Environmental-friendly
Supply Chain
Supplier Code of Conduct
Suppliers are an important part of the company formation. The Company sees its suppliers as important partners. There are expectations that through a strong management mechanism, ensure the ethical standards and responsible conduct of the partnering suppliers and their commitments to protecting human rights and the environment. It is an aim to seek for and to develop a long-term collaborative relationship built on the foundation of trust and safety. We uphold the corporate philosophy of “Delivering Integrity and Equity” and firmly oppose the direct or indirect offering, acceptance, commitment or request of any advantage to customers, vendors or related personnel in the business to establish business relationships or influence business transactions.
The Company's sustainable procurement policy
Suppliers are an important part of the company formation. The Company sees its suppliers as important partners. There are expectations that through a strong management mechanism, ensure the ethical standards and responsible conduct of the partnering suppliers and their commitments to protecting human rights and the environment. It is an aim to seek for and to develop a long-term collaborative relationship built on the foundation of trust and safety. We uphold the corporate philosophy of “Delivering Integrity and Equity” and firmly oppose the direct or indirect offering, acceptance, commitment or request of any advantage to customers, vendors or related personnel in the business to establish business relationships or influence business transactions.
The Company's sustainable procurement policy
- In cooperation with suppliers, we adhere to ethical standards and responsible behaviors, seek long-term cooperative relations based on trust and cooperation, and uphold the principle of honesty and fairness to fight corruption and bribery.
- Select suitable suppliers to reduce possible negative impacts on the environment and society due to production activities. For example: reduce wastewater and generation of wastes, and water saving, energy saving and use of qualified mineral products.
- Refrain from using conflict minerals that could finance armed groups who persecute human rights.
- Through telephone (communication software), visits, video con-calls and other methods to strengthen contacts with the suppliers to ensure the suppliers are protecting employee health and safety and human rights of specific groups (females, minorities, aborigines, or people with disabilities). A zero-tolerance policy should also be in place for child labor.
Environment Aspects
- In compliance with related regulation requirements for environmental protection, employee health and safety of the local area.
- Protect the lives and health of employees and nearby residents.
- Effectively utilize resources through energy saving, reduction of waste discharge and the wasting of water resources.
Social Aspects
- Support human right protection.
- Against forced labor and discrimination and prohibit child labor.
- Maintain and respect labor rights and interests.
- Non-use conflict minerals.
Management Aspects
- In compliance with related trade regulations of the local region.
- Against corruption assuring the Company’s ethical corporate management code.
The Company commits to effectively manage the impacts of its products and procurement to the society and environment. In concert with the corporate sustainability and long-term development goals, the Company has formulated the “Supplier Code of Conduct”, and “Declaration of Non-use Conflict Minerals”, and has made these code and declaration into a statement that will be available for signing by domestic and international suppliers for the first time in 2021. Most suppliers have signed the statement and responded. Amended certain parts of the standard in 2022 to improve its consistency with the current status. The “Declaration of Non-use Conflict Minerals” established in 2022 highlights the Company's focus on human rights and conflict minerals issues. Between 2022 and 2023, 12 additional copies of “Supplier Code of Conduct Commitment” and 20 copies of “Declaration of Non-use of Conflict Minerals” were recalled.
Evaluation of Suppliers
The Company gives priority consideration to suppliers meeting the Company's “Supplier Code of Conduct” and “Declaration of Non-use Conflict Minerals” in principle. The Company will require suppliers to prove their compliance with the QHSE standards in any of the following ways:
The Company gives priority consideration to suppliers meeting the Company's “Supplier Code of Conduct” and “Declaration of Non-use Conflict Minerals” in principle. The Company will require suppliers to prove their compliance with the QHSE standards in any of the following ways:
- Self-evaluation: Request to fill out related QHSE standard conformance questionnaire.
- Vendor evaluation: Request suppliers to provide related written information.
- Certificates/Declarations: Request to show related certificates or declarations to ensure that the suppliers are conforming to the QHSE standards non-use of conflict minerals.
- Irregular Onsite Inspection: Send personnel for onsite inspections on the conformance of QHSE by the suppliers. Conformance of QHSE standards ensures that the suppliers are performing higher than the average industry level in aspects of health, safety and environmental protection at their work site
In 2023, 2 new crop protection raw material suppliers were added; no new plastic raw material suppliers were added. The suppliers were asked to conduct a self-assessment of the QHSE questionnaire. After assessment, no significant negative impacts were found, and all of them became the qualified suppliers of the Company.
