Arcadyan formulates a sustainable procurement policy, effectively manages and jointly improves the performance of suppliers' environmental and social responsibilities, and establishes a responsible supply chain. In order to ensure the soundness of suppliers, we conduct supplier risk assessments every year, and conduct document reviews and on-site audits for medium and high-risk suppliers. In addition to continuously requiring suppliers to improve their overall performance in terms of quality, delivery, service and price, we also meet customer requirements. The Green Product Directive is incorporated into the supplier's incoming inspection procedures and audit operations to promote source management and implement a continuous improvement cycle. In 2022, a total of 376 suppliers for key customers will be collected, and the green parts list and material test report will be collected, and the environmental performance evaluation of suppliers will be conducted, with a recovery rate of 100%.
Arcadyan continues to promote corporate social responsibility plans, participates in customers' supplier sustainable development plans (Sustainable Development Progeam, SDP), and guides suppliers to participate in and follow the Responsible Business Alliance (RBA) and the International Association of Telecommunication Alliance (Joint Audit Co-operation, JAC), assisting supply chain partners to improve and strengthen their ethics, labor rights, environmental protection, health and occupational safety, establish a comprehensive management system, and jointly create excellent and competitive products , to create a win-win supply chain management.
Sustainable Supply Chain Management
To lead a green supply chain and reduce potential risks, Arcadyan revised the Supplier Sustainability Investigation Specification in 2020. Arcadyan also formulated Arcadyan Technology Sustainable Purchasing Policy, all suppliers are required to sign the Supplier Corporate Social Responsibility Commitment Letter, in which regulates suppliers' practices in organizational governance, labor rights, occupational health and safety, environmental protection, management systems, code of ethics, and grievance mechanisms. 100% of the supplier signed back the commitment letter in the year of 2021. The same year Arcadyan incorporated environmental sustainability and human rights requirements into the supplier contract, stipulating for suppliers' compliances with local laws and international norms.
Arcadyan Taiwan Headquarters collaborated with Taiwan Industrial Service Foundation in 2021 and held an ISO 20400 Sustainable Procurement training course. Procurement personnel from Arcadyan main operating bases including Arcadyan Taiwan Headquarters, China and Vietnam production center attended the course, 17 employees completed the training. During the training, sustainable procurement goals are defined, and incorporated into procurement individuals' performance appraisal.
New Supplier Evaluation
Suppliers are required to complete the Supplier Evaluation Form and provide relevant documents as evidence. The evaluation includes quality, environment, engineering technology, and corporate social responsibilities. In 2022, 15 new suppliers completed the evaluation and 100% complied with standards. New suppliers are also required to sign the Supplier Corporate Social Responsibility Commitment Letter to conform to Arcadyan Supplier Code of Conduct. Only if the audit results meet the requirement can the new suppliers be included in the Qualified Vendor List (QVL).
Supplier Audits
Arcadyan requires suppliers to undertake responsibilities such as environmental protection, labor rights, occupational health and safety, management systems, ethics, and reporting and complaint mechanisms, and requires suppliers to sign the ”Supplier CSR Commitment" to comply with Arcadyan's corporate social responsibility concept. Arcadyan conducts supplier risk analysis every year, and conducts comprehensive scoring for product type, transaction amount, business continuity, environment risks, human rights risks and CSR related documents, and arranges on-site audits for high-risk suppliers, 2022 A total of 10 high-risk suppliers were selected for on-site audit.
Arcadyan also cooperates with customers' irregular audit requirements, and conducts audits on the tier 2 supplier of key suppliers. In 2022, audit a tier 2 supplier to ensure compliance with relevant environmental, social and moral standards. Arcadyan will continue to expand corporate social responsibility audits to tier 2 manufacturers of key suppliers, so as to improve the sustainable management of the supply chain.
Supplier Counseling
Arcadyan established a professional green information platform to help suppliers and partners solve problems. The green information platform provides a new version of green environmental protection procedures and announcements, so that suppliers can follow the correct and latest regulations. Suppliers can also check the upload and update status of documents on the platform to grasp the latest compliance status.
Arcadyan continues to track the improvement of suppliers' non-conforming items during the audit process. In 2022, the production center has guided a total of 10 suppliers to complete the improvement of issues related to corporate social responsibility. The "health and safety", "environment", " "Working hours and overtime" has the highest improvement ratio, accounting for about 70% of the non-compliance ratio in the overall audit.
Promote Supplier Carbon Reduction Projects
In 2019, Arcadyan participated in the Sustainable Development Platform (SDP) project for the first time. This project examines the supplier's production center in circular economy, energy resource management, environmental protection, labor human rights, ethics, supply chain management, etc. 10 ESG related performance, to conduct a two-year sustainable development performance improvement project.
In 2022, Arcadyan cooperated with customers to promote Carbon Reduction Program (CRP) for major suppliers of key products, identify the top three high carbon emission suppliers through product Life-cycle Assessment (LCA). Assist and guide suppliers to optimize key projects such as energy management, greenhouse gas emissions, and circular economy. The first phase of the project is expected to be completed in 2023. Arcadyan also began to collect supplier carbon footprint data in 2022, requiring suppliers to conduct energy conservation, carbon reduction and energy resource management.
