Sustainable Supply Chain

Sustainable Supply Chains

External procurement considers both the impact to production, services, and operations, as well as risks to our CSR and reputation. Therefore, supply chain management at OSE is based on regulatory compliance to ensure supply chain labor rights, environmental protection, safety, and health risks are included in risk management. We identify high risk suppliers and implement improvement measures according to assessment results to help suppliers enhance the quality of management. OSE hopes that this reduces operational risks and costs for both us and the supplier so that we may enjoy a partnership filled with sustainable growth.

Sustainable Supplier Management Approach

As a global company, OSE not only focuses on enhancing competitiveness in terms of product quality and project management but also strives for sustainable supply chain management. Through initiatives such as the Responsible Business Alliance (RBA) standards/requirements, sustainability risk assessments, onsite
audits/improvement measures, and supplier capability enhancement, OSE is building a robust supply chain management mechanism and working hand in hand with suppliers towards a sustainable future.

OSE has long been committed to social responsibility, environmental protection, business ethics, and operational management. It pays high attention to international initiatives and requirements, including the United Nations Global Compact, Universal Declaration of Human Rights, and Social Accountability 8000
(SA 8000), which encompass norms related to human rights, labor standards, environment, and anticorruption. In line with these principles, OSE has developed Supplier Code of Conduct to guide suppliers’ behavior.

Local Procurement

OSE will continue to promote a localized procurement strategy, which is an important part of implementing sustainable business practices and corporate social responsibility.

【Supplier Local Procurement Ratio】

【Required Documents for New Suppliers】

In 2023, a total of 60 new OSE suppliers signed the “Declaration of Conformity for Honest and Code of Conduct,” “Declaration for Non-use of Conflict Minerals,” and “RBA Pledge,” demonstrating that our suppliers value environmental protection, occupational safety, labor rights, and ethical business practices.

Quailed Supplier Audit Mechanism

OSE is committed to improving the sustainability of its supply chain. Every year, OSE conducts periodic on-site inspections at suppliers’ facilities to verify their compliance with OSE’s sustainable supply chain standards. If suppliers couldn’t meet OSE’s requirements, the cooperation will be suspended until the improvements are made. We are dedicated to establish a comprehensive supplier audit and management mechanism.

In 2023, we conducted IC center supplier on-site audit for 10 times; and EMS center for 10 times as well. The deficiencies we found in the on-site inspection were mainly due to the failure of not providing documents of new operating procedures, incomplete records, and unclear definition of control systems. After audit, suppliers were asked to make improvements within the deadline. In 2023, 100% of all audit supplies responded, and no supplier has been terminated the partnership due to the failure of compliance with OSE’s regulations.

Sustainable Supply Chain Management Performance

To raise supplier awareness of sustainability and convey ESG requirements in the supply chain, OSE holds an annual supplier conference and promotes sustainability projects in collaboration with the supply chain.

Sustainable Supply Chain