Supplier Sustainability Management Handbook

Sustainable Development 15 water use, and wastewater discharge at their operating locations. They must also ensure that all parties involved in water extraction, supply, and wastewater treatment maintain accurate, complete, and traceable records and qualifications; • Suppliers should maintain records and updates of relevant information with water resource-related providers (water source infrastructure, water supply services) and wastewater service providers; • Only after compliant treatment can wastewater be discharged, and sludge should be transported by licensed contractors; suppliers must control pollution during equipment maintenance periods; • Suppliers must evaluate the risks and potential savings related to water management and implement water-saving measures. 4.1.8 Chemical Management • Suppliers should follow the principle of "prevention first, control throughout the entire process" based on the chemical risk level, and strictly adhere to the Bosideng Chemicals Control Manual and Bosideng Restricted Chemical Substance List (RSL) , systematically advancing chemical management in the following priority order: o Priority for substitution: Follow the principles of green chemistry and the Zero Discharge of Hazardous Chemicals (ZDHC) program. Priority should be given to the selection of environmentally friendly, low-toxicity, or non-toxic chemicals. High-risk categories should be replaced to reduce hazards at the source; promote the certification of chemicals through external authoritative certification systems to ensure the safety and sustainability of alternatives. o Reduction in chemical use: Optimize production processes and usage procedures, and control dosage precisely to minimize total chemical consumption. o Safe Storage: Classify and store chemicals in designated areas. Ensure that these areas are equipped with leak-proof, fire-proof, and explosion-proof facilities. Clearly label storage conditions and hazardous characteristics. o Standardized Usage: Operators must undergo training and strictly adhere to operating procedures to ensure personal protection and prevent leaks and volatilization, which could harm the environment and personnel. o Compliant Disposal: Chemical waste, such as expired or residual chemical liquids, must be collected and labeled separately. It must also be disposed of by qualified organizations in compliance with regulations. Disposing of it indiscriminately is strictly prohibited. • Suppliers shall establish a chemical management register covering the full lifecycle, recording information on procurement, storage, use, and disposal to ensure traceability; • Core suppliers should submit monthly reports on the chemicals used in the production process and verify their ZDHC compliance rates through a third-party platform. Based on monthly monitoring results, suppliers shall progressively transition to fully compliant chemicals and establish long-term phase-out plans. • Emergency plans must be developed for hazardous chemicals, and regular drills must be conducted to ensure an effective response to emergencies and avoid environmental pollution and safety incidents. 4.2 Human Rights 4.2.1 No Child Labor