Partnership with suppliers is an important way for CTI to boost value. We are committed to purchasing products and services in a responsible manner, and achieving sustainable development with our suppliers. It is our hope that suppliers could agree with our values and fulfill their responsibilities to stakeholders in honor of the principles similar to ours:

• Abide by all applicable laws;
• Respect the basic human rights of employees;
• Comply with laws banning the use of child labor;
• Be responsible for the health and safety of employees;
• Follow CTI’s regulations and measures applicable to suppliers.

Laboratory equipment and experimental supplies occupy the largest proportion in our procurement activities. They are also the prerequisite for CTI to operate and sustain. Accordingly, we have formulated procedural documents such as the Procurement Management Regulations, the Implementation Rules for Experimental Supplies Procurement, and the Implementation Measures for Experimental Equipment Procurement. These documents contain rigorous specifications on major procurement procedures within the Group to keep our procurement compliant, open and transparent. We are concerned with the compliance of suppliers in environmental protection, labor protection, and many other aspects. And our onboarding process for new suppliers includes the review of their permits, qualifications, and certifications in this regard.

Our Performance in 2020

Supplier Audit

We perform supplier audits at least once a year under the Management Measures for Suppliers of Productive Materials and other procedural documents. In 2020, we reviewed our suppliers of experimental equipment and supplies, 1,631 of which were qualified. And suppliers rated as excellent according to the review criteria accounted for more than 98%. In accordance with the management requirements of the Qualified Supplier List, we have banned suppliers that meet the conditions for cancelling supplier qualifications.

Green Procurement

Our purchase of experimental equipment characterized by high energy consumption, noise, radiation, vibration, waste water, and exhaust gas is set with a number of environmental assessment indicators. Suppliers are required to provide relevant data, and perform environmental impact verification. Some of our print marketing materials are made of FSC certified paper to promote the sustainability of forests.

Clean Procurement

We have identified potential integrity risks in procurement/subcontracting and positions and staff with high integrity risks. Based on that, the Code of Integrity in Procurement has been drafted and rolled out to strengthen the code of conduct in procurement/subcontracting – to remind risks; manage suppliers and staff engaged in procurement/subcontracting – to eliminate risks from source; perform Sunshine Procurement and regulate procurement processes – to control risks; implement supervision and review – to monitor risks; and handle fraud or corruption – to warn of risks. Considering experimental equipment and materials are the major items to be procured, and are substantively related to our services, we have signed the Integrity Statement on Fair Competition and Clean Procurement with all suppliers of experimental equipment and materials. Our mailbox and hotline for whistleblowing are available in the Statement, for the ease of mutual supervision with suppliers. We also require all procurement/subcontracting staff to sign the Code of Business Conduct agreement and the Procurement/Subcontracting Staff's Commitment to Integrity Practice, and organize them to receive pre-job training on integrity knowledge.