Sustainable supply chain development strategy
Recognizing the mutual effect of sustainable supply chain growth and sustainable corporate development, we actively input the relevant resources and collaborate with suppliers, hoping to continuously promote the sustainable growth of the overall supply chain through the development of a sustainable supply chain. With sustainability standards, sustainability risk surveys, sustainability onsite audit/improvement, and supplier competence development, we control supply chain risks through a set of sustainable management processes so as to lead suppliers to demonstrate greater shared value and influence.
| Risk control of the sustainable supply chain | Enforce the risk assessment of the supplier self-assessment questionnaire and strengthen supplier risk management through audit and improvement follow-up |
| Supply chain cooperation and exchange | Based on cooperation and collaboration, we guide suppliers to improve the social, economic, and environmental performance through supplier evaluation so as to achieve sustainable supply chain development. |
| Enhancement of supply chain sustainability | When pursuing economic performance, we also concern ourselves with environmental and social sustainability issues and continuously implement projects addressing sustainability issues in collaboration with suppliers. |
| Conflict-free minerals | We are committed to conflict-free mineral management and responsible procurement together with suppliers to meet current and future market, legal, and regulatory expectations. |
| Sustainability standards | RBA code of conduct Supplier code of conduct Regulations and requirements for conflict-free minerals |
| Voluntary risk assessment and survey | Design checklists for management systems based on the RBA-CoC Checklist items include labor, health and safety, environment, ethics, and management systems |
| Sustainability risk assessment questionnaire | Distribute self-assessment questionnaires to major suppliers Determine high-risk suppliers |
| Sustainability onsite audit/ improvement measures | Onsite audit Document review Issue correction action reports (CARs) for audited defects Follow up improvement of audited defects |
Supplier collaboration management policy
To ensure the stable and sound quality of products, we adopt the New Product (Supplier) & Transaction Change Evaluation Sheet in coordination with the Annual Supplier Evaluation mechanism to ensure conformity to customer requirements and the environmental standards for the sustainable development of products and processes. We also adopt the Joint CSR Declaration, Human Rights Assessment, and Supplier Self-Assessment Questionnaire as commitments to implement sustainable development in routine supply chain management together with suppliers. To achieve sustainable development, besides assessing the risks of suppliers, we persistently conduct onsite audits of suppliers with higher transaction amounts
The onsite audit items include quality system, supplier management, hazardous substance process management, environmental health and safety policy, sustainable development indicators, and supplier self-assessment and onsite crosscheck. After audits, we issue audit reports and corrective action and preventive action reports to request suppliers to make improvements.
| Transaction amount (NT$) | Suppliers | With audit records | Audit rate | Onsite audit |
|---|---|---|---|---|
| >10 million | 46 | 42 | 91 | 7 |
| 5-10 million | 7 | 2 | 29 | 0 |
| 3-5 million | 16 | 4 | 25 | 0 |
| 1-3 million | 19 | 2 | 11 | 0 |
We passed the certification of the ISO 9001 quality management system in 2009. To conform to the latest international quality management principles and ensure the provision of products and services in conformity with customer requirements, we implemented the version change of ISO 9001:2015 in 2017-2018 and successfully passed certification at the end of 2018. In 2021, we passed the triennial re-verification of ISO 9001 and obtained the three-year certificate. In 2019, we successfully extended certification to our major subsidiary TOPCO Scientific (Shanghai) Co., Ltd. In the future, we will continue to expand the scope of ISO 9001 certification to all overseas TOPCO locations for a total upgrade of product and service quality.
To meet the requirements of customers in the automotive industry and our own expectation for higher quality, TOPCO and the subsidiary TopChem Materials Corporation took on the challenge of obtaining IATF 16949 certification. The project was launched in 2019H2, the preparation and application were made in 2020, the actual certification took place in January 2021, and we obtained the certificate in 2021Q2.
