Supplier environmental and social management three goals
In recent years, the proportion of purchases from the top 20 suppliers of WT’s revenue has reached more than 90% of the total group’s purchase amount. The relevant supplier management is also mainly focused on the top 20 suppliers. Considering WT as an agent channel in the supply chain, the three main management goals for the supplier environmental and social policy management are to implement supplier code of conduct, chemical management, and responsible minerals.
Implementation of Supplier Code of Conduct
WT has a code of conduct that governs its own operations and business relationships with suppliers, to ensure that all operations comply with applicable laws and international business ethics standards. WT’s major supplier are also required by their end-customers to comply with the Code of Conduct of the Responsible Business Alliance (RBA), which covers the aspects of ethics, human rights, environment, safety, and management systems. In addition, 18 of WT’s top 20 suppliers have passed RBA audits in 2022, strengthening the credibility of compliance results through third-party audits.
100% of the top 20 supplier are in compliance with chemical management regulations.
WT is always aware of the latest updates to chemical use regulations in various countries. Based on customer needs, we actively require suppliers to provide international regulatory declarations and relevant documents for individual product needs to ensure compliance with regulations and industry standards. Currently, the regulations included in the management include the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Chemicals Registration, Evaluation, Authorization, and Restriction Act (EU REACH), the US Toxic Substances Control Act (TSCA), the Chinese Administrative Measure on the Control of Pollution Caused by Electronic Information Products (China RoHS) and the California Proposition 65 (Prop 65).
In the future, we will establish an e-based management process. During product filing, the relevant departments will obtain relevant chemical management documents for individual products from suppliers in the process (such as non-use of banned substances guarantee certificates, electronic component composition analysis reports, and hazardous substance test reports from third-party testing organizations). A document update verification mechanism will also be established to ensure that customers can obtain chemical management documents that meet the current status of the product when purchasing the product.
Enhanced Responsible Minerals Traceability Investigations
In response to customer requests to not purchase products containing conflict minerals, such as tin, tantalum, tungsten, and gold, from human rights-disputed areas such as mines in the Democratic Republic of the Congo and surrounding countries, WT regularly reviews our supplier’s conflict minerals policies to confirm that they continue to meet responsible minerals requirements.
In addition, to ensure that direct or indirect procurement sources do not contain conflict minerals, WT will gradually promote and implement traceability management for the above metals procurement from suppliers, following the Responsible Minerals Initiative (RMI). Through RMI’s annual updates to the results of each smelter’s assessment and the version of the Conflict-Free Smelter Responsibility Tracking (CMRT) document, WT will gradually expand its request for CMRTs from suppliers to verify smelter source information in the supply chain, in order to achieve the goal of implementing the responsible minerals policy. In 2022, 18 of WT’s top 20 suppliers disclosed their compliance with the conflict-free minerals policy on their websites, while the other two disclosed their responsible minerals policies in their sustainability reports.
Local procurement accounted for 98.3% of general supplies spending.
As WT’s vendors are global IC giants, its management of local procurement issues focuses on general supplies and excludes transactions with the vendors. According to statistics in 2022, procurement from Taiwanese suppliers accounted for 98.3% of the Taiwan headquarters’ spending on general supplies including office supplies, information equipment, and logistics center procurement, 1.5% up from the previous year.
