Sustainable Supply Chain
• Supplier Management
In today's society, every company's operations and collaboration with its business partners may impact the environment and society. Good supply chain management can therefore effectively prevent and mitigate the direct or indirect negative impacts caused by the Company or its partners. Shinfox Energy has about 75 partners (including equipment manufacturers and EPC) who are suppliers. To pursue sustainable development, the Company has worked with suppliers to jointly implement corporate social responsibility (CSR) and form an industrial chain that is friendly to society and the environment.
• Social Responsibility Commitment Statement
Short-term goals:
In 2023, major suppliers' "Social Responsibility Commitment Statement" return rate reached 100%.
Note: The main suppliers are those with cumulative transactions exceeding NT$3 million in 2022.
Long-term goals:
"Social Responsibility Commitment Statement" return rate for all suppliers have reached 100%.
• Evaluation of New Suppliers
Shinfox Energy’s requirements for suppliers are not limited to quality, performance, and financial status. All suppliers have been required to sign the “Letter of Compliance with Corporate Social Responsibility” starting from the fourth quarter of 2022. This Letter of Compliance with Corporate Social Responsibility contains more in-depth requirements on human rights, labor conditions, environmental protection, business ethics, etc. By doing so, we expect that each supplier would be aware of them and join us in fulfilling corporate social responsibility.
• Supplier Evaluation
Our company holds regular supplier evaluations every year, and all the suppliers who have requested payment during the year are included in the evaluation. The evaluation covers quality, service, cooperation, and ability to fulfill the contract; this is done to ensure that the Company's needs are met in each aspect. Supplier evaluation results are divided into three levels: A, B, and C; suppliers with 80 points or more are rated A, those with 79-60 points are rated B, and those with 60 points or less are rated C. C-class suppliers are unqualified suppliers; they will be placed on the elimination list once their annual evaluation form is approved, and the Company will no longer collaborate with them. In 2022, 38 suppliers were evaluated, of which 26 were A-Class, 12 were B-Class, and 0 were C-Class.
• Local Procurement
Local procurement can foster the steady growth of local suppliers, shorten delivery time, improve service speed, and reduce time costs, as well as mitigate the environmental impact caused by air and sea transportation. Therefore, Shinfox Energy mostly purchases from local suppliers, and we hope that we can significantly increase job opportunities in Taiwan and create a win-win situation with our suppliers by working with local suppliers.
Year | 2021 | 2022 |
Expenditures for products procured from local suppliers (A) | 97,609,742 | 88,988,720 |
Expenditures for services procured from local suppliers (B) | 3,761,508,884 | 630,735,564 |
Expenditures for products and services procured from local suppliers (A+B) | 3,859,118,626 | 719,724,284 |
Total expenditures on procured products and services | 3,859,118,626 | 719,724,284 |
Percentage of expenditures for products and services procured from local suppliers | 100% | 100% |
A. Explanation of local procurement percentage: In 2022, the procurement expenditure is mainly for the procurement of services, including pre-construction technical services, contracting and maintenance of power plants, which account for more than 85% of the total procurement expenditure each year. The remaining procurement expenditure is for the procurement of equipment, mainly power generation equipment (solar panel modules & inverters) and other maintenance materials, which accounted for approximately 10% of the total procurement expenditure in each year. The contractors/suppliers of the above-mentioned services and equipment are all manufacturers in Taiwan. |
Supplier Management Policy
Shinfox Energy is committed to the development, services, and maintenance of renewable energy projects. As a responsible global citizen, we aim to protect the environment and uphold the principles of sustainable business. Our relationship with suppliers is not just a contractual one, but a long-term partnership where both parties work towards creating a sustainable supply chain that prioritizes environmental protection, occupational health and safety, labor’s rights and sustainable development.
Policy | Specific requirements | Implementation status |
Environmental Protection: | Suppliers must comply with local regulations related to air pollution prevention, water pollution prevention, waste management, and other environmental protection laws or regulations. In the event of violations, suppliers must promptly submit an improvement plan. | We have provided environmental protection and regulatory training to all of our contracted suppliers. Additionally, we had no penalty records related to this issue in 2022. |
Occupational Health and Safety | Suppliers are required to provide on-site safety briefings, hold meetings, and inspect protective equipment for contracted projects. Relevant personnel must possess occupational safety certifications. | We have conducted on-site inspections for all of our 2022 projects to ensure compliance with these requirements, and the results have met our expectations. |
Labor’s Rights | Suppliers must comply with all applicable labor laws, provide a safe and healthy working environment, prohibit child labor, and forbid forced labor. | We randomly inspected our suppliers in 2022 to ensure compliance with labor rights requirements, and found no violations. Additionally, we had no penalty records related to labor laws in 2022. |
Suppliers' specific requirements for sustainable operations.
New supplier evaluation | Supplier Management and continuous Evaluation | Supplier Assistance |
All new suppliers must pass essential assessment criteria, including financial status, engineering performance, etc. | Suppliers must pass the annual evaluation, including quality, on-time completion, professional skills, occupational safety and health, cooperation, and after-sales service, etc. | To achieve our energy-saving and carbon-reducing goals, we communicate with our suppliers yearly to strengthen the concept of using carbon-reducing products or services. |
To meet our energy-saving and carbon-reducing goals, we prioritize suppliers' services or products that have carbon-reducing effects when selecting suppliers. | Supplier evaluation is graded as A, B, and C tier. Therefore, C-tier suppliers will be eliminated. | We establish good communication with suppliers on environmental protection, occupational safety and health, and labor rights issues from time to time. |