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Supplier Management

Supply Chain Composition Supplier Management Supplier Code of Conduct Supplier Evaluation Supplier Due Diligence

Supplier Due Diligence

To implement the Company's ESG practices and prevent and eliminate adverse impacts related to labor, human rights, the environment, bribery, conflict minerals, and other governance issues within the supply chain, we plan to reference the OECD guidelines on supplier due diligence. The Company will establish supplier due diligence guidelines to ensure that our main suppliers engage in ethical, honest, and lawful business practices. Supplier due diligence will be conducted annually, with the Operations Management Department requesting suppliers to provide company information and complete a questionnaire for review. If the evaluation results indicate a high-risk supplier, the Company will conduct an on-site audit of the supplier.

Suppliers are expected to regard environmental protection as a fundamental responsibility, reduce environmental impacts throughout their operations and manufacturing processes, and ensure worker health and safety. The Company has established the Supplier Code of Conduct for joint compliance and implementation. The Code covers labor and human rights, health and safety, environmental issues, ethical standards, and management systems. Environmental issues include environmental operating permits, pollution prevention and resource conservation, hazardous substances, wastewater, non-hazardous solid waste, noise, air emissions, product and service restrictions, energy and resource consumption, and greenhouse gas emissions. In advancing sustainable development, the Company recognizes the critical environmental impact of supply chain management and incorporates supplier compliance with the Code of Conduct as a key evaluation criterion in procurement decisions to ensure that supply chain partners are aligned with the Company's sustainability goals. The Company's related actions in 2025 were as follows:

  • Both key raw material suppliers have obtained ISO 14001 certification, achieving a 100% compliance rate.
  • A total of 51 new suppliers were evaluated. Suppliers involved in incidents related to air pollution, effluent, waste, toxic chemicals, noise, soil, groundwater, or other environmental issues listed above were ineligible to become qualified suppliers. The compliance rate was 100%.
  • A total of two long-term contract partners were invited to participate in environmental protection education courses.
  • The Company promoted carbon inventory and energy conservation and carbon reduction technical advisory programs offered by competent authorities among 12 designated suppliers, two of which completed the programs.

All of our suppliers have completed relevant evaluations and are continuously monitored. To track the implementation of corporate social responsibility by our suppliers, new suppliers are selected based on criteria that prioritize not only product quality, delivery compliance, and quality control capabilities, but also those with quality certifications (ISO 9001), environmental certifications (ISO 14001, carbon footprint, water footprint, etc.), occupational health and safety certifications (ISO 45001), and information security and privacy protection certifications (ISO 27001). Since 2018, the Company has included four major issues—environment, labor conditions, human rights, and society—as core selection criteria. As of November 2020, the "Supplier Code of Conduct" has been added as a mandatory evaluation item, and a self-assessment survey for suppliers in Taiwan has been implemented. Any supplier found to be in violation of environmental, labor, human rights, or social regulations will lose their qualified supplier status. By identifying and managing significant actual and potential negative impacts within the supply chain, we aim to achieve sustainable development in partnership with our suppliers. In 2025, there were 37 suppliers who met the aforementioned evaluation criteria and signed long-term procurement contracts with the Company. To prevent and eliminate adverse supply chain impacts related to labor, human rights, the environment, bribery, conflict minerals, and other corporate governance issues, the Company established the Supplier Due Diligence Guidelines with reference to OECD guidance on supplier due diligence, with the aim of ensuring that major suppliers conduct business ethically, with integrity, and in compliance with the law. Supplier due diligence is conducted annually. New supplier evaluations continue to incorporate ESG supplier due diligence topics, including environmental issues, labor and human rights, health and safety, ethical standards, intellectual property rights, non-use of conflict minerals (CSCC Conflict Minerals Policy), social issues, the Supplier Code of Conduct, information security, and privacy protection. Both key raw material suppliers have obtained ISO 27001 certification and implemented privacy protection policies, achieving a 100% compliance rate.