Throughout our supplier management process, we consider factors such as environmental protection and sustainable development. In China, we ensure that our factories adhere to local “green factory” accreditation guidelines on production and logistical matters. This ensures that our supplier actions are accounted for and continue to uphold the “green standard” required.
Our Procurement department evaluates our suppliers on an annual basis. This supplier evaluation exercise includes an environmental assessment to ensure that they meet our required Standard Operating Procedures (“SOPs”) in managing environmental matters. In the event that suppliers fall short of the expectations we have of them, we provide solutions and guidance to help them improve their processes.
In FY2021, we subjected 591 out of 1,466 new suppliers to environmental screening criteria, accounting for 40.3% of our new suppliers. On the other hand, we also subjected 568 out of 1,466 new suppliers to social screening criteria, accounting for 38.7% of our new suppliers.