Sustainable Supply Chain Management

Supplier Sustainability Management Approach

ASEH is committed to partnering with our suppliers to ensure that working conditions in ASEH’s supply chain are safe, their workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically.

Supplier Sustainability Management Approach

As part of the ASEH Procurement and Supply Chain Development Policy and Commitment, we established a four-stage sustainability supply management process that is run repeatedly to ensure supplier compliance and enhance their sustainability performance. In order to effectively improve the overall sustainability performance in the supply chain, we implement a series of supplier counseling and capacity building programs, and also established incentive and removal mechanism which related to supplier ESG performance. By incorporating ESG performance/regular evaluation system, we expect to create a positive sustainable supply chain management.

Supplier Sustainability Agreement and Evaluation

ASEH Supplier Code of Conduct and ASEH Sustainability Assessment Questionnaire (SAQ) establish standards based on the “Responsible Business Alliance. RBA” and refer to international principal including” OECD Guidelines for Multinational Enterprises, “UN Guiding Principles on Business and Human Rights”,” UN Universal Declaration of Human Right”, “ILO Declaration of Fundamental Principles and Rights at Work”, “ILO Fundamental Conventions”, and” Social Accountability SA8000”.

Supplier ESG Risk Screening

To better manage supplier risks, we established a 2-phase screening process that evaluates any underlying ESG risks at our suppliers. For suppliers that exhibit high levels of ESG risks, ASEH will closely monitor and supervise them through periodic audits and guidance to mitigate and control the risks effectively.

Phase I: Active Assessment – All suppliers

Base on type of business relation between ASEH and supplier, and the procurement value, we then assess the procurement category (eg. raw material, facility, equipment, contract services) and potential ESG risks.

Phase II: Sustainability Self-Assessment Questionnaire (SAQ) – Tier 1 suppliers

To cater for a diverse and complex supplier base, we have customized our SAQs according to the type of industry, and ESG risk assessments for different categories of suppliers.

Supplier Category and Sustainability Assessment Aspects

  • Raw material supplier: Labor, Health and safety, Environmental protection, Sustainable governance, Risk management and Supply chain management

  • Facility, Equipment and Waste management suppliers: Labor, Health and safety, Environmental protection, Ethics and Sustainable management system

  • Service contractor: Labor, Health and safety, Ethics, Sustainable management system and Irregular audit

Supplier Assessment and Evaluation

Phase I: Desk Assessment – Tier 1 supplier

We’ve conducted sustainability assessment questionnaire to all tier-1 material suppliers. Suppliers are required to self-assess risk and provide corresponding supporting document in accordance with the requirements of the question.

Phase II: Physical Assessment – Significant supplier

We define significant suppliers by high-risk supplier that identified by SAQ survey result and its business closeness with ASEH. Then we conduct physical assessment and provide counselling to ensure supplier’s risk circumstance and continually reduce risk level.

Sustainability Assessment

For our key raw material and critical suppliers, we include ESG metrics on top of other indices such as quality, costs, delivery, service and technology, as performancemeasurements at quarterly business reviews (QBR). Suppliers with the best ESG performance are recognized at our annual supplier day, and invited to share theirexpertise in sustainability development with other suppliers at the annual supplier forum. Outstanding suppliers also receive priority in our procurement selectionprocess.

Supplier Performance Improvement Program

ASEH has implemented on- site or remote support to help suppliers develop actionable plans on completion of correction and improvements within a specified timeframe. We will follow up with a second audit to track the progress of corrective actions and to determine all identified deficiencies have been effectively addressed and resolved. For suppliers who continue to fall short of compliance despite counselling, we will still offer guidance in the first year and potentially reduce our procurement volume with them. To maintain the company’s standard of service and quality, suppliers will be removed from our qualified supplier list if they fail to meet expectations in the second year, and all dealings with them will be suspended.

Sustainable Supply Chain Development Program

ASEH recognizes active participation in supplier development and capability improvement is crucial to ensure sustainable supply chain development. Through the Annual Sustainability Forum, we hold sustainability capacity building projects, workshops, and educational training to strengthen the collaboration between suppliers and ASEH, and enhance suppliers’ capability in addressing sustainability issues to respond the fast-changing trends in sustainability.

In 2022, ASE Kaohsiung and USI both hosted the Annual Sustainability Forum, bringing in a total number of 750 participants from suppliers.

