By maintaining long-term partnerships with many suppliers, we aim to achieve sustainable operations together while also pursuing social responsibility and environmental protection. This is to fulfill our corporate responsibility of giving back to society and the global environment.
The company has signed a supplier code of conduct with domestic and foreign suppliers involved in production. The code aims to constrain the suppliers' behavior in multiple aspects, including human rights, occupational safety, environmental protection, etc. The company also commits to developing long-term plans to improve employee rights, enhance occupational safety in factories, and reduce carbon emissions, in order to cooperate in developing a sustainable supply chain.
The procurement department assumes responsibility of related actions and coordination of internal and external communications.
Manager and staff members of the procurement department.
The company's official website provides a communication channel for suppliers, where it can be provided with immediate feedbacks. The feedbacks are then reviewed and decided with relevant departments on whether to implement improvement measures.
-
Continue to promote all key suppliers, both domestic and foreign, to sign the "Supplier Code of Conduct".
-
The key supplier evaluation score must be at least 85 points (the evaluation content includes green procurement/risk assessment/responsible mining/employee rights/product quality and environmental safety).
-
Based on the supplier's ESG report or assurance report, the key supplier evaluation score for the three aspects of environment, governance, and society must be at least 85 points.
-
Continue to encourage suppliers to engage in activities that help environmental protection, and to continue to pay attention to information such as environmental pollution or energy emissions.
-
To inform manufacturers early that they must take steps to transform as soon as possible to meet the requirements of domestic and foreign regulations or social trends.
The company conducts supplier audits on a regular basis each year to review whether the supplier complies with the agreed-upon behavior and responsibilities. After the audit is completed, the supplier must provide a status report on the improvement measures and continue to implement them.
Promote local procurement
In recent years, in order to support domestic suppliers and promote local economic development, local procurement of raw materials has been the procurement philosophy of TMC. Local procurement can improve supply flexibility and reduce unnecessary transportation costs. Considering the advantages of creating local economy and reducing costs, the proportion of local raw material procurement has gradually increased under the implementation of TMC's local procurement policy. In the future, it will also vigorously promote the local procurement policy of raw materials, creating a dual-effect supply chain both green and economic .
| Procurement Region | 2020 Percentage | 2021 Percentage | 2022 Percentage |
|---|---|---|---|
| Local | 25% | 32.8% | 28.4% |
| Non-local | 75% | 67.2% | 71.6% |
Supplier selection
- Evaluation and review: financial conditions, quality, delivery, price and safety.
- Must sign the "Supplier Code of Conduct".
- Must provide an ISO certificate of quality.
- Must sign the "Conflict-Free Metal Declaration".
Annual supplier evaluation
- The supplier evaluation process includes "audit and inspection" and "delivery quality assessment".
- Delivery quality assessment: Annual assessment of key trading suppliers
- Delivery quality assessment: Supplier audits are scheduled annually to assess whether suppliers are meeting the agreed-upon behaviors and responsibilities. After the audit is completed, the supplier must provide a progress report on the implementation of improvement measures and continue to implement them.