Supply Chain Management
Huali Group upholds four core principles: sustainable development, compliant operations, transparency, and win-win cooperation, deeply integrating ESG (Environmental, Social, and Governance) concepts throughout the entire supply chain lifecycle. We have established a comprehensive ESG risk assessment system covering the entire supply chain, setting clear quantitative targets and using ESG performance as a key criterion for supplier selection, contract signing, and performance appraisal. Suppliers demonstrating outstanding ESG performance receive substantial preferential treatment in procurement quotas and collaboration durations. In daily operations, we conduct regular reviews and dynamic track to identify potential risks related to environmental compliance, labor rights, and business ethics, implementing closed-loop management measures including early warnings, corrective actions, and follow-up verification. Additionally, we provide suppliers with periodic ESG-specific training sessions, sharing best practices and compliance tools to help them continuously enhance their ESG management capabilities, transitioning from "passive compliance" to "active leadership," thereby jointly fostering an environmentally responsible, socially accountable, and economically sustainable supply chain ecosystem.
Supplier Chain Management Process
Sustainable Raw Materials
We are committed to sourcing sustainable raw materials to mitigate environmental impacts and advance the circular economy. We prioritize certified materials with reliable sources and environmentally friendly production processes, focusing on those manufactured using low-energy, low-emission technologies; all procured materials comply with RSL standards. We actively promote recyclable and reusable materials to reduce resource consumption and waste generation, giving preference to those with high recyclability and regeneration rates. With customer collaboration, we work with suppliers to explore raw material recycling solutions, driving waste resource utilization through technological and operational innovations to achieve closed-loop resource management. By 2025, Huali Group has made significant progress in sustainable material procurement by establishing and implementing the Circular Economy Management Policy, Sustainable Raw Materials Policy, and Packaging Materials Policy, continuously improving the certification rate of various materials.
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