Supplier Sustainability Management Handbook

Table of Contents Chapter 1 Introduction .......................................................................................................3 1.1 Scope of Application ......................................................................................................................................... 3 1.2 Overview ........................................................................................................................................................... 3 Chapter 2 Supplier Sustainability Code of Conduct, Zero Tolerance, High-Risk Issues .......4 2.1 Supplier Sustainability Code of Conduct ......................................................................................................... 4 2.2 Zero Tolerance Issues ....................................................................................................................................... 6 2.2.1 Child Labor ..................................................................................................................................................................................................6 2.2.2 Forced Labor ................................................................................................................................................................................................7 2.2.3 Unauthorized Outsourcing ..........................................................................................................................................................................7 2.2.4 Work Environments with Severe Life-Threatening Hazards ...................................................................................................................7 2.3 High-Risk Issues ............................................................................................................................................... 7 2.3.1 Wages and Benefits ......................................................................................................................................................................................7 2.3.2 Working Hours .............................................................................................................................................................................................7 2.3.3 Transparency and Traceability ...................................................................................................................................................................8 2.3.4 Others ...........................................................................................................................................................................................................8 Chapter 3 Audit Requirements ............................................................................................9 3.1 Purpose of the Audit ......................................................................................................................................... 9 3.2 Audit Process .................................................................................................................................................... 9 3.3 New Factory .................................................................................................................................................... 10 3.4 Audit Requirements ........................................................................................................................................ 11 3.5 Audit Results and Rectification Plan .............................................................................................................. 11 3.5.1 Audit Results ..............................................................................................................................................................................................11 3.5.2 Rectification Plan .......................................................................................................................................................................................12 Chapter 4 Standards for Supply Chain Sustainability ........................................................ 13 4.1 Environmental Sustainability ......................................................................................................................... 13 4.1.1 Environmental Management .....................................................................................................................................................................13 4.1.2 Energy Management ..................................................................................................................................................................................13 4.1.3 Greenhouse Gas Management ..................................................................................................................................................................13 4.1.4 Gas Emissions .............................................................................................................................................................................................14 4.1.5 Ozone-Depleting Substance Management .................................................................................................................................................14 4.1.6 Waste Management ....................................................................................................................................................................................14 4.1.7 Water Management ....................................................................................................................................................................................14 4.1.8 Chemical Management ...............................................................................................................................................................................15 4.2 Human Rights ................................................................................................................................................. 15 4.2.1 No Child Labor ...........................................................................................................................................................................................15 4.2.2 No Forced Labor ........................................................................................................................................................................................16 4.2.3 No Discrimination .......................................................................................................................................................................................16 4.2.4 No Harassment, Abuse, or Gender-Based Violence .................................................................................................................................17 4.3 Fair Labor Terms ........................................................................................................................................... 17 4.3.1 Recruitment ................................................................................................................................................................................................17 4.3.2 Costs and Personal Documents ..................................................................................................................................................................17 4.3.3 Labor Intermediaries .................................................................................................................................................................................18 4.3.4 Formal Employment ...................................................................................................................................................................................18 4.3.5 Wages and Benefits .....................................................................................................................................................................................18 4.3.6 Working Hours ...........................................................................................................................................................................................18 4.3.7 Freedom of Association and Collective Bargaining ..................................................................................................................................19 4.3.8 Disciplinary Actions ....................................................................................................................................................................................19 4.3.9 Termination of Employment ......................................................................................................................................................................19