Classification of Supplier Risks
The risks of the suppliers for FESPIXON® cream are classified into the following levels according to Oneness Biotech’s “Supplier Management Procedure” and the attributes of the products supplied:
Examination and Evaluation of New Suppliers
In order to have active control of supplier risks in relation to sustainability, Oneness Biotech examines all the supplier risk states when they first apply with us, the examination including a preliminary risk assessment based on a supplier’s business license, tax payment certificate, company profile, quality certificates, and certificate for Environment, Health and Safety (EHS).According to Oneness Biotech’s “Supplier Management Procedure”, the examination items of a new supplier are as follows:
Supplier Code of Conduct
Oneness Biotech teams up with suppliers to create sustainable enterprises. The Supplier CSR Commitment Letter has been formulated with reference to the related international initiatives and requirements, including the UN Global Compact, the Universal Declaration of Human Rights, and the UN Framework and Guiding Principles on Business and Human. All the suppliers are required to sign the Letter. As of the end of 2022, a total of 37 suppliers have signed the Commitment Letter. The main contents of the Letter include the following sustainability-related items:
- Environmental protection policies
- Prohibiting child labor
- Protect basic labor rights, including the right to work and the freedom of assembly
- Guaranteeing working hours and work conditions
- Complying with laws and regulations related to occupational health and safety
- Ethical operation and comply with business ethics
Management Measures for Existing Suppliers (Qualified Suppliers)
As of the end of 2022, Oneness Biotech had 19 collaborating suppliers for the new drug FESPIXON® cream. The levels of risk of those suppliers have been evaluated periodically and are as follows:
Evaluation Items
Grading Results of Supplier Evaluation
Oneness Biotech issues the “Supplier Assessment Form” on a regular basis in order for each supplier to fill out the form according to their cooperativeness, delivery dates, raw material/supplies quality, and quality system(including ESG performance), thereby allowing the Company to know each supplier’s operational risks. A supplier will be disqualified if the total score of supplier assessment is lower than 70 or if the suppler has been found to have a major deficiency that may impair product quality.
Frequency of Evaluation
The following annual evaluation and review plan is made according to the “Supplier Management Procedure” and with reference to the grades of critical material suppliers and the annual evaluation results:
Note: As of the end of December 2022, the Company completed the evaluation of all its suppliers according to the evaluation and review plan.
For the 19 suppliers that reviewed and evaluated in 2022, the evaluation result is listed below according to the risk level of the supplier. During the evaluation process, no serious deficiency was noted.
Numbers of Supplier
On-Site Audits
The timing of conducting an on-site audit is as follows:
- When evaluating a new supplier candidate
- When conducting a regular audit on an existing supplier (according to the Annual Supplier Audit Plan)
- When an existing supplier has a major defect in quality (e.g., when a quality-related customer complaint is attributable to the supplier as indicated by investigation results)
Survey and Evaluation of Sustainability-Related Risks
In order to control the suppliers’ sustainable risks, Oneness Biotech assess all the supplier risk states when they apply to be our cooperated companies. The assessment including a preliminary risk assessment based on a supplier’s business license, tax payment certificate, company profile, quality certificates, and safety-, health-, and environment-related certificates. In addition, the
In 2022, Oneness Biotech revised the “Supplier Management Procedure” and added the Supplier Self-Assessment Questionnaire (SAQ), which, in addition to the items in the existing “Supplier Assessment Form”, includes ESG assessment items such as environmental protection, labor conditions, human rights, and corporate governance. The additional items and the existing items of cooperativeness, delivery dates, raw material/supplies quality, and quality system jointly constitute the supplier risk evaluation. The new Procedure has been formally implemented in the second half of 2022, and the evaluation result will serve as an important reference for procurement policies of Oneness Biotech. As to high-risk suppliers, Oneness Biotech will conduct factory audits in order to propose suggestions and help to make improvements, with the objective to create a sustainable environment with the suppliers.
Teaming up with suppliers in the promotion of ESG
Oneness will team up with suppliers to promote ESG according to the formulated short-, medium-, and long-term goals. The progress of supplier ESG program is regularly report to ESG Committee. As prat of the supplier ESG program, we will conduct a sustainability status survey to gain a better understanding of the ESG status and the assistance needed of the Tier 1 suppliers by 2023. We will also organize supplier sustainability courses to provide education on ESG standards and share our experiences in ESG.
※The above content is taken from the ESG Report
