Sustainable Value Chain
Formosa Laboratories is mainly engaged in the process development, production, and sales of APIs such as Cholesterol and Phosphate Binders, Vitamin D derivatives, Anticancer active ingredients, Respiratory Agents, Anti-inflammatory and Analgesics Agents, and CNS Agents. In the biopharmaceutical industry, it is a professional intermediate pharmaceutical manufacturer, purchasing chemical raw materials and natural substances from chemical raw material factories and selling them to downstream pharmaceutical manufacturers.
To implement supply chain management, Formosa Laboratories continuously improves its business in the field of raw materials, strengthens cooperation with upstream supply chains, and implements a supplier management mechanism to screen new incoming supply goods for quality. Regular assessments, supplier evaluations, and audit systems are conducted to ensure the quality and safety of raw materials and materials. Based on the statistics of the conformance and non-conformance rate of raw materials each year, the quality stability of qualified manufacturers is evaluated to ensure that suppliers can provide raw materials and materials that comply with regulations and have excellent quality in the long term. With signing the contracts with major suppliers, Formosa Laboratories has the right to terminate or rescind the contract if they have violated the policies, in order to achieve sustainable development goals together.
Sustainable Procurement
In our key operational bases (including the operational boundaries mentioned in this report), we also strive to use local procurement to reduce carbon emissions from long-distance transportation and support local business development. By 2022, local procurement for general affairs purposes accounts for 100% of total expenses. We also encourage every department to use energy-saving and environment-friendly products, such as variable frequency air conditioners, variable frequency refrigerators, LED lights, and other energy-saving household appliances, as well as products certified with environmental labels, energy-saving labels, and water-saving labels. In the future, Formosa Laboratories will continue to maintain this level and adopt procurement practices that have a positive impact on the environment, society, and economy.
Formosa Laboratories Local Procurement for General Affairs Purposes in the Past 3 Years
| Year | 2020 | 2021 | 2022 |
|---|---|---|---|
| Green Procurement Amount | 70 | 452 | 422 |
| Total Procurement Amount | 29,170 | 43,860 | 36,350 |
| Proportion of Local Procurement Amount | 100% | 100% | 100% |
The total amount of purchases in the above table includes the procurement of general goods such as office appliances, furniture, and supplies that are not used for production, excluding the procurement of raw materials and materials. The amount of green procurement is calculated based on the purchase of energy-saving appliances with environmental labels for the office.