Supplier Sustainability

More Safety,
more healthy,
more Green

In addition to the CSR audit, we invite professional organizations to conduct special assessment on the environmental protection, fire fighting, and occupational health of suppliers. Senior experts in the industry are invited to take the lead in identifying improvement opportunities, providing guidance to suppliers on corrective and preventive measures.
Through these special assessment projects, suppliers fully identify potential risks, improve internal management mechanisms, develop a professional management team, and greatly improve their professional management capabilities in the fields of environmental protection, fire safety, and occupational health.

Supplier
performance
assessment

Huawei CBG conducts annual supplier sustainability performance review, which is a comprehensive assessment of suppliers' CSR performance, on-site audit results, and improvement in the past year. The assessment results are part of the comprehensive supplier performance evaluation results, accounting for 10%-15%. Performance evaluation results directly affect the commercial cooperation between suppliers and Huawei, and are used in the supplier selection and category supplier portfolio management of new projects. Suppliers with good performance results have more opportunities for business cooperation. For suppliers with poor performance, it is required to make remediation within a specified period, reduce the procurement share or business cooperation opportunities, or even cancel the cooperation relationship.

Development together

For potential suppliers and newly introduced suppliers, Huawei CBG organizes CSR professionals to evaluate and coach suppliers to help them quickly understand and meet Huawei CSR requirements.
Huawei CBG routinely conducts supplier CSR training and coaching to guide suppliers to adopt industry best practices and incorporate sustainable development into business strategies, reduce business risks, and improve operational efficiency. Huawei CBG has also cooperated with professional organizations in implementing the supplier labor rights, environmental protection, fire safety, and occupational health improvement projects. Through these projects, suppliers fully identify potential risks, improve internal management mechanisms, develop a professional management team, and greatly improve their professional management capabilities in HR, environmental protection, fire safety, and occupational health.

More sense of belonging, More harmonious

We are concerned about whether suppliers' employees, especially front-line workers are working and living in a healthy, safe, and dignified environment. Is there a good career path?

Feedback from suppliers: Thanks to the improvement in the past year, the turnover rate of suppliers decreased from 9.0% to 2.3%. The decrease in the turnover rate of the factory reduced the cost of recruitment and personnel training, the sense of belonging of the workers was stronger, and the overall operation efficiency of the factory was significantly improved, factories are therefore better able to develop sustainably.

Responsible material sourcing

In 2011, we started to investigate the sources of tungsten, tin, tantalum, and gold （3TG）in our products.
In 2013, we traced 3TG to the smelter or refinery. The list of smelters or refineries was routinely investigated. For unqualified smelters or refineries, which is not in the list released and updated by RMI，we asked the supplier to replace them until they are qualified.
In 2015, in order to further improve the management of responsible materials sourcing, we invited third-party professional institutions to review the responsible mineral management process and update the conflict mineral assessment and due diligence process based on the “OECD Due Diligence Guidance for Responsible supply Chains of Minerals from Conflict-Affected and High-Risk Areas".
In 2016，We started the management of responsible cobalt.
From 2017, we implemented the cobalt due diligence management based on the “Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains” released by CCCMC and “OECD Due Diligence Guidance for Responsible supply Chains of Minerals from Conflict-Affected and High-Risk Areas". Third-party audit organizations were invited to perform due diligence management and review on cobalt supply chain factories, and we traced back to the list of cobalt smelters, a few of them were traced back to the upstream cobalt mines.
In 2019, we further improved the responsible mineral management, focusing on not only conflict and high-risk areas, but also human rights, environment, health, and security risks of the entire supply chain, which aligns with industry and multi-stakeholder inniatives.