Supplier Sustainable Management

Supplier Sustainability Management

Supplier Sustainability Management Policy

Apex operates as the main operations body and has established long-term close relationships with suppliers based on mutual trust and mutual benefit, aiming for win-win outcomes. Among them, raw material suppliers have a significant impact on product production. Therefore, Apex attaches great importance to suppliers' compliance with environmental protection regulations: suppliers must comply with local government regulations related to air pollution prevention, water pollution prevention, and waste and toxic substances management. In case of violations, they must promptly submit improvement plans. In addition, Apex also requires suppliers of process raw materials to provide statements ensuring that their products do not contain internationally prohibited substances harmful to the environment, ensuring that the products meet customer and international legal requirements, such as EU RoHS, products do not contain perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA), and the EU REACH directive. When conducting supplier environmental audits, procurement supervisors will request improvements from the suppliers if significant deficiencies are found. Establishing an environmental management system and ecological objectives and auditing suppliers to assess whether they have ISO 14001 or RC14001 are also part of Apex's supplier management policies. Apex strictly adheres to the RBA Code of Conduct, which also drives suppliers to respond accordingly, procuring non-conflict minerals and advocating for humanitarianism and the practice of human dignity, fulfilling corporate social responsibilities, and avoiding the use of raw materials extracted in situations involving armed conflict and human rights violations.

The Supplier Management Implementation

The procurement department of Apex conducts regular annual assessments, audits, and reviews of critical suppliers. In 2023, following the Company's supplier audit mechanism, comprehensive performance evaluations were conducted for critical suppliers, considering ESG sustainability aspects. The standards referenced include the Responsible Business Alliance (RBA) Code of Conduct, ISO 14001, ISO 9001, and ISO 45001 certifications. These standards aim for both parties to fulfil social responsibilities such as quality, environmental protection, and actions to eliminate forced or compulsory labour.

Apex continues to provide guidance for improvement and track progress for suppliers that do not comply with the Company's supplier management policies and standards. If suppliers fail to comply, Apex will consider reducing transaction volumes or terminating transactions based on specific circumstances.

Local Procurement

In recent years, with the formal launch of the ASEAN Economic Community (AEC), Thailand has not only enjoyed advantages in exporting to ASEAN countries but also participates in zero-tariff border trade, making the trade environment in Thailand more open and convenient. Additionally, Thailand's land transportation system has undergone significant improvements in recent years, resulting in a substantial reduction in transportation time to any region of mainland China from Thailand, making it faster and more convenient than ever before. This has shortened delivery times and reduced associated costs, enhancing the competitiveness of Thai businesses. Regarding local procurement, our company collaborates with domestic suppliers in Thailand to procure the necessary materials and services. This collaboration meets production needs and effectively saves waiting time, improving production efficiency. Apex's procurement from Thai suppliers accounted for 40.66% of the total procurement amount in 2023, with these suppliers accounting for 67.71% of the total. Among our top ten suppliers, 40.82% of the procurement amount comes from local suppliers. This demonstrates our emphasis on trust in the local supply chain. Thailand's PCB industry supply chain has continued to grow in recent years. Considering that using local materials can significantly reduce carbon emissions during transportation, support local economic development, and increase employment opportunities, we will continue to promote the proportion of local procurement as a procurement goal for Apex and further strengthen cooperation with local suppliers.