Management Process and ESG integrated Guidelines
Management Process and ESG integrated Guidelines
Building upon Sinyi’s supply chain management, we follow GRI standards to screen new suppliers with environmental and social criteria. We introduced ISO 20400 Sustainable Procurement, hoping to incorporate sustainable development into management practices and processes. We checked our key suppliers with a quick ESG survey, and a renewed commitment to sustainability through “Sinyi Suppliers Business Code of Conduct and Sustainability Term”, which will be attached to the procurement agreement/contract. From business ethics to sustainable development, through incorporating new ESG trends, compliance, our due diligence, and annual ESG review, we continuously raise mutual awareness on ethical and sustainable management with all of our key suppliers.
Management Process
1 Sustainable procurement policy and goals setting
We follow the UN Global Compact and international principles such as ISO 26000, ISO 9001, ISO 20121, and have developed standards such as procurement ethics, local and green sourcing policies. In 2021, we further refined our policies and practices with the introduction of ISO 20400.
2 Embed sustainability into suppliers selection
In addition to traditional quality, delivery, and cost considerations, we conduct ESG compliance due diligence on large-volume procurement suppliers. New suppliers are invited to fill out a quick ESG survey, and all key suppliers including new and existing need to sign “Sinyi Group Suppliers Business Code of Conduct and Sustainability Terms” at the same time when signing the contract.
3 ESG risks assessment and management
Through suppliers evaluation form, stakeholder satisfaction surveys, document reviews and site visits, we can understand suppliers operation mechanism and their performance on service quality, cost, delivery, and ESG issues. Also, suppliers are invited to fill out the annual ESG self-evaluation form to reflect their commitment and practice at year-end.
4 Evaluate major ESG issues and take action
We conduct ESG on-site audit, and understand their challenges. We provide market-related experience, latest regulatory trends, and discuss possible ways of improvement with suppliers. Our Corporate Ethics Office is the channel for complaints (grievance mechanism) and monitoring of ethical issues throughout the whole procurement management process.
5 To learn and grow together, or contract might be terminated
Through resources sharing and training, we grow with suppliers and create sustainable value. For those who fail to comply with our sustainable development principles, they are expected to file a written report and to improve with a deadline. Otherwise, the contract will be terminated and no future cooperation with the supplier.
Our ESG guidelines and commitment
are to integrate ESG related risks and impacts into consideration and we commit：
| E | to work with suppliers to promote a low-carbon environment and through low-carbon transformation to enhance competitiveness. |
| S | to enhance a society that values human rights and occupational safety and health. |
| G | to uphold corporate governance and to create sustainable value with suppliers. |