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Sustainability Report 2011
Social Performance Supply Chain Management
Supply Chain Management
In view of the scale and scope of our operations as a major energy supplier in
the region, we are fully aware that our ethical standards and quality practices set
benchmarks and raise behavioural levels within the industry. We have thus established
structures and mechanisms that ensure the highest levels of quality throughout our
supply chain. In addition to a strict Code of Practice for suppliers, stringent assessments
and approval processes, which include routine checks, ongoing assessments, regular
quality meetings and factory audits, all help to maintain quality levels throughout the
entire process.
CSR practices have also been
incorporated into our daily procurement
practices. As a member of the Green
Purchasing Charter, we expanded our
endorsements to the procurement
of induction lamps for warehouses in
2011. Green specifications have been
formally defined with the involvement
of user departments, potential suppliers
have been assessed and included
on our supply list upon meeting our
criteria, and we have also shared our
experiences with other leading companies. Extending these activities, our procurement
staff on the mainland also participated in a CSR and Code of Practice audit, surveying
suppliers against various environmental criteria.
Walking this talk, our e-Procurement system, launched in September 2009, provides
a common platform for buyers and sellers to exchange information, purchase orders,
shipment documents and invoices, without the use of paper. Currently over 90% of the
purchase of all direct materials are processed through this e-Procurement system.
CSR Code of Practice for Suppliers
Driving our green practices and promoting socially responsible attitudes, we extended
our Code of Conduct to suppliers in 2008. All our suppliers are encouraged to follow this
Code of Practice with regard to their business ethics, workplace operations, marketplace
activities, community contact and environmental undertakings. Covering about 80%
of the goods and materials purchased by our Hong Kong operations, we also conduct
surveys and factory audits based on this Code.