Sustainable Supply Chain Management and Responsible Procurement
For more than 20 years, Nova Tech has been accumulating engineering experience in process supply systems, and is determined to become "the best process helper in the high-tech industry". From the professional technology development experience and the most competitive engineering team, NovaTech actively selects the third party with good quality and maintains a good partnership with them to establish a strong supply chain team, which enables Nova Tech to keep abreast of the changes in the prices of raw materials and outsourced projects, and to effectively control the progress, cost and construction quality of each project. This enables Nova Tech to effectively control the progress, cost and construction quality of each project, and to provide customers with the highest quality engineering services and competitive engineering quotations.
In addition, we have established a comprehensive supplier assessment and responsible purchasing mechanism as the basis for selecting the best third party. We regularly assess third party on the basis of four major items: work progress control, construction quality, construction co-operation and work safety performance, which is the basis for third party's quality assessment and replacement of suppliers. We also promote and communicate human rights, social and environmental issues from time to time to strengthen suppliers' awareness of sustainability. In 2023, Nova Tech organized a total of 16 hours of sustainability supplier awareness activities with 15 participants to maintain our sustainability competitiveness.
At the same time, working together with suppliers, Nova Tech fully promotes the Green Supply Chain concept and reviews suppliers' equipment for energysaving or high-efficiency models. Nova Tech has increased the frequency of working with suppliers so that they are willing to participate in the green supply chain on their own. In the future, Nova Tech will collect data or performance data from suppliers on their energy-efficient equipment to accelerate their progress.
Association between Upstream, Midstream and Downstream of the High-tech Processing Supply System
Type and Number of Suppliers in 2023
Nova Tech's suppliers can be divided into three main categories: material manufacturing, equipment manufacturing, and subcontracting suppliers. We firmly believe that enterprises
need to co-exist, co-prosperity and mutual growth with suppliers, so we have always regarded suppliers as strategic partners. Nova Tech's main production and operation base is
in Taiwan. In order to promote the clustering of local industries and enhance regional economic development, we have selected local suppliers for co-operation as far as possible,
except for some bulk chemicals whose technology is in the hands of overseas suppliers and cannot be sourced locally.In 2023, there were 324 suppliers with transaction records.
Supplier Management Policy
Nova Tech regards suppliers as important partners and an indispensable part of the supply chain team. Nova Tech is committed to maintaining long-term relationships with domestic and international suppliers to build a stable and sustainable supply chain.
Based on the Principles of Ethical Behaviors and Integrity, Nova Tech prohibits suppliers from engaging in any act of bribery, acceptance of bribes, offering or accepting unreasonable gifts, hospitality, or other improper benefits, or infringing on trade secrets, trademarks, patents, copyrights, and other intellectual property rights. Neither the Company nor the suppliers accept the use of metals from conflict mines.
In addition to ensuring the quality, price and delivery of suppliers' products, this Company also urges suppliers to implement corporate social responsibility in line with the spirit of the United Nations Sustainable Development Goals. We uphold the principles of fairness and openness in our co-operation with third party, and do a good job of risk management and business continuity plan. We firmly believe that only by providing excellent quality, reasonable price and proper service can we establish a long-term co-operative partnership between the two parties and achieve sustainable development.
When confirming a partnership with a supplier, Nova Tech will sign a "third party commitment" with the supplier, which covers the terms of corporate social responsibility and related requirements, including compliance with local ordinances and international safety and environmental regulations, prevention of contact with or mixing of hazardous and controlled substances during manufacturing and transportation, avoidance of child labour, and prohibition of any form of labour discrimination.
By 2023, we will have signed the "Collaborative Supplier Pledge" with 48 suppliers. The signing rate of the top 10 Taiwanese suppliers in terms of transaction value is 100%, and the signing rate of the top 60 suppliers in terms of transaction value is 80%. For new suppliers, in addition to collecting the basic information of the supplier, we also ask the supplier to fill out a "Supplier Evaluation Form", which includes the product brand, project performance, and waste removal capability.
Waste disposal, operating environment, construction quality, fire safety equipment with regular inspection and automatic inspection equipment are all criteria for selection and are included in the supplier's assessment. Nova Tech has also labelled the terms and conditions of the order as follows: Nova Tech will terminate the contract in the event of any violation of the relevant laws and regulations.
Supplier Sustainability Management
Nova Tech manages the sustainable development of suppliers in five major directions:
Percentage of Suppliers Signing the Supplier Commitment in 2023
Supplier Evaluation Process
Supplier Evaluation Results in 2023
The total number of subcontractors is 231, and only those in the top 60 deals were evaluated.
Green Purchasing and Environmental Protection Expenditure
To promote environmental sustainability, Nova Tech has implemented green procurement principles and endeavoured to reduce the impact of its operations on the environment. The total amount of green procurement in 2023 will be $1,177,359, accounting for 71.26% of the total procurement, which includes the replacement of variable frequency air conditioners with environmental labels, environmentally friendly light tubes, energy-saving fans, green office supplies (e.g. recycled paper), etc.
Packaging & Transportation
To implement the policy of energy saving and carbon reduction, and to reduce environmental hazards caused by excessive packaging or long-distance transport, Nova Tech adopts the principle of green transport and follows the following four points in its operation.
Local Procurement
Suppliers and contractors are important business partners of NovaTech. Through good communication, close co-operation and proper management supervision, this Company is able to work together with its suppliers towards sustainable operation. This Company believes that a responsible company should promote local economic activities. Therefore, in order to assist the local development and exploitation of the local economy, this Company selects its partners for projects by giving priority to suppliers of local materials and appointing local contractors to carry out the planning of the projects. In 2023, Nova Tech's proportion of local sourcing from suppliers in Taiwan will be 98.09%. Due to the shortage of raw materials abroad and the significant increase in transport costs, Nova Tech is actively communicating with its customers to promote local sourcing. As a result, the percentage of local sourcing increased by 8.06% compared to 90.03% last year.
