Responsible Supply Chain

Management Approach of a Sustainable Supply Chain

The products and services provided by suppliers have a direct and tangible impact on Accton’s products, services, and operations. In addition, the CSR actions of suppliers also indirectly affects Accton’s intangible reputation or becomes a potential risk. As an influential member in the design and manufacturing of network communication industry, Accton always strives for excellence in sustainable supply chain management to maintain an overall competitive advantage for Accton and its suppliers.

1. Enhance Cost Leadership Capability: Integrate Group resources and engage in strategic collaborations to achieve the most competitive supply chain value.

2. Establish Sustainable Supply Chain Capability: Drive suppliers to enhance performance in economic, social, and environmental aspects, fostering their sustainable development.

3. Strengthen Supply Chain Supply Capacity: Continuously support suppliers in diversifying their supply sources and enhancing their local supply capabilities.

4. Build a Green Supply Chain: Promote the transition of suppliers from implementing energy-saving and carbon reduction measures to adopting a circular economy.

5. Prioritize the Environment: Proactively implement green procurement, striving for economic benefits while ensuring environmental friendliness.

6. Non-Compromise on Conflict Minerals: Ensure that products and the supply chain are free from conflict minerals.

7. Implement Sustainable Risk Management: Focus on suppliers’ energy resource usage and resource management to respond to the impact of extreme climate change on the supply chain.

8. Focus on Environmental Issues: Enhance waste resource reutilization efforts and commit to reducing environmental pollution impacts.

Supplier “Human Rights, Environment, Safety, Health, and Management System” Audit Enhancement Plan Accton has integrated the “RBA Code of Conduct” into its supply chain to monitor the implementation of labor rights, health and safety, environmental protection, business ethics, and management systems by suppliers. The Company encourages suppliers to develop materials and processes that reduce environmental impact or achieve energysaving and carbon reduction through process utilities. Environmental issues, including climate change and biodiversity, are given increased attention and management.

Risk Assessment Process

Accton regards supply chain risk management as a key component of its competitive advantage. Within the industry Accton operates, common risk factors can be briefly categorized across economic, environmental, and social dimensions based on industry characteristics.

Based on the aforementioned factors, Accton analyzed the 2023 market conditions and the industries of its suppliers to identify the primary high-risk sustainability factors and high-risk supplier industry categories for the supply chain in 2023. The results are presented in the table below:

In 2023, Accton harmonized its supplier audit forms based on RBA requirements to review and evaluate suppliers on environmental and social risk factors. No non-compliant suppliers were identified during these assessments.

Launch of the Zero Carbon Chain Project

On April 21, 2023, Accton held a supplier sharing conference for the Zero Carbon Chain Project, specifically choosing the day before Earth Day to emphasize the importance of this initiative. The theme of the conference was “Zero Carbon Chain,” aimed at building consensus with supplier partners to jointly develop ESG sustainability and carbon reduction action plans. The event underscored the significance of future carbon reduction and ESG sustainability actions in Accton’s overall supply chain management.

Carbon Reduction Goals

Accton aims to reduce carbon emissions by 50% by 2030 through internal process optimization and product design. In collaboration with supply chain partners, the Zero Carbon Chain Project will be pragmatically advanced, working towards the goal of net zero carbon emissions by 2050. A critical strategy for 2026 includes joint decarbonization growth with upstream and downstream partners.

In September 2023, Accton, in collaboration with 10 supply chain partners, received the “Low Carbon and Smart Manufacturing Upgrade Transformation Subsidy Program” from the Ministry of Economic Affairs Industrial Development Bureau. This initiative, following the “Supply Chain One Leading Ten” model, collectively works towards achieving energy-saving and carbon reduction goals. This Project Has Established Three Major Goals:

  • Accton aims to achieve a relative reduction of 20% in carbon emissions while expanding its production capacity.
  • Precise carbon footprint calculations, including calculating the carbon footprint from raw material processing by collaborative manufacturers to in-factory processes. This is to prepare for potential future carbon tariff reporting requirements for product exports.
  • Suppliers are encouraged to adopt carbon emissions reduction measures and to amplify these effects further.

  • Continuous optimization of process equipment, anticipated to complete new machine improvements by the first quarter of 2024.
  • Assisted 10 suppliers in setting up energy measurement equipment to obtain actual electricity usage data and establish improvement baselines.
  • In November 2023, the Accton Academy of Sustainability launched training courses for senior executives to help partners complete and present their “Carbon Reduction Roadmap,” clearly defining their carbon reduction timelines and goals based on their company conditions and future plans.
  • Assisted supplier partners in optimizing processes, improving yield, and reducing waste production to achieve set carbon reduction goals.

  • Process Electricity Carbon Reduction Management: Accton will first introduce a real-time electricity information monitoring system and use data management to adjust production schedules, ultimately achieving continuous optimization of low-carbon production lines.
  • Upstream and Downstream Collaboration on Product Carbon Footprint: Initially, reduce energy consumption during the product testing phase for downstream customers. Establish a carbon footprint management platform and collaborate with upstream suppliers on carbon reduction projects to achieve estimated carbon reductions. The carbon footprint management platform aims to introduce a carbon pricing management mechanism in future procurement.
  • Continued Expansion of Impactful Carbon Reduction Initiatives: Implement Accton’s sustainable supply chain management mechanism, aiming to obtain ISO 20400 Sustainable Procurement Guidelines certification. Share various carbon reduction experiences with partners in the Zero Carbon Chain Project. Continue offering Accton’s sustainability courses, inviting suppliers to participate and actively promoting energy-saving and carbon reduction concepts and practical methods to expand sustainable impact.

Environmental Management

Accton Group reviews and updates the “QPC-CE05 Product Hazardous Substance Management Procedure” based on international regulations, customer requirements, and green regulatory trends. This procedure fully covers the “IEC 62474 Material Declaration Standards.” In 2023, a total of 203 suppliers responded with hazardous substance-related reports, involving 2,242 BOMs. All materials used comply with international standards and customer requirements.

Conflict Minerals

Increasing awareness of human rights risks in the supply chain has led to more calls for investigations into minerals such as mica. Primarily sourced from India, the mining of mica heavily relies on illegal operations involving child labor. Mica is often used in electronic product coatings. To protect human rights, Accton has initiated due diligence investigations, including the EMRT for mica.