Responsible Procurement

Improve the sustainability of supply chains

In response to changes and updates to sustainability trends, Nanya Technology Corporation will continue to improve supplier sustainability through seminars and project guidance, which raise suppliers' awareness and ability to achieve sustainability.

Sustainability projects

• Three-zero human rights program

  Contents of cooperation	We promote the human rights program that advocates zero crimes against humanity, zero forced labor, and zero discrimination to significant suppliers
  Expected benefits	Strengthen human rights protection, reduce the exploitation of human rights, create a friendly workplace, and avoid becoming a sweatshop
  Quantified benefits	Initiatives and promotions from 2022 to 2023: Continue to communicate with and provide guidance to suppliers that support the Three-Zero Human Rights Program in coordination with the audit schedule, and investigate the company's current system to evaluate its inclusion as a key supplier. Continue to communicate with suppliers that have not responded to the Three-Zero Human Rights Program each month. Mitigation and remediation from 2024 to 2025: Continue to communicate with, provide guidance to, and track suppliers that support the Three-Zero Human Rights Program in coordination with the audit schedule. Track the establishment of a human rights system by suppliers audited each month (approximately 3 suppliers), and provide guidance to suppliers with writing a human rights code of conduct. Continue to encourage other suppliers to support the Three-Zero Human Rights Program Termination and prevention from 2026 to 2028 : Track the establishment of a human rights system by suppliers, provide guidance to suppliers for establishing human rights risk assessment regulations, and implement risk identification and compensation measures. Tracking and disclosure from 2029 to 2030 : Prepare and periodically disclose human rights due diligence reports
  Note: By the end of 2022, a total of 15 significant suppliers had signed the Three-zero Human Rights 30 Initiative to respond to the Supplier Sustainability Project.

• Product carbon footprint inventory

  Contents of cooperation	Encourage raw materials suppliers and packaging and testing plants to compile their carbon footprint inventory
  Expected benefits	Aligned with international climate change issues Reduces the Company's product carbon footprint Achieving the SBTs in 2030 will be beneficial
  Quantified benefits	Inventory : Nanya Technology Corporation compiles the environmental footprint inventory of its products every year to find suppliers that cause an increase in product carbon footprint Set a Goal : Prioritize the top 12 raw materials suppliers and contractors with the highest carbon emissions for promoting the carbon reduction project and long-term goal of net zero emissions communication method : Communicate with the top 12 raw materials suppliers and packaging and testing plants with the highest carbon emissions, and participate in the low carbon footprint inventory and carbon reduction project of the Industrial Development Bureau under the guidance of the Industrial Technology Research Institute Implementation progress tracking and feedback: The Industrial Technology Research Institute provides guidance for supplier low carbon footprint inventory and carbon reduction projects over a two-year period. Create and share the supplier product carbon footprint inventory on the platform

Improvement project for human rights risks of suppliers / Subcontractors' migrant workers

Suppliers' stable and good supply capabilities come from stable production manpower and friendly working environments. Migrant workers are indispensable sources of labor for a majority of factories. However, most of migrant workers are brought to Taiwan through manpower agencies, which is prone to high risks of human rights management. Therefore, we have promoted the human rights protection for migrant workers as one of our supplier sustainability projects. We started to assess human rights risks of Subcontractors' migrant workers in 2019. The assessment was based on the provisions of Freely Chosen Employment in the RBA Code of Conduct, including, voluntary work and redundancy, zero fees for workers and not holding their identity cards and personal certificates under any circumstances, and no unreasonable restrictions on workers' freedom of movement and their primary movement areas. Actual implementation aspects include: Zero payment (including commissions, fees of accommodation, transportation, documentation, and health checkups), installing lockable safe boxes for storage of important documents and possessions, direct remittance of wages to employees' bank accounts, free access to working and living space, holding religious and cultural activities, and preventive measures against infectious diseases. In 2019-2022, the amount refunded totaled approximately NT$78,060,000, benefiting 3,078 migrant workers.

Supplier energy-saving activity promotion project

Encourage raw materials suppliers and packaging and testing plants to compile their product carbon footprint inventory: