Sustainable Supply Chain

Sustainable Supply Chains

Under the situation of increasing global sustainability trends and industrial chain pressure, the robustness and responsible governance of the supply chain have become key aspects of corporate sustainable operations. OSE continues to implement important management actions for multi-level industrial supply chains. In addition to continuously optimizing costs and quality, and improving suppliers’ sustainable behavior and performance, it also actively introduces ESG risk perspectives to build a sustainable supply chain that takes into account integrity, environmental protection, and social impact.

OSE builds a forward-looking supply chain management system based on international standards and regulatory requirements, and promotes the inclusion of sustainable issues such as human rights, environment, safety and health into the high-risk supplier identification In response to rising global sustainability demands and increasing pressure on industrial supply chains, OSE prioritizes robust and responsible supply chain governance as a key component of sustainable operations. Beyond optimizing cost and quality, OSE actively fosters sustainable behavior and performance among suppliers by integrating ESG risk factors—such as integrity, environmental protection, and social responsibility—into its supply chain management.

OSE has established a forward-looking supply chain management system aligned with international standards and regulations. This system incorporates sustainability considerations, including human rights, environmental impact, and occupational safety and health, into the identification and risk assessment of high-risk suppliers. Continuous tracking and management of supplier ESG performance strengthen the resilience and sustainable value of the entire supply chain.

Sustainable Supplier Management Approach

OSE recognizes that sustainable supply chain management is critical to long-term business success. Beyond ensuring product quality and delivery efficiency, OSE actively promotes responsible governance within its supply chain through several key measures：
• Adoption of Responsible Business Alliance (RBA) standards
• Use of the RBA Sustainability Risk Questionnaire and On-site Audits
• Implementation of a supplier tracking and improvement mechanism for addressing non-compliance
• Building supplier ESG capabilities via targeted education and training

OSE aligns its Supplier Code of Conduct with global initiatives such as the United Nations Global Compact (UNGC), Universal Declaration of Human Rights (UDHR), and SA8000 Social Responsibility Standard. This code covers human rights, labor conditions, environmental protection, and business ethics, aiming to foster a value chain grounded in ethics and responsibility. The code applies to suppliers, their subsidiaries, contractors, and partners.

Prior to contract signing, OSE clearly communicates cooperation rules, schedules, and risks to suppliers, while contract terms specify obligations, payment terms, and penalties to ensure fairness and transparency.

Supplier Environmental and Social Risk Identification

OSE performs regulatory compliance checks for all new and existing suppliers during qualification, including：
• Review of test reports and Safety Data Sheets (SDS)
• Guarantees on absence of hazardous substances
• ICP reports analyzing hazardous substances
Through collaboration between quality assurance and related departments, OSE ensures supplier adherence to environmental and safety regulations, strengthening the supply chain’s ability to identify and mitigate sustainability risks.

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 2024, a total of 45 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. In 2024, 46 new suppliers of OSE signed the “Declaration of Conformity for Honest” and “Code of Conduct.”

Sustainable Supply Chain