Global ESG sustainability issues continue to receive significant attention. Countries and companies are actively initiating carbon reduction actions in response to climate change, with many committing to net-zero emissions targets. The scope of carbon reduction efforts is also expanding to include supply chains. The Company implements the "Sustainable Due Diligence" mechanism by systematically identifying risks and engaging in the evaluation process to address environmental, social, and governance risks within the supply chain, and takes concrete management actions. At the same time, we continuously cooperate with suppliers to promote carbon inventory and reduce carbon emission actions, building a supply chain system that is resilient and has sustainable value.

Sustainable Supply Chain Policy

While valuing product quality, cost-effectiveness, technological innovation, service quality, and delivery reliability, Simplo Technology establishes long-term and trustworthy partnerships with suppliers to jointly promote the practice of environmental protection, human rights assurance, and business ethics. Simplo Technology will continue to work with supply chain partners to pursue a sustainable vision, creating a competitive and resilient sustainable supply system to achieve shared prosperity.

 

 
 

 

 

Four Major Strategies and Goals of Supply Chain Management

Simplo Technology aims to deepen sustainable supply chain management by developing "four major supply chain management strategies" based on industry characteristics and international trends. These strategies cover four key aspects: Climate Action, Environmental Sustainability, Friendly & Co-Benefit, and Risk Management, serving as the core framework for comprehensively advancing supply chain responsibility governance. On this foundation, we formulate phased promotion goals, and collaborate with supply chain partners to create sustainable competitiveness.

 

Supply Chain Overview

In 2024, Simplo Technology collaborated with a total of 251 suppliers, of which 246 were local suppliers and 5 were nonlocal suppliers. The percentage of local procurement amount was 96%. To strengthen supply chain resilience and reduce the risk of supply disruption, Simplo Technology continuously optimizes its supplier selection mechanism. Through rigorous evaluation standards and review processes, the Company carefully introduces new suppliers while cultivating long-term partnerships.

• Definition of Key Suppliers: Suppliers that meet any of the following conditions of a. procurement volume, b. key components, c. irreplaceability, are classified as key suppliers, mainly including three major categories: battery cells, electronics, and mechanical components.
• Adjustment of Management Documents: With reference to the spirit of ISO 20400 sustainable procurement guidelines, sustainable factors should be incorporated into procurement policies and measures to assist enterprises in managing ESG risks and opportunities.
★ Sustainable Procurement: In selecting suppliers and products, consider their impact on the environment and society, ensuring product quality, cost, technology, service, and delivery at the time of procurement, in order to reduce negative environmental impacts and enhance social and economic benefits within the supply chain.
★ RBA Code of Conduct: Require the signing of the RBA Code of Conduct by suppliers at the time of contract signing to ensure that suppliers comply with relevant regulations during cooperation.

 
 

 

Supplier Engagement

Sustainable Supply Chain Launch Ceremony

In June 2023, Simplo Technology held a Sustainable Supply Chain Communication Conference, themed “sustainability core, partners co-prosperity”. The conference unveiled Simplo Technology’s Sustainable Supply Chain Management Policy and conducted a signing ceremony to kick off the sustainable supply chain initiatives, witnessed by supplier partners. A total of 83 suppliers and nearly 200 participants attended the event online. This conference also provides RBA education and training for suppliers to explain the relevant requirements of five major aspects: labor, health and safety, environment, ethics, and supply chain management.


Definition of Key Suppliers
Based on 1. procurement volume, 2. key components, and 3. irreplaceability, the selection criteria for key suppliers define three main categories: battery cells, electronics, and mechanical components.


Key Supplier Management
According to the definition of key suppliers, 4 battery cell suppliers, 5 electronics suppliers, and 1 mechanical components supplier were selected, making a total of 10 suppliers. The CPO sent "Simplo Technology's expectations for suppliers on ESG to key suppliers", outlining sustainability goals for 2024 to 2026. Simplo Technology will continue conducting sustainability surveys of its suppliers, implementing selection, evaluation, and engagement process. We following the ISO 20400 sustainable procurement principles, conducting regular audits to promptly assess supply chain risk conditions. Through communication, guidance, and training, we aim to collaborate with supply chain partners to enhance operational resilience together.

Simplo Convenes 2025 Supplier Conference, Advocates Carbon Inventory Alignment to Accelerate Net-Zero Transition
 

Simplo Group convened the 2025 Sustainability Supplier Conference, continuing its core theme of “Sustainability at the Core, Shared Prosperity with Partners.” The event brought together more than 200 supply chain partners, reaffirming the Group’s commitment to advancing corporate sustainability through collaborative action, and enhancing overall supply chain competitiveness by sharing key management strategies and performance achievements.

During the conference, Simplo underscored four major strategic directions guiding its sustainable supply chain development: climate action through the establishment of science-based reduction targets (SBTi); environmental stewardship supported by the adoption of recognized sustainability certifications; inclusive partnership practices grounded in compliance with the Responsible Business Alliance (RBA) Code of Conduct and its auditing mechanisms; and robust risk management enabled by comprehensive sustainability risk assessments.

Findings from the 2024 supplier survey (Note 1) indicate that more than 80 percent of Simplo’s suppliers have already obtained ISO 14064-1 third-party verification. Approximately 23 percent have set carbon-reduction targets aligned with SBTi, while 34 percent have established RE100 commitments. In view of these results, Simplo introduced a three-phase decarbonization action framework to encourage suppliers to accelerate their carbon inventory efforts and formalize reduction targets, with the shared objective of progressing toward Net-Zero Emissions.

In response to global sustainability trends, Simplo also continued to strengthen supplier awareness in areas such as responsible minerals and restricted-substances management, human rights due diligence, nature-related financial disclosure initiatives, and information security. As a dedicated member of the Responsible Business Alliance (RBA), the Group reiterated its expectation that all supply chain partners adhere to the RBA Code of Conduct in order to align with international industry standards and broader societal expectations, thereby fostering a resilient and sustainable future together.

Note 1: Suppliers accounting for more than 80% of total procurement value.