Responsible Supply Chain

Zyxel’s business success is closely tied to the global supply chain. For decades, we have been working strategically and closely with our global partners and suppliers. Our commitments to a responsible and sustainable supply chain not only follow the local legislation, but also comply with the highest standards we set in ethics and business integrity.

92%

of Zyxel suppliers responded the Statement of Zyxel Supplier Corporate Social Responsibility Commitment

100%

Supplier audit completion rate in 2020

99.94%

Conflict mineral disclose rate in 2020

91%

of Zyxel suppliers fully disclose sources of conflict minerals

Our commitments and goals

Zyxel has developed a solid supply chain management framework to ensure all stakeholders work under safe, healthy, and fair conditions while minimizing the environmental footprint of business operations.

Short-term plans

Perform regular and rigorous audit to comply with customer expectations

Promote sustainability among employees and across suppliers

 
 
 
Long-term plans

Certified by international sustainability communities

Our Supplier Code of Conduct

Zyxel publically announces its “Sustainable Procurement Policies and Guidelines” and “Supplier Code of Conduct” to disclose its commitments to creating a responsible supply chain. We have identified 49 corresponding criteria among six main sectors, and all of them respond to internationally valued sustainability standards.

Following these criteria, Zyxel asks its suppliers to sign the “Statement of Zyxel Supplier Corporate Social Responsibility Commitment,” which requires suppliers to follow and adhere to the relevant sustainability code and standards. In 2020, the survey response rate was 92 percent.

General conditions
  • Purpose
  • Scope
  • Compliance
  • Report
  • Audit
  • AmendmentLabor
Labor and human rights
  • Freely chosen employment
  • Young workers
  • Working hours
  • Wages and benefits
  • Humane treatment
  • Non-discrimination
  • Freedom of association
Health and safety
  • Occupational safety
  • Emergency preparedness
  • Occupational injury and illness
  • Industrial hygiene
  • Physically demanding work
  • Machine safeguarding
  • Sanitation, food, and housing
  • Health and safety communication
Environment
  • Environmental permits and reporting
  • Pollution prevention and resource reduction
  • Hazardous substances
  • Solid waste
  • Air emissions
  • Materials restrictions
  • Water management
  • Energy consumption and greenhouse gas emissions
  • Carbon footprint management
Ethics
  • Business integrity
  • No improper advantage
  • Disclosure of information
  • Intellectual property
  • Fair business, advertising and competition
  • Protection of identity and non-retaliation
  • Responsible sourcing of minerals
  • Privacy protection
Management systems
  • Company commitment
  • Management accountability and responsibility
  • Legal and customer requirements
  • Risk assessment and risk management
  • Improvement objectives training
  • Communication
  • Worker feedback, participation and grievance
  • Audits and assessments
  • Corrective action process
  • Documentation and records
  • Supplier responsibility

Our supply chain risk management

At Zyxel, we’ve established a comprehensive supply chain risk assessment and management framework. By categorizing risks into three main sectors – economics, society, and environment, Zyxel specifies the required certifications or international standards with which its global suppliers must comply.

In 2020, the average ratio of supply chain certification was 100 percent for the economics category, 76.9 percent for the environmental category, and 53.3 percent for the societal category.

Zyxel supplier certification
Aspect Certification category Certified proportion
Economics ISO 9001/TL 9000/TL 9000 R6.0 100%
Environment ISO 14001/ISO 18001 76.9%
Society RBA/Ecovadis/JAC Awards/others 53.3%

Our supplier audit framework

Zyxel requires both existing and new suppliers to undergo annual on-site audits and assessments. We categorize the audit items into two sectors - quality system and quality process, and since 2020, 12 ESG-related metrics have been added to the audit items.

With a well-structured audit framework and regular implementations, we effectively evaluate potential risks from the suppliers and optimize the overall performance of supply chain partnerships. Improvement plans will be implemented for suppliers who failed to pass the audits. In 2020, the audit completion rate was 100 percent.

Quality System
  1. Quality system
  2. Design control
  3. Document control & quality record
  4. Supplier management
  5. Customer service & RMA
  6. Inspections, tests, and instrument certification
  7. Green products management
  8. Nonconforming product control
  9. Purchase
  10. Sustainable development and corporate social responsibility
Quality Process
  1. SMT
  2. DIP
  3. Test
  4. Assembly
  5. Packing
  6. Repair & rework
  7. Warehouse
  8. QC (IQC-IPQC-FQC-OQC)
  9. Environment
ESG mertics
  1. Child labor and young workers
  2. Forced labor
  3. Discrimination and discipline
  4. Freedom of association and communication
  5. Working hours and wages
  6. Business ethics
  7. Fire safety
  8. Chemical safety
  9. Facility safety and health
  10. Dormitory and canteen
  11. Environmental protection
  12. Management system