ESG

Supplier Sustainability Management

Delta sees suppliers as long-term partners in sustainable development. In addition to requiring a certain degree of quality, technology, delivery timeliness, and cost competitiveness, Delta also attaches importance to suppliers' ESG performance, especially climate change-related actions.

Delta uses the Supplier Code of Conduct as the basis for dialog, collaborating with suppliers to establish sustainable development targets for energy conservation and carbon reduction, sustainable raw material procurement, and waste reduction. Delta actively supervises the implementation of these targets to mitigate the impact of climate change and practice sustainable supply chain management.


Goals for Sustainable Supply Chain Management

Delta's supply chain management includes four stages: selection and recognition of new suppliers, continuous risk assessment and management, performance evaluation, and supplier engagement and capacity building. Delta’s action plans include:

  • Establish short and medium-term key objectives, focus on climate change management as the top priority, and provide free training resources for greenhouse gas inventory, energy conservation, and carbon emissions reduction to global suppliers.
  • Continue to promote and implement the Code of Conduct based on the risk rating and classification of suppliers.
  • Engage Tier 1 significant suppliers for more intensified collaboration on sustainability and evaluate the opportunities for promoting low-carbon materials in the future.

Supply Chain ESG Committee

To enhance the sustainable management of the supply chain, Delta has established a Supply Chain ESG Committee, which is chaired by the Chief Supply Chain Officer. Committee members include procurement supervisors from each business group, and an executive secretary is appointed to be responsible for daily operations and project implementation. The Committee regularly reports to the Company’s management team and the Board of Directors in order to ensure that a consensus has been reached throughout the whole Company on all material ESG issues. By conducting regular meetings and tracking KPIs, the Committee performs ongoing management, reviews, and adjustments to short-, mid-, and long-term objectives, in order to dynamically make strategic adjustments.

The scope of the Committee's work is divided into six core categories: policy / regulations/ management methods, "supplier evaluation and engagement", establishment of the supply chain ESG platform, "environmental performance improvement", "communication and disclosure", and "management of special issues". To fulfill Delta's commitment to sustainable development, we actively implement three major strategies: "Supplier ESG Risk Management", "Green and Low-Carbon Supply Chain" and "Supply Chain Engagement and Capacity Building". We strengthen cooperation and communication with suppliers through annual questionnaire surveys, the supply chain ESG platform, and supplier conferences. We have also introduced a sustainable procurement system to further improve the efficiency and effectiveness of supply chain management and carbon reduction, thereby ensuring that Delta's suppliers can practice and implement sustainability.

Supply Chain Management Procedures

Delta's supply chain management includes four stages: selection and recognition of new suppliers, continuous risk assessment and management, performance evaluation, and supplier engagement and capacity building. The targets include suppliers of materials/components, agents, and outsourced service providers.

  • Stage 1: Selection and Recognition of New Suppliers

    Delta has set clear selection criteria for suppliers. After reviewing their operations and sustainability conditions, only those who meet the selection criteria can become Delta suppliers. All new suppliers are required to make relevant commitments when signing procurement contracts and registration documents, such as the Code of Conduct, Integrity Agreement, Environmental Protection, and Conflict Minerals. Presently, the signature rate in Taiwan, Mainland China, and Thailand has reached 100% as roll-out gradually continues in other regions.

  • Stage 2: Continuous Risk Assessment and Management

    Every year, we carry out classified and tiered management for different supplier categories, including product manufacturers, branch companies of manufacturers, external processing manufacturers, distributors, and service companies. Every year, we carry out classified and tiered management for different supplier categories, including product manufacturers, branch companies of manufacturers, external processing manufacturers, distributors, and service companies. Delta defines Tier 1 Suppliers as suppliers whose annual procurements exceed NT$5 million and have engaged in direct transactions with Delta for more than one year. We assess supplier risk levels by managing and analyzing questionnaires formulated based on the Delta Group Supplier Code of Conduct, carrying out follow-ups and on-site audits and issuing improvement requirements based on the results.

