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.

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.

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.

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

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.