Management Approach
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Item
|
Description
|
|
Policy
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Fulfill the
Responsible Business Alliance’s “RBA Code of Conduct” as the basic principle for
conducting business activities
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Commitment
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Sustainability and co-prosperity, providing
total quality that meets customers’ satisfaction
|
|
Division
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• ESG Committee
• Supply Chain Subcommittee
• Materials management Division and Quality Management Division
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Resources Invested
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• Organize a supplier conference
• On-site audit of CSR suppliers and deficiency counseling materials
• Daily advocacy
|
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Grievance Mechanism
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• Complaints Line
• Complaints Mailbox
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Goals
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Upstream and downstream supply chain management meeting the requirements of
quality/cost/delivery/service/technology and CSR management system
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Actions
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• Meet customers’ requirement
• Advocacy to suppliers/Supplier evaluation/Supplier audit/Supplier assessment
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Other Response Measures
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Unimicron follows customers’ requirements
and is committed to the improvement and refinement of the CSR management system. In
addition to self-requirements, it also hopes that suppliers can co-prosper and
maintain sustainability with Unimicron. Regarding the risk management of sustainable
business operations, in addition to the continuous implementation of supply chain
management, we began to include the RBA Code of Conduct, regulations and other
supply chain potential risks in the assessment items at the end of 2018. The
mitigation plan for high-risk factors is included in the mandatory targets of the
Material Division, and continuous improvement and monitoring have been carried out
to meet the targets.
|
Supply Chain Overview
Unimicron’s suppliers mainly include seven categories of raw material suppliers, equipment, engineering
suppliers, waste disposal companies, on-site companies (such as security), human resources brokers, and
land, sea and airfreight forwarders. Which, both raw material and equipment suppliers are the most
important supplier categories, totaling 636 companies.
For the major raw material suppliers and equipment suppliers (including strategy key suppliers) involved
in the manufacturing of our products, we have developed sound quality management and CSR management
model for corporate social responsibility, financial risks, conflict minerals, and Business Continuity
Plan to meet the principles of corporate sustainable development. At the same time, we have established
positive partnerships with suppliers to oversee their CSR-related risks, strengthen audit management,
and coach and assist in improvement, all to lead the overall supply chain towards a sustainable future.
Sustainable Supplier Management
Unimicron promises to establish a supplier management system and specifications, and communicate with
them every year to establish a stable and sustainable development of a win-win strategic partnership. To
promote the sustainable management of suppliers and build a more resilient supply chain, Unimicron has
included aspects of supply chain risks, continuity operations, finances, conflict minerals, etc. in the
sustainable supply chain management issues and jointly mitigates supply chain risks. In addition, a
cross-departmental “Supply Chain Management Subcommittee” assists suppliers in improving and upgrading
quality systems, environmental protection, green procurement, and safety through regular coaching and
auditing, building supplier sustainability.
Unimicron integrates the management system with the procurement process in promoting sustainable
supplier management, and requires raw material and equipment suppliers to sign a "Supplier Corporate
Social Responsibility Letter of Commitment". The content of the commitment letter is based on the RBA
Code of Conduct, the International Labor Organization Convention and the Social Responsibility SA 8000
standards, and the content covers ethics, human rights, environmental and health and safety
considerations. In response to the new version of the 2021 RBA Code of Conduct, we renewed the "Supplier
Corporate Social Responsibility Letter of Commitment" and invited suppliers to commit, sign and comply
with the new code.
Signature Rate of Supplier Commitment Statement
|
Year
|
Taiwan Facilities
|
Mainland China Facilities
|
QunHong Technology Inc.
|
|
2018
|
79%
|
100%
|
100%
|
|
2019
|
78%
|
100%
|
100%
|
|
2020
|
75%
|
100%
|
84%
|
|
2021
|
85%
|
100%
|
89%
|
|
Statement Aspects of the
Supplier Commitment Letter
|
|
• Business ethics compliance statement
• Statement of social responsibility
• Warranty of non-infringement
• Environmental hazardous substances non-use declaration
• Commitment to the non-usage of illegally mined raw materials
|
2021 Supply Chain Management
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Supplier Profile Analysis
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Raw Material Supplier
|
Equipment Supplier
|
|
Definition
|
Raw
material suppliers for the production of unit products
|
Provide
process production and quality inspection equipment
|
|
Management
Policy
|
For raw
material supply partners, adopt comprehensive Q/C/D/S/T management strategies
and major supplier RBA supply chain management strategies, in order to ensure
that the quality of supply meets customer expectations
|
Initial
technical exchanges, joint development, equipment maintenance and provision of
major suppliers RBA Code of Conduct management strategies
|
|
Importance
|
Provide
Unimicron with timely and appropriate amounts of raw materials to manufacture
products that meet customer requirements
|
Provide
advanced equipment and technology to assist Unimicron in producing high-quality
products with a positive yield rate that meets customer requirements
|
|
Number of
Suppliers per Procurement Category (Suppliers)
|
454
|
182
|
|
Proportion
of Suppliers per Procurement Category (%)
|
71%
|
29%
|
|
Percentage
of Transaction Amount per Procurement Category (%)
|
48%
|
52%
|
Local Procurement
Unimicron adheres to the principle of sustainable corporate social responsibility and hopes to promote
the sustainable development of the entire supply chain. Therefore, to promote operational activities and
local economic development, Unimicron actively implements localization of materials, and supports the
development of local suppliers, all to reduce unnecessary air and water freight costs, as well as the
carbon footprint generated during material transportation. In 2021, the local procurement ratio of raw
materials purchased by Unimicron in Taiwan was 72%. QunHong Technology Inc. had a local procurement
ratio of 87%, and Mainland China facilities had a local procurement ratio of 84%.
Percentage of Local Procurement Amount
|
Region
|
2018
|
2019
|
2020
|
2021
|
|
Taiwan Facilities
|
68%
|
67%
|
73%
|
72%
|
|
QunHong Technology Inc.
|
82%
|
81%
|
83%
|
87%
|
|
Mainland China Facilities
|
81%
|
84%
|
84%
|
84%
|
|
Note: Local scope includes local suppliers and Taiwan agents.
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