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Sustainable Supply Chain Management

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ASE 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.

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Supplier Requirement

ASEH's raw material suppliers are required to sign the "ASEH Supplier Code of Conduct Commitment Letter". The suppliers are also required to complete a sustainability assessment questionnaire that covers regulatory compliance, sustainable management, supplier management, conflict mineral management, environmental protection, health and safety, labor rights, human rights, etc. The purpose of the questionnaire is to assess each supplier's sustainability risk and conduct an on-site audit where necessary to ensure conformity to ASEH's supplier sustainability standards. In parallel, we encourage suppliers to seek continuous improvement by acquiring internationally recognized certifications such as ISO 9001, IATF 16949, ISO 14001, ISO 45001:2018 and ISO 14064-1.

Sustainability Risk Assessment

To assess the current status of supply chain sustainability development and risk management status, ASEH conducts an annual three-step supplier sustainability risk evaluation and analysis. This allows ASEH to identify suppliers that exhibit potentially high social, economic, and environmental risks. ASEH will provide support to deficient suppliers through periodic audits and guidance to mitigate and control the risks effectively.

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Sustainability Audit Mechanism

To strengthen the resilience of our supplier chain, ASEH has established a supplier sustainability audit system to carry out routine and aperiodic audits. Adapting to the global COVID-19 pandemic in 2021, we have adapted our approach and conducted audits through various channels, including document audits, on-site audits, remote audits and the RBA VAP. Deficient suppliers are required to draw up corrective action plans and rectify them within a given time frame. We will then review the results of their corrective action plans, followed by another assessment on the status the following year.

In the past year, we have conducted on-site audits, RBA VAP and remote audits for 125 raw material suppliers and high-risk critical suppliers. All suppliers have completed the corrective done improvements timely, and after evaluation, no supplier was terminated for non-compliance.

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Sustainable Supply Chain Development Program

To strengthen the sustainability of ASEH’s supply chain and tackle an evolving environment, we continue to invest in programs that enhance our suppliers’ sustainability knowledge and standards through training courses, seminars and supplier outreach.

Eliminating the Risk of Forced Labor and Bonded Labor in the Supply Chain

ASEH is committed to upholding the dignity of work and protecting the rights of workers across our global business operations. We recognize that there may be some levels of inadequacy in local regulatory protection for workers coupled with complex hiring procedures within our supply chain that may contribute to forced labor or labor exploitation. In 2018, we worked with our suppliers to conduct a thorough review of the recruitment process of migrant workers and eliminate unethical practices. ASEH does not tolerate any human rights violations in our supply chain and, we will continue to ensure that the risks of exploitation are eliminated and that migrant workers receive fair and decent treatments.

Supplier Engagement Guidance Program

We have allocated resources to support our suppliers in establishing GHG and product carbon footprint management systems that accelerate their efforts to meet emission regulatory requirements. In 2022, we will be collaborating with third party consultants on a medium to long term supplier low carbon guidance program which will be conducted both online and in-person. The program will not only support suppliers to attain ISO 14064-1:2018 certification and carbon footprint verification but also facilitate carbon inventory management across the supply chain. A thorough understanding of the supply chain GHG emissions and carbon footprint allows ASEH to step up its carbon reduction plans and increase our competitiveness.

Supplier Sustainability Forum and Training

We have organized sustainability forums and training conferences at multiple facilities to demonstrate to our suppliers how much ASEH values sustainability and to communicate our sustainability systems and ESG performance requirements. As in-person sessions were difficult to hold in 2021 due to the global COVID-19 pandemic, we held three virtual sessions.

ASE-Sustainability Forums
  • ASE Kaohsiung: An online sustainability forum for suppliers was held in 2021. We shared and exchanged knowledge and information about global sustainability trends. A total of 79 people from 44 suppliers attended.
  • ASE Shanghai (Material): We organized workplace safety training for suppliers to strengthen the prevention of on-site workplace safety incidents and reinforce their response capabilities. A total of 245 people from 31 suppliers attended.
USI-Sustainability Seminar
  • We hosted a Supplier Sustainable Supply Chain Information Conference via online video conference due to the pandemic. A total of 276 participants attended.
  • During the session, we shared USI’s sustainability experiences and results as well as the ESG requirements and future goals that we require of our suppliers. We strengthened supply chain management so that it conforms to environmental regulations and can adapt to changes in clients’ environmental requirements. We also invited SGS Taiwan to talk about issues related to Net Zero Emissions Trends and Responses and global trends in general, so that suppliers could gain at least a basic understanding of carbon management for carbon emissions reductions and the goal of net zero emissions.