Value Chain Overview

Evergreen Marine's service network spreads all over the world, with our suppliers spanning five continents. Viewing each supplier as an important business partner, Evergreen Marine works closely with all suppliers to promote the flow of international cargo by delivering owners' goods to their destinations.

Evergreen Marine's value chain
Evergreen Marine's value chain

To effectively manage suppliers, Evergreen Marine has drawn up the "Supplier Code of Conduct," which each supplier is required to comply with, and the principles of supplier selection that incorporate the aspects of CSR practice such as environmental protection, labor, human rights, and social impacts. How Evergreen Marine cooperates with each supplier is regulated through relevant instructions.

Selection of Suppliers

Recently, sustainable development indicators such as environmental protection, labor, human rights, and social impacts have gradually received public attention. To fully implement supplier sustainability management, Evergreen Marine encourages all partners to pitch into action to address sustainability issues. We have taken sustainable development indicators such as environmental protection, labor, human rights, and social impacts as one of the considerations for supplier screening and evaluation.

Five major aspects of the Supplier Code of Conduct
Five major aspects of the Supplier Code of Conduct

Supplier Evaluation

In 2018, Evergreen Marine established the "Supplier Code of Conduct" to set common values and standards for cooperative suppliers under five key aspects. Evergreen Marine also established the "Supplier Transaction Management Instructions" and "Business Partner Management Instructions" for the procurement department to follow.

The annual supplier evaluation is conducted every year, appraising each supplier's service quality, professionalism, flexibility, product delivery time, and price, as well as its CSR practice in environmental, social (labor and human rights), and economic aspects. The average result of the supplier evaluation in 2019 was positive and the requirements were met in every category.

Frequency of supplier evaluation

1. Qualified suppliers who have business dealings with the Company and may affect our service quality are evaluated at least once a year.

2. If regular evaluations of suppliers are impossible due to the particularity of the suppliers' business nature or the peculiar functions of their products, an evaluation will be conducted within the year from the date of business dealings.

Aspects of supplier evaluation

To examine the implementation of suppliers' corporate social responsibilities, the Company distributed questionnaires about suppliers' environmental, labor practice and human rights, and social responsibilities in 2019. A total of 129 questionnaires were retrieved. The suppliers' performances in the aspects of environmental protection, labor practice / human rights, and economy are summarized below, which serve as the basis for supplier screening and improvement.

Aspects of supplier evaluation
Environmental assessment
Environmental assessment
Labor practice and human rights assessment
Labor practice and human rights assessment
Social impact assessment
Social impact assessment