SUSTAINABLE DEVELOPMENT

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Governance

Capchem has built a three-tier management structure for our supply chain and clarified the division of responsibilities at each level to ensure the stable operation and efficient management of the supply chain. In the procurement process, the Company strictly complies with the Capchem Supplier Code of Conduct and the Supplier Code of Conduct Management System, and makes reference to the Due Diligence Management Procedures for Responsible Mineral Supply Chains to formulate the Management Supplier Social Responsibility System, the Supplier Code of Conduct for Responsible Procurement, the Due Diligence Management Policies for Capchem's Responsible Mineral Resources Supply Chains and the Supplier Policy for Responsible Procurement Investigations to strengthen the supply chain's ESG management and ensure compliance of the entire procurement process.

 

 

Strategy

Based on the strategic layout of sustainable development, Capchem deeply integrates ESG management into the full life cycle management of the supply chain, conducts business in a responsible way, and fulfills the missions of environmental protection, human rights equality, conflict minerals and compliance governance.

 

 

Impact, Risk and Opportunity Management

Capchem is committed to building and continuously optimizing a resilient supply chain system, guaranteeing that the supply chain can effectively cope with disruptions and quickly recover, in order to cope with the challenges brought about by the VUCA characteristics of the external environment. Combined with ESG management standards, the Company is continuously building a localized supply chain and intelligent transformation of the supply chain, and continuously strengthening the resilience of the supply chain, to ensure the continuity of the business of the Company and to develop new markets, so as to gain an advantage in the market competition. In addition, the Company continuously improves supply chain risk management mechanism, takes supplier access assessment as a starting point, carries out regular monitoring and tracking, and implements regular assessment and enhancement initiatives to effectively carry out supply chain risk control and response work.

 

Capchem actively responds to the United Nations' Sustainable Development Goals by focusing on the construction of a green supply chain, demonstrating our commitment to sustainable development through concrete actions.

 

 

Capchem actively promotes the deployment of digital systems, building and continuously upgrading ERP, SRM, and OA systems. By leveraging digital technology, we conduct in-depth analysis of procurement and quality data, and regularly generate management reports to support supply chain traceability, management, and improvement. Additionally, we embed ESG management processes into the SRM system, tapping into the potential of digitization to continuously empower ESG management. Through functional upgrades, we achieve efficient control and evaluation of supplier agreement signing, site audits, and performance assessments, strengthening the digital empowerment of the supply chain.

 

Highlights in 2024

  • 100% of core material suppliers have achieved ISO 9001 Quality Management System certification
  • 100% of core material suppliers pliers have signed the Human Rights Compliance and Conflict-Free Minerals Declaration
  • ISO 14067 system trainings have been conducted for 91 core material suppliers
  • Over 91% of core material suppliers have completed the signing of CSR agreements
  • A due diligence management procedure for responsible mineral supply chains has been established