Supplier Sustainability Management Handbook

Sustainable Development 6 Wages and Benefits Suppliers must strictly comply with salary and benefit-related laws, ensuring that workers receive timely compensation that is no less than the local minimum salary or the industry standard (whichever is higher). Overtime pay must be paid in accordance with the labor laws and regulations of the country of operation, effectively safeguarding workers' legal right to their earnings. Occupational Health and Safety Suppliers must make every effort to ensure that the workplace and employee housing are clean, healthy and safe. This involves effectively preventing various risks, such as chemical, electrical, fire and structural risks, and ensuring that employees receive adequate health and safety training. In the event of a major safety incident, suppliers must report the details of the incident to the Group immediately (within two hours, in principle) and communicate proactively and transparently with the Group about the potential impact on orders. Suppliers must also take all necessary measures to ensure the delivery of the Group's orders and minimize the risk of delivery delays caused by the incident, including but not limited to coordinating other compliant production capacity and prioritizing production scheduling. Bosideng reserves the right to reassess the cooperative relationship based on the severity of the incident and the supplier's response performance, including but not limited to suspending orders and terminating cooperation. Environmental Compliance Suppliers must implement effective environmental and energy management systems, demonstrate a commitment to sustainable resource use, reduce their environmental impact and respond to climate change. Suppliers must comply strictly with all applicable environmental, energy, waste management and biodiversity protection laws and regulations in their operational and product market locations. They must also hold and renew all necessary environmental and energy-related permits and approvals and continuously meet the above requirements. Resource Management Suppliers should establish a reliable system for monitoring and managing resource and energy data, and use it to report accurately and promptly to Bosideng's ESG-related data platform. They should also regularly submit data on energy consumption, water resource use, greenhouse gas emissions and other relevant information. Suppliers must cooperate with Bosideng on renewable energy, energy efficiency improvement and emission reduction projects and audits. They must also set quantifiable, time-bound annual targets for reducing resource consumption and carbon emission intensity. Subcontracting Suppliers must not subcontract manufacturing processes without Bosideng's written permission. If subcontractors are used, they must commit in writing to comply with this Code and ensure that the entire supply chain adheres to Bosideng's sustainability standards. 2.2 Zero Tolerance Issues Bosideng defines the following behaviors as zero tolerance issues: 2.2.1 Child Labor • Employees engaged in work do not meet either the minimum legal working age