Foxconn, a Taiwanese multinational electronics contract manufacturer, has many brand clients and suppliers from all over the globe. In order to achieve their net zero emissions by 2050, Foxconn had put into place its own “Supplier Management Process”.
This process is:
- Regulatory compliance
- Risk Assessment
- Audit verification
- Continuous improvement
Through this programme, suppliers are required to formulate long-term carbon reduction targets, take active and effective measures to ensure that said targets are met, and meet client requirements for end clients with stricter standards. Suppliers are required to disclose third-party verified carbon emissions data and carbon reduction achievement on digital carbon management platforms each year.
Furthermore, suppliers are required to implement energy and carbon reduction measures (such as installation of solar power equipment, use of renewable energies, and zero waste to landfill operations), reduce carbon emissions, and realize net zero emissions targets. Foxconn conducts appraisals of supplier energy and carbon reduction achievements, the results of which serve as a basis for adjusting supplier transactions and eliminating poorly performing suppliers.
The Supplier Management Process results in a Supplier Scorecard, enabling preferred suppliers to get higher proportion of orders, get recommendations for new ODM projects and become one of Foxconn’s strategic partner.
The Group plans to assist 165 suppliers in conducting energy and carbon reduction tasks by 2025. In 2021, Foxconn already assisted 88 suppliers in implementing greenhouse gas inventories through their “Supplier Management Process”; 51 suppliers also completed ISO 14064-1 verification. Suppliers implementing carbon reduction plans lowered their carbon emissions by 99,296.93 tCO2e in 2021.