Nanya Technology held the "Nanya Technology Sustainability Supply Chain Conference" on December 24th, 2020, to deliberate energy management and carbon reduction topics. Suppliers gathered to share ideas and enhance sustainability awareness as we pave the way for future cooperation.
In response to sustainable development, Nanya continues to expand its positive influence on our product value chain. We held the conference as a platform to facilitate positive communication among the supply chain. The conference topics focused on energy management as Nanya's product production footprint mainly gains from electricity and energy consumption. Tsai Chi Kuo, Secretary of Taiwan Corporate Sustainability Academy, was invited to introduce supply chain management trends. Based on Life Cycle Analysis (LCA), he explained how the corporates and the supply chains can be connected to implement sustainable development. By sharing best practice cases from Nanya Technology ourselves and suppliers, Air Liquide Far Eastern and Formosa Sumco Technology, allows the attendees to learn from each other and offers an inclusive discussion on carbon reductions.
Nanya has conducted a comprehensive product life cycle environmental footprint survey to identify emission hotspots for improvement. In 2019, we extend the survey to the suppliers, and results indicated that the majority of the product environmental impact was caused by the use of electricity in the manufacturing stage. In response to this situation, Nanya helped to complete 14 energy-saving solutions and the construction of PV system with a total of 2,390 kWh electricity saved. All progress of improvement is tracked by a platform, and additionally, we ask wafer suppliers to continually disclose their environmental impact and execute projects for improvement.
NNanya has established a supply chain management framework. Our suppliers are required third-party verification on quality and environment certification and additional digital supplier assessment evaluation to conduct reviews on six major indicators, including quality, delivery, services, costs, technology, and sustainability, which accounts for 10% of the total evaluation. By the end of 2020, all major suppliers have signed the Letter of Compliance and completed the sustainability risk assessment. We actively perform on-site inspections and audits to ensure that the defect improvement rate reaches 100%. In recent years, we have also joined hands with suppliers to support relevant certifications and engaged in social participation to promote society's influence.
Nanya will continue to implement our supply chain management policy as a “Promoter of Shared Value”. We promise that all products are purchased followed with green product regulations; we abide by the principle of fair trade, and comply with relevant laws and regulations, protect human rights, and be friendly to the environment; uphold the principle of integrity, and are committed to fulfilling corporate social responsibility in procurement activities. We are convinced that the sustainable growth of the supply chain can give back to the corporation itself, so we actively invest relevant resources and work hand in hand with suppliers to drive a sustainable supply chain and create a better future.