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> Corporate Social Responsibility > Commitment to Stakeholders' Balanced Interest |
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| Commitment to Stakeholders' Balanced Interest |
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| Delta and Suppliers |
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Our thousands of suppliers around the world are Delta's business partners, and they are essential to our efforts in addressing environment-related substances in products, climate change, labor safety & health, human rights as well as issues such as conflict minerals / metals and water footprint. Delta is committed to using our influence to promote the relevant concepts and methods to our upstream supply chain.
▍Honesty and integrity
Honesty and integrity are the most important criteria when Delta chooses suppliers. Delta thinks of our suppliers as long-term partners. For the partnership to endure, our suppliers must have a similar corporate culture. For suppliers or contractors delivering or providing services to Delta plants in Taiwan, China and Thailand, they are required to sign a "Declaration of Ethics". The declaration not only requires vendors to carry out all transactions in good faith to avoid damage to Delta's interests or image, but it also insists that vendors must not allow Delta employees or their relatives to receive improper benefits, or provide them with any non-business related loans, rentals or investments. The declaration includes a Delta hotline and mailing address where vendors can report Delta employees that violate purchasing rules. This ensures that vendors' rights and interests are protected as well.
▍Cooperation with suppliers
Our suppliers must also offer competitive quality, technology, delivery and pricing. Delta has an information platform that links together our end customers, system integrators and suppliers. Comprehensive information and logistics management allows for flexibility in demand change notices, long lead-time materials and capacity planning reviews.
Delta also works with suppliers to make high quality and competitive parts the standard design in our products, enabling suppliers to leverage economies of scale and reduce costs to the ultimate benefit of our customers. Where necessary, we also assist suppliers in improving their technology or management standards so they can grow together with Delta.
▍Environmental Requirements and the Management of Environment-Related Substances
The Environment-Related Substances (restricted hazardous substances) issue is the major focus of Delta’s Green Product Committee, which consists of relevant departments such as materials, from all business divisions. Co-working with the CSR Office and the Environment-Related Substances team at each production facility, the Committee is responsible for setting up management systems and regulations. It also reviews the process of parts approval as well as the convenience and coverage of Delta’s GPM system for use by internal staff and suppliers to ensure information accuracy and compliance with all applicable standards.
The scope of environment-related substances is getting broader. Delta not only sets up the QC080000 hazardous substance management system at our own production sites but also encourages our suppliers to introduce the system to ensure the proper control of environment-related substances, which is in addition to their existing ISO9001 quality management system. Through our Guarantee Letter Regarding Environment-Related Substances, we clearly notify suppliers of Delta’s related documents such as 10000-0162, 10000-0222, and 10000-2003, all downloadable from Delta’s GPM system. The letter and documents ask suppliers to guarantee they will restrain environment-related substances contained in accessories, packaging, and others from delivery to Delta and its subsidiaries or affiliated companies directly or via any third party. At the same time, we provide training courses and training materials, and also note Delta’s environmental technical requirements on the purchase orders as a reminder to suppliers.
Besides requested documents like test reports, we implement incoming material control based on suppliers’ risk levels. When non-compliance occurs, the actions that follow are regulated in Delta’s “Supplier Management Procedure”, including an increase of sampling frequency, on-site audits, and more. We consider assisting suppliers improve as a priority, and their risk level is adjusted based on how they actually improve. If the suppliers are not cooperative, we have procedures for disqualifying suppliers.
In addition to environment-related substances standards, in Delta’s purchase agreement there are articles that ask suppliers to comply with relevant environmental laws, regulations, and technical standards, such as pollution prevention, waste disposal, and others. If a supplier does not comply, Delta’s procurement department will deal with the situation based on severity.
▍EICC Code of Conduct
As previously noted, the cooperation and participation of the entire supply chain is needed to achieve optimum results for CSR issues. Delta has drawn on the EICC Code of Conduct to tailor courses for Delta's main suppliers that teach the Code's content and implications. We also conduct questionnaire surveys or check lists that carry out onsite audits to learn about and improve suppliers' performance in labor rights, health and safety, and the environment.
Delta complies with the EICC Code of Conduct within our own organization, and we are committed to promoting this standard to Delta's suppliers to achieve the optimum outcome.
▍Other Supply Chain Related Social and Environmental Issues
The CDP Supply Chain Program surveys suppliers on greenhouse gas emissions and controls to determine the potential impact on the enterprise itself. Delta not only actively communicates with our customers but also has finished a carbon footprint inventory for a notebook computer adapter, a PV (photovoltaic) inverter, and a DC fan product, and has received verification for the green house gas emissions associated with the products’sourcing of materials, manufacturing and more.
The results showed that a very large part of a business-to-business (B2B) product’s carbon footprint comes from the sourcing of materials. Working together with several corporate members of the Taiwan Corporate Sustainability Forum (TCSF), about 50 Taiwanese suppliers were invited to join a greenhouse gas inventory project to build their capabilities for future carbon footprint calculation.
Climate change has proven to be closely related to water resource management issues. In addition to using the World Business Council for Sustainable Development’s (WBCSD) Global Water Tool to conduct a preliminary self-assessment, we also have gained a basic understanding of which major manufacturing sites are currently situated in water stressed areas for approximately 60 major first-tier suppliers who supply Delta’s power management business divisions. We can further bring particular characteristics such as amount of water consumption, incoming water quality requirements, effluents, and more, that are specific to the suppliers into further discussion 21.
Delta has also adopted a conflict metal free policy that restricts the use of conflict metals mined from the DRC and its adjoining countries. Suppliers are required to self-declare that their deliverables to Delta do not contain any conflict metals. On the same note, we have satisfied customer requests by tracing all metals from suppliers back to their sources, while giving the EICC feedback to improve their survey format.
As for contractors, we mainly arrange training courses and promote Delta’s environmental and safety health codes to ensure that any negative safety and environmental issues are avoided during their onsite operations.
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