Supplier Management
To provide safe, reliable, high-quality, and sustainable green chemical products, Everlight collaborates with all partners in the raw material supply chain to jointly undertake corresponding responsibilities for sustainable development, with integrity as the cornerstone of our partnerships. We promote green procurement, implement supplier management policies, supervise suppliers to fulfill corporate social responsibilities, adhere to labor and human rights standards, and ensure safety and health, stable quality, on-time delivery, competitive prices, and high-quality products and services of raw materials, and create a win-win situation.
We require all suppliers to understand the relevant standards set for controlled substances in raw materials and restricted substances restricted by regulations worldwide, and to use these criteria to select suppliers who meet environmental protection and social responsibility standards.
Suppliers interacting with Everlight must adhere strictly to the boundaries of business dealings. In the event of any instances of private bribery, acceptance of kickbacks, improper benefits, conflicts of interest, unauthorized subcontracting, or similar circumstances, it is mandatory to immediately report through Everlight’s reporting channels.
Reporting Channels
Hotline: +886-2-2326-3502
Audit Department Reporting Email: [email protected]
Audit Committee Email: [email protected]
Procurement Policy: Comply with regulations, promote green procurement, and establish partnerships with suppliers based on integrity principles.
Due to the nature of the industry, most of Everlight’s raw materials come from mainland China. After the pandemic, with the global economic downturn and falling raw material prices, the proportion of procurement expenses from local suppliers has slightly decreased. The proportion of local procurement is 26% in 2023. In the future, we will also give priority to local procurement if the product requirements are met.
▍Risk Management of Supply Chain
The results of the supplier risk assessment in 2023
▍Green Supply Chain Management Performance
In promoting a green supply chain, we categorize suppliers into three groups: primary, important, and new. For important and new suppliers, we send “Supplier Evaluation Forms” to assess whether they have ESG/CSR policies and guidelines, as well as related performance in environmental and social aspects. We also require important suppliers to fill out a “Regulatory Compliance Questionnaire,” which includes inquiries about (a) the improvement rate of wastewater output and discharge improvement rate per ton of finished product, (b) compliance with occupational health and safety regulations in operations, and (c) compliance with relevant regulations regarding the employment of employees by local governments. For suppliers that do not meet the criteria, we continue to communicate and promote the concept of green chemistry with our suppliers.
Survey Method ─ ESG Report / CSR Report or Statement
| Year | 2022 | 2023 |
|---|---|---|
| Number of Suppliers | 171 | 128 |
| Response Rate | 58% | 61% |
| Number of Completed Surveys | 99 | 78 |
| Compliance Rate | 100% | |
Survey Method ─ Supplier Evaluation Form
| Year | 2022 | 2023 |
|---|---|---|
| Number of Suppliers | 32 | 19 |
| Response Rate | 78% | 100% |
| Number of Completed Surveys | 25 | 19 |
| Compliance Rate | 100% | |
Survey Method ─ Environmental Compliance Questionnaire
| Year | 2022 | 2023 |
|---|---|---|
| Number of Suppliers | 32 | 19 |
| Response Rate | 84% | 95% |
| Number of Completed Surveys | 27 | 18 |
| Compliance Rate | 89% Wastewater Discharge Improvement Rate94% Wastewater output Improvement Rate |
|
Survey Method ─ Social Compliance Questionnaire
| Year | 2022 | 2023 |
|---|---|---|
| Number of Suppliers | 32 | 19 |
| Response Rate | 100% | 100% |
| Number of Completed Surveys | 32 | 19 |
| Compliance Rate | 100% Occupational Health and Safety Regulatory Compliance Rate100% Labor Law Regulatory Compliance Rate |
|
Survey Method ─ Supplier Evaluation Form
| Year | 2023 |
|---|---|
| Number of Suppliers | 10 |
| Response Rate | 100% |
| Number of Completed Surveys | 10 |
| Compliance Rate | A total of 10 new suppliers were added in 2023. Their environmental and social performance were reviewed through the Supplier Evaluation Form. |
▍Green Partner
Everlight will collaborate with the supply chain to promote Green Partner and implement E-ESG certification
Note 1: The Green/Sustainable Supplier Risk Assessment includes four categories of awards: E-ESG Sustainability, E-E Environmental Protection, E-S Social Responsibility, and E-G Corporate Governance.
▍Supplier Satisfaction Surveys
Raw Material Suppliers
Through the “Raw Material Supplier Satisfaction Survey,” the company aims to understand the interaction between employees and suppliers and identify areas for improvement in the procurement process. Through mutual agreement and concrete communication, cooperation and mutual benefit are promoted and create a win-win situation.
In 2023, a total of 23 suppliers (excluding OEM suppliers) with annual procurement amounts exceeding NTD 30 Million were surveyed, achieving a questionnaire response rate of 100% with a satisfaction score of 95.7 points.
Contractors at Plant Sites
In 2023, hazard briefings were conducted for 1,425 contractors when entering the production site. Additionally, 58 training sessions were organized for 369 contractors to enhance work safety awareness.
In the first quarter of 2024, satisfaction surveys were conducted for 59 contractors across various plant sites.