Sustainable Supply Chain Management

To ensure the integrity and sustainability of business cooperation, OUCC has set up management policies such as "Rules Governing Suppliers" and " Safety, Health, and Environmental Protection Policy" for supplier management. Suppliers must comply with the “Petrochemical Industry Codes of Conduct,” ensuring that our suppliers comply with the relevant regulations and set higher environmental and occupational safety and health standards for the petrochemical industry, and build a solid and sustainable chemical supply chain.

• Before contract signed:review the "Supplier ESG Survey Form" and inform them to refer to OUCC’s Codes of Conduct and publicize it to their internal employees.
• After contract signed: understand and evaluate the integrity management or Codes of Conduct implementation status via the "on-site audit.”

① Strengthen Sustainable Communication and Promotion

To strengthen the awareness and execution of ESG of the suppliers and contractors, whom we have worked closely with on labor, health and safety, environment, management, and business ethics to establish a comprehensive supply chain mechanism, aiming to lead supplier partners to commit to sustainability.
We proactively communicate with our suppliers, encourage them to enhance their sustainability management in breadth and depth, and make every effort to contribute. In the future, we will continue to maintain a good partnership with our suppliers and actively invite them to respond to social welfare activities and join hands as a positive force in society.

② Sustainable Management Mechanism

To ensure that suppliers can understand and assist OUCC to strive for sustainable supplier development, we have designed an ESG self-assessment questionnaire for all our new suppliers, who are required to sign a letter of commitment, so to join us in a commitment to sustainability and its implementation.

Note: 2023 Supplier Implementation Ratio = number of suppliers who signed the commitment in 2023 / total number of suppliers in 2023.

③ Evaluation Management Audit

This OUCC audit process includes record and field evaluations to ensure that suppliers comply with all the relevant laws and regulations. Existing suppliers must receive and complete an annual evaluation, which includes company management, quality, delivery time, price, service, and environmental safety. Suppliers were listed as qualified only if their rating score reached a specific standard.

Should an evaluation or material incident occur that rated disqualification and resulted in damage to the company’s reputation, labor safety, environmental protection, product quality, or manufacturing operation, the supplier would be listed as disqualified and suspended. In 2024, 680 trading suppliers of construction, equipment, spare and raw materials underwent written evaluations with 5 disqualified, and the qualification rate was 99.3%.

④ Enhance Safety Promotion

“Contractor Work Safety Rules” have been formulated to ensure the safety of personnel and equipment in the plant area. The rights and obligations of contractors working in the plant are specified in detail. All contractor employees entering the plant premises must be qualified with necessary industrial safety certificates to ensure the safety of personnel as well as the work environment.
OUCC organizes the Contractor Safety Conference regularly to conduct two-way communication on safety matters through the meeting. OUCC’s internal units will convey factory regulations, crucial environmental safety operations issues, etc., and conduct co-experience sharing of the OUCC supervision and contractor management, which would be followed by extemporary motions.

⑥ Practice Green Procurement

OUCC practices green procurement and consumption. We establish procurement specifications and prioritize equipment standards for products with energy- and water-saving labels or other eco-friendly labels the government approves. For example, the energy efficiency of electrical motors must comply with CNS14400 IE3. We hope to achieve electricity, water, and energy conservation through the green procurement process. 
In 2024, the purchased items with green certification, including LED lamps and IE3-specification rotating equipment, amounting NT$49 million, with green procurement of LED lighting and rotating equipment accounting for 99%.

Zero Transportation Accident - Adopting Tighter Transport Control Practices

We develop strict management standards to ensure that freight suppliers jointly fulfill their security commitments since all the tanker transportation in OUCC is outsourced. 

• We request our freight suppliers to include the "Risk Factors" in the emergency response mechanism and continue to improve the safety management system based on past disaster reviews or potential risk analysis.
• By collecting relevant case information and conducting regular education, training, and promotional activities, we aim to enhance the crisis sensitivity and response capabilities of suppliers' transportation and dispatch personnel, thereby creating a win-win situation in industrial safety with our contractors.
   

Education and Training Results for the Gas Supplier Transportation Personnel

The pandemic has gradually eased, but to maintain factory safety and employee health, and to prevent a possible subsequent peak, OUCC continues to implement necessary epidemic prevention measures and makes rolling adjustments based on government announcements and actual conditions. Our transportation epidemic prevention policies are as follows:

• Before entering the plant, all drivers must have their temperature taken at the guard’s office. Anyone with a temperature above 37.5˚C will be denied entrance.
• Contractors, subcontractors, drivers, etc., must wear masks at all times when they are at the plant premises.
• Contractors, subcontractors, and drivers are prohibited from entering indoor space such as control room, office, warehouse, etc.
• At the weigh station, drivers are required to sanitize their hands. Anyone who refuses to comply will be barred from continuing the operation.
• Anti-pandemic measures such as Health Declaration Statement, Temperature Taken, and Social Distancing APP must be implemented before entering the plant premises.
• The five rules of implementation include zero contact, visual confirmation document, minimal conversation, keeping a safe distance and frequent sanitization.
• During a severe epidemic, guests or contractors are prohibited from entering the plant premises for non-emergency events.