Risk Assessments and Supplier Audits
The Company evaluates supplier risks through various processes, including desk research, supplier self-assessment, and on-site audits. Before commencing any transactions with the Company, and upon successful completion of sustainability self-assessment questionnaires, new suppliers are selected based on comprehensive criteria including: the quality of products and services, and sustainability aspects such as traceability and legal compliance.
Existing suppliers must complete sustainability self-assessment questionnaires, which are regularly reviewed under a pre-defined timeframe. The Company has also identified critical suppliers, which refer to those who 1) account for high spending value, 2) supply critical components for our production process, or 3) are non-substitutable or difficult to replace. Self-assessments for critical suppliers are more rigorous, and those that fall under high-risk criteria will undergo on-site ESG audits conducted by Company personnel or independent auditors. The Company also identifies significant suppliers to enhance overall sustainability capabilities.
Remark:
i Reported data covers Thailand and Vietnam operations. Significant suppliers refer to those suppliers identified as having high ESG risk, or critical suppliers, or both.
ii Significant Tier-1 suppliers accounted for 66% of total spend in Tier-1 suppliers.
In 2024, the Company has 859 critical Tier-1 suppliers and 31 critical non Tier-1 suppliers (Thailand and Vietnam operations).
Performance