  • ASE- ASE Kaohsiung: communicate requirements for sustainability risk management in the supply chain, the corresponding strategies, and objectives, in addition, share corporate risk management trends and successful implementation cases in the industry

  • USI: communicate USI Corporation’s requirements for supplier sustainability risk management and future objectives, promote USI Corporation’s green products, conflict minerals policy and management requirements, and explain its main focuses in the annual audits of green products and conflict minerals, also share experiences in implementing USI Corporation’s Environmental Footprint/Impact Assessment

Greenhouse Gas Inventory Guidance Program

To align with ASEH’s Net Zero Emissions pathway, we have conducted carbon inventories for the Scope 3 emissions sources (the largest emission contributors)within our supply chain. We have allocated resources to provide guidance and support to our suppliers in establishing greenhouse gas and product carbon footprint management systems that comply with regulatory requirements. Starting from 2022, we began collaborating with external consulting units to initiate a medium- to long-term supply chain carbon inventory guidance project.

Renewable Energy Development Project

To address the challenges posed by climate change, SPIL joined forces with clients to develop a two-year Sustainability Cooperation Project, promoting renewable energy development in the supply chain. SPIL initiated multiple objectives such as renewable energy installation and circular benefits in collaboration with 10 suppliers, including materials and logistics suppliers. By providing technology, assistance, and guidance through the project, we actively assist suppliers in overcoming barriers encountered in developing renewable energy, working together to develop renewable energy and deploy advanced initiatives to facilitate carbon reduction and energy transition across the supply chain.

Carbon Reduction and Water Conservation Guidance Project

To reduce resource waste and increase green sustainability awareness, starting from 2021, ASE Kaohsiung has provided guidance to 22 suppliers to establish their own reduction goals and assist them in implementing reduction plans with a target of reducing greenhouse gas emissions and water consumption by 1%. As a result, the greenhouse gas emissions in the supply chain were reduced by 7,260 tons of CO₂e, achieving an annual reduction rate of 1.35%. Water consumption was reduced by 148,075 tons, achieving an annual reduction rate of 2.02%. The achievements in reduction exceeded the set target of 1%.

ESG Workshop - Specific Sustainability Issues
  • SPIL

    Target: Raw material supplier

    • Share international trends in climate issues and future regulatory requirements

    • Share experiences of suppliers with excellent greenhouse gas management

    • Require suppliers to obtain ISO-14064-1 certification for greenhouse gases

Regular Educational Training
  • ASE – Kaohsiung, Chunli, ASE Shanghai (Material), Wuxi and Korea site

  • USI

    Target: Raw material supplier, Facility and Waste management contractor, Recruitment agency and Service contractor

    • Promote health and safety, food safety, and environmental health and safety policies

    • Disseminate knowledge on fire management, fire rescue, and emergency evacuation procedures

    • Conduct annual evacuation drills and emergency response exercises for vehicle accidents

Other topics

Other topics

Succession Planning

Risk Management Policies and Procedures

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Smart Factories and Automation

Higher customer satisfaction in quality and delivery

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Talent Cultivation and Development

Talent Cultivation and Development

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Risk Management

Risk Management Policies and Procedures

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Conflict Minerals Compliance

Corporate Policy for Sourcing Conflict Minerals

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Regulatory Compliance

Compliance at the Core: Upholding Laws, Guiding Principles

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Environmental Conservation

Environmental Conservation

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Biodiversity

Promote the well-being of human and safeguarding our planet

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Public Advocacy

Public Advocacy and Management Framework

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Sustainable Manufacturing

Eco-Efficiency Through Sustainable Manufacturing

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Diversity in Human Resources

Diverse Talents, United Excellence

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Talent Attraction and Retention

Talent Recruitment

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Sustainable Supply Chain Management

Supplier Sustainability Management Approach

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Sustainability Strategies

Building a Better Future, Together

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Information Security Management

Information Security Policy, Organization and Targets

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Industry-Academia Collaborations

Industry-Academia Collaborations

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SDGs & TIMM

Shaping Tomorrow's Value

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Supply Chain Management Framework

Supply Chain Management Organization

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Supplier Sustainability Awards

Supplier Sustainability Awards

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Climate Leadership

Transitioning towards Low-Carbon Resilience

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Environmental Responsibility Policy

Environmental-friendly manufacturing service

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Social Involvement

Stimulate positive social change

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Intellectual Property Management

Unlocking innovation and safeguarding excellence

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Occupational Health and Safety

Diverse Talents, United Excellence

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Green Facility

Realizing the determination of green transition

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Business Conduct and Ethics

Good corporate citizenship and social responsibility

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Waste Management

Waste Generation and Recycling

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Human Rights Management

Committed to Human Rights, Sustainability, and Responsibility

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Organization & Structure

Fostering Organizational Excellence

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Community Engagement

Community Engagement

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Corporate Sustainability Policy

Pioneering Sustainability, Powering Tomorrow

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Water Resource Management

Water Risk Assessment

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Stakeholder Communication

Uniting Stakeholders for Impactful Change

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