Supply Chain Management

Supply Chain Management

Suppliers are the most important partners for Acter. In our pursuit of a sustainable and resilient supply chain, we integrate suppliers’ ESG performance into our collaboration evaluation and management procedures. We have established a responsible and transparent supply chain management framework, requiring our suppliers to provide a safe workplace, prevent forced and child labor, respect and protect their employees, avoid environmental degradation, and comply with business ethics and other codes. Moreover, we conduct annual audits and offer guidance to ensure compliance with Acter’s Code of Conduct. Our ongoing efforts steer our supply chain towards sustainability and transformation, aiming to mitigate potential risks and make substantial contributions to the UN’s SDGs.

Supply Chain Structure

We categorize our suppliers as contractors and materials and equipment suppliers based on their attributes. Suppliers whose annual transaction amount exceeds NT$10 million are designated as "key suppliers". As of 2023, Acter has accumulated 6,128 partners worldwide, encompassing regions such as Taiwan, Europe, the United States, Northeast Asia, Southeast Asia, and China. We prioritize a balanced approach between local procurement and supply chain diversity to minimize carbon emissions across the supply chain, create local employment opportunities, and mitigate overall supply chain risks.

Statistics on the geological distribution of suppliers over the years
2021 2022 2023 
Q’ty (No. of suppliers) Ratio Q’ty (No. of suppliers) Ratio Q’ty (No. of suppliers) Ratio
Taiwan 5,476  99.08% 5,817  99.13% 6,076 99.14%
China 20  0.36% 20  0.34% 20  0.33%
North East Asia 3  0.05% 3  0.05% 3  0.05%
South East Asia 1  0.02% 1  0.02% 2 0.02%
Europe and the United States 27  0.49% 27  0.46% 28  0.46%
Total 5,527  100% 5,868  100% 6,128 100%
Proportion of Transaction Amounts with Key / Non-key Suppliers Over the Years
 
2021 2022  2023 
Contractors Material and Equipment Suppliers Contractors Material and Equipment Suppliers Contractors Material and Equipment Suppliers
Key Suppliers 78.95% 59.75% 86.09% 78.57% 72.52% 57.59%
Non-Key Suppliers 21.05% 40.25% 13.91% 21.43% 27.48% 42.41%
Supply Chain Management Implementation Policy

Suppliers are Acter's most important partners. Beyond the economic value they bring through the supply chain, we prioritize the social and environmental impacts of our operations and, rooted in respect for human rights, maximize our efforts toward sustainable practices. We encourage and require our suppliers to uphold their corporate social responsibilities. Through Acter's responsible supply chain management mechanism, we collaborate with them to collectively fulfill our social and environmental obligations and progressively achieve sustainability goals.

Oriented towards the four implementation policies of “follow guidelines”, “risk assessment”, “participation in audits”, and “continuous improvements”, we have formulated the “Supplier Code of Conduct”, aiming to establish a responsible supply chain management mechanism and sustainability-related risk assessment strategies. Each year, we not only conduct supplier assessments and track their deficiencies for improvement but also implement procurement measures based on their ratings to minimize the risk of operational interruptions. Furthermore, we anticipate that, through the mutual influence within the value chain, sustainable development across the entire value chain will be promoted, allowing us to collaborate with suppliers towards sustainability goals.
 

Supplier Code of Conduct

With our commitment to corporate sustainable development, we expect our suppliers to share the same values. To strengthen our commitment to sustainability within the supply chain, Acter has referred to numerous international standards to establish the "Supplier Code of Conduct". Only suppliers who sign the "Supplier Code of Conduct" qualify as approved suppliers. Furthermore, Acter requires its suppliers to undergo risk assessments and on-site audits to implement sustainable improvement measures during our partnership. In 2023, 260 new suppliers signed the "Supplier Code of Conduct", achieving a signing rate of 100%. Meanwhile, we encourage our suppliers to impose these same standards on their partners. Through the mutual influence within the value chain, this approach aims to enhance sustainable development across the entire value chain.

Acter has also established a reporting mechanism. Suppliers found in violation of business integrity or relevant rules will be categorized as refused suppliers. Acter not only terminates all business relationships with them but also holds them accountable for any resulting legal responsibilities. As of 2023, no supplier has ceased collaboration with Acter due to breaches of business integrity or other significant rules.

