Protection of Human Rights and Commitment

SinoPac Holdings complies with the principles set forth in the UN Universal Declaration of Human Rights, the UN Guiding Principles on Business & Human Rights, the UN Global Compact, and International Labor Organization Convention, and established the Human Rights Policy in 2018, emphasizing workplace human rights, providing a healthy and safe workplace, and respecting employees' freedom of association. The Policy is applicable to SinoPac Holdings, subsidiaries it has substantial control over, and companies from new business relations (e.g., consolidations, divisions, acquisitions, transfer or share exchange) with SinoPac Holdings, and suppliers and customers of business partners, and prevents any behavior that infringes on or violates human rights by establishing suitable management methods and procedures. SinoPac Holdings regularly conducts human rights risk due diligence, identifies major human rights risks, and takes mitigation and remedial measures based on the identification results. In addition, SinoPac Holdings has planned to incorporate human rights risk assessment into its Ethical Corporate Management Assessment Form. Starting in 2025, the Company reviews whether its counterparties (including new business partners) have been subject to any penalties for violating human rights protections. In the future, SinoPac Holdings will continue to monitor global human rights trends, developments in the human rights policy of domestic and overseas companies and changes in the business environment and carry out review and improvements accordingly.

• Equal pay - SinoPac Holdings provides equal opportunities in employee compensation and ensures no differential treatment based on gender or other factors. The female-to-male starting salary ratio is 1:1, reflecting the principle of equal pay for equal work. Salary management principles are stipulated in the “Work Rules” and the “Standards for Employee Salaries and Allowances, Overtime Payments, and Awards.” Gender considerations are incorporated into promotion and salary adjustment review mechanisms, which are regularly reviewed and continuously enhanced to foster a diverse and equitable workplace. The wages paid must at minimum meet statutory base salary standards in the jurisdiction in which they are located. Each year, we consider the national economic conditions, household income, and cost of living to strive to provide employees with a salary that can afford the local living standards.
• Respect for human rights in the workplace - SinoPac Holdings prohibits any form of forced labor, employment of child labor under the age of sixteen, human trafficking, and other actions that violate human rights. Total working hours per week (including overtime) and leave entitlements shall comply with local laws and regulations. Overtime work shall be compensated with either overtime pay or compensatory time off, and must not exceed statutory limits for daily or monthly working hours. In accordance with the Labor Standards Act, the extension of working hours combined with regular working hours shall not exceed twelve hours per day, and total overtime shall not exceed forty-six hours per month. Employees are provided with paid special leave in accordance with statutory requirements, with wages paid as usual during the leave period. Any unused special leave is compensated in accordance with applicable laws. The Company shall provide employees with paid annual leave according to related laws and regulations, ensuring wage payment as usual during the leave period. In addition, to encourage employees’ physical and mental well-being, promote work–life balance, and avoids or minimizes overtime work, the Company regularly reminds employees through internal communication channels to plan and utilize their leave appropriately, ensuring that their leave entitlements are fully protected.
• Freedom of association and collective consultation - SinoPac Holdings respects employees' rights to organize and join various clubs, participate in collective negotiation and organizations. In the event of large-scale layoffs, we will comply with relevant local laws and regulations for notification and procedures to safeguard employees’ labor rights. In accordance with the Act for Worker Protection of Mass Redundancy, prior to initiating mass redundancy, the business entity must notify the competent authority and relevant agencies at least 60 days in advance by submitting a written redundancy plan. We provide a variety of communication mechanisms and platforms to ensure harmonious and mutually beneficial labor-management relations.

In addition to internal management based on the human rights policy, SinoPac Holdings also requires its suppliers to fulfill their corporate social responsibility and respect international conventions on human rights. Besides selecting business partners and suppliers who comply with the spirit and basic principles of the human rights policy, SinoPac Holdings also established the “Supplier Sustainable Development Guidelines” and urged the suppliers that it frequently does business with to sign the “Supplier Sustainability Commitment” and require all suppliers to jointly implement social responsibilities, maintain sustainable environmental development, safeguard basic human rights, and abide by business ethics. SinoPac Holdings periodically conducts on-site inspection to grasp the status of suppliers' labor rights management, clarify the current understanding and cognition of human rights issues, and builds long-term partnerships with suppliers that achieve good performance. Suppliers found in violation may even lose their supplier qualifications.

Human Rights Due Diligence Process and Results

SinoPac Holdings has conducted regular human rights assessment by reviewing its operations and value chain (including suppliers and customers) and collecting the opinions of major stakeholders on human rights risks, and identifying human rights issues based on the “impact” and “likelihood”. SinoPac Holdings evaluates potential risk groups based on the identification results of major human rights issues at each node of the value chain and propose corresponding human rights mitigation and remediation measures, and continue to optimize the Human Rights Policy.

• Human Rights Risk Identification Questionnaire