Supply Chain Management

Supply Chain Management


Supplier ESG Program



Policy and Commitment

NANPAO Supplier Code of Conduct

Board Oversight

·      The “NANPAO Supplier Code of Conduct” was approved by the representative of the Board of Directors as the highest guiding principle.

·      The ESG management plan is reviewed regularly by the board of directors to ensure that cooperation with suppliers is in line with the company's sustainability policies and goals.

·      The Board of Directors is responsible for overseeing the implementation of the “Supplier ESG Program”.

Code of Conduct Review

·      Suppliers are required to abide by the “NANPAO Supplier Code of Conduct,” which covers aspects like business ethics, labor rights, health and safety, environmental protection, and corporate governance.

·      Regularly review (by signing a compliance statement) suppliers' implementation of the code of conduct, provide necessary guidance and support, and ensure that management expectations and goals are met.

ESG Rating and Contract Termination Clauses


·      Score the ESG performance of key suppliers by reviewing supplier ESG reports or the “Supplier ESG Assessment Questionnaire”, and share the results with suppliers as a reference for formulating improvement plans.

·      Contract termination clauses are inserted in contracts. NANPAO reserves the right to termination of cooperation for any failure of a supplier in meeting the specific requirements in ESG performance or occurrence of a major ESG incident.

Supplier Selection

·      The supplier assessment form includes ESG scoring items to ensure that all suppliers we cooperate with have good ESG performance and are in line with the company's ESG vision and goals.

Procurement Personnel Training

·      Regularly conduct ESG training for procurement unit personnel and internal procurement-related stakeholders every year (either internally or in cooperation with external units) to ensure that they understand their responsibilities in the supplier's ESG program and how to effectively promote and manage it.


Supplier Screening Mechanism



Business Relevance

·      Products or services needed by NANPAO

·      Passed the NANPAO assessment as a qualified supplier


·      Including but not limited to air pollution, wastewater, waste, toxic substance management, energy use, greenhouse gas emissions


·      Including but not limited to human and labor rights


·      Including but not limited to anti-corruption and bribery


Supplier ESG Assessment

Assessment Approach


Desk Assessment

·      Suppliers of top 60% of the transaction amount must fill in the ESG self-assessment questionnaire or present the ESG report of the previous year.

·      Employees or outsourced consultants will conduct a review of supplier supporting documents to assess the supplier's commitment, implementation status and possible risks on relevant ESG issues.

On-site assessment by supplier

·      NANPAO employees conduct on-site visits and assessments of high ESG risk suppliers, and evaluate the ESG performance and risks of suppliers through on-site inspections, interviews and confirmation of relevant information.


Supplier development



ESG Program/Training

·      Provide detailed information on supplier ESG programs, including standards documents and ESG-related forms.

·      Periodic supplier education and training sessions, as well as supplier partner forums, are conducted to disseminate information and provide education on ESG initiatives.

Provision of ESG Benchmark Information

·         Periodically offering external ESG courses/benchmark information.

Assistance in Improvement Measures

·      External consultants to provide remote consulting assistance/review of supplier improvement measures.

·      Internal employees provide responses and relevant information regarding improvement measures for suppliers.

In-depth Support Program

·      Participation in the Ministry of Economic Affairs' "Subsidy Program for Low-Carbon and Smart Manufacturing Upgrades": Assisting select suppliers in enhancing their carbon management and information disclosure capabilities.




Join Nanpao