AcBel Polytech Inc. 康舒科技
Environmental, Social and Governance
Green Procurement
Responsible Procurement
In managing hazardous substances, AcBel has obtained IECQ QC080000 hazardous substance process management system certification. It has established an “Environmental Management Substance Specification” based on international regulations and customer requirements to screen and review restricted or banned substances, ensuring raw materials meet environmental management requirements. By adhering to green design principles, the company chooses raw materials and components that comply with hazardous substance restrictions (EU RoHS). From customer requirements, product design, supply chain management, production, shipment, to disposal and recycling, all processes meet the requirements of customers and respective countries, reducing the risk of using prohibited or restricted substances.
The company requires suppliers to provide material verification certificates or supporting evidence complying with “Environmental Management Substance Regulations” when delivering materials, ensuring that components 100% meet domestic and international environmental regulations. Internal quality assurance units periodically audit suppliers or inspect incoming materials to confirm compliance with limits on 10 chemical substances, including lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB), polybrominated diphenyl ethers (PBDE), and four plasticizers, in accordance with Directive 2011/65/EU and 2015/863/EU. The company also closely monitors international environmental regulations such as the EU RoHS Directive, EU REACH Regulation, Substances of Very High Concern (SVHC), Persistent Organic Pollutants (POPs), PFAS regulations, California Proposition 65, and French environmental packaging and mineral oil regulations, updating internal and supply chain hazardous substance controls as necessary.
AcBel complies with restricted substance management regulations and commits to not using minerals from conflict areas. The company is dedicated to source risk management in raw material procurement, reducing risks to human rights, human health, and the ecological environment. It ensures that all raw materials used meet high-quality and sustainability standards. AcBel has established an internal sustainable supply chain risk management mechanism, including supplier qualification and raw material investigation and audit processes. This ensures that the raw materials provided by suppliers comply with the Responsible Minerals Initiative (RMI) and human rights protection regulations and meet restricted substance regulations such as EU RoHS and REACH. This ensures product compliance, protects users’ and customers’ rights, and is environmentally and socially responsible.
In 2023, 100% of AcBel’s power supply products complied with the substance requirements of EU RoHS (Directive 2011/65/EU & 2015/863/EU) and IEC 62474 standards, accounting for 91% of total revenue. The remaining 9% comes from metal stamping parts, which are not subject to RoHS and IEC 62474 regulations. We also pay attention to the new “Electronic Product Environmental Assessment Tool” (EPEAT) standards, which focus on climate change mitigation, sustainable use of resources, corporate ESG performance, and reduction of chemicals of concern, responding to trends in international environmental regulations and higher sustainability requirements.
Raw Materials Risk Management
To ensure the stability of raw material supply, AcBel maintains good communication with major suppliers and sources materials from at least two different suppliers, diversifying procurement and mitigating the risk of supply disruption. For key raw materials, risk management is conducted based on the historical transaction amounts with suppliers. In 2023, semiconductor components, printed circuit boards, mechanical hardware, and magnetic components were identified as high-risk key components for the company. Raw material risk management considers factors such as geopolitical conditions, availability channels, patent regulations, technological barriers, price fluctuations, supplier labor and capacity fluctuations, and product carbon footprint. This comprehensive approach to managing key raw material risks aims to prevent supply disruptions or instability, thereby avoiding extra costs and protecting the company’s reputation.
Local Procurement Implementation
To reduce carbon emissions from transportation and decrease delivery times, AcBel prioritizes sourcing large components or packaging materials needed for product production from suppliers closest to the production sites. This local sourcing model helps minimize transportation-related carbon emissions. In 2023, AcBel’s overall local procurement amounted to 32.6%. The Taiwan plant, primarily producing smart meters in 2023, saw a 14.78% increase in local procurement spending compared to 2022, due to customer requirements to use locally produced raw materials.
In 2023, the components supply chain for AcBel was primarily based in Taiwan and China, accounting for 89.98% of the total. Suppliers from the US and Europe accounted for 3.54%. In the future, the company may adjust its procurement strategy in response to customer demands and shifts in the international supply chain. Shanghai Sino Hardware’s main products are hardware components, and the raw materials are primarily metals. Considering transportation conditions, suppliers are also primarily based in Taiwan and China, with these two regions accounting for 100% of the total.
