Discreet selection and gate-keeping
Become permanent partners with like-minded suppliers
WT set a Social Policy & Code of Conduct. It is a guideline for WT and its business partners in their operational activities, which includes labor rights, health and safety, ethics, management system, etc. It expressly regulates the appropriate conduct of all operational activities and the commitment to continuous improvement. WT also communicates the guidelines to all types of suppliers and monitors them, so that only those suppliers who adopt the same standards as those pledged will be WT’s partners for continuous collaboration.
In addition, environmental protection and safety are also included in the selection criteria for the procurement of common services in Taiwan’s operating bases, and products that do not meet safety standards are not used. For example, tea bags and coffee beans in the staff break room must be labeled as having passed food safety inspection tests, construction materials cannot use building materials containing dangerous chemicals or elements, and curtains and carpets must have flame-resistant labels, etc.
Criteria for screening and evaluating suppliers
In accordance with the Procurement Management Regulations to evaluate suppliers, WT added the Management Points for General Service Suppliers in 2020, requiring general service suppliers at each operating base in Taiwan to sign the Supplier Corporate Social Responsibility Pledge and fill out the online Supplier Self-Assessment Form. The self-assessment includes the operation and provision of products and services with special attention to no significant negative impact on the environment or violation of environmental regulations, and the social policies and codes of conduct of suppliers and environmental standards are evaluated accordingly. In addition, we evaluate the supplier’s social policies, code of conduct, and environmental standards. In addition to quality, technology and finance, social responsibility, labor practices and environmental protection will also be included in the evaluation. If the evaluation results do not meet the requirements, the supplier will be counseled through supplier meetings on how to improve the situation. If the re-evaluation still fails to meet the management requirements, the transaction volume will be reduced or not renewed.
Adopting EU chemical standards, 100% of WT’s top 20 suppliers have passed
WT has adopted the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Registration, Evaluation, Authorization and Restriction of Chemicals Act (EU REACH) and the US Toxic Substances Control Act (TSCA) to conduct environmental assessment standards for suppliers’ products, and obtains third-party test reports for confirmation when the products are sold as agents. In 2021, 100% of WT’s top 20 semiconductor suppliers passed the EU RoHS and EU REACH chemical management regulations.
WT’s strict control over the environmental and social requirements of its products
With regard to the restriction of banned hazardous chemical substances, WT aims to meet 100% of its clients’ requirements. According to a client’s individual requirements for various products, upstream suppliers are required to provide relevant guarantee certificates of the non-use of banned substances, component composition analysis reports and harmful substance test reports from third-party testing institutes according to product material numbers, so as to comply with the relevant environmental requirements of the products.
In response to customer’s requests to provide information on the non-inclusion in the materials purchased of conflict minerals such as tin, tantalum, tungsten and gold from regions with human rights disputes, WT also requires upstream suppliers to provide Conflict Minerals Reporting Template (CMRT) in order to fulfil the universal value of supply-chain humanitarianism.
Localization of common services procurement, with a high expense ratio of 96.8%
Since WT’s semiconductor suppliers are major suppliers in the global IC technology fields, the management of local procurement issues focuses on the procurement of non-agent items for common services. In 2021, the proportion of expenses for Taiwan headquarters’ purchases from local suppliers in Taiwan reached 96.80%, and the scope of the statistics included purchases for administrative services, information equipment, logistics centers and application engineering.
Proportion of Taiwan's local procurement of general merchandise
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