Supplier Management Policy
Proxene values collaboration and growth with its suppliers. Based on our sustainable procurement policy, we have established a sustainable supply chain development strategy that requires suppliers to comply with relevant standards on environmental protection, integrity, occupational safety and health, and labor rights. Together, we strive to enhance corporate social responsibility while strengthening the sustainability, resilience, and competitiveness of our suppliers.
01
The Company has a good relationship with suppliers and requires that the raw materials provided by suppliers should comply with all relevant government regulations and industry standards and not pose any safety or health risks. If necessary, relevant test reports and reasonable explanations should be proactively provided for the goods they supply.
02
If a supplier violates the relevant agreement with the company or relevant government regulations, the company may require the supplier to make immediate improvements, terminate the contract or compensate the company for the damage and lost profits.
03
The Company requires colleagues to select partners based on the principle of fairness and openness during the procurement process; when dealing with suppliers, there must be no violation of ethics. During the evaluation process of procurement contracts, colleagues must strictly adhere to the transparency of information and processes to protect the rights and interests of both the company and suppliers. In addition, when performing duties in transactions with others, colleagues must not conceal or make false reports.
04
In accordance with ISO-based "Procurement and Outsourcing Management Procedures," the Company requires suppliers to sign the "Human Rights, Integrity, and Environmental Sustainability Commitment," "Business Ethics Policy," and "Human Rights Policy" statements. These documents ensure that all activities conducted comply with relevant laws and ethical standards. As of December 31, 2024, we have collected 44 signed "Human Rights, Integrity, and Environmental Sustainability Commitments," 12 "Business Ethics Policy Statements," and 9 "Human Rights Policy Statements." Furthermore, we conduct irregular supplier assessments to strengthen supply chain management and oversight, ensuring adherence to sustainability standards and government regulations. In the event of a significant violation, the Company may require immediate rectification, terminate the contract, or seek compensation for resulting damages and lost profits.
05
Our company conducts supplier evaluations annually, with an average score above 80 points (86.3 in 2024 and 86.5 in 2023).
06
When necessary, suppliers are required to sign a Non-use Conflict Minerals Guarantee, ensuring that all raw materials, products, or components delivered to Proxene do not directly or indirectly contain conflict minerals.
Proxene’s primary raw material supplier is China Steel Corporation. For more details, please refer to the appendix in our Sustainability Report.