Supply Chain Sustainability Management
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.
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 risk 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.
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 the suppliers that exhibit potentially high social, economic, and environmental risks. Deficient suppliers will have to undergo audits and follow ASEH's corrective guidelines to ensure effective mitigation and control of risk.
Sustainability Audit Mechanism
ASEH established a supplier sustainability audit system to carry out routine and ad hoc audits. Due to the global COVID-19 pandemic in 2020, our supplier auditing methods involved document audits, on-site audits, remote audits, and the RBA VAP, as well as various auditing checks. 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 2020, we conducted on-site audits, remote audits or RBA VAP on 103 raw material suppliers, including high-risk critical suppliers. All audited suppliers completed the corrective actions within the given time frame; and after evaluation, no supplier was terminated for non-compliance. To further reduce supply chain risks, we also conduct risk assessment questionnaires and audits for non-tier-1 suppliers.
Sustainable Supply Chain Development Program
ASEH continues to support its suppliers by providing education and training, organizing seminars, forums and counseling sessions. These efforts help ASEH stay responsive to an ever changing business landscape and to foster sustainability values throughout the supply chain.
Risk of Foreign Forced/Bonded Labor in Supply Chain Corrective Action Project
ASEH is committed to the protection of the dignity and the rights of workers. In 2018, we collaborated with suppliers to review and conduct due diligence on the hiring process of foreign workers, and explore ways to improve the process. The aim is to eliminate any practice of forced or indentured labor, and to make up for the inadequacy in local labor law protection and/or complex hiring procedures within our supply chain.
Supplier Sustainability Education and Training
ASEH continues to invest resources enhance the sustainability performance of its supply chain risks. We have organized various sustainability education and training, and conducted guidance outreach at multiple facilities to communicate our supply chain management requirements. As in-person sessions were difficult to hold in 2020 due to the global COVID-19 pandemic, we held two in-person/virtual sessions instead.
- We organized a contractor training in ASE Chungli. A total of 61 people from 12 contractors participated in the training.
- Strengthened the adaptive capability of and preventative measures for contractors in regard to the occupational injuries that occur in the semiconductor industry through holding semi-conductor occupational injury case discussion seminars
- Hosted a Supplier Sustainable Supply Chain Information in Taiwan through online video conference due to the pandemic, for a total of 120 participants
- Shared USI sustainability results and future shared goals with supplier partners in the information session; strengthened supply chain management so that it conforms to environmental regulations and changes in clients’ environmental requirements; invited SGS to present the topic of “Post-Pandemic Corporate Sustainability Management Trends”.