Huawei's Supplier Sustainability Agreement and Other Applicable Rules and Regulation

Sustainability is one of the Huawei's important procurement strategy and process. In order to select a qualified supplier, sustainability is a necessity for Huawei. Thus, to be a qualified supplier that able to cooperate with Huawei, they need to obey Huawei's Supplier Sustainability Agreement and other applicable rules and regulation.

In order to continuously improve the suppliers, Huawei uses procurement quotas as ways to enhance their suppliers. They are also used some applicable measures to manage the risks to develop a more robust supply chain ecosystem. Huawei extensively implements Quality First strategy in 2016. This is because sustainability is an essential component of their Broad Quality Principle, Huawei is given more weight in materials and suppliers eligibility, performance evaluations, and appropriation of their decision making. Huawei increases collaboration in sustainability with customers, as well as suppliers and industry organizations.

Furthermore, they used the ""Top Four Initiatives"" to maintain workers in important positions, improve production automation, increase workers expertise and manage IT-based management. Huawei puts a lot of effort in strengthening their redline requirements. Procurement quotas have been used to develop the sustainability among their suppliers. These efforts allowed them to reduce their supply risks, increase the consumer satisfaction, and increase the competition in the supply chain.In 2016, Huawei is able to maintain the sustainability of their supply chain by developing their collaboration with the customer to improve supply chain transparency. For example, Huawei had shared the result after conducting an on-site inspection on 10 suppliers with 3 consumers. Besides, Huawei conducts a survey with 2 consumers, and this survey is conducted towards the employees of the 10 suppliers. Therefore, portable technology such as some private communication applications is employed to enhance the information that transmitted between the organizations in the supply chain.

In April 2016, Huawei and Deutsche Telekom organized a shared seminar that discussed ""Creating Value for Business through Corporate Social Responsibility and Sustainable Development"". Apart from that, Huawei also integrates sustainability into supplier lifecycle and improved the collaboration with the suppliers. Huawei had examined 57 potential suppliers based on their performance of sustainability. In the results, 12 suppliers had been suspended and lost their opportunity to work with Huawei. They also reviewed the sustainability performance of 951 suppliers, there are two suppliers that have poor performance and Huawei had limited and restricted their business.

Furthermore, Huawei also improves their collaboration with governments and non-government organizations. This collaboration can be proved by strengthening and developing a market-driven green sustainable supply chain mechanism. In other words, Huawei is using the environmentally friendly materials to produce their products. According to the Global Report, 44.7 million metric tons of worldwide electronic waste (e-waste) has been generated in 2016. In other words, such amount of electronic devices such as mobile phones and TVs have been discarded in 2016. To take the responsibility to minimize the pollution that caused by the e-waste due to the dangerous metal and toxic materials, Huawei has run a Green World Recycling program by providing the services such as online and in-store trade-in program. Furthermore, to inspect the suppliers, Huawei used the company environmental data of the Institute of Public and Environmental Affairs (IPE).

In 2016, they found out that 10 suppliers had breached the environmental protection rules in doing their business. Therefore, they immediately examined and give these suppliers a chance to improve in order to meet Huawei's sustainability requirements within a limited time given. They also take part in developing China's green supply chain management guidelines and defining the green supply chain management and evaluation requirements of China's Ministry of Industry and Information Technology (MIIT).

Last but not least, Huawei improved the collaboration with industry players to develop standards and drive joint actions. Huawei was an expert member of a project dedicated to establishing CSR management systems and standards for China's ICT industry. They played a leading role in developing the IPC-1401 Supply Chain Social Responsibility Management System Guidance. They advocated that social responsibility should be integrated, as a customer requirement, into product lifecycles and the value chain. They also drove collaboration across industries and along the supply chain, helping industry players fulfill their social responsibility and become more competitive.