Supplier Sustainability Management Risks
Risk Management»Corporate Governance Aspect»Supplier Sustainability Management Risks
Supplier Sustainability Management Risks
- Suppliers failing to comply with sustainability standards, violating labor ethics, occupational safety, environmental protection, and responsible sourcing may lead to operational disruptions in operations and supply chain:
- Organizational adjustment and policy updates:
- - In terms of organizational adjustments, the “Green Products and Supplier Sustainability Management Committee” was restructured into a more agile “Supply Chain Sustainability Management Team” to promote and execute supplier management.
- - Revised the Supplier Sustainability Code of Conduct and Supplier Sustainability Report to better align with sustainability policies and market trends.
- Establishment of Supplier Due Diligence System
- - Strictly adhere to the "OECD Due Diligence Guidance for Responsible Mineral Supply Chains", as well as the CMRT (Conflict Minerals Reporting Template) and EMRT (Extended Minerals Reporting Template) frameworks defined by RMI (Responsible Material Initiative), and customer requirements to ensure responsible sourcing of mineral and due diligence.
- - Suppliers are required to sign a responsible mineral sourcing declaration. Submit proof and reports through the responsible sourcing reporting system to ensure the non-use of conflict minerals.
- - Promote human rights due diligence, establish self-assessment forms for suppliers to fill out, to prevent supply chain violations of human rights regulations and potential customer accountability.
- Supplier Communication and Training
- - Maintain good communication with suppliers through education and training, strictly prohibiting the use of conflict minerals, and inform them of the consequences if compliance is not met.
- - Hold supplier conferences to elaborate the content of the RBA and encourage suppliers to join RBA to establish a connection with the Company.
- Supplier Audit and Management
- - Regularly communicate with suppliers to ensure adherence to sustainability principles, and encourage supplier to manage their suppliers in accordance with these rules.
- - Encourage suppliers to undergo RBA VAP audits and conduct on-site audits to ensure compliance with RBA's code of conduct.
