WIN-WIN WITH SOCIETY
Longfor Group vigorously advocates the concept of green procurement and insists on promoting the green supply chain. Following the Green Procurement Policy and other systems, we articulate suppliers' environmental performance requirements during the bidding and procurement stages and select environmentally friendly suppliers based on their merit. In addition, we encourage suppliers to participate in the joint development of procurement dimensions to create products that are friendlier to the environment, easier to produce, and free of the volatilization of harmful substances. We have included this work in our work objectives and linked it to performance to improve the overall sustainability of the supply chain.
We include the supplier plant's energy consumption and pollution emission performance as a requirement for participating in the bidding process. We also inspect the supplier's energy-saving and emission-purification equipment during prequalification.
We strengthen the inspection of raw materials, requiring material suppliers to ensure that their products meet environmental standards while limiting emissions of formaldehyde, volatile organic compounds (VOC), and other hazardous substances.
We focus on purchasing materials made from renewable resources, such as gypsum plaster.
For new expansion project, we encourage using materials with low VOC and lead, with a preference for wood certified by the Forest Stewardship Council or its equivalent, such as FSC-certified wood.
We apply steel wood entry doors and interior doors with synthetic wood veneer to decrease the use of natural wood veneer.
We apply artificial stone to reduce natural stone consumption.
We require our suppliers to use a chromium-free passivation process to produce aluminum alloy materials, which controls the presence of chromium ions at the source.
We include the green building materials star requirements to drive upstream suppliers' green and sustainable development when purchasing interior wall paints, such as stricter requirements for formaldehyde, VOC, heavy metals, etc.
Longfor Group abides by the Government Procurement Law of the People's Republic of China, the Bidding Law of the People's Republic of China, and other relevant laws and regulations. We have developed a comprehensive supplier life-cycle management system encompassing supplier entry, selection, evaluation, grading, and exit. Using risk assessment, classification, and grading management strategies, we identify suppliers with the willingness, capability, products, and services to increase cooperation and form a virtuous cycle of value chain co-progression.
Longfor Group highly accentuates the quality performance of its suppliers. Every year, we perform regular research on our Tier 1 suppliers and direct suppliers to assess the quality of raw materials, semi-finished, and finished products. Simultaneously, we rigorously scrutinize the qualifications of Tier 1 suppliers and direct suppliers and proactively engage suppliers, contractors, and subcontractors with third-party quality management system certification. For indirect suppliers and raw material suppliers, we define the corresponding quality requirements in the "Supplier Engineering Technology Requirements". For raw material suppliers, we select outstanding material suppliers in order to ensue the quality of our products. In addition, we regularly organize quality training and conduct special quality training for all suppliers at least once a year to impress upon them the significance of production, construction, and product quality, educate them on the latest quality-related laws, regulations, and regulatory requirements, and specify common quality risks and solutions to strengthen their quality control capabilities.
Longfor Group has signed the Agreement on Integrity in Cooperation with all suppliers, including contractors, and required them to strictly adhere to the relevant provisions on integrity compliance in the Code of Longfor Business Conduct. We regulate the integrity obligations of both parties through legal contracts to promote the development of a healthy and clean supply chain. In 2022, Longfor Group strengthened the management of integrity in procurement，collaborate with the internal audit department of to review issues such as related relationships and conflicts of interest, greatly improving the group's ability to conduct clean procurement audits. In 2023, the percentage of suppliers who signed integrity agreements with Longfor reached 100%.
