Far Eastern Group observes the founding spirit of “sincerity, diligence, thrift, prudence and innovation” as the highest guideline of operations and development. It is the foundation of the operation, management, production, environmental protection, and social care. The principles for all conduct are to be solid, transparent, truthful, with instant correction, and continuously improving; in order to fulfill the corporate social responsibility. We expect suppliers to keep the same spirit, respect the social and ethical standards during services, understand and observe laws, actively respond to the environmental protection and the social issues, bravely bear the responsibility, and consistently improve and advance. Asia Cement’s code of conduct for suppliers includes: environmental standards, child labor, human rights, work conditions (work-hour), remuneration, occupational safety and health, business ethics, and sustainable procurement.
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Policy for suppliers
For the purpose of ensuring all suppliers complying with sustainable development principle in the aspects of environment, society and economy, bearing corporate social responsibility and continuing to improve, Asia Cement requested all suppliers to sign a “Supplier Social Responsibility Commitment Letter”. In 2022, 374 suppliers signed the commitment letter, including 348 domestic suppliers and 26 foreign ones.
Local procurement
Due to the special features of the cement industry, the equipment for manufacturing process and core materials are from overseas, in recent years the Company strives for developing these items in Taiwan as the alternative equipment or parts, and utilizing circular economy wastes generated from various industrial companies in Taiwan as the alternative raw material and fuel, such as gypsum from power plants, coal ash from power plants or industrial furnaces, mineral silica material and slime from steel mills, renewable particles from incinerators as alternative raw material, and waste lubricating oil, RDF solid fuel as alternative fuel. By doing so, the Company not only purchases items locally, but also contributes towards environmental protection.
The Percentage of Dollar Amount for Local Purchase by Asia Cement
Cement silica material had been 100% purchased locally in Taiwan.
Management flow for new suppliers becoming qualified suppliers
Management flow for qualified suppliers
Identifying significant suppliers
Asia Cement’s significant suppliers is defined as the one who supply critical and irreplaceable. They were classified as Tier-1 and non Tier-1 according to “direct supply” or “trading company”.
Supplier risk management
On the basis of supplier risk items or types listed in “Supplier Selection Principles and Management Measures”, the risk of supplier was assessed and scored by the relevant supervisor and classified as one of four levels (significant, high, medium or low). For the risk items at or above medium level, the corresponding control measures shall be taken, others are listed as items to be observed. From 2020 to 2022, Asia Cement had performed the risk assessment for a total of 176 Tier-1 suppliers, all were at Low Level Of Risk. During 2022, risk evaluations were performed on 14 non-tier 1 suppliers of importance, with all risks regarded as minor.