Management of the Supply Chains
CSC's AEO supply chain-related business partners include 49 companies in seven categories, including manufacturing, import and export, customs declaration, shipping, contractors or shipping agencies, warehousing and road transportation. The selection criteria are that business partners must have AEO certification and confirm its validity (15 companies in total), or business partners without AEO certification (34 companies in total) must sign a "Supply Chain Security Declaration" and consider their financial soundness and creditworthiness. Good, and whether it has the ability to comply with the safety regulations related to the contract, detect risks and correct deficiencies, etc. In 2023, a total of 4 business partners were audited and all were in compliance with regulations.
In order to achieve sustainable development of the environment, in terms of transportation, CSC is committed to preventing the impact of accidents and emergencies on the environment to fulfill its corporate social responsibility. While exercising strict control over risks associated with transportation suppliers, CSC not only requires transportation suppliers to obtain ISO 45001 certification of the occupational safety and health management system, but also steps up accident risk management during transportation in order to minimize the risk of occupational accident.
Shipping
In terms of shipping, most of CSC's imported raw materials or exported products are entrusted to CSC Express Corporation (CSE) to charter ships or use self-owned ships to transport them. CSE is an AEO quality enterprise certified company and meets CSC's supply chain safety management requirements. CSE has established a Planned Maintenance System (PMS) to implement ship maintenance and maintain good ship condition to stabilize the transportation of imported raw materials.
CSE holds environmental control-related certificates for its own ships. CSE's new ships pay special attention to energy-saving and environmentally friendly design. They often sail at economical speeds to significantly reduce fuel consumption and carbon emissions. CSE has required all its self-owned and chartered ships to switch to low-sulfur fuel for the entire voyage according to the International Maritime Organization (IMO) regulations since 2020 for the purpose of complying with environmental regulations. In addition, CSE requires its own ships to recycle waste oil and send it to the CSC coking process for recycling when the ship docks in order to reduce additional diesel consumption and avoid causing air pollution.
Land Transportation
In terms of land transportation, in order to reduce greenhouse gas emissions and improve air pollution, CSC has stipulated the age of vehicles carrying products in land transportation since 1999. The current regulations require that the age of vehicles must not exceed 15 years. Starting from January 2017, it has been stipulated that all new vehicles transporting products must meet the fourth phase or above of environmental protection standards, and existing old vehicles must be phased out year by year. From October 2019, all vehicles for delivering products are in compliance with the stage 4 or stage 5 emission standards. As for the stone mine transportation at Hualien in Taiwan, railway transportation is used to reduce the pollution problems caused by road transportation.
CSC's domestic logistics planning divides customers into three regions based on delivery locations: northern Taiwan, central Taiwan, and southern Taiwan for individual delivery of vehicles. Bills of lading from different customers in the same area can be combined for delivery to reduce the number of round-trip vehicles, reduce greenhouse gas emissions and improve air pollution. In addition, in order to promote transportation efficiency and reduce transportation costs, when the vehicle completes the delivery tasks in central Taiwan and northern Taiwan and returns through Dragon Steel Corporation (DSC), it assists in transporting DSC's customer bills of lading in southern Taiwan or semi-finished products required by the group company back to southern Taiwan to reduce the traffic flow of empty vehicles returning to CSC.
In order to promote driving safety awareness, starting from January 2020, CSC requires drivers to fill out information on the Safety and Health Self-management app before reporting for duty, pushing drivers to run a quick physical and mental examinations and fully understand occupational hazards before work, thereby improving road traffic safety and protecting other drivers.
Compliance Check
- A total of 18 violations were found during supplier on-site audits in 2023, and all suppliers have immediately interviewed the offending personnel and completed improvements.
- We placed greater emphasis on the social responsibility of suppliers in 2022, and included external violations of suppliers into evaluation. We hope to grow together with our suppliers in shouldering our corporate social responsibility. None were found to be non-compliant in 2023.
- An environmental impact assessment was conducted for all 1,616 vehicles of suppliers in 2023, none were found to be non-compliant with environmental protection standards, and all vehicles for transporting products complied with stage 4 and 5 emission standards.
- We conducted a social impact assessment on 128 suppliers, and none were found to be non-compliant with labor safety risks in 2023.
