Supplier Management Policy and Implementation Overview
Fuburg has established a responsible supply chain management mechanism. Through evaluation, auditing, guidance, and collaboration, the company audits suppliers to ensure compliance with environmental protection, occupational safety and health, and labor rights regulations. Suppliers are required to uphold corporate social responsibility and integrate sustainable development concepts into their daily operations to promote overall supply chain stability and growth.
Fuburg has mandated that suppliers follow relevant standards in the areas of environmental protection, occupational safety and health, and labor rights. Specific implementation mechanisms are incorporated into both the auditing and collaboration processes to ensure effective compliance.
Supply Chain Management Strategy and Specific Practices
Fuburg has established a supplier selection and evaluation mechanism to ensure suppliers possess sustainable development capabilities. This is achieved through regular reviews, capacity-building guidance, and responsible procurement practices.
Supplier Selection and Evaluation
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Initial Screening: New suppliers must meet cooperation thresholds by obtaining environmental management certification (ISO 14001), social responsibility standards (SA 8000), and occupational safety and health standards (OHSAS 18001).
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Annual Evaluation: Existing suppliers are assessed on compliance, quality stability, environmental impact, and labor conditions. Improvement recommendations are provided when necessary.
Responsible Procurement
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Green Procurement: Priority is given to purchasing raw materials that meet environmental standards, while reducing opportunities for collaboration with suppliers using highly polluting processes.
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Fair Trade: Ensuring suppliers pay fair wages, safeguard labor rights, and prohibit child labor, forced labor, and other unethical practices.
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Safety Management: Requiring suppliers to implement occupational safety and health standards, provide necessary safety training, and equip employees with protective gear.
Supplier Sustainability Management Evaluation
Fuburg conducts sustainability capability assessments for suppliers, with the following scoring criteria:
| Evaluation Grade | Score Range | Improvement Recommendation |
|---|---|---|
| GOOD | 90–100 | Continue maintaining high standards. |
| SATISFACTORY | 80–89 | Conduct regular reviews to ensure the supplier continues to meet standards. |
| NEEDING IMPROVEMENT | 70–79 | Implement an improvement plan, including enhancements to environmental management and social responsibility. |
| SIGNIFICANT DEFICIENCY | Below 70 | If no improvement is made, reconsider the cooperation relationship. |
Supplier Monitoring and Implementation Standards
To ensure that suppliers meet sustainability requirements, Fuburg has established a supplier monitoring mechanism supported by regular reviews and periodic audits to confirm the fulfillment of supplier commitments.
- Corporate Social Responsibility Commitment
All cooperating suppliers are required to sign a commitment to comply with requirements related to environmental protection, labor rights, and other relevant standards. - Annual On-Site Audits
On-site audits are conducted for high-risk suppliers to ensure compliance with Company policy requirements. - Non-Compliance Management
If serious violations are identified, such as the use of child labor or failure to meet safety standards, Fuburg may issue warnings, provide guidance for corrective improvement, or terminate the business relationship depending on the circumstances.
Conclusion and Outlook
Fuburg will continue to deepen sustainable supply chain management through supplier evaluation, guidance, and improvement mechanisms to ensure that suppliers comply with international standards and corporate social responsibility requirements.
Going forward, the Company will further strengthen its green procurement policy and enhance supplier performance in environmental protection and social responsibility, thereby supporting the stability and sustainable development of its supply chain.