  • Stage 3: Performance Evaluation

    When conducting our Quarterly Business Review (QBR), in addition to traditional factors like technology, quality, service, delivery time, and cost, Delta also considers suppliers’ ESG risk and capabilities, which account for 10% of the score, as a key factor for order management and continuing cooperation. The ESG performance of suppliers affects their partnerships with Delta. For example, those with higher scores may receive more orders, while those with low scores may have their collaboration with Delta reduced or even terminated. To encourage suppliers to take proactive ESG actions, Delta awards bonus points for excellent ESG practices, further promoting the sustainable development of the entire supply chain. Additionally, Delta gives out awards to the best performing vendors (MVP) and the most improved vendors (MIP) from its suppliers every year. This approach utilizes Delta’s influence as a brand, not only recognizing suppliers with outstanding sustainability practices but also encouraging the entire supply chain to make continued improvements.

  • Stage 4: Supply Chain Engagement and Capability Development

    To promote the sustainable development of the supply chain, Delta evaluates the sustainability performance of its suppliers through questionnaires and on-site audits, actively participating in improving suppliers' environmental, social, and governance (ESG) growth. By providing "Supplier ESG Training Courses" and "Services and Product Solutions", Delta supports suppliers in improving sustainable performance, thereby promoting continuous improvement of the overall supply chain.

Conflict Minerals

Research conducted by the Responsible Minerals Initiative (RMI) discovered that the rebel groups in the Democratic Republic of Congo and neighboring countries in Central Africa use forced labor, child labor, and other illegal means to mine tungsten, tin, tantalum, gold, cobalt, and mica, and sell them in exchange for weapons, thereby causing regional instability. Minerals obtained through illegal means are referred to as conflict minerals. Tungsten, tin, tantalum, gold, cobalt, and mica are essential for electronic products to function. To avoid the use of conflict minerals obtained from illegal operations, we have established the Responsible Raw Materials Procurement Policy and the Due Diligence Investigation on Conflict Minerals of Suppliers. Please refer to the "Delta Group Responsible Sourcing Policy” section of our website for more information.

To ensure that no conflict minerals are used in Delta products, Delta examines product ingredients and identifies suppliers that require investigation every year. In 2024, 2,525 suppliers are included. Delta conducts due diligence investigations using an online questionnaire converted from the CMRT 6.4, EMRT 1.3, and the AMRT 1.2 template* to comprehensively check the distribution and compliance of the refineries used by suppliers. We also strengthen communication and cooperation with suppliers through webinars to practice responsible manufacturing. Delta requires suppliers to disclose and purchase minerals from qualified refineries based on the latest list of valid and qualified refineries published by the Responsible Minerals Initiative (RMI).

According to the investigation, Delta's supply chain sourced materials come from 267 refineries as of the end of 2024, all of which were included in the most recently updated list of qualified refineries. Further analysis showed that Asia had the highest number of qualified refineries, followed by Europe.


* CMRT: Conflict Minerals Reporting Template ,EMRT: Extended Minerals Reporting Template ,AMRT: Additional Minerals Reporting Template

  • Suppliers' Participation in Sustainability

    Delta sees suppliers as long-term partners in sustainable development. In addition to requiring a certain degree of quality, technology, delivery timeliness, and cost competitiveness, Delta also attaches importance to suppliers' ESG performance, especially climate change-related actions.

Supplier Sustainability Development

Starting from 2022, Delta has included suppliers’ GHG inventory capabilities in their QBRs, including quantifying their annual GHG emissions, establishing stage by stage carbon reduction goals, and providing the necessary product-based GHG data to meet Delta's requirements for information on product carbon footprints. We also require Tier 1 Suppliers to obtain third-party verification statements for GHG inventory data before Q4 of 2025.

To help Delta’s supply chain strengthen their ESG risk management and low-carbon transformation capabilities, Delta plans a series of general knowledge and practical training courses each year, and invites professional consultants to teach education and training courses in both Chinese and English. These courses are provided free of charge to Delta's Tier 1 Suppliers. In 2024, Delta organized the "ESG Code of Conduct and Implementation" and "Greenhouse Gas Inventory Analysis and Carbon Reduction Practices" courses. A total of 1,236 personnel from suppliers participated. By building up suppliers’ professional concepts and sharing Delta’s experience and tools in energy conservation and carbon reduction, Delta can help suppliers achieve low-carbon transformation as well as commit to continuously providing such specialized training courses, thereby promoting the development of a sustainable supply chain.

Utilization of Recycled Materials in Delta Production Plants

To fulfill our corporate Mission "To provide innovative, clean and energy-efficient solutions for a better tomorrow," Delta continuously cooperates with suppliers to reduce carbon emissions. This not only lowers operational costs for both Delta and the supplier, but also increases the competitiveness of the entire supply chain.