Supply Chain Management

Management Approach

The Company implements the ISO 9001:2015 Quality Management System in defining operational procedures for contractor selection/hiring (QP-CO-004), covering the entire process of selection, hiring, work delivery, performance evaluation, and contractor registration. The Company has also established procurement procedures (QP-CO-005) to serve as a guideline for contractor selection and hiring, including an efficient procurement process within the organization. In addition to establishing operational procedures under the internal management system, the Company has also issued a Supplier Code of Conduct to demonstrate its commitment to ethical business operations, alongside social and environmental responsibility, as well as supporting suppliers in operating according to the Company’s established guidelines. This ensures responsible engagement with all stakeholder groups, while also emphasizing the management of environmental and social issues.

The Company has arranged for the development of processes and tools for assessing the impact from operations in economic, social, and environmental aspects of the Company’s suppliers, prioritizing critical Tier-1 suppliers that conduct business with the Company directly. The Company has developed the self-assessing form (Self-Assessment Questionnaire: SAQ.) covering three dimensions economic, social, and environmental as specified in the Supplier Code of Conduct, with a total of nine key processes.

ESG Auditing Program for Supplier

1. Setting target groups for a project.
2. Communicating and acknowledging the Supplier Code of Conduct.
3. Developing tools for the Suppliers’ ESG Self Assessment
4. Supplier’s self-assessing through Self-Assessment Questionnaire: SAQ.
5. Classifying the Supplier Level through SAQ form.
6. Summarizing the Supplier Classification Assessment Results
7. Conducting On-site ESG Audit and Reporting Results to Suppliers
8. Defining Guidelines and Plans for the Company’s Management.
9. Promoting Collaboration with Suppliers.

Supplier Evaluation

The Company developed methods and tools for evaluating supplier sustainability performance to effectively manage and mitigate supply chain risks. The Company has set a target for all Critical Tier 1 suppliers, who directly conduct business with the Company and support its core operations, to undergo ESG performance assessments. Each supplier is required to undergo impact assessments on economic, social, and environmental aspects through self-assessing (Self-Assessment Questionnaire: SAQ), as well as receive on-site ESG assessments covering economic, social, and environmental aspects as the first group for this year. The Company has determined the frequency of audits at least once per year to classify sustainability management levels into five levels, as follows.