Commend Outstanding Suppliers
In 2022, Arcadyan evaluated the quality, response to complaints, and service coordination of the trading suppliers of the current year, and for the first time includes corporate social responsibility performance into the selection criteria, commends suppliers with outstanding performance in the environment and society, and selects 15 excellent suppliers issue medals to encourage suppliers to achieve better CSR performance, and work with supply chain partners to practice corporate social responsibility. If the supplier performs well, it will be listed as a priority when purchasing. If the performance is not good, the proportion of procurement will be adjusted according to the situation, and it will be took as a reference for evaluating the replacement of suppliers.
Arcadyan holds supplier conferences Irregularly to communicate with supplier partners on the requirements of Arcadyan's green products and the current environmental and social issues facing the industry. Arcadyan continues to take innovative products and technologies to effectively integrate upstream and downstream supply chain resources, provide customers with a full range of services, take responsibility for the impact on the economy, society, and environment, and provide a sustainable positive cycle for the industry and the earth.
(News: Arcadyan commended 15 suppliers for their excellent performance in quality, service and ESG)
Diversity, Equality and Inclusion of Suppliers
Arcadyan complies with various international human rights conventions and local regulations such as the International Labor Organization Convention, the United Nations Universal Declaration of Human Rights, and the United Nations Global Covenant, and formulates the "Arcadyan Human Rights Policy Declaration" to eliminate any violations of human rights, so that all employees of Arcadyan can be treated with fairness and dignity, and promote a diverse organization to cultivate employees with more diverse and equal concepts.
Arcadyan also requires suppliers to promise to respect all employees in the “Supplier CSR Commitment” and ensure that there is no corporal punishment, harassment or inhumane behavior in the workplace, including but not limited to sexual harassment, corporal punishment, mental coercion, physical coercion or verbal violence. Workers or prospective workers shall not be required to undergo discriminatory medical tests or physical examinations, except as required by law or for the purpose of assessing specific jobs.
In 2022, Arcadyan expanded the theme of "anti-discrimination and harassment" in the supplier audit checklist to "diversity, equality, inclusion and anti-discrimination". In matters such as recruitment, salary remuneration, training opportunities, rewards, promotion, discipline, dismissal or retirement, etc., employees shall not be treated on the basis of race, color, age, gender, sexual orientation, race, disability, religious belief, political affiliation, trade union membership, etc. , nationality or marital status and other factors, and promote employment diversity and equality of opportunity/treatment.
Adhering to respecting the diversity of gender, nationality, race, disadvantage, age and sexual orientation, Arcadyan establishes a working environment where employees feel safe, accepted, respected and value their uniqueness. Arcadyan not only starts from within the enterprise, but also continues to cooperate with external partners to advocate the concept of diversity and tolerance, and support small business, disadvantaged groups, ethnic minorities and women-run enterprises. Among the staff meal suppliers that Arcadyan cooperates with, half of them are run by aboriginal women. Arcadyan will continue to provide job opportunities for the disadvantaged and disabled through external public welfare organizations and provide a diverse and equal working environment.
Supply Chain Localization
Arcadyan China and Vietnam Manufacturing Centers are two major production sites. In order to increase production and supply efficiency, Arcadyan has continued to develop local suppliers. Suppliers of major components, including power supplies, electronic components, electromechanical components (printed circuit boards, etc.), and mechanical components, are largely based in Taiwan, China and Vietnam.
As product applications and related demands continue to increase, the majority of Taiwanese suppliers continue to expand their production capacity, including setting up factories in China. In addition to improving the effective use of packaging materials and space and adopting recyclable packaging materials, Arcadyan also supported local procurement to reduce the energy consumption and environmental pollution caused by transporting raw materials and products.
Prohibition of Conflict Minerals
Arcadyan follows the Conflict Minerals Reporting Template (CMRT), and has been managing non-conflict mineral parts since 2010 and issued a statement to its hundreds of suppliers of electronics, machinery and other materials related to the electronics industry around the world. Arcadyan required suppliers to conduct conflict minerals reviews on their sample materials and guarantees the source. Arcadyan also conducted non-conflict mineral surveys in 2022 with a 99% completion rate. Arcadyan continues to require regular updates on the conflict materials review from the suppliers for a more sustainable supply chain.
In 2021, Arcadyan added the prohibition on conflict minerals in to its Sustainable Procurement Policy. Arcadyan is committed to complying with the RBA Code of Conduct, relevant international, national and regional laws and regulations. Arcadyan also established relevant control measures if materials review shows the minerals is sourced from Democratic Republic of the Congo and its surrounding areas. The supplier is required to provide a written explanation, immediately stop the procurement and the use of the conflict minerals, and establish an improvement plan and preventive measures to comply with the Conflict Free Minerals Policy.
Cobalt is included in Arcadyan's control list of conflict minerals in late 2019, and the smelters are also included in the supplier material reviews. Arcadyan continues to support humane mining practices, and collaborates with suppliers to value ethics, labor rights, occupational health and safety, and environmental protection.
