SUSTAINABILITY

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Governance

Capchem continuously improves its supply chain management system, establishing a three-tier management framework that clearly defines responsibilities at each level to ensure stable operations and efficient management of the supply chain. During procurement, the Company strictly adheres to the Capchem Supplier Code of Conduct and references the Responsible Minerals Supply Chain Due Diligence Management Process as well as the latest legal and regulatory requirements. Capchem continuously updates and optimizes policies and procedures, including the Supplier Social Responsibility Management System, Supply Chain Due Diligence Grievance Mechanism, Capchem's Due Diligence Management Policy for Responsible Mineral Resources Supply Chains, Responsible Minerals Due Diligence Risks, Five-Step Framework for Due Diligence in Responsible Mineral Supply Chains, and Responsible Minerals Supply Chain Due Diligence Management Form, thereby strengthening ESG management across the supply chain and ensuring full compliance throughout the procurement process.

 

 

Strategy

Based on its sustainable development strategy, Capchem integrates ESG management across the entire supply chain lifecycle. The Company conducts its operations responsibly and upholds its commitments to environmental protection, human rights equality, responsible sourcing of conflict minerals, and compliance governance.

 

 

Impact, Risk and Opportunity Management

Capchem is committed to building and continuously optimizing a resilient supply chain system to ensure effective response to disruptions and rapid recovery, thereby addressing challenges posed by the VUCA (volatile, uncertain, complex, ambiguous) external environment. By integrating ESG management standards, the Company continuously develops localized supply chains and advances intelligent supply chain transformation, strengthening supply chain resilience to safeguard business continuity and explore new markets, thereby maintaining a competitive edge. At the same time, Capchem continuously improves its supply chain risk management mechanisms, starting with supplier onboarding assessments, implementing regular monitoring and tracking, and enforcing regular evaluations and improvement measures to effectively manage and mitigate supply chain risks.

 

Capchem actively responds to the UN Sustainable Development Goals, with a strong focus on developing a green supply chain to demonstrate its commitment to sustainable development through concrete actions.

 

Capchem actively advances the deployment of digital systems, building and continuously upgrading ERP, SRM, and OA systems. By leveraging digital technologies to analyze procurement and quality data and generating regular management reports, the Company enhances supply chain traceability, management, and improvement. In addition, Capchem has integrated responsible mineral traceability processes into the SRM system to further unlock digital potential and continuously empower ESG management. System upgrades help optimize the efficiency of supplier agreement signing, on-site audits, and performance evaluations, strengthening the digital capability of the entire supply chain.

 

 

Highlights in 2025

  • 100% of core material suppliers have obtained ISO 9001 quality management system certification, and over 95% have signed the latest version of the CSR Agreement.
  • Provided 49 ESG training sessions to core material suppliers, covering 467 participants; 76 training sessions on basic knowledge of environmentally hazardous substances, covering 639 participants; and 92 quality training sessions, covering 863 participants, representing an increase of 564 participants compared with 2024.
  • Safeguarded labor rights and occupational health and safety through ad hoc supplier audits.
  • Conducted responsible mineral supply chain due diligence for lithium material suppliers and established a responsible minerals sourcing supply chain map.