Managing CSR of Tier-2 Suppliers

Our Supplier CSR Agreement requires our suppliers to extend our CSR requirements to their suppliers (tier-2 suppliers). When we appraise suppliers' sustainability performance, we also take into account the sustainability records of their suppliers.

In 2020, we helped 33 suppliers develop systems for better managing CSR in their own supply chain. Actions taken include defining management responsibilities, providing internal training, adopting industry standards, drafting CSR agreements, qualifying new suppliers, rating supply chain risks, performing audits on suppliers, linking CSR performance with business opportunities, and developing a reward and discipline system. These 33 suppliers signed CSR agreements with nearly 4,000 tier-2 suppliers, and conducted CSR audits on nearly 400 tier-2 suppliers. We conducted onsite checks on four tier-2 suppliers to confirm that our suppliers' procurement CSR management systems were effective.

CSR audit at a tier-2 supplier