In terms of annual evaluation of collaborative supplier, a total of 12 crop protection suppliers were individually evaluated in 2023, of which 7 were key raw material suppliers, 5 of which were ranked in the top 5 by annual procurement value, and 12 were qualified(Grade A); suppliers of plastic materials were evaluated. There were 52 suppliers in total, with a 100% pass rate (Level A).
Transportation Supplier Management
Transportation suppliers are an important part of the Company's supply chain. Every year, they are evaluated for their on-time delivery, appropriateness of transportation process, and validity of licenses. In 2023, the Company had 4 qualified transportation suppliers in Wang-Tien Factory area, of which 3 are Grade A suppliers and 1 is Grade B; there were no new domestic transportation suppliers, and no road transportation accidents occurred.
Transportation suppliers are an important part of the Company's supply chain. Every year, they are evaluated for their on-time delivery, appropriateness of transportation process, and validity of licenses. In 2023, the Company had 4 qualified transportation suppliers in Wang-Tien Factory area, of which 3 are Grade A suppliers and 1 is Grade B; there were no new domestic transportation suppliers, and no road transportation accidents occurred.
Raw Material Procurement Strategy
Purchase from supplier
- Confirm the quality first: Foreign suppliers are required to provide quality certification (COA) first, while Chinese suppliers are required to send samples to the quality inspection department of our subsidiary in China for analysis, and shipments will be made only after they pass the quality test. The domestic supplier should attach COA confirmation to the shipment and must pass our quality control inspection before it is allowed to be stored, in order to reduce the risk of return and exchange.
- Local procurement principles: Considerations will be given first priority to domestic suppliers for the supply of goods. The overseas suppliers are second in priority. This helps to shorten the time for supplying goods and transportation costs. However, considering that some of the raw materials rely on imports and the inconveniences of transportation overseas, testing centers are set up in major raw materials importing areas such as China. With the centers, testing of the raw materials can be conducted first before shipment in case the raw materials failed the testing and have to be returned. The complex paperwork will generate costs in economic, environment and so on, and these costs can be prevented this way.
- The international shipping policy: We only ship entire containers to avoid shipping small quantities several times. We also use multiple containers to reduce the number of shipments. If the shipment is LCL, it will be shipped via CFS.
- Port of shipment for China procurement: We do not concentrate on a single port (e.g., Shanghai port), but ship the goods nearby, e.g. Shandong manufacturers ship from Qingdao port, while Fujian ship from Xiamen port. This can avoid using too much land transportation and can also spread the risk of congestion in a single port.
- Port of receipt in Taiwan: The Asia line receives goods as close as possible, with Taichung Port as the main port. Most of the ocean lines go to Kaohsiung Port, before trying to arrange for the shuttle boat to be transferred to Taichung Port to receive the goods to avoid long-distance transportation by trucks.
Packaging reduction
- No usage of plastic films for shipment goods packed in 200L barrels. Goods are fixed with packing belts. We avoid excessive packaging under the condition that it does not affect the quality of the products.
- Committed to using large packages such as bulk bags or ISO TANK for transporting imported/exported raw materials and finished products. Reduce packaging materials and excessive wastes of resources.
- The domestic liquid bulk raw materials procurement shall use tank trucks for transportation, these tank trucks can be reused. Use the storage tank to preserve them reduces resource waste and excessive labor.
- Liquid non bulk raw materials use tank or steel drum for circular transportation.
- Recycling and reusing of bulk bags and pallets. Gradually using plastic pallets in replace of the wooden pallets
Reduce impact on the environment
- For intra-plant transportation, electric vehicles are used to transport goods, and traditional vehicles are gradually being replaced.
- Electric forklifts are used in warehouses to reduce emissions and protect the environment and human health.
- If the plastic pallets used in imported goods are seriously damaged, the disposal will be outsourced, and the rest will be resold to second-hand businesses for reuse, achieving a circular economy and reducing disposal costs. A total of 1,933 pieces of plastic pallets were resold in 2023.
- Purchase the pallet made of recycled plastic for export (PP material) first. 20 pallets were purchased in 2023.
- Recycling and reuse of process byproducts:
- Solvents are reused or treated for resale.
- The salts were recycled from wastewater and then refined and reused to reduce waste and increase plant capacity.
- The waste sulfuric acid generated from the process was treated and converted into 7.5% aluminum sulfate for wastewater treatment