New suppliers sign the implementation results

2022(No. of suppliers) 2023(No. of suppliers)
new supplier 341  260 
Commitment to Integrity and Honesty 100% 100%
Corporate Sustainability Commitment for Suppliers 100% 100%

Highlights of Supplier Code of Conduct
 

01

Labor

  • No discrimination
  • Fair treatment
  • No child labor
  • Working hours
  • Salary and allowance
  • Freedom of association and collective bargaining
  • Free choice of employment
02

Health and Safety Standards

  • Occupational safety
  • Emergency response and preparation
  • Occupational injury and diseases
  • Industrial hygiene
  • Labor work
  • Machine protection
  • Sanitation, food and accommodation
  • Health and safety communication
03

Code of Ethics

  • Business integrity
  • No unjust proceed
  • Information disclosure
  • Intellectual property
  • Fair trade, advertising and competition
  • Protect identity and eliminate retaliation
  • No conflict mineral
  • No Privacy
04

Environment

  • Environmental permit and compliance
  • Pollution prevention and treatment; resource saving
  • Hazardous substances
  • Wastewater and solid wastes
  • Emission of air pollutant
05

Management System Standards

  • Corporate commitments
  • Management responsibility and duty
  • legal and standard essentials
  • Risk assessment and management
  • Improvement targets
  • Training
  • Communication
  • Labors’ feedback and participation
  • Audit and evaluation
  • Correction procedures
  • Documents and records
  • Suppliers’ responsibilities

 Supplier Assessment

To enhance the effectiveness of supply management, Acter has established the “Supplier Corporate Sustainability Rating Standards” in regard to the assessment on “key suppliers” or “Key suppliers rated as Class C in the previous assessment”. The assessment items include material/construction quality, delivery date/construction achievement rate, price advantages, expertise, level of collaboration, finance, and corporate sustainable development performance. For those whose total score is below 60, Acter will not cooperate with them in the future. Suppliers assessed as Class A with a total score above 80 will be offered the “right to match” when their bidding price is the same as others. Suppliers who fail to meet the standard will experience a reduction in trading amount or termination of partnership with Acter. In 2023, Acter assessed 101 key suppliers. The assessment results are as follows:




 

Supplier Sustainability Risk Assessment

To manage suppliers' sustainability risks, Acter identifies potential economic, environmental, and social risks through regular assessments. For suppliers identified as high-risk during this process, Acter conducts audits and provides guidance to effectively control and mitigate these risks. Acter also offers suggestions and tracks their progress in addressing deficiencies to strengthen the resilience of Acter’s supply chain.

Facets Content of Investigation Supply Chain Action Plan
Economy
  • Enhancement on quality and professional skills
  • Sustainability management policy and organization
  • Risk management
  • Business plan
  • Continue to enhance expertise
  • Implement management policy
  • Enhance risk management
  • Continue to carry on the business plan
Environment
  • Waste management
  • Water resource management
  • Climate change risks
  • Greenhouse Gas (GHG) discharge and carbon management
  • Pollution prevention and treatment
  • Water saving
  • Identify climate change risks
  • Waste and carbon reduction
Society
  • Occupational safety and hygiene
  • Labors’ rights and interests
  • Labor policy
  • Code of Ethics
  • Implement environmental safety education and prevention/treatment measures
  • Value labors’ rights and interests without any violation
  • Comply with legal regulations without any violation
  • Value Code of Ethics

To ensure transparency in supplier assessment results, Acer randomly selects four key suppliers for on-site audits to assess their current status across various facets and to exchange ideas on their management methods and continuous improvement efforts. Acter also completes the "Supplier Visit Assessment Form" to document inspection highlights. Based on the audit results, the four suppliers selected for the year showed no deficiencies and did not require further observations.

Supplier Foster Plan

Acter engages in a supplier fostering plan with a focus on the four key aspects of “strengthening suppliers' response capabilities”, “implementing occupational safety and health management”, “improving quality management”, and “raising awareness of sustainable development”. Through this initiative, we have not only established a corporate sustainability exchange platform but also implemented supplier education, training, key guidance, secondary audits, and other approaches to enhance suppliers' progress on ESG factors and accelerate the sustainability of supply chain management.

Implementation Strategy/ Specific Approach of the Supplier Foster Plan
Assist suppliers in enhancing
their response capabilities

- Assist in offering resources and prevent supply chain equipment from being affected by the environment, as it can cause supply breakdown. This can help enhance suppliers’ response capability.

- Provide education and training programs to enhance suppliers’ expertise, which can be used to confront challenges in the industry or new technology.

- Enhance suppliers’ response capability through experience sharing.

Implement occupational
safety and health measures

  • - Provide training and programs to build suppliers’ awareness of environmental safety inspection.

  • - Implement occupational safety inspection.

Improve quality

- Provide training/ programs or share Acter’s experience to enhance suppliers’ expertise.

- Implement quality checks.

Enhance suppliers’ awareness
of corporate sustainability

  • - Establish a business sustainability exchange platform to share Acter’s experience and information on ESG, and request suppliers to comply with relevant policies to expand the benefits of corporate sustainability.

  • - Invite suppliers to participate in Acter’s ESG activities and plans.