Sustainable Supply Chain
Suppliers are a vital factor for the continued success of HTC, we were founded in Taiwan and are a Taiwanese company whose operations and procurement drives the development of the related sectors. Besides key components, we try to purchase local raw materials and related equipment. The amount of local raw materials purchased accounted for 62.88%. While demanding high-quality services and products, we also use high ethical and environmental standards to manage our supply chain.
HTC requires all suppliers to maintain the same standard of corporate responsibility and announces the
“Modern Slavery Act Transparency Statement”
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We collaborate with suppliers to abide by the latest statement to embody justice and human rights.
HTC follow the Responsible Business Alliance Code of Conduct and formulated an
“HTC Supplier Code of Conduct ”, which aims to protect the environment with our supply chain partners, safeguard the human rights of our workers, their ethics, safety and health, and extend this social responsibility to the supply chain system. And organize irregular supplier meetings every year to promote relevant topics.
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A Quick Look at the HTC Supply Chain Management
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Definition of HTC Critical Supplier
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Owing to differences of industry characteristics and supplier category, HTC identifies critical supplier and major audit for reference by following two principles:
1. Suppliers’ annual amount of transaction representing more than 10% of total purchase.
2. According to the components which vary based on technology, markets and purchase annually, ESG Office and sourcing departments define critical suppliers of current year based on different situations every year.
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Management Mechanism
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Self-assessment Survey
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● For new suppliers, all candidate suppliers are required to fill in the Self-assessment, and the content of the questionnaire is designed based on the five major aspects of HTC’s Supplier Code of Conduct: labor, environment, health and safety, ethics and management system. Since 2016, the weight of ESG-related questions in the Self-assessment survey for new suppliers was increased.
● During each quarterly supplier review meeting, the ESG-related performance of major suppliers will be check and the results will act as the reference for the supplier screening process.
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On-site Audit
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● “Supply Chain sustainability responsibility Compliance Audit” has been implemented since 2011, based on initial risk determination (including geographic, location, products, news, etc.)
● In 2017, added new audit item for the RoHS and REACH directives, hazardous substances subject to control are required to be audited in the manufacturing process.
● In 2021, a total of 106 suppliers will conduct risk assessments, and a total of 6 suppliers with 30% high risk will be selected for on-site audit. Due to the postponement of the implementation of the COVID-19 epidemic, the audit has been completed in 2022 Q3.
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On-site
Audit Results
(Total of 78
Noncompliance
Items in 2021)
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Labor Rights
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20 cases, mainly about wages and benefits and overtime issue.
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Health and Safety
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38 cases, mainly on insufficient occupational safety measures in the operating environment.
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Environment
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15 cases, mainly about Inadequate hazardous waste management measures.
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Ethics
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5 cases, mainly for the failing of establishing management procedures for employees to accept inappropriate payments and gifts
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Treatment and Responses
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In response to the above findings, besides requesting the suppliers to respond with improvement measures, HTC also provided management system and implementation experience to suppliers for reference and put them in the priority list for on-site audit in next year in order to prevent similar incidents from happening.
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The Green Supply Chain Management System
HTC has setup the Green Supply Chain Management platform since 2006 to assist R&D engineers to select green materials from the product database that comply with both International regulations and customer requirements. Green materials are used from the start of design to significantly enhance the reliability and related validation process and schedule of green products.
The survey of new suppliers shall comply with the HSF scoring standard. As for the existing suppliers, the HSF performance evaluation was added to the Supplier Performance Management System since 2016. Improvements are reviewed and checked via the implementation of the quarterly supplier meeting.
Since 2018, the CDC (Component Data Collection) subsystem has been added to the Supplier Portal System to address the Topics required by the Supplier Code of Conduct, such as conflict minerals, banned and restricted substances, and greenhouse gases Emissions, etc., set the annual supplier targets, tracked and summarized through the system. From 2022 Q2, we have increased the proportion of ESG performance in supplier import and performance evaluation projects, in order to work together with supply chain partners to maintain the global environment.