Corum is committed to providing customers with legitimate, high-quality, and safe products and services, and we also strive to implement zero occupational disasters, environmental protection, and pollution prevention-related work in a bid to fulfill our responsibilities in achieving corporate sustainability. Raw materials and consumables purchased by the Company are compliant with relevant regulations as well as environ- mental and safety requirements. To achieve this goal, we have complied with the requirements of ISO 9001 international quality management system, ISO 14001 environmental management, and ISO 45001 occupational safety and health management system, as well as made ongoing improvements according to PDCA to attain corporate sustainability.
To materialize a sustainable supply chain, we have implemented supplier management and risk evaluation and conducted annual assessments on energy-saving, environ- mental protection, ecological label, and procurement sustainability-related aspects based on the suppliers' self-declaration and self-evaluation questionnaire content to improve business activities and form sustainable value promises.
Starting in 2021, Corum has demanded our suppliers' management or top executive sign the "Supplier Sustainability Commitment" to ensure that they comply with Corum's code of conduct to implement sustainable operations.
Supply chain management
Corum has joined forces with suppliers to fulfill economic, environmental, and social responsibility, laying a firm foundation for the supply chain's sustain-ability.
Corum completed an annual evaluation for 67 manufacturers in 2021, including the selection of six new suppliers and the annual evaluation of 61 existing suppliers, achieving a 100% audit rate. A sustainable procurement evaluation was conducted for 67 manufacturers, all of which have met the Company's requirements.
In 2021, no supplier was disqualified due to social responsibility-related issues such as environment, human rights, and occupational safety. Besides, a total of 47 suppliers signed the "'Supplier Sustainability Commitment" in 2021 and complied with environmental and sustainability management requirements, accounting for 70% of all suppliers. We plan to have 90% and 100% of our suppliers sign the agreement by 2022 and 2023, respectively.
Corum continues to purchase from suppliers with higher environmental management scores using the supplier self-evaluation questionnaire mechanism. In 2021, 70% of the Company's total purchases were made from suppliers with higher environmental management scores.
Supply chain integration and risk diversification responses
Corum has always perceived suppliers as our strategic partners, and we believe in supporting our suppliers and growing with them. Corum's main production location is Taiwan, we choose to collaborate with local suppliers in a bid to foster local industrial clusters and developments in the regional economy. Our long-term suppliers have worked with the Company for numerous years, offering a stable supply source. Considering that our suppliers are changed from time to time due to circumstances such as raw material quality, price, and cooperation, we are not exposed to the risk of raw material supply interruptions caused by centralized purchasing from only a few suppliers.
Lower the environmental impact of raw material transportation
As technology continues to advance and industrial output continues to increase, damage to the environment is also on the rise, in turn evoking global attention on the topic of environmental protection. The objective of the 2015 United Nations Climate Change Conference (COP 21 ) is to achieve legally binding measures that can resolve the problem of climate change and mitigate global warming. Regarded as "the world's best last chance" to save Earth, COP21 vows to improve the deteriorating conditions of climate change by controlling average global warming to within 1.5Cabove pre-industrial levels. The meeting is regarded as the most iconic international agreement on global warming in history, hence Corum also upholds the principle of COP21 by taking the suppliers' geographical location into consideration during the supplier selection process. Aside from considerations such as delivery period, timeliness, and shipping cost, we also aim to lower the environmental impact and damage generated by long-range transportation of raw materials.
Besides choosing local suppliers, we also need to consider the risk of centralized procurement from the same region. Our solution is to ensure the trucks and containers are fully loaded and make use of ocean freight as much as possible while minimizing air freight because the CO2 emissions generated by ships are far lower than that of air freight, which in turn reduces shipping-related CO2 emissions. In 2021, we adopted the domestic consolidated shipping solution, please refer to Chapter 3.1 of the report for specific performance-related details. Corum reinforces supply chain resilience through local procurement and ESG management. In 2021, 70% of our procurements were made from local suppliers.
Sustainable supply chain management framework
To achieve a sustainable supply chain management framework and build a more comprehensive, sophisticated sustainable supply chain, Corum has formulated the following strategic goals for supplier management:
New supplier selection: Except for raw material suppliers designated by the customers, Corum selects new suppliers based on ISO 9001 quality standards and management indicators that comply with local environmental regulation standards and preventive measures. All of our new suppliers have been chosen according to the above criteria. New suppliers must be verified whether the specifications and quality of their raw materials are satisfactory through the supplier evaluation form mechanism. Furthermore, new suppliers are subject to random on-site visits or written reviews every year. After passing the two processes of the supplier evaluation form and design and development change order, a decision will be made on whether to select the supplier as Corum's supplier, where a corporate social responsibility commitment statement will be signed to become a qualified supplier of Corum.
Qualified supplier maintenance: We request our suppliers to guarantee complete service and delivery date, and unsatisfactory suppliers who cannot deliver products on time will be blacklisted. To implement sustainable management, we conduct annual on-site visits or written reviews on our suppliers to realize supply chain sustainability management. Corum increases its responsibility to the supply chain by disclosing the status of supplier management practices. At the same time, we elevate the awareness of our internal and external personnel and suppliers through regular employee and supplier education or training.
Note: Due to the pandemic, the written review approach was adopted instead of on-site visits in 2021.
Supply chain performance evaluation
After becoming Corum's qualified suppliers, they must undergo regular evaluations, and the outcome of the evaluations will be an important reference for determining the procurement strategy. The Procurement Department discusses with relevant departments to create a list of key raw material strategic suppliers. The list is updated every six months. Select strategic suppliers of key raw materials for various product lines and those who have been chosen as strategic suppliers will be given priority during the Company's procurement process to increase their purchase volume.
