Update date: 2022/06/28
Alpha purchases and manages legal raw materials through the hazardous substance management platform.
In response to the environmental protection laws of various countries and customer requirements, Alpha Networks Inc. runs a Green Product
Management System (GPM), that employs control procedures and requires suppliers to sign a Guarantee, submit a third-party test report to
ensure that a product complies with the list of controlled substances, avoids the impact of harmful substances, and ensures that the product
complies with the spirit of green environmental protection from development to production.
Statistics on 3,312 MCD audits in 2021 are shown per month in the table below.Confirmation that the raw materials from the supplier meet
the standards for controlled substances.
Wastewater produced by Alpha consists of domestic wastewater and kitchen wastewater. As the wastewater is not from the production
process so voluntary disclosure covers only domestic wastewater.
A waste management procedure has been formulated by Alpha to establish an effective internal waste management system to prevent the
polluting of the environment through improper waste management. Waste is divided into general waste, hazardous industrial waste and
general industrial waste. Hsinchu plant is equipped with a compliant waste storage area, and a waste disposal company approved by the
government and with no fines over the past year is hired to dispose of Alpha's waste. To reduce waste, the Hsinchu Plant has since 2017
classified and labeled its waste. According to statistics, the output of general industrial waste in 2021 increased significantly compared
with 2020, mainly due to increased production in some months, which increased the process packaging material waste by 10,520 kg. The
company keeps strengthen its waste classification, labeling and posting instructions to achieve the goal of waste reduction.
Industrial emissions can be divided into particulate emissions and gaseous emissions. To ensure the effective control and reduction of
emissions from the production process, Alpha (Hsinchu) retains an EPA-accredited environmental testing organization to measure the
composition of emissions from the production process and reduce their environmental impact. All emissions must conform to the
discharge standards set by law.
Energy Resource Management
Alpha is committed to promoting energy conservation and carbon reduction, making improvements to energy-intensive equipment, as well
as upgrading environmental safety and health facilities of the company. This will not only improve the software and hardware for energy
conservation and carbon reduction at Alpha (Hsinchu Factory) but also achieve the goals of energy conservation, GHG reduction, and safety
& health management.
Loading adjustment of chillers and related equipment
Objective: Automatic adjustment according to the ambient temperature to achieve energy conservation and carbon reduction.
Method: The loading of the chillers and related equipment is adjusted automatically based on the ambient temperature and the desired
temperature in order to attain optimal system stability, efficiency, and minimal energy consumption.
Due to the increasingly serious global warming, the international community promotes energy conservation and Greenhouse Gas (GHG)
reduction. In response to global climate change, Alpha Networks Inc. has joined the Carbon Disclosure Project (CDP), committing ourselves
to carbon emission disclosure (ISO 14064-1) as an enterprise and product carbon footprint ( ISO 14067) to monitor, understand, control and
reduce our GHG emissions in a timely manner.
Greenhouse Gas Emissions
As a global citizen, Alpha Networks Inc. is very much willing to contribute to the protection of the global environment and to the reduction
of greenhouse gas emissions. In 2008, the ISO 14064-1:2006 greenhouse gas inventory standard was adopted, and the greenhouse gas
emissions of that year were set as the base year. We remain committed to greenhouse gas emissions investigation, slowing down global
warming, controlling and managing greenhouse gas emissions, and fulfilling our corporate responsibility for the global green new deal
and the green economy. Alpha Networks Inc. The trend of greenhouse gas emissions from 2008 to 2020, as shown below:
Total emissions of greenhouse gas on 2021 of Alpha Networks’ Hsinchu Factory achieve 637,676.56 ton CO2e. The emissions per category
were as follows:
Since 2013, Alpha has participated in the Carbon Disclosure Project (CDP) by registering a GHG emissions audit on the project website
(https://www.cdproject.net). After completing the disclosure, CDP will announce the company's annual disclosure score and performance
for the reference of our clients and related stakeholders. In 2020, the project consists of disclosure items such as climate change, water, and
supplier engagement. Security Score B – a decrease from the previous year, mainly due to raised annual assessment criteria. Subsequent
internal reviews were carried out to improve and continue tracking. Alpha Networks Inc. will continue to pay attention to global climate
change and related issues, and work together with other to improve the situation.
