In 2016, the United Nation officially launched the UN 17 Sustainable Development Goals (SDGs). Organizations began to see the critical value of integrating SDGs within their corporate vision to help strengthen business models and to maximize their environmental and social contribution. Among the SDGs, goal 12 - responsible consumption and production, emphasized the importance of a sustainable supply chain development. It is one of the major pillars that enables ASE to progress and become an industry leader.
The 2017 Global Risks Report published by the World Economic Forum (WEF), identified extreme weather caused by climate change as the only risk factor that is ranked in the top two for both "likelihood of occurrence " and "impact size" while water crises ranked number three for “impact size”. These risk factors are critical challenges faced by corporations and suppliers. In addition, the 2015 and 2016 Supply Chain Reports released by CDP reported that more and more suppliers have identified and recognized the importance of these risks, and have begun to set relevant targets to mitigate them through sustainable actions such as greenhouse gas reduction and water conservation.
In parallel with the global trend of corporate sustainability, relevant studies have shown that a sustainable supply chain not only helps to mitigate risks, but also enables a reduction in supply chain costs (eg. energy, waste and related environmental costs), and enhances a company’s image and brand value. Therefore, in addition to the existing supply chain management model, companies must clearly understand the importance of sustainability to meet increasing challenges and customer needs, control costs effectively and enhance their abilities to manage risks.
ASE has incorporated a sustainable supply chain policy into our daily procurement management and operation, and our suppliers are required to comply with our code of conduct. ASE guides suppliers through "value-orientation" on sustainable development, develops stable partnerships with suppliers, and encourages them to pursue sound management systems and sustainability performance and to accelerate the supply chain’s competitiveness. The "ASE Group Supplier Sustainability Award" was especially established to honor and incentivize our network of suppliers and partners to continue to collaborate with ASE and create industry innovations together.
The assessment criteria of the ASE Group Supplier Sustainability Award is based on five major categories: "Sustainable Management and Risk Management", "Supply Chain Management", "Environmental Protection", "Health Safety and Labor Rights" and "Sustainable Culture". Factors of consideration for each criteria are as follows.
Sustainability Management and Risk Management:
To confirm whether suppliers are focused on sustainability trends and how they handle and respond to risks and opportunities associated with their operations.
Supply Chain Management:
To identify whether suppliers are effective in managing their suppliers and partners, and if they are fully cognizant of their suppliers’ business conditions which will mitigate their operational risks.
To confirm whether suppliers have in place systematic environmental management systems or environmental protection measures in their own operation to reduce and mitigate the environmental impacts.
Health Safety and Labor Rights:
To confirm whether suppliers have in place systematic occupational health and safety management systems to provide a healthy working environment for their workers and protecting their labor rights and interests.
To confirm whether suppliers actively promote sustainable development in the daily management and operations to foster a sustainable culture.
In addition to the creation of the "ASE Group Supplier Sustainability Award" to encourage suppliers to pursue sustainable development, ASE regularly provides sustainability training, workshops and seminars to suppliers to help build suppliers' awareness and capabilities to enhance sustainable practices at their facilities. For more information, please click here.
The assessment process of the ASE Group Supplier Sustainability Award is conducted in three stages: internal survey and assessment, external examination and on-site assessment, and the final selection of outstanding suppliers by a professional committee.
ASE will hold the Supplier Sustainability Award annually from 2016 onwards. The overall schedule including the initial planning and 3-stage assessments, takes about 10 months:
Internal and external engagement
The assessment process involves the participation and cooperation of a large number of internal and external parties. Internal units involved include Corporate Procurement, Corporate CSR Center.
Site’s Purchasing, Facility, EHS, Quality Assurance and more, while the participating external parties and suppliers include: