New Supplier Assessment

The company establishes "Supplier Management Procedures" and regularly evaluates suppliers. In addition to quality items, the evaluation items also include environmental safety, hazardous substance management, and social responsibility scoring items. The supplier will conduct self-assessment first, and AES-KY will conduct professional review for quality, procurement, R&D, and engineering teams. If the supplier has obtained ISO 45001, ISO14001 and other professional certifications, points will be added during the evaluation, and our company will give priority Use the materials and parts provided by suppliers with higher evaluation scores. Suppliers with lower scores will be required to improve within a time limit. The company has set a threshold for supplier evaluation and elimination. If the supplier is still unable to meet the requirements of the company after being tutored by the company, AES may eliminate the provider.

Annual Supplier Audit

The purpose of implementing the annual supplier audit plan is to supervise suppliers' implementation of AES quality management policies to ensure compliance with corporate management standards. Suppliers with excellent performance are our company's long-term partners. AES conducts on-site audits every year. Those who fail will propose improvement and preventive corrective measures within a time limit, and provide practical guidance on the system. In 2023, 46 suppliers will be audited, with an audit pass rate of 100% (score of 80 points).

RBA VAP

AES implements the company's internal operations and management with reference to the Responsible Business Alliance (RBA) code of conduct to fulfill corporate social responsibilities and introduce it into supply chain management to build a sustainable and co-prosperous partnership. In 2022, Trend Power (Changshu) conducted an external verification of the Validated Audit Process (VAP), with a VAP score of 164.4 points, and obtained silver validation for VAP to meet the requirements of customers.

Responsible Mineral Management

 
 
 

Conflict Minerals Commitment

In order to achieve responsible and sustainable procurement, AES is committed to using minerals whose sources comply with the "Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas" standards or equivalent regulations issued by the OECD ("OECD Guidelines") to avoid accidentally obtaining metals from conflict minerals. AES clearly requires itself and its suppliers to reasonably ensure the source and production and sales supervision of gold (Au), tantalum (Ta), tungsten (W), and tin (Sn) contained in products manufactured in the supply chain, and conduct due diligence investigations, ensures that their sources comply with the “OECD Guidelines” or exclude minerals from conflict-affected and high-risk areas as defined by an equally recognized organization.
 

2024-2025 Target: Suppliers comply with conflict-free minerals

  • Optimize supplier management system, improve CMRT report quality management, and meet customer requirements.
  • Develop a source investigation plan for EMRT to comply with RMI standards.
 

Due Diligence

AES continues to promote the procurement of conflict-free minerals in the supply chain. Based on the results of the 2023 conflict minerals due diligence investigation, it identified the sources of minerals from 163 suppliers, with a completion rate of 96%. In addition to 3TG, AES is gradually incorporating more minerals from “Conflict-Affected and High-Risk Areas (CAHRAs)”, such as cobalt and mica. AES also promotes conflict mineral policies and requirements through its supplier relationship management platform, and promotes human rights and environmental protection.