AcBel Polytech Inc. 康舒科技
Environmental, Social and Governance
Sustainable Supply Chain
Customer Communication
The company adopts a two-way communication approach to interact with customers, understanding their needs and promptly responding to their questions and feedback to meet their expectations for products and services. Through customer service, customer satisfaction surveys, and participation in customer review activities, the company aims to build long-term cooperative relationships and customer trust, enhancing competitiveness and brand image.
AcBel regularly communicates and interacts with customers through Quarterly Business Reviews (QBR). These interactions help understand customer evaluations of the company’s social and environmental responsibility, risk management, product quality, technical support, delivery times, and pricing, as well as the company’s performance ranking among peers. Based on these evaluations, AcBel proposes corresponding improvement plans in process adjustments, design optimizations, and technical support, continuously tracking the effectiveness of these measures to ensure customer suggestions are addressed and improvements are sustained.
To properly respond to customer requirements regarding Social and Environmental Responsibility (SER), including issues such as human rights, product safety, carbon reduction targets, use of renewable energy, use of recycled materials, management of hazardous chemicals, and conflict minerals, AcBel actively participates in customer-organized supplier meetings or training courses. The company develops corresponding response plans and provides sustainability questionnaire responses, undergoing customer on-site audits to ensure that its sustainability practices meet customer expectations.
Sustainable Supply Chain Management
AcBel establishes long-term partnerships with suppliers, assisting them in enhancing their sustainability resilience in various ESG (environmental, social, and governance) aspects. This includes addressing challenges related to sustainable development, such as carbon footprint management, social responsibility, labor rights, and supply chain transparency. Suppliers are required to comply with standards concerning labor rights, health and safety, environment, and business ethics. Through management measures like new supplier evaluation and approval, communication and negotiation, evaluation, and audits, AcBel monitors suppliers’ adherence to the code of conduct and encourages proactive ESG practices.
By sharing information and providing training, AcBel enhances suppliers’ awareness and capability regarding sustainable development. The company implements initiatives from the Responsible Business Alliance, such as the Responsible Minerals Initiative (RMI), the Responsible Labor Initiative (RLI), and the Responsible Factory Initiative (RFI), into supplier management practices.
Through effective supply chain collaborative management, AcBel achieves a balance between environmental protection, social responsibility, and economic benefits while reducing supply chain risks and enhancing the overall resilience and flexibility of the sustainable supply chain. Additionally, as the global trend of carbon reduction continues, AcBel is committed to helping suppliers develop carbon reduction awareness and corresponding capabilities. Suppliers are also required to set specific carbon reduction and renewable energy usage targets to maintain the competitive advantage of a green supply chain and jointly achieve overall supply chain carbon reduction goals.
To ensure the healthy development of the supply chain and introduce suppliers who can provide more low-carbon raw materials, AcBel has established the “Supplier Evaluation Procedures.” An evaluation team composed of the procurement, component engineering, and quality assurance departments reviews new suppliers on criteria such as process management, quality systems, technical capabilities, hazardous substances, delivery times, and social responsibility. New suppliers must pass the Supplier Social Responsibility Management Evaluation. Their practices in “Labor Rights,” “Environmental Protection,” and “Health and Safety” must meet the company’s ESG sustainability standards.
AcBel regularly collects international initiatives and regulations and promotes them through the company’s Supplier Management Platform (GSM), ensuring that suppliers are informed and compliant with various international standards. An annual supplier conference is also held to communicate the company’s market strategies, sustainability development plans, net-zero carbon reduction targets, renewable energy usage, occupational safety and health, and quality management goals and actions. Suppliers are required to develop corresponding strategic actions.
To ensure that suppliers and their sub-suppliers meet AcBel’s Supplier Code of Conduct requirements, the company has established a supplier audit system. Key suppliers undergo annual social responsibility evaluations and audits. The audit unit formulates an annual audit plan, and the audited suppliers must pre-fill the Social Responsibility Management Evaluation Form. If their self-assessment results fall below 75%, suppliers must provide corrective action explanations.
In 2023, a total of 82 suppliers were audited, with most deficiencies found in quality and production processes. Suppliers are required to develop improvement plans following AcBel’s “Corrective and Preventive Action Procedures.” If necessary, on-site guidance is provided. The effectiveness of the corrections must be confirmed by both the supplier and AcBel. Depending on the situation, AcBel may arrange personnel to conduct another onsite audit or verify the effectiveness through supporting documents to ensure continuous improvement.
Human Rights Issues / Due Diligence
AcBel is committed to preventing or mitigating negative human rights impacts related to its operations. Using the Responsible Business Alliance (RBA) Code of Conduct as a management framework, the company regularly conducts surveys and audits of its suppliers. Following international standards set by the International Labor Organization (ILO) and considering the California Transparency in Supply Chains Act, the UK Modern Slavery Act 2015, and the Australian Commonwealth Modern Slavery Act 2018, AcBel has initiated the “Trafficking and Anti-Slavery Investigation” to understand supplier compliance with regulations on human trafficking, modern slavery, and forced labor. As of 2023, six suppliers have been completed, with no human rights violations found.
Conflict Minerals Due Diligence
To avoid directly or indirectly funding illegal groups, AcBel has established the “Conflict Minerals Procurement Policy” and “Conflict Minerals Management Method” to prevent conflict minerals and their derivatives from entering the product supply chain. Suppliers are required to submit a “Conflict-Free Minerals Commitment,” pledging to comply with AcBel’s conflict minerals procurement policy and avoid using smelters not certified by the Responsible Minerals Assurance Process (RMAP). Additionally, suppliers providing products containing gold, tin, tantalum, tungsten, and cobalt must annually submit the CMRT (Conflict Minerals Reporting Template) and EMRT (Extended Minerals Reporting Template) forms to verify that the smelters listed by suppliers are qualified.
In 2023, AcBel conducted an investigation into the raw material attributes of suppliers’ annual procurement, focusing on CMRT (gold, tin, tantalum, tungsten) and EMRT (cobalt, mica). Out of 649 suppliers, 375 responded, resulting in a response rate of 58%. AcBel aims to achieve a 100% response rate for CMRT and EMRT submissions in the future.
AcBel’s raw material attributes include cobalt, gold, tantalum, tin, and tungsten. In 2023, 345 smelters were identified as qualified. Continuously following international guidelines and customer requirements, AcBel will expand its focus to other metals such as copper and nickel starting in 2024, incorporating them into declaration items and requiring suppliers to adhere to corresponding requirements.
