers’ violation of the said terms and assess if such offences or news will bring negative or potential impacts (such as punishment or suspension order of competent authorities). In addition, we will take related risk controls and countermeasures for the potential raw materials supply crisis based on their offences.