ASYMCHEM Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd. Supplier ESG Management Policy
I. ESG Management Responsibilities
- Responsibility of the Highest Decision-Making Body: The Board of Directors of Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd. and its subsidiaries (collectively referred to as "the Group" or "we") is the highest decision-making body. Management is responsible for implementing the supplier ESG plan, ensuring clear responsibilities, and disclosing relevant commitments and evidence in the annual ESG report.
- Policy and Objectives: Continuously formulate and update supply chain ESG policies and objectives to ensure alignment with the Group's overall strategy.
- Risk Supervision: Supervise the identification, assessment, and management of supply chain ESG risks.
- Decision Review: Review and approve major supply chain decisions to ensure compliance with ESG principles.
II. Supplier Procurement Practice Review
- Requirements for Hazardous Substance Emissions: Require suppliers to reduce hazardous substance emissions in the supply chain and conduct regular audits.
- Multi-Tier Supplier Management: Conduct product quality audits for all defined tiers of suppliers within the system at least once a year or on a regular annual basis.
- Raw Material Quality Inspection: Regularly inspect the quality of the Group's own raw materials to ensure compliance with ESG standards.
- Procurement Practice Review: Regularly review suppliers' procurement practices to ensure compliance with the "Supply Chain Code of Conduct" and ESG standards.
- Contract Signing Conditions: If a supplier cannot meet the minimum ESG requirements within the specified timeframe, the contract shall not be signed or renewed.
- Comprehensive Compliance Requirements: Suppliers must comply with all applicable laws and regulations, including but not limited to anti-corruption, fair competition, product safety, and trade compliance, and conduct business in a manner consistent with commercial ethics.
III. Supplier Selection and Contract Award
- ESG Evaluation Weight: All suppliers must establish and maintain effective Environmental, Health, and Safety (EHS) management systems and commit to accepting the Group's audits. In the supplier selection and contract award process, a minimum weight will be given to ESG standards, prioritizing suppliers with better ESG performance.
- Performance Evaluation: Supplier ESG performance will be a key factor in evaluation and selection.