Sustainable Supply Chain Management

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, Enhance supplier engagement and provide ESG education and training. In 2022, we organized the second Supplier Conference, In 2023 to 2024, SinoPac Holdings will continue to strengthen its sustainable supply chain management. In addition to achieving a 100% signing rate of the Supplier Sustainability Commitment among domestic suppliers, the Company also reviewed and revised relevant supplier regulations, implemented supplier self-assessment questionnaires, and conducted on-site audits for high-risk suppliers. And continue the achievements made in the past, SinoPac Holdings held its third Supplier Conference in 2025, It helped partner suppliers learn about SinoPac Holdings' supply chain management strategies and targets. Since 2019, SinoPac Holdings has been conducting human right risk assessment on the entire value chain every year. SinoPac Holdings will continue to encourage suppliers to strengthen the management and performance of ESG issues, and work with suppliers to expand SinoPac Holdings' sustainability influence.

Supplier Management-related Policies

SinoPac Holdings has established the "Supplier Sustainable Development Guidelines", and has taken management and risk mitigation measures for ESG risks that suppliers may incur with an amendment of the "Procurement Management Guidelines". In 2025, SinoPac Holdings has continued the Supplier Sustainable Development Guidelines from the previous year, expanding the scope to include carbon reduction commitments, biodiversity, anti-harassment, bullying and violence issues, and compliance, and extended the existing management scope to include management regulations for second-tier suppliers, encouraging second-tier suppliers to refer to the Supplier Sustainable Development Guidelines of SinoPac Holdings to establish environmental protection and human rights management measures. In the procurement management rules, SinoPac Holdings has added incentives to encourage suppliers to bid with products and services from social enterprises that offer environmental or social benefits, or to purchase from manufacturers that support the circular economy. In the "Supplier Sustainability Commitment", SinoPac Holdings requires all suppliers to fulfill their social responsibility, including environmental protection, human rights, and business ethics.

Suppliers Risk Assessment and Due Diligence

SinoPac Holdings rates the risk levels of suppliers based on the nature of their business activities. SinoPac Holdings distributes the Supplier Self-Evaluation Questionnaire to high-risk and medium-risk suppliers every 2-3 years for risk assessment. The Company also conduct risk identification and onsite audits for key sustainability issues. In 2023, SinoPac Holdings conducted supplier due diligence again, inviting all first-tier suppliers and some second-tier suppliers to fill in the supplier self-assessment questionnaire. The questionnaire focused on the four aspects of labor human rights, occupational safety and health, environmental protection, and business ethics. Based on the results of the analysis, SinoPac Holdings selected suppliers with higher risks in labor rights, occupational safety and health, and climate change, and conducted on-site audits for 7 suppliers in the fourth quarter of 2024. There were 3 suppliers with high occupational safety and health risks, accounting for 29.88% of the procurement value of this category (repairs and marketing services). There were 4 suppliers with high carbon emissions, accounting for 79% of the procurement amount from manufacturing/logistics suppliers. In January 2025, SinoPac Holdings held a briefing on the results of on-site audits for suppliers with high ESG risks and provided improvement recommendations to the 7 audited suppliers.

• SinoPac Holdings’ Supplier Sustainable Development Guidelines

SinoPac Holding's Sustainable Supply Chain Management in Steps