Sustainable Supply Chain
Management of Sustainable Supply Chain
PLANET actively promotes the establishment of a sustainable supply chain and continues to enhance its resilience. In addition to implementing responsible and green supply chain management practices and fostering long-term partnerships with suppliers, PLANET conducts risk assessments and audit verifications from economic, environmental, and social perspectives to ensure suppliers fulfill their corporate social responsibilities, so that the company can strengthen the resilience of supply chain, reduce operational risks and dedicated to building a sustainable supply chain ecosystem.
PLANET has established a comprehensive "Sustainable Supply Chain Management Process", which consists of five key management procedures: compliance with standards, risk assessment, auditing, improvement guidance, and incentive and elimination mechanisms, in order to ensure that suppliers meet the requirements set forth in the Supply Chain Code of Conduct. Through risk assessments and sustainability audits, PLANET verifies implementation status with suppliers and provides guidance for improvement where necessary. At the same time, PLANET conducts surveys to assess suppliers’ carbon management capabilities. With long-term and deep collaboration, PLANET continues to drive its supply chain move toward sustainability by objectives management and strategic actions.
Sustainable Supply Chain Management Process
Compliance with Supply Chain Standards
PLANET actively implements ESG principles and regards integrity and sustainable development as core corporate values. We maintain close partnerships with suppliers to jointly promote a green supply chain. In response to climate change mitigation and adaptation, as well as environmental sustainability trends, all suppliers are required to sign the “Supply Chain Code of Conduct Compliance Declaration.” This ensures adherence to relevant regulations and industry standards, PLANET’s Supply Chain Code of Conduct, the Regulations of Hazardous Substances for Green Products, and Responsible Minerals Sourcing Policy to support the continued operation of PLANET’s responsible and green supply chain.
No supplier was disqualified due to environmental or social incidents in 2024.
Responsible Minerals Sourcing
PLANET is committed to refraining from the use of metals from conflict mines. Conflict minerals refer to resources minded using fuel forced labor and other human rights abuses or minerals trade used to finance armed groups. Rather than buying raw materials directly from smelters or refineries, PLANET buys components that do not contain conflict minerals. As part of its corporate social responsibility, PLANET prohibits the purchase of minerals from conflict zones and other high-risk areas in and around the Democratic Republic of The Congo. At the same time, all its suppliers must comply with PLANET’s Responsible Mineral Procurement Policy to avoid human rights disasters and to reduce supply chain management risks.
✔ 100% suppliers have signed the “Declaration of Responsible Minerals Sourcing” in 2024
✔ 100% compliance rate of supply chain responsible minerals in 2024
Supplier Risk Assessment, Audits, and Improvement Guidance
PLANET places high importance on the sustainability of its supply chain and conducts comprehensive annual evaluations of suppliers. The evaluation covers aspects such as labor, health and safety, environment, ethical standards, and supply chain management, based on the RBA Code of Conduct and ISO international standards, ensuring that suppliers' operations comply with PLANET's Supply Chain Code of Conduct. The company will further conduct audit for high-risk suppliers.
In 2024, to better assess suppliers' ESG performance, PLANET conducted ESG self-assessments for all suppliers. The questionnaire content was reorganized based on international trends and standards, focusing on the five major areas of RBA, human rights, and environmental health and safety issues. As a result, a total of 181 suppliers participated with a 100% response rate.
The ESG self-assessment results indicated that suppliers performed exceptionally well in labor and ethical standards, with compliance exceeding 90%. However, there is room for improvement in supply chain management and environmental protection compliance. To mitigate potential risks in the supply chain, PLANET will support suppliers with education and training and consultancy services.
Supplier Incentive and Elimination Mechanism
PLANET actively leads the supply chain toward sustainable development. Through continuous, objective ESG performance assessments, we reward outstanding suppliers by offering more collaboration opportunities, such as priority in new product development partnerships and increased order shares. Furthermore, we will continue to guide suppliers with weaker performance, assisting them in improving their ESG performance to achieve the goal of building a resilient and sustainable supply chain ecosystem.
Supplier Carbon Management
PLANET sets up “green supply chain management system” to ensure that all our products are manufactured with least impact to our environment. PLANET has established a comprehensive green supply chain management platform, using digital technologies and net-zero transformation to strengthen supply chain resilience, including green product management and carbon management. Through the green supply chain management platform, PLANET collaborates with suppliers to foster a shared commitment to sustainability, and shares updates on green regulations and information, and collecting data on restricted substances, carbon footprints, and assessment forms.
We have also cooperated with our suppliers to manage green products and carbon footprint in order to move towards a sustainable green supply chain. In 2024, we actively worked with suppliers to jointly promote carbon inventory projects. Through the Ministry of Economic Affairs' subsidy program for low-carbon and smart upgrades for small and medium-sized manufacturing industries (Low-Carbon Transformation), we have supported 11 suppliers in carbon management and low-carbon transformation. On August 15, 2024, a "GHG Inventory Internal Verification" course was held to guide suppliers in conducting GHG inventories. By the end of 2024, 31% of our 191 suppliers had completed GHG inventories, and 21% had obtained ISO 14064-1 GHG inventory certification through a third-party verification.
In the future, we will continue to deepen our collaboration with suppliers, exploring more innovative carbon reduction solutions and advancing toward the goal of net-zero carbon emissions.
