Sustainable Supply Chain Management

SDGs

Sustainable Supply Chain Management

For Qisda’s supplier selection procedures, we investigate the suppliers’ management systems of production capacity, technical innovation ability, quality and services based on our future product demand trend and procurement strategies to see if the Company’s requirements are met. For our existing qualified suppliers, Qisda conducts careful supplier risk assessments. This involves regular and ad-hoc investigations into the financial status of suppliers, with a focus on high-risk groups, to ensure supply chain continuity. Strengthening supplier sustainability and building a green supply chain are also vital and ongoing efforts in Qisda's sustainable development initiatives. We vigilantly monitor labor and environmental issues and updates in regulations, and communicate international trends and demands to our suppliers.

Promote the Green Supply Chain

We promote the green supply chain in three phases: awareness, implementation and sustainability

Awareness

Through training and workshops, Qisda disseminated information regarding relevant laws and sustainability. Furthermore, the company assisted suppliers in conducting inventory of direct materials, indirect materials and energy consumption; disclosing waste emissions and energy consumption from transportation; calculating product life cycle; and understanding the potential impacts their operations may have on ecosystems.

Qisda has required more suppliers to sign the social responsibility and business ethics commitment letter; performed inspections of the supplier’s social responsibility, environment, safety and health; and ensures compliance with international standards such as the environmental management system (ISO 14001), occupational safety and health management system (ISO 45001), social responsibility management system (SA8000), the RBA Code and other regulations and standards.

Inspection of the supplier’s social responsibility, environment, safety and health
Self-assessment on the Responsible Business Alliance Code of Conduct (RBA Code)
Education and training of key suppliers on GHG inventories

Implementation

The sustainable development capability was assessed according to three metrics: self-management, conformity to social responsibility, and ESH management performance. In addition, Qisda performs paper-based inspections for social responsibility and ESH, as well as ensures the signing of the social responsibility and business ethics commitment letter and conducts audits thereof. For any noncompliance identified, we request that suppliers submit an improvement plan, in turn improving supply chain sustainability.

In 2023, Qisda completed paper-based inspections and audits for 100% of our critical Tier 1 suppliers, and make corresponding improvements. Simultaneously, we teach individual suppliers how to perform GHG inventories and draw up reduction plans in order to strengthen the suppliers’ participation in and management of climate change-related issues.

On-site audit of the supplier’s social responsibility,environment, safety and health
Implementation of the Responsible Business Alliance Code of Conduct (RBA Code)
Self-disclosure and reduction of GHG generated from key components

Sustainability

For management in the future, we will continue to prioritize education and resource provision to our Tier 1 suppliers. In addition to enhancing the environmental awareness and social responsibility among our suppliers, this approach will allow our suppliers to join Qisda in leading environmental protection for the manufacturing industry.

By strengthening the self-management capability of our Tier 1 suppliers, relevant requirements and management practices can be extended to Tier 2 suppliers, thus creating a green supply chain.

Supplier’s independent management
Preparation of the Corporate Social Responsibility Report
Extension to the Tier 2 supplier

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