1. Purpose
Conduct mineral supply chain due diligence investigations on cobalt raw material suppliers to identify and manage supply chain risks.
2. Area
Applicable to the company’s procurement of cobalt metal-related raw materials and products. The objects include products and services related to all cobalt raw material suppliers.
3 Process
3.1 Identify all upstream suppliers in the supply chain and establish a supplier map; clearly present our company’s mineral supply chain management policies and commitments to suppliers, so that they can understand the purpose of the investigation and try their best to assist suppliers in establishing their own due diligence management system.
3.2 Obtain supplier questionnaires.
3.3 Conduct a risk assessment.
3.4 According to the assessment results, if there is a risk as indicated in 5.1 of the Supply Chain Management Manual, it should negotiate with the supplier, formulate a Supply Chain Risk Management Plan and Scheme, and evaluate the improvement effect. If there is no significant improvement within 6 months If the improvement plan is not implemented or the improvement plan is not implemented, the cooperation with the supplier will be suspended or discontinued. Include suppliers who suspend or discontinue cooperation in the Supplier Sanctions List
3.5 For suppliers who have passed the due diligence investigation of the mineral supply chain, they can be identified as raw material suppliers of our company, and should sign a commitment letter or agreement with the supplier in the “Supplier Code of Conduct” and “Supply Chain Due Diligence Policy and Commitment”.
4 Responsible Sourcing
4.1 Suppliers in the “Supplier Sanctions List” cannot resume purchasing before passing the due diligence of the supply chain.
4.2 Conduct a compliance survey on suppliers once a year, prepare a review report, and inform the supplier.
4.3 If the supplier does not actively cooperate with our company in the due diligence of the supply chain, a written request shall be made and the annual purchase contract shall be reduced.
5 Related documents
1. KYS questionnaire
2. Mineral source survey form
3. Risk assessment report
4. Supply chain risk management plans and programs
5. Supplier Sanctions List
6. Supplier Code of Conduct
7. Supply chain due diligence policies and commitments
8. Tianjin Maolian Technology Co., Ltd.’s Due Diligence Management and Supplier Code of Conduct Confirmation Letter of Guarantee
9. Supply Chain Management Manual
