To build a resilient and sustainable supply chain, FENC has been administering the supplier ESG survey since June 2024 for a comprehensive assessment of its critical suppliers regarding the environmental, social and governance aspects of sustainable development. Environmental considerations include compliance with environmental regulations and information disclosure; the status of external verification or audits; establishment of carbon reduction targets; specific actions such as emission and waste reduction. Among the social indicators assessed are compliance with labor regulations; mechanisms for occupational safety and health management; work systems; talent training. In terms of governance, the assessment focuses on regulatory compliance; information transparency; the robustness of internal corporate policies and risk control processes.

The survey helps FENC’s procurement units gain insights into the overall ESG performance of critical suppliers, preemptively identifying potential risks and operational weaknesses in the value chain. To fully implement supply chain risk control, FENC exercises its corporate influence by implementing special coaching and improvement projects to help suppliers deemed as having significantly high risks establish sound management systems. FENC is determined to evolve from traditional transactional relationships into sustainable partnerships with suppliers, fostering mutual growth by sharing its experience, thus building a more robust supply chain ecosystem while minimizing risks. Amid persistent implementation and engagement efforts from FENC, 1,013 of its critical suppliers have completed the assessment of supplier ESG survey, which is a testimony to FENC’s commitment to reaching net zero and a sustainable future with suppliers through tangible actions. 

Note: The term, “critical supplier,” refers to the supplier of FENC’s main raw materials and one that reaches NT$1 million in a single transaction with the main procurement unit within the reporting year.