The reinforcement and maximization of impacts from corporate sustainable development depend on inter-connections and cooperation throughout the entire value chain.

GIGABYTE reinforces the engagement and communication with our supply chain through a variety of channels such as evaluations, awards, education and training, and alliances. We strive to build a partnership beyond trade relations and realize the core philosophy of “Reduction. Sharing. Love the Earth” hand in hand.

4-Step Approach to Supply Chain Engagement

The first step in supply chain engagement is the supply chain management strategy and risk management. The three following steps of “Supplier Sustainability Award”, “Reduction. Sharing. Love the Earth Alliance” and “Supplier Conference” will help us refine the management and promotion of supply chain sustainability.

Step 1: Supply Chain Policy and Risk Management

Please refer to《Supply Chain Management

Step 2: Supplier Sustainability Award

GIGABYTE’s Supplier Sustainability Evaluation process starts with suppliers self-evaluating their implementation performance in 6 major aspects: CSR management, CSR protection, human rights of labor, fair trade, supplier responsibility, and social/local contribution. Afterward, the Supplier Evaluation Team from the Sustainable Development Office conducts fair selection based on 4 major aspects: completeness, rationality, the level of cognition, and the level of attention. The suppliers with better scores would be publicly awarded the Excellent Partner Award at the supplier’s year-end party. Besides, the attendance rate of the top 100 suppliers also shows the extent of close collaboration between GIGABYTE and the supply chain partners. We will continue to increase the ratio in the future to make suppliers have more incentives in carrying out sustainability and therefore construct a sustainable supply chain.

0%
of the top 100 suppliers were awarded in 2020.
0%
of GIGABYTE’s purchasing expenditure was from the suppliers participating in the Supplier Sustainability Evaluation in 2020.

In addition to the awards, we also use purchasing to encourage CSR fulfillment by suppliers. We will continue to increase our purchasing ratio in the future to give suppliers even more incentive to embrace sustainability and construct a self-sustaining supply chain.

The Themes of End-of-year Suppler Party and Supplier Sustainability Award Ceremony over the Years

Step 3: Reduction. Sharing. Love the Earth Alliance

GIGABYTE launched the “333 Reduction Plan” in 2016 and set a target of reducing carbon emissions, water use, and waste by 3% every year. We also invested in tree planting and afforestation to conserve the biodiversity of the earth. At the same time, we invited all of our suppliers to join the “Reduction. Sharing. Love the Earth Alliance” and reach the “333 Reduction” targets together with GIGABYTE. We also expect that the suppliers with significant reduction performance could share their experiences with others to stimulate peer learning and achieve general reductions across the entire supply chain.

Status of “Reduction. Sharing. Love the Earth Alliance” Reduction Performance

After the Alliance was established, GIGABYTE started to investigate the efforts to reduce carbon emissions, water use, and waste by each Alliance member in 2018. Every effort made was to practice the Alliance’s core value of reduction. Furthermore, with an outline of the overall reduction trends, we can then develop a more practical strategy for the future. In 2020, we tracked the reduction statistics from the previous year (2019) of 42 companies, including partner advocates and GIGABYTE itself, and the number of companies that met the 3% targets in 2019 compared to previous years is as follow.

Explanation of Reduction Performance Status
  • One-third of investigated companies met the target for carbon and water reductions with average reductions of 1-5%. The average waste reduction was more than 10%.

  • The reasons for suppliers being unable to meet reduction targets included greater use of energy and resources due to growing orders and production output in the year. Even though the suppliers whose production output increased did not meet the absolute reduction targets, they still had the potential to meet the targets if viewed from intensity reduction (e.g. emissions per revenue).

Step 4: Supplier Conference

GIGABYTE has held the Supplier Conference since 2009 that invites multiple pioneers in sustainability to share their experiences as well as ESG tendency and practical measures with our suppliers, CSR-related personnel, and manager-level employees. We will continue to ramp up our marketing efforts to establish sustainability know-how among our supplier partners.

Objectives of Supplier Conference in recent Years