Supplier Strategy
Sustainable Supply Chain
Suppliers are important partners, so TXC formulates strategies with the concept of sustainable development, and actively guides suppliers to evaluate and assist in environmental, social and governance related issues in order to identify and respond to impacts. Meanwhile, in order to build green supply chains, TXC has promised to require main suppliers to conduct greenhouse gas inventories and calculate product carbon footprints, so as to reduce greenhouse gas emissions generated by the organization itself and its business activities.
01
Measures for Selecting Suppliers
Suppliers that TXC selects to cooperate with should expect to develop the awareness of accepting sustainable development and the determination to implement it, and absolutely take sustainable development as a business goal. Therefore, TXC will gradually incorporate environmental, social and governance related issues into specific review stages or documents, such as supplier evaluation forms and evaluation meetings to decide whether to add a certain supplier to TXC's Qualified Supplier List.
02
Procurement Strategy
TXC upholds the spirit of green procurement and gives priority to products or services certified by international/national green or environmental standards in the procurement stage. In addition to signing contracts with suppliers at the procurement stage, TXC will also continue to request suppliers to implement the Code of Conduct - Responsible Business Alliance (RBA) regular self-reviews as well as incorporate environmental, social and corporate governance into the contract, so that suppliers can share the concept of sustainable development and move towards a common goal.
03
Fair Procurement
Taking into account supply chain risks and avoiding centralized procurement, TXC has formulated comprehensive mechanisms for supplier selection and procurement based on ethics, integrity and regulatory compliance. Manufacturers who meet the Company's requirements of relevant qualifications, capabilities and relevant regulations can be TXC's supplier partners, so that fair procurement procedures can be practiced.
The following table shows TXC's investigation into the major suppliers
However, in view of the increasing importance of environmental, social and governance related issues, TXC has given priority to suppliers with the following systems.
| Visit for Confirmation | Number of Investigated Suppliers | Number of Eligible Suppliers | Percentage of Eligible Suppliers | ||
|---|---|---|---|---|---|
| Responsible Business Alliance standards | 52 | 52 | 100% | ||
| Certification System | Number of Investigated Suppliers | Number of Eligible Suppliers | Percentage of Eligible Suppliers | ||
|---|---|---|---|---|---|
| ISO 9001 quality management system | 52 | 51 | 98% | ||
| ISO 14001 environmental management system | 52 | 44 | 85% | ||
| ISO 28000 security management system for the supply chain | 52 | 25 | 48% | ||
|
ISO 45001 occupational safety and health management system
|
52 | 16 | 31% | ||
|
IECQ/QC080000 hazardous substance process management system
|
52 | 6 | 12% | ||
|
ISO 14064-1 greenhouse gas inventory
|
52 | 6 | 12% | ||
Supplier Management
Supplier Management
Even though preventive management in terms of qualifications or capabilities has been established in the selection and procurement stages, the implementation and supervision are even more important.
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Suppliers must regularly sign and return "Commitment to Integrity," "Environmental, Occupational, Safety, and Health Status Questionnaire," "Commitment to Industry Regulations," "Declaration on Green Products and Environmental Protection" and "Declaration of Conflict-free Metal," so that suppliers can be better guided in the scope of sustainable development as an enterprise.
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TXC adopts comprehensive evaluation mechanisms during contract periods. For example, professional employees are assigned by relevant organizations and units within the Company to form a professional, impartial and independent evaluation team to regularly carry out evaluations of labor, human rights, health and safety, environmental standards, business ethics and management systems every year and keep evaluation records and corroborating information as implementation records and evidence to ensure that suppliers’ safety of work environments, human rights protection, protection, and protection and respect of labor rights, regulatory compliance, integrity and ethics, and environmental protection are in line with the Company's medium- and long-term plans for sustainable development and relevant international standards, in order to maintain long-term high-quality partnerships, effectively control the possibility of related risks, and build a relationship of coexistence and prosperity with suppliers.
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TXC organizes supplier meetings and training activities from time to time every year
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If any shortcomings are found afterwards, TXC and suppliers will immediately implement corrective and preventive mechanisms followed by a follow-up on improvement and supervision measures to ensure the achievement of the rights and interests of both parties and the goal of sustainable development.
Supply Chain Security Management
Construction of Supply Chain Security Management System
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Through the guidance of the government's integrated system, TXC has established Authorized Economic Operator (AEO) and Supply Chain Security Management System (ISO 28000), and thus built a supply chain security system to achieve substantial results like preferential customs clearance and improved service quality and efficiency in order to meet security needs of customers for industrial value chains.
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Through the education and training of AEO and ISO 28000 provisions, risk assessment, formulation of goals, objectives, and plans, high-quality enterprises’ verification via a self-assessment checklist, audits of business partners, internal audits, and management reviews, TXC obtained a certificate of security-certified high-quality enterprise issued by Customs Administration, Ministry of Finance in March 2012. Re-assessed in 2021, TXC obtained AEO qualifications and has maintained the validity of the AEO certificate after on-site verification by customs auditors followed by its internal reviews.
