The suppliers and TWM are jointly responsible for fulfilling their corporate social responsibilities and responding to stakeholders. To this end, we have integrated topics related to three aspects including environmental, social and governance (ESG) to build a supply chain management framework, requiring partners to respond to sustainable integration strategies and controlling potential supply chain risks.
To implement the sustainable supply chain management framework, as well as building a more complete and comprehensive sustainable supply chain, TWM has formulated 4 key strategic goals regarding suppliers:
Quality management: The technical evaluation mechanism confirms whether the equipment or service meets TWM’s requirement. The supplier's quality management mechanism is kept in check through the economic performance of supply chain sustainability issues.
Stable service: Suppliers are required to commit to complete service and delivery at the time of quotation. Unqualified suppliers failed to deliver products on time will be eliminated.
Risk control: The suppliers are required to sign the "Declaration of Integrity in Business Conduct" as a measure for supervising supplier integrity. They are also required not to violate laws and regulations regarding fair competition, environmental protection laws, copyrights and the Labor Standard Act. Risk analysis is conducted based on the supplier sustainable assessment mechanism to identify supplier risks and assess their impact, as a reference for future cooperation.
Sustainability implementation: Achieve sustainable supply chain integration through enhancing supply chain information transparency and capacity. TWM enhances its responsibility and accountability for the supply chain by disclosing the status of supplier management practices. At the same time, the Company enhances the sustainability awareness of internal and external personnel and supplier through regular staff and supplier training.
TWM has set the goal of reducing 20% of the supply chain carbon emission to become more eco-friendly by 2020 in Zetta Connected 2030. To this end, in addition to training suppliers on greenhouse gas and carbon management issues from 2018, TWM has continued to coach partners to take comprehensive inventory of greenhouse gas emission sources, improve data quality of the inventory results, as well as deepening the suppliers' awareness of impact of carbon emissions from the supply chain. In 2020, TWM completed carbon inventory for 84 critical tier-1 suppliers and on-site visits for 10 suppliers.
In 2021, TWM will formulate a supply chain greenhouse gas reduction plan and performance tracking plan and will officially launch greenhouse gas inventory for suppliers. The collected data found will be used as the base year data for the 2030 reduction target.