4,767 suppliers
As of the end of the reporting period, LONGi had a total of
Supplier Management Mechanisms

LONGi has formulated the Supplier Management Procedures, the Supplier Recruitment Management Measures, the Supplier CSR Management Measures, and revised and added the Supplier Development Management, the Supplier Exit Management, Supplier Performance Management, and Supplier Communication Management, totally 17 internal management documents. These documents break down the management framework into detailed rules and processes, achieving systematic and standardized supplier management and control.

1. The procurement expenditure on LONGi’s significant tier 1 suppliers accounted for 85% of the total procurement budget, and 357 diversified have completing registration.

LONGi is dedicated to fostering a fair, just, transparent, and efficient supplier management system. In 2023, LONGi refined the structure of the Supplier Management Committee, clarifying functions at all levels to achieve a more efficient and professional specialization and collaboration. This ensures that management tasks are handled with a dedicated and meticulous approach.

Structure of Supplier Management Committee

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    Decision-making
    • Responsible for formulating supplier management direction and strategy, holding meetings semiannually.
    • Regular communication with strategic suppliers.
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LONGi categorizes suppliers based on their operational characteristics and cooperation performance, scoring collaborative suppliers monthly, biannually, or annually by the dimension of quality, costing, delivery, service, technique, and ESG performance. Based on the scores, suppliers are classified as A, B, or C grading, with corresponding rewards or penalties accordingly.

Supply Chain Risk Management

To ensure the stability and security of the supply chain, LONGi established a comprehensive risk monitoring mechanism, regularly assessing and updating supply chain risks to ensure promptness and effectiveness in risk management.

LONGi’s supply chain risk management measures

  • Trade risks
    • Developed the Global Customs Compliance Management Measures, conducted annual reviews for import and export trade compliance risks, and took prompt preventative measures.
158 suppliers
Underwent annual CSR due diligence audits in 2023
83 %
Expenditure covered
0 supplier
material violation of either being assessed as significant actual or potential negative impacts, or being terminated cooperations for significant actual or potential negative impacts

LONGi reviews suppliers’ environmental and social risks through internal and external assessments. In the supplier access process, we conduct rigorous social responsibility risk screenings. After the supplier are approved, during the whole cooperation process, we introduce authoritative third-party risk tools to supervise suppliers’ dynamic business qualifications, legal records, compliance risks, and environmental violations.

In 2023, LONGi conducted its annual due diligence surveys to identify suppliers ESG risks, covering environmental management, human rights and labor protection, health and safety, business ethics, and corruption prevention. We crafted and carried out supplier ESG risk surveys, clearly requiring procurement employees to record supplier performance in the Supplier ESG Risk Survey Form. At the same time, we conducted annual supplier ESG on-site audits. Based on scores and findings, suppliers were categorized and managed accordingly. For high-risk suppliers, we actively coached them to carry out rectification and conducted regular re-audits to ensure closed-loop corrections.

Findings and Corrections in the CSR due diligence

Category Percentage Findings Corrections
Labor rights 31% -Regular collection and feedback of employee complaints were not conducted. -Employees bear the pre-employment medical examination fee. -Improved the appeal mechanism by establishing an anonymous complaint channel for regular collection and feedback of employee complaints. -The medical examination fee incurred by the employee due to employment is borne by the employer.
Business ethics 1% Managers and relevant employees were not required to conduct regular self-inspections, nor were effective preventive and corrective measures developed based on self-inspection results. Enhanced the business ethics management system and established an internal self inspection and correction mechanism.
Environmental protection 5% -Lack of operation and maintenance records for waste gas and wastewater treatment facilities. -Chemical MSDS2 were not posted as required. -Established operation and maintenance records for waste gas and wastewater facilities. -Trains chemical management personnel to post MSDS as required.
Health and safety 48% -Fire protection facilities (such as fire extinguishers and fire hydrants) are not checked in time. -No medicine dispensing list prepared. -Improve the three-level responsibility system of safety management, comprehensively investigate the risk of fire protection system, and maintain the normal operation of the system. -Set up medicine dispensing management measures.
Management system 15% -Sub-suppliers' signing rate of the Supplier CSR Code of Conduct is less than 100% -Suppliers do not regularly carry out CSR risk assessment and classified management. -Required suppliers to monitor sub-suppliers and sign the CSR Code of Conduct of Suppliers. -Mandated suppliers to conduct CSR risk assessments and management to meet LONGi’s requirements.
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LONGi Supplier Management Policy