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 and ESG education training for suppliers to help them raise their ESG awareness and continue the achievements made in the past. In 2023, SinoPac Holdings will continue to strengthen its sustainable supply chain management by not only signing 100% of the commitments by suppliers, but also refining the management system, reviewing and adjusting the relevant rules and regulations of suppliers, and implementing the supplier self-assessment questionnaire. 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 Sustainability 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.

Supplier Management-related Policies

To manage the potential ESG risks in the supply chain, SinoPac Holdings has stipulated the“Supplier Sustainable Development Guidelines”, and taken risk mitigation actions and measures, including revising the amendment of Procurement Management Guidelines by taking ESG criteria into account regarding the award of bids. In 2023, SinoPac Holdings reviewed its supplier management documents, added new provisions such as carbon reduction commitments, biodiversity, anti-harassment, bullying and violence issues, and compliance, and extended the existing management scope to include 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.

Suppliers Risk Assessment and Due Diligence

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 to understand the management measures and performance of each supplier in the four aspects of labor human rights, occupational safety and health, environmental protection and business ethics. The management measures and performance of the four major aspects will be included as a reference for future supply chain management planning and improvement, and provide improvement suggestions for each category of suppliers that need to be strengthened.

• SinoPac Holdings’ Supplier Sustainable Development Guidelines

SinoPac Holding's Sustainable Supply Chain Management in Steps