CORPORATE SUSTAINABILITY RESPONSIBILITY
企業永續責任
Supply Chain Management
供應鏈管理
HDRE Supplier Code of Conduct
HDRE Supplier Code of Conduct
HDRE is committed to social responsibility, environmental protection, business ethics, and sound corporate governance. We expect all suppliers to uphold the same standards, ensuring a supply chain that is safe, transparent, and sustainable.
Suppliers must comply with this Code as well as the laws and regulations in their operating locations—including, but not limited to, Taiwan’s Labor Standards Act, Occupational Safety and Health Act, Environmental Basic Act, and Personal Data Protection Act.
Suppliers are also expected to safeguard human rights, fulfill environmental responsibilities, and uphold integrity in business practices.
HDRE encourages suppliers to extend these requirements to their downstream suppliers, contractors, and partners. Supplier adherence to this Code will be considered in HDRE’s procurement decisions. Through collaboration, communication, audits, and ongoing evaluations, we aim to drive continuous improvement across the supply chain.
In cases of severe violations of this Code, HDRE reserves the right to suspend or terminate the business relationship.
This Code is established with reference to the Responsible Business Alliance (RBA) Code of Conduct, the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Universal Declaration of Human Rights, among other international standards.
The Code is organized into six key categories: Labor & Human Rights, Health & Safety, Environmental Protection, Ethical Conduct, Management Systems, and Social Participation.
Full details are available in the HDRE Supplier Code of Conduct (2025.09).pdf
Supplier Management
In 2025, HDRE continued to strengthen its supplier management system based on the principle of prioritizing quality over cost. Sustainability performance is incorporated as a key evaluation criterion. The management framework covers suppliers, contractors, and material providers, encompassing new supplier screening, ongoing supplier management, and a tiered guidance mechanism.
- Supplier, Contractor, and Material Provider Screening and Management Process
- New Supplier Screening: Evaluation Criteria and Sustainability Requirements
|
Assessment Dimensions |
Basic corporate qualifications (10%), product and technical capability (60%), and sustainability performance (30%). |
|
Required Documents |
Supplier Basic Information Assessment Form and Supplier EHS Management Questionnaire. |
|
Passing Criteria |
A minimum total score of 61 points is required. |
|
Sustainability Commitments |
Qualified suppliers must sign the Supplier Code of Conduct, the Contractor Safety and Health Commitment, and the Joint Occupational Hazard Prevention Notice. |
|
2025 Screening Results |
8 new suppliers screened and approved (100% pass rate). |
- Supply Chain Impact Assessment and Management
HDRE has established a systematic framework to assess the environmental and social impacts of its supply chain. Environmental assessments are conducted through Environment, Health and Safety (EHS) Questionnaires and on-site audits to evaluate suppliers’ environmental management practices. Social assessments focus on occupational health and safety, labor rights, and workplace safety. Through coordination meetings and Job Hazard Analyses (JHA), HDRE ensures suppliers meet its social responsibility requirements.
In 2025, 8 new suppliers and 147 existing suppliers were subject to environmental and social impact assessments. No significant environmental or social impacts were identified, and all suppliers cooperated with recommended improvement actions.
- EHS Questionnaire Tiered Management
To effectively manage supplier sustainability performance, HDRE has established a three-tier supplier management framework. Based on Environment, Health and Safety (EHS) questionnaire results, suppliers are classified into Tier A, Tier B, or Tier C, with corresponding management measures applied.
The 2025 assessment results showed strong overall performance: 3 suppliers were classified as Tier A, 5 as Tier B, and none as Tier C. HDRE also completed EHS on-site guidance for 3 new suppliers.
For existing partners, HDRE completed 18 supplier evaluations and 18 contractor evaluations in 2025. All were qualified; 88.9% of suppliers and 38.9% of contractors were designated as preferred partners.
Supplier Audits
- 2025 Supply Chain Integrated Management Enhancement Measures
| Vendor Types | Monitoring Mechanisms |
Quality Control Outcomes | Safety and Health Management Outcomes |
|---|---|---|---|
| Suppliers |
Factory Acceptance Testing (FAT) |
HDRE conducts pre-delivery inspections to verify compliance with technical specifications and quality standards. |
HDRE conducts safety assessments on special materials and requires suppliers to provide Safety Data Sheets (SDS). |
| On-Site Supplier Audits |
Cross-functional teams from Procurement, EHS, and Quality Control conduct on-site supplier evaluations covering production processes, quality systems, and environmental performance. In 2025, 2 supplier audits were completed. |
On-site assessments are carried out to review supplier workplace safety and occupational health systems, with attention to high-risk processes. |
|
| Contractors |
Corrective Action Management |
Corrective action requests are issued for nonconforming materials and supplier improvements are tracked. |
Special management measures are applied to materials with potential safety risks, including hazardous-goods storage rules and transport safety requirements, ensuring safe handling from supply to use. |
| Project Site Inspections |
Unannounced site inspections are conducted to monitor construction quality and project progress and resolve issues promptly. |
Site safety facilities and protective measures are inspected to confirm control of hazardous work and compliance with environmental protection practices. |
|
| Quality Assurance Oversight |
Improvement notices are issued for quality nonconformances and corrective actions are monitored. |
A complete construction safety management system is in place, including PPE requirements, permits for high-risk work, and equipment safety checks, ensuring safe operations for all contractors. |
|
| Safety and Risk Control |
Contractor construction safety and quality plans are reviewed to ensure self-inspection and segment-based checks are carried out. |
In 2025, 100% of contractors signed safety commitment letters and submitted Job Hazard Analysis (JHA) documentation. |
Three Key Future Goals for Supply Chain Management
1. Comprehensive Enhancement of the Quality Monitoring System
HDRE is committed to strengthening its supply chain quality monitoring system by expanding site inspection coverage and enhancing Factory Acceptance Test (FAT) procedures for project materials and equipment.
The Company will continue extending the ISO 9001 Quality Management System to its subsidiaries and build on the 2025 quality management system certification of Stellar Energy Technology Inc. to establish unified quality standards across the Group.
HDRE will also optimize construction standards and develop site-specific standard operating procedures.
2. Deepening the Development of a Healthy and Safe Supply Chain
Building a healthy and safe supply chain will remain a key driver of HDRE’s sustainable development.
The Company plans to strengthen its on-site supplier guidance program and establish stricter evaluation standards for critical suppliers, particularly those involved in waste management and environmental services.
HDRE will further enhance its EHS performance management framework and supplier evaluation process while actively participating in initiatives such as the Healthy Workforce Sustainability Leadership Program to advance workplace health and safety practices.
3. Transition to a Net-Zero Carbon Emission Supply Chain
In response to the global net-zero transition, HDRE will work with supply chain partners to advance carbon neutrality goals.
Through deeper implementation of its green procurement strategy, the Company will prioritize environmentally certified suppliers and promote the adoption of renewable energy and low-carbon technologies.
HDRE also plans to establish a supplier carbon footprint tracking mechanism and support partners in developing decarbonization plans, achieving sustainable growth while contributing to climate action.
