Supply chain Management

Supplier Sustainability Management

Suppliers are not only crucial resources but also important partners to the Company. Therefore, CWTC values supplier sustainability management. We also implement supplier management procedures to ensure workplace safety, protection of the environment, working conditions, human rights, and social responsibilities as well as ethical compliance. We verify suppliers’ basic financial status, quality management, environmental management, and other system certifications through the supplier data sheet, and ask suppliers to sign the conflict minerals statement. New suppliers are
subject to factory visits and evaluations. These measures are to ensure suppliers’compliance with relevant regulations. Furthermore, we have regular on-site visits and evaluations every year. These evaluations cover quality management, delivery schedule, system management and sustainability risk assessment. Candidates would become qualified suppliers only when the evaluations are completed and such applications are approved by the procurement, quality assurance, engineering, and relevant departments. In 2022, there were no factory visits and evaluations as we did not have new major raw material suppliers.

None of the Company's existing suppliers nor contractors had any significant negative impact, either actual or expected, on the environment, labor conditions, human rights and society in 2022.

  • Supply Chain (Material Stability and Price & Inventory Control)

  • Quality Audit Process for Suppliers

The Company regularly conducts quality audits on key suppliers. The supplier selfassessment
and on-site evaluation cover the following 11 items:

  • Supplier Tier Management

  • Supplier Assessment

The Company safeguards employees, the environment, and ethical management in the spirit of RBA, and conducts supplier sustainability risk surveys and audits on high-risk suppliers. Suppliers are categorized by type into primary materials, secondary materials, and others, and their sustainability management is divided into five risk levels. Highrisk suppliers would be required to make improvements within the prescribed timeframe. Those who fail to make improvements on time would be disqualified from our supplier list. In 2022, we assessed 10 primary materials suppliers, and none of them were found to have significant or potential negative social impacts.


Conflict Minerals

CWTC and its subsidiaries have long been committed to complying with standards and initiatives of the Responsible Business Alliance (RBA), the Global e-Sustainability Initiative (GeSI) and the Responsible Minerals Initiative (RMI). As a good corporate citizen, we fulfill our social responsibilities, respect human rights, and constantly monitor conflict mineral issues. We carry out detailed supply chain investigations to ensure we do not source metals, including tin (Sn), tantalum (Ta), tungsten (W), gold (Au), and cobalt (Co), from mining areas or smelters in the Democratic Republic of the Congo and its neighboring areas controlled by armed groups. CWTC also plans to cooperate with suppliers who are environmentally and socially responsible. We ask our suppliers to abide by the RMA Code of Conduct as set out below:
1. Do not use conflict minerals from illegal sources.
2. Do not purchase conflict metals produced in conflict affected and high-risk areas.
3. Encourage all suppliers in our supply chain, including contractors and smelters, to participate in programs such as RBA and RMI.
4. Commit to due diligence on conflict minerals to provide more transparent sources of conflict metal and minerals.


Local Procurement Policy

Increasing the proportion of local procurement has always been a key focus of our procurement strategy. Through local sourcing, we improve the employment rate and boost the economic growth of the region. Local procurement provides faster services and more direct communication as it reduces transportation costs and shortens delivery time. With shorter transportation distance, carbon emissions and consequently the environmental pollution are simultaneously reduced. Even with the pandemic in the past two years, the proportion of local procurement continues to rise. Due to plant expansion, the demand for copper alloys surged in 2022. Since most of the copper alloys needed for our Taiwan plants were of special specifications, they were mainly sourced
from Japanese suppliers.