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 2024, 55 suppliers will be audited, with an audit pass rate of 100% (score of 80 points).

 

Supplier Engagement

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.


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 2024, Trend Power (Changshu) conducted an external verification of the Validated Audit Process (VAP), with a VAP score of 166.1 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.
 

Due Diligence

AES continues to promote the procurement of conflict-free minerals in the supply chain. Based on the results of the 2024 conflict minerals due diligence investigation, AES's supply chain conducted 207 CMRT and EMRT assessments, with a completion rate of 94.7%. 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.

 

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.
  

 

Communication Mechanism

To safeguard suppliers' labor rights, AES requires suppliers to establish internal grievance mechanisms in accordance with the Supplier Code of Conduct Commitment. We encourage suppliers and their employees to report issues concerning labor rights, occupational health and safety, environmental impact, conflict minerals, or any regulatory/code violations through designated channels.

In accordance with our Ethical Corporate Management Best Practice Principles and whistleblowing policy, AES discloses reporting channels, procedures, and response mechanisms on our official website, with designated units handling investigations strictly under confidentiality principles. Stakeholders can report any unethical behavior, as well as adverse social or environmental impacts within company operations and the supply chain, via our whistleblowing email or hotline.

All reported cases guarantee the whistleblower's identity and privacy to prevent any form of retaliation. For major or specific allegations, further investigations will be launched to ensure proper resolution and to continuously reinforce supply chain compliance and ESG governance.

Supply Chain Management  
Tel.:03-5695916 
E-mail:Aes-suppliers@advancedenergysolution.com.tw