Sustainable Value Chain

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Sustainable Value Chain

Hsin Tung Yang integrates sustainability principles into every part of its operations, from the upstream supply end through to manufacturing, striving to build a sustainable value chain that balances economic, environmental, and social responsibility. We regard our contractors as long-term business partners, working together to strengthen brand resilience through rigorous management mechanisms and carbon reduction actions.

Sustainable Value Chain Management

Through the Supplier Management Procedures and the Raw Material Procurement Management Procedures, Hsin Tung Yang incorporates ESG indicators into its core management processes. Through rigorous supply chain management, green manufacturing, and transparent product labeling, it works with upstream and downstream partners to build a sustainable industry chain that balances economic growth with the environment.

ESG Supplier Screening Mechanism
  • We have explicitly incorporated ESG indicators into the Supplier Audit Form, where this dimension carries a weight of 35%. For new raw material suppliers, we conduct 100% ESG screening.
  • Screening criteria: Covering the environmental dimension (waste and wastewater treatment), the social dimension (a strict prohibition on employing child labor), and the corporate governance dimension (third-party food safety certification, HACCP plan).
  • Definition of a green supplier: A contractor meeting three or more ESG screening elements is classified as a "green supplier" and enjoys priority partnership rights in procurement decisions.
  • Performance analysis: From 2023 to 2025, the proportion of new suppliers meeting the green criteria remained at a high level, reaching 94% in 2025.
Screening Criteria for "Green Suppliers" Among New Raw Material (Including OEM) Suppliers
Screening CategoryScreening Item
Environmental Aspect
  • Outer packaging is made from recycled materials or is complete, clean, and complies with labeling regulations.
  • Has relevant treatment measures and monitoring equipment that comply with environmental regulations, such as wastewater treatment and air pollution control.
Societal Aspect
  • No child labor is employed.
Corporate Governance/Regulatory Aspect
  • Provide specifications and inspection reports issued by third-party inspection organizations.
  • Provide third-party food safety audit reports or HACCP plans.
  • Possess food certification documentation (CAS, GHP, organic TAP, or others).
  • Provide customs declarations, import animal and plant inspection certificates, import permit notification documents, etc.
Other
  • Establish a food defense plan and a food fraud mitigation plan.
Sustainability Assessment and Performance Tracking
83
%
2025 Environmental Sustainability Declaration Signing Rate (%) of Partner Suppliers
Percentage of procurement amount from raw material and OEM suppliers, equivalent to 646 million

We apply dynamic tiered management to existing suppliers to ensure their operations continue to meet regulatory and sustainability standards.

  • Signing of environmental sustainability statements: As of 2025, raw material (including OEM) suppliers that have completed signing accounted for 83% of purchase value. In the future, the Company plans to introduce an ESG assessment form and strategic criteria into the contracting process and to deepen its outreach by convening a supplier conference.
  • Food safety certification progress: In 2025, a total of 33 tier-one suppliers obtained FSSC 22000 certification, accounting for 12.6% of the total number of suppliers by procurement.
Supplier Verification and Sustainability Communication

Hsin Tung Yang actively promotes a sustainable value chain and conducts annual surveys of raw material suppliers. The company encourages cooperative suppliers to actively obtain international standard certifications related to food safety and environmental sustainability, such as ISO, HACCP, traceability systems, organic certifications, and environmental labels, continuously enhancing supply chain management quality.

2025 Statistics on the Number of Suppliers with Various International Certification Lables
*Note 1: Statistical data detailed in Appendix 1, Table 4-3: "Verification Standards Met by Raw Material Suppliers from 2023–2025"
*Note 2: Individual suppliers may satisfy multiple assessment criteria or participate in more than one project. Accordingly, the supplier counts presented for each category are calculated independently. As a result, the aggregated total across categories may differ from the total number of unique suppliers disclosed above.
Animal Welfare

Hsin Tung Yang has long been committed to ensuring food safety and values transparency in raw pork production information. Through the use of production and sales traceability records of pork, Hsin Tung Yang can clearly identify the source of pigs, raising conditions, production and inspection processes, and other information. While implementing food safety traceability management, the Company also ensures that animals are treated with care.

Specific Animal Welfare Promotion Measures​
Carbon Reduction Actions: Leading Smaller Suppliers by Example

Taking the lead, Hsin Tung Yang drives its supply chain partners to undertake low-carbon and smart upgrades.

  • "1+10" model: Leading 10 major collaborating and capacity-expansion contractors to take part in the guidance program.
  • Greenhouse gas inventory: Guiding partners in building an ISO 14064-1 database.
  • Substantive reduction: Completed suppliers’ Scope 2 emissions in 2024; reduced emissions by 759.1 metric tons CO2e.
Taking the lead, Hsin Tung Yang drives its supply chain partners to undertake low-carbon and smart upgrades.

In 2023, Hsin Tung Yang took part in the Industrial Development Administration, MOEA’s "Large-Enterprises-Leading-Small-Enterprises Program for Assisting Low-Carbon and Smart Upgrade and Transformation in Manufacturing," proactively serving as the lead enterprise and, under a "1 leading 10" approach, calling on its major collaborating and diffusion contractors to jointly take part in the low-carbon upgrade and transformation program.

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