Framework for Sustainable Supply Chain Management

Framework for Sustainable Supply Chain Management

First, we explicitly notify the suppliers about the sustainability specifications and require them to ensure compliance with relevant requirements. Second, we assess sustainability risks in different aspects through the sustainability risk assessment system for suppliers, and review the risks that the supply chain faces. Finally, we address and rectify the identified issues. In addition to enhancing important strategies for the future development of Qisda and the industry, we give guidance to supply chain to build capacity with relevant information, hoping that we can progress alongside the suppliers and move forward towards a sustainable future.

Governance Structure

Qisda continues to focus on the development and management of the supply chain. Not only do we report the daily management performance in the quarterly ESG Committee meeting, but the Chief Sustainability Officer also reports the implementation results and performance of the sustainable supply chain to the Board of Directors annually. At the same time, the Board of Directors guide and make decisions for the development of the sustainable supply chain to make sure that the management of the sustainable supply chain complies with the Company’s overall sustainability strategy.

Supplier Reward and Elimination Mechanism

Qisda has built a supplier incentive and elimination system to encourage suppliers to move towards sustainable development. Through related evaluation mechanisms, Qisda identifies suppliers with exceptional sustainability performance and increases the procurement proportion from these suppliers. Moreover, we give them a priority for adopting new products. We eliminate suppliers with disappointing performance to promote overall progress and growth of the entire industry chain 
 

• Dimensions of evaluation: quality, innovation/technology, speed/response, delivery, cost leadership, and ESG.
• This mechanism has 5 levels ranging from A (over 90 points) to E (lower than 60 points). ESG relevant factors include sustainability, health, labor, environment and green products, which occupy 11.4% in grading.
• Frequency: Twice a Year