Corum is committed to providing customers with legitimate, high-quality, and safe products and services, and we also strive to implement zero occupational disasters, environmental protection, and pollution prevention-related work in a bid to fulfill our responsibilities in achieving corporate sustainability. Raw materials and consumables purchased by the Company are compliant with relevant regulations as well as environmental and safety requirements. To achieve this goal, we have complied with the requirements of ISO 9001 international quality management system, ISO 14001 environmental management, and ISO 45001 occupational safety and health management system, as well as made ongoing improvements according to PDCA to attain corporate sustainability.
To materialize a sustainable supply chain, we have implemented supplier management and risk evaluation and conducted annual assessments on energy-saving, environmental protection, ecological label, and procurement sustainability-related aspects based on the suppliers' self-declaration and self-evaluation questionnaire content to improve business activities and form sustainable value promises.
Starting in 2021, Corum has demanded our suppliers' management or top executive sign the "Supplier Sustainability Commitment" to ensure that they comply with Corum's code of conduct to implement sustainable operations.
Supply chain management
Corum has joined forces with suppliers to fulfill economic, environmental, and social responsibility, laying a firm foundation for the supply chain's sustain-ability.
Corum completed an annual evaluation for 67 manufacturers in 2021, including the selection of six new suppliers and the annual evaluation of 61 existing suppliers, achieving a 100% audit rate. A sustainable procurement evaluation was conducted for 67 manufacturers, all of which have met the Company's requirements.
In 2021, no supplier was disqualified due to social responsibility-related issues such as environment, human rights, and occupational safety. Besides, a total of 47 suppliers signed the "'Supplier Sustainability Commitment" in 2021 and complied with environmental and sustainability management requirements, accounting for 70% of all suppliers. We plan to have 90% and 100% of our suppliers sign the agreement by 2022 and 2023, respectively.
Corum continues to purchase from suppliers with higher environmental management scores using the supplier self-evaluation questionnaire mechanism. In 2021, 70% of the Company's total purchases were made from suppliers with higher environmental management scores.
Supply chain integration and risk diversification responses
Corum has always perceived suppliers as our strategic partners, and we believe in supporting our suppliers and growing with them. Corum's main production location is Taiwan, we choose to collaborate with local suppliers in a bid to foster local industrial clusters and developments in the regional economy. Our long-term suppliers have worked with the Company for numerous years, offering a stable supply source. Considering that our suppliers are changed from time to time due to circumstances such as raw material quality, price, and cooperation, we are not exposed to the risk of raw material supply interruptions caused by centralized purchasing from only a few suppliers.
Lower the environmental impact of raw material transportation
As technology continues to advance and industrial output continues to increase, damage to the environment is also on the rise, in turn evoking global attention on the topic of environmental protection. The objective of the 2015 United Nations Climate Change Conference (COP 21 ) is to achieve legally binding measures that can resolve the problem of climate change and mitigate global warming. Regarded as "the world's best last chance" to save Earth, COP21 vows to improve the deteriorating conditions of climate change by controlling average global warming to within 1.5Cabove pre-industrial levels. The meeting is regarded as the most iconic international agreement on global warming in history, hence Corum also upholds the principle of COP21 by taking the suppliers' geographical location into consideration during the supplier selection process. Aside from considerations such as delivery period, timeliness, and shipping cost, we also aim to lower the environmental impact and damage generated by long-range transportation of raw materials.
Besides choosing local suppliers, we also need to consider the risk of centralized procurement from the same region. Our solution is to ensure the trucks and containers are fully loaded, and make use of ocean freight as much as possible while minimizing air freight because the CO2 emissions generated by ships are far lower than that of air freight, which in turn reduces shipping-related CO2 emissions. In 2021, we adopted the domestic consolidated shipping solution, please refer to Chapter 3.1 of the report for specific performance-related details. Corum reinforces supply chain resilience through local procure-ment and ESG management. In 2021, 70% of our procurements were made from local suppliers.
Sustainable supply chain management framework
To achieve a sustainable supply chain management framework and build a more comprehensive, sophisticated sustainable supply chain, Corum has formulated the following strategic goals for supplier management:
New supplier selection: Except for raw material suppliers designated by the customers, Corum selects new suppliers based on ISO 9001 quality standards and management indicators that comply with local environmental regulation standards and preventive measures. All of our new suppliers have been chosen according to the above criteria. New suppliers must be verified whether the specifications and quality of their raw materials are satisfactory through the supplier evaluation form mechanism. Furthermore, new suppliers are subject to random on-site visits or written reviews every year. After passing the two processes of the supplier evaluation form and design and development change order, a decision will be made on whether to select the supplier as Corum's supplier, where a corporate social responsibility commitment statement will be signed to become a qualified supplier of Corum.
Qualified supplier maintenance: We request our suppliers to guarantee complete service and delivery date, and unsatisfactory suppliers who cannot deliver products on time will be blacklisted. To implement sustainable management, we conduct annual on-site visits or written reviews on our suppliers to realize supply chain sustainability management. Corum increases its responsibility to the supply chain by disclosing the status of supplier management practices. At the same time, we elevate the awareness of our internal and external personnel and suppliers through regular employee and supplier education or training.
Note: Due to the pandemic, the written review approach was adopted instead of on-site visits in 2021.
Supply chain performance evaluation
After becoming Corum's qualified suppliers, they must undergo regular evaluations, and the outcome of the evaluations will be an important reference for determining the procurement strategy. The Procurement Department discusses with relevant departments to create a list of key raw material strategic suppliers. The list is updated every six months. Select strategic suppliers of key raw materials for various product lines and those who have been chosen as strategic suppliers will be given priority during the Company's procurement process to increase their purchase volume.
