Supplier sustainability management

The company's internal control system has a "Supplier Selection Management Procedure Book". For procurement management, appropriate material suppliers and engineering contractors fill in the "Supplier Basic Information". The second is to "Supplier Evaluation Form" Suppliers pay attention to environmental protection, occupational safety and health and other items to conduct self-evaluation. The company and its suppliers use various methods to strengthen the promotion of the corporate social responsibility policies followed by the company during the trade process.

In formulating new supplier assessments and annual supplier assessments, the company takes stock of the overall status of suppliers step by step, and works together with Shangpin to achieve the goal of sustainable development

In order to fulfill our corporate social responsibilities with suppliers who provide services, supply relationships and business dealings, our company is committed to assisting suppliers in paying attention to issues such as environmental protection, safety and hygiene, so as to promote the practice of balanced and sustainable development of the economy, society and the environment. The supplier's social responsibility commitment letter is formulated as follows: The supplier's commitment should be based on the principle of good faith management, conduct transactions in an open and transparent manner, pursue sustainable business operations and profits, and fulfill the practice of corporate social responsibility and abide by labor laws. Rights and human rights, environmental protection, integrity management ethics and other relevant laws and regulations, and is committed to helping suppliers pay attention to environmental protection, safety, health and other issues to promote the balanced and sustainable development of the economy, society and environmental ecology. The supplier declares that it will do its best to fulfill its corporate social responsibilities. If there is any violation of the aforementioned laws, it will cooperate with the competent authorities or the company's requirements to improve within the time limit, and regularly provide the company with the improvement processing situation for follow-up review until the improvement is completed.

Implementation status of Supplier Code of Conduct:

The company will announce the supplier code of conduct on the company's official website from July 2023, and notify each supplier by email. In 2023, 275 supplier promotions will be carried out. The promotion content includes : A Labor B Health and safety C Environmental standards D Business ethics E Elements in the relevant areas of this code. It is expected that suppliers can work together to improve the company system and implement contractor education and training in 2023 so that each manufacturer can learn relevant knowledge and work together. Trained 133 manufacturers entering the factory.
In order to effectively understand the various corporate social responsibility measures implemented by suppliers, Shangpin formulated the "Supplier Corporate Social Responsibility Assessment Form" and conducted corporate assessments on a total of 34 important material suppliers. The assessment content mainly focused on labor rights and labor regulations. and the current operating status of the company to further understand the progress of suppliers in environmental management and pollution disposal. The feedback results showed that more than 90% of the suppliers have achieved qualified standards. Subsequent random inspections were carried out among 34 suppliers for on-site understanding, and the random inspection rate was 30%. % received a total of 10 indirect visits and audits.

Verification mechanism:

According to the Ministry of Labor's "Labor Law Violation Institution (Employer) Inquiry System", a total of 259 suppliers did not violate laws and regulations in 2023, reaching 94.2%. Although 16 of these suppliers violated the Labor Standards Act, the Occupational Safety and Health Act, the Labor Occupational Accident Insurance and Protection Act and other relevant laws and regulations, each manufacturer is still actively investing in relevant improvements. The company will continue to pay attention or provide relevant assistance.