Supply Chain Management
Supplier Evaluation, Raw Material Traceability, Sustainable Procurement, and Conflict Minerals Policy
Supplier Management
HANTECH BIO-TECH has long been dedicated to the food biotechnology industry. As a key partner in the supply chain, we believe sustainable development must be practiced across the entire value chain. Leveraging our expertise in raw material development and health supplement contract manufacturing, the company has established long-term and stable partnerships with suppliers of raw materials, packaging materials, and process-related services. We continue to introduce responsible and forward-looking management practices with the goal of enhancing supply chain transparency, resilience, and sustainable competitiveness.
To ensure that the overall supply chain aligns with international sustainability principles and operating standards, the company has established the Supply Chain Management Procedures, covering key areas including environmental protection, labor rights, occupational safety and health, business ethics, and integrity in business. Through an open, fair, and transparent procurement system, we work with suppliers to strengthen sustainability governance and promote more responsible production and consumption practices.
Going forward, we will continue to follow this management framework and deepen collaboration with upstream and downstream partners through regular assessments, audits, and two-way communication, jointly building a supply chain ecosystem characterized by responsible governance, sustainable value, and long-term competitiveness.
Specific Actions:
• 90.5% of suppliers signed the Supplier Integrity Commitment.
• 77.48% of suppliers signed the Supplier ESG Sustainability Responsibility Commitment.
• 60% of major suppliers completed sustainability self-assessments.
• The improvement completion rate for suppliers with incoming material nonconformities reached 96.97%.
Supplier Development
HANTECH BIO-TECH conducts at least one training or supplier development activity each year to strengthen supply chain partners’ understanding of sustainability issues and their ability to implement related practices. To enhance overall supply chain resilience and quality stability, the company actively promotes a supplier development mechanism. In particular, for outsourced processing facilities, HANTECH provides diverse and practical training and on-site guidance based on product characteristics, process requirements, and the nature of the partnership, helping partners improve process stability, quality control, and sustainability management capabilities.
In 2025, HANTECH BIO-TECH held a Supplier Conference centered on the theme Promoting ESG Sustainability Principles and Collaboration Practices. The conference introduced the company’s sustainability policy direction, supply chain management requirements, and key areas for future collaboration. A total of 49 suppliers participated, including major partners in raw materials, packaging materials, outsourced processing, and process services. In addition to sharing domestic and international sustainability trends and relevant regulations, the conference provided guidance on environmental management, labor and human rights, integrity in business, and supply chain risk management, helping suppliers clearly understand collaboration requirements and improvement priorities.
Through institutionalized education and supplier development processes, the company has built consensus across the supply chain regarding sustainability responsibilities and established a sound two-way communication and collaboration mechanism, laying the foundation for responsible procurement and stronger supply chain resilience and sustainable competitiveness.
Supplier Evaluation
Green Supply Chain Management
With environmental sustainability as a priority, HANTECH BIO-TECH actively promotes packaging material optimization and reduction initiatives to lower environmental impacts throughout the product life cycle. The company’s primary packaging material is currently aluminum roll stock, which is a composite material. Although it provides strong barrier properties, it is difficult to recycle. To improve recyclability, the company has begun working with suppliers to explore mono-material alternatives and conduct feasibility testing for aluminum-free packaging. These efforts are currently in the sample testing and evaluation stage, with the goal of gradually introducing new materials to replace conventional packaging in the future.
In 2024, the company worked with 151 suppliers, of which 86.28% were raw material suppliers and 13.72% were material suppliers. In 2024, procurement spending on food raw materials and packaging materials certified under GFSI-recognized SQF (Safe Quality Food) and FSC (Forest Stewardship Council) standards accounted for 17.12% of total raw material procurement spending.
The company also actively incorporates environmental sustainability considerations into its procurement policy, giving priority to green procurement and energy-efficient equipment. The refrigerators and water dispensers currently used by the company carry energy-saving labels, putting environmental responsibility into practice from the source of procurement.
Local Sourcing
The company will continue to procure raw materials through distributors and, where feasible, reduce unnecessary long-distance transportation to lower carbon emissions while maintaining supply efficiency, gradually building a low-carbon and sustainable procurement system.