Supplier Selection/Evaluation/Reward and Punishment
The selection of suppliers is based on set criteria. Qualified suppliers must also undergo on-site audits or host review meetings to examine
their performance. A high-priority supplier management list is maintained by Alpha based on each department's evaluation of vendor
performance in five domains: quality, cost, delivery, service and technical. The evaluation outcomes are used as the basis for adoption of
key parts and to motivate suppliers.
In 2021, the average ratio of excellent (A) and good (B) suppliers was 97.40%, and the ratio of inferior (E) suppliers was 0.65%. Alpha offered
guidance to these poor (E) grade suppliers and demanded them to make improvements, while ongoing guidance was also provided to
acceptable (C) and inferior (D) grade suppliers to address their problems in order to improve the overall quality of delivered products.
Supplier Status Evaluation
The Supplier Evaluation Operation Guidelines set the quarter as the statistical interval. The evaluation results are reported in the following
month of each quarter. All key Alpha suppliers (involving large quantities and transaction amounts) are evaluated by the Purchasing,
Engineering, and QA units in terms of quality, cost, delivery time, service, and technical capability (see table below). Those with a score of
less than 60 will be listed as disqualified suppliers. If the score was lower than 60 points, it was listed as Non- recommended supplier.
In 2021, 154 suppliers were evaluated, and 0 suppliers were listed as non-recommended suppliers. In 2021, no suppliers were suspended
from new material transactions.
Supplier Purchasing Contract
To build a green supply chain, Alpha suppliers are required to adhere strictly to our “Hazardous Substance Guidelines.” Test report from
independent third-party bodies must be submitted where necessary. Source management is practiced for supplier production processes,
green product design and hazardous substances. Green management principles have also been incorporated into the supplier management
system. In 2021, material suppliers signed a "Supplier Procurement Contract" with 34 companies. In the future, Alpha will continue to sign
purchasing contract guarantees with the suppliers that we deal with to ensure the products we design and manufacture can also comply
with customers' RoHS-related international regulatory requirements and fulfill the goal of building a Green Supply Chain.
Corporate Social Responsibility Audit
Alpha Networks aspires to form a sustainable partnership with our suppliers; besides valuing the suppliers' product quality, shipping date,
and price, we also stipulated the Supplier Corporate Social Responsibility Management Operational Regulations based on the Code of
Conduct - Responsible Business Alliance (RBA), hoping to fulfill corporate social responsibilities with our suppliers, implement risk
management and operational sustainability. New suppliers must sign a supplier statement of commitment to ensure compliance with
RBA requirements and fill in the Supplier RBA Self-Evaluation Questionnaire. The aim is to understand the suppliers' performance in labor,
health and safety, environmental protection, management system, and business ethics before launching on-site audits according to the
supplier category and follow-up supervision, in turn making sure that the shortcomings are adequately improved. In 2021, Alpha Networks
conducted a supplier audit on 28 suppliers.
Disclose the source of raw materials – Banning the use of conflict minerals
Alpha is committed to monitoring the issue of conflict minerals, and to investigate the sources of gold (Au), tin (Sn), tantalum (Ta), Tungsten
(W) and Cobalt (Co) minerals to ensure they are “conflict-free.” We promise to form long-term partnerships for mutual success with our
suppliers. We expect and require suppliers to disclose the refineries and mines they work with. Suppliers are also asked to comply with the
RBA Code of Conduct in fulfilling their corporate environmental and social responsibilities together. Suppliers have been required to sign
the “Declaration on Non-use of Conflict Minerals” since 2013. The 2021 survey started in April 2021. By the end of December, 381 suppliers
had responded, making for a response rate of 63.39%. The recovery rate of those materials was 85.95%, sufficient to sign the declaration
and complete the CMRT questionnaire.
Alpha conducts customer satisfaction surveys to establish a customer need oriented quality system, where objective techniques are applied
to evaluate the level of customer satisfaction towards the company's products or services. The aim is to ascertain the gap between customer
needs and expectations in order to use it as the basis for improving the quality system, ultimately achieving the objective of sustainability.
It can be determined from the above charts that the customer satisfaction levels towards services provided by the Company in 2021 have
declined. For items of the survey that fail to reach a score of 85 points, the responsible unit will propose improvement measures and follow
through to resolve the customers' dissatisfaction. The trends on this chart show that customers' satisfaction with the services provided by
our company declined in 2021. The responsible units will propose and implement improvement measures to solve customer dissatisfaction.
However, customers highly appreciated our Green Product Implementation, and will continue to monitor customer needs and international
regulations to meet those demands.