Sustainable Supply Chain Management

Global ESG sustainability issues continue to receive significant attention. Countries and companies are actively initiating carbon reduction actions in response to climate change, with many committing to net-zero emissions targets. The scope of carbon reduction efforts is also expanding to include supply chains. The Company implements the "Sustainable Due Diligence" mechanism by systematically identifying risks and engaging in the evaluation process to address environmental, social, and governance risks within the supply chain, and takes concrete management actions. At the same time, we continuously cooperate with suppliers to promote carbon inventory and reduce carbon emission actions, building a supply chain system that is resilient and has sustainable value.

Sustainable Supply Chain Policy

While valuing product quality, cost-effectiveness, technological innovation, service quality, and delivery reliability, Simplo Technology establishes long-term and trustworthy partnerships with suppliers to jointly promote the practice of environmental protection, human rights assurance, and business ethics. Simplo Technology will continue to work with supply chain partners to pursue a sustainable vision, creating a competitive and resilient sustainable supply system to achieve shared prosperity.

 

 
 

 

 

Four Major Strategies and Goals of Supply Chain Management

Simplo Technology aims to deepen sustainable supply chain management by developing "four major supply chain management strategies" based on industry characteristics and international trends. These strategies cover four key aspects: Climate Action, Environmental Sustainability, Friendly & Co-Benefit, and Risk Management, serving as the core framework for comprehensively advancing supply chain responsibility governance. On this foundation, we formulate phased promotion goals, and collaborate with supply chain partners to create sustainable competitiveness.

 

Supply Chain Overview

In 2024, Simplo Technology collaborated with a total of 251 suppliers, of which 246 were local suppliers and 5 were nonlocal suppliers. The percentage of local procurement amount was 96%. To strengthen supply chain resilience and reduce the risk of supply disruption, Simplo Technology continuously optimizes its supplier selection mechanism. Through rigorous evaluation standards and review processes, the Company carefully introduces new suppliers while cultivating long-term partnerships.

• Definition of Key Suppliers: Suppliers that meet any of the following conditions of a. procurement volume, b. key components, c. irreplaceability, are classified as key suppliers, mainly including three major categories: battery cells, electronics, and mechanical components.
• Adjustment of Management Documents: With reference to the spirit of ISO 20400 sustainable procurement guidelines, sustainable factors should be incorporated into procurement policies and measures to assist enterprises in managing ESG risks and opportunities.
★ Sustainable Procurement: In selecting suppliers and products, consider their impact on the environment and society, ensuring product quality, cost, technology, service, and delivery at the time of procurement, in order to reduce negative environmental impacts and enhance social and economic benefits within the supply chain.
★ RBA Code of Conduct: Require the signing of the RBA Code of Conduct by suppliers at the time of contract signing to ensure that suppliers comply with relevant regulations during cooperation.

 
 

Supplier Engagement

Sustainable Supply Chain Launch Ceremony

In June 2023, Simplo Technology held a Sustainable Supply Chain Communication Conference, themed “sustainability core, partners co-prosperity”. The conference unveiled Simplo Technology’s Sustainable Supply Chain Management Policy and conducted a signing ceremony to kick off the sustainable supply chain initiatives, witnessed by supplier partners. A total of 83 suppliers and nearly 200 participants attended the event online. This conference also provides RBA education and training for suppliers to explain the relevant requirements of five major aspects: labor, health and safety, environment, ethics, and supply chain management.


Definition of Key Suppliers
Based on 1. procurement volume, 2. key components, and 3. irreplaceability, the selection criteria for key suppliers define three main categories: battery cells, electronics, and mechanical components.


Key Supplier Management
According to the definition of key suppliers, 4 battery cell suppliers, 5 electronics suppliers, and 1 mechanical components supplier were selected, making a total of 10 suppliers. The CPO sent "Simplo Technology's expectations for suppliers on ESG to key suppliers", outlining sustainability goals for 2024 to 2026.
Simplo Technology will continue conducting sustainability surveys of its suppliers, implementing selection, evaluation, and engagement process. We following the ISO 20400 sustainable procurement principles, conducting regular audits to promptly assess supply chain risk conditions. Through communication, guidance, and training, we aim to collaborate with supply chain partners to enhance operational resilience together.

2024 Simplo Group ESG Sustainable Supply Chain Seminar
Simplo Group held the "2024 Simplo Group ESG Sustainable Supply Chain Seminar", with over 100 manufacturers and nearly 200 supply chain partners participating online. The event shared the company's sustainable supply chain management strategy and progress toward its net zero goal. The event also addressed topics such as integrity management, information security, occupational safety and health, supply chain due diligence, and biodiversity. The company also stated its commitment to continuously promoting supply chain carbon reduction and implementing ESG requirements, working together to create a sustainable future.