Sustainable Supply Chain Management

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In 2018, SinoPac Holdings initiated the supply chain sustainability management plan and the comprehensive ESG management process was introduced in 2019, including the incorporation of ESG criteria into relevant supplier policies, supplier risk identification, supplier due diligence, and supplier engagement and communication. In 2020, established the online Supplier Evaluation System. In 2021, the Company was strengthened the engagement with suppliers. Based on previous achievements, SinoPac Holdings continued to enhance sustainable supply chain management in 2022. SinoPac Holdings not only held the second supplier conference but also provided ESG training for suppliers and followed the management steps of sustainable supply chain management to raise their ESG awareness. Since 2019, SinoPac Holdings has been conducting human right risk assessment on the entire value chain every year.

To manage the potential human right risk issues in the supply chain, SinoPac Holdings has taken risk mitigation actions and measures. In 2019, the Company completed the amendment of Procurement Management Guidelines by taking ESG criteria into account regarding the award of bid. In addition, criteria for giving extra points were added to the supplier evaluation based on the risks in high-risk industries to encourage suppliers that fulfilled their corporate social responsibility. In the Supplier Corporate Social Responsibility Commitment, SinoPac Holdings also ask all suppliers to comply with the code of conduct for labor human rights and occupational safety and health by fulfilling the management of employee salaries and benefits Also, suppliers shall establish a complete work safety system and management mechanisms to lower occupational safety risk, as well as to provide suitable education and training and establish labor accident reporting and reviewing mechanisms to ensure all employees are working under a safe environment.

SinoPac Holdings also conducted due diligence on suppliers’ sustainability and communicate with suppliers with high sustainability risk to provide guidance.

SinoPac Holdings will continuously enhance supply chain sustainability management. In the short-term, the Company aims to conduct regular supplier sustainability evaluation through the Supplier Evaluation System, strengthen the internal and external engagement on ESG issues, conduct on-site supplier sustainability audit, and identify suppliers with high carbon emissions. The medium-term goal is to establish ESG standards and provide ESG training for high-risk suppliers; the long-term goal is to encourage at least 20% of the suppliers in carbon-intensive industries to set carbon reduction targets.89.4% of SinoPac Holdings‘ suppliers signed the Supplier Corporate Social Responsibility Commitment’ in 2021 and increase to 95% signed in 2022, beyond the preset goal (90%), and 100% of new suppliers became the signatories. In the future, SinoPac Holdings will continuously increase the proportion of suppliers signing the Supplier Corporate Social Responsibility Commitment.