Sustainable Supply Chain

Getac Holdings believes that a strong foundation for supply chain management comes from close cooperation and mutually beneficial relationships with suppliers, where risks and benefits are shared. Getac follows the Responsible Business Alliance (RBA) Code of Conduct and has established the company's corporate social responsibility policy and supplier code of conduct. The relevant sustainability requirements have been incorporated into the Long-Term Procurement Master Agreement.
All raw material suppliers are required to sign the Long-Term Procurement Master Agreement and comply with its provisions, which include commitments from the supplier and its upstream suppliers to adhere to integrity clauses, fulfill environmental protection responsibilities, respect labor rights, prohibit the use of conflict minerals, and agree to provide notification and evidence to assist in the investigation of mineral sources and regulatory processes.
Getac Includes The Following Sustainability Issues In The Master Purchase Agreement |
|
|
|
Getac Holdings Supply Chain Management | ||
![]() Contract Management |
|
|
|
|
|
Since 2019, Getac Holdings has required suppliers to conduct an annual ESG self-assessment questionnaire to understand their sustainability performance and regulatory compliance within the supply chain. In 2022, Getac Holdings and its subsidiaries invited a total of 802 suppliers to complete the ESG self-assessment questionnaire, achieving a response rate of 96%. The survey results revealed that 77% of suppliers have established labor practices or human rights-related policies, 76% have environmental health and safety management systems, and 88.5% ensure compliance with corporate social responsibility in the supply chain through methods such as self-assessment questionnaires, internal audits, and on-site inspections.
MPTK and MPTZ conduct risk categorization for key contracted suppliers and develop audit plans. They prioritize auditing key outsourced suppliers for important processes such as painting, molding, die casting, and electroplating, as well as suppliers with a high volume of annual transactions. Audited suppliers are required to complete a self-assessment form called the Social Accountability Report, providing accurate information on the implementation of RBA (Responsible Business Alliance) guidelines. After obtaining the self-assessment forms, representatives from the Supplier Quality Assurance (SQA) department visit the suppliers' premises for on-site audits and issue reports that outline the audit findings and suggested improvements. If a supplier fails the audit, a follow-up audit is conducted within one month, and repeated failure results in the revocation of their supplier qualification.
In 2022, MPTK conducted written audits for 52 vendors, while MPTZ audited 48 vendors. The number of on-site audits was 20 for M{TK and 16 for MTPZ. All audits were passed, with an average score of 95.5 and 95.9 for on-site audits, respectively. The audited suppliers had no violations in areas such as labor rights, integrity, management systems, and environmental protection.
Global ESG (Environmental, Social, and Governance) development has taken shape, and sustainable supply chains have become crucial for corporate competitiveness and sustainable development. Companies are under increasing pressure to take more proactive responsibility and collaborate with customers, suppliers, and employees to advance global sustainability issues such as achieving net-zero emissions, reducing waste, improving labor conditions, and preventing corruption.
In 2022, the company's supply chain procurement of raw materials primarily consisted of electronic components, plastic pellets, and aluminum ingots, with the main production processes carried out in-house. The procurement amounts for each product line as a percentage of the total procurement of production-related raw materials in our supply chain were as follows: Electronic Products (Rugged Computing Solution BG and Mechatronic & Energy BG) accounted for 38%, Plastic BG accounted for 33%, and Auto BG accounted for 29%. This report focuses on the procurement related to raw materials in supply chain management, and important suppliers are concentrated in China, Taiwan, Vietnam, and the United States. In 2022, Getac Holdings and its key subsidiaries maintained stable relationships with the supply chain, conducting transactions with a total of 802 raw material suppliers (including subcontractors), out of which 91 were newly signed suppliers. The procurement amounts for 2022 were distributed by country as follows: China accounted for 58.9%, Taiwan accounted for 23.9%, the United States accounted for 5.8%, Vietnam accounted for 1.8%, and other countries accounted for 9.7%.
Local procurement is a supply chain policy of Getac Holdings, where its subsidiaries aim to achieve a local procurement rate of over 50% as a management target. This approach aims to reduce risks and costs associated with transportation while also creating local manufacturing job opportunities. In recent years, the supply chain has been shifting towards shorter chains due to factors such as pandemic-related lockdowns, dual control policies on energy consumption in China, and political disputes between China and the United States. Material planning strategies have also been severely disrupted due to significant shortages. In 2022, Getac Holdings (Consolidated) achieved a local procurement rate of 73%, showing significant growth compared to 59% in 2021.
-
We sincerely welcome any suggestions regarding this Report.
Irene Sun
Corporation Relations Office
Email: Getac.csr@getac.com.tw -
Irregular Business Conduct Reporting
Lisa Kung
Director of Auditing Office
Email: gtcaudit@getac.com.tw