Selection of New Suppliers
Simplo Technology adopts a rigorous review mechanism when selecting new suppliers. Suppliers with good market reputation and environmental management systems can be directly included in the list of new qualified suppliers; those who do not meet the criteria will be required to make improvements within a specified period and can only be formally included in the list after passing the reassessment.
In 2024, both of the 2 new suppliers filled out the ESG selfassessment form and were selected in accordance with the Supplier Management/Evaluation and Assessment Procedures. This demonstrates that the Company continues to apply high standards of sustainability criteria in the initial screening process for suppliers, ensuring that the supply chain is environmentally and socially responsible at the source.
Supplier Code of Conduct
Simplo Technology views suppliers as important partners Specific methods and goals for sustainable supplier management have been established accordingly. Simplo Technology has adopted the RBA Code of Conduct as a reference and formulated the "Simplo Technology Supplier Code of Conduct Commitment". For suppliers who have transactions with the company, they must sign the Code of Conduct Commitment, declaring their commitment to business integrity and compliance with environmental, economic, and human rights standards. Since 2022, suppliers have been required to sign the "Supplier Code of Conduct Commitment". Cumulative 220 signatures as of 2024, with a 99% signature rate.
Supplier Sustainability Management Survey
In 2024, questionnaires were distributed to suppliers accounting for 85% or more of the procurement amount, totaling 17 suppliers, including 6 battery cell suppliers, 9 electronics manufacturers, and 2 mechanical component manufacturers. The results of this survey show that 82% of suppliers have published sustainability reports 18% of suppliers have set SBTi carbon reduction targets. In addition, 35% of suppliers have set RE100 renewable energy goals, and 71% of suppliers have completed the CDP climate questionnaire. In terms of certification, 53% of suppliers have passed the ISO 50001 energy management system, and all suppliers (100%) have obtained the ISO 45001 Occupational Health & Safety certification.
Supplier Health & Safety Performance Self-Assessment
In line with the activities of the Occupational Safety and Health Administration, MOL, Simplo Technology invited suppliers to participate in the "Health & Safety Performance Self-Assessment." This enables suppliers to understand their corporate positioning, potential advantages, and management risks, facilitating the joint development of long-term cooperation strategies between both parties. 22 suppliers were selected according to the definition of key suppliers, taking into consideration procurement volume, key components, and irreplaceability as selection criteria; 25 contractors engaged in on-site security, cleaning, and group catering were selected. As of July 31, 2024, a total of 25 key suppliers and contractors were invited to fill out the form, achieving a 100% response rate.
Supplier RBA Management
Simplo Technology has become a member of the Responsible Business Alliance (RBA) since 2021. In addition to its own compliance with the RBA Code of Conduct, it also promotes the RBA Code of Conduct to sustainable management of the supply chain. It advocated the RBA Code of Conduct at the 2024 Sustainable Supply Chain Communication Conference.
2024 RBA Audit Results
Simplo Technology conducts annual audits for the top 80% of suppliers by procurement amount. The audit team is composed of departments such as management, EHS, and sustainability. Audit methods include on-site inspections or remote document reviews. The RBA audit implementation principle prioritizes onsite audits for suppliers with manufacturing plants located in China. For suppliers located outside China and IC design firms not directly involved in production, remote audits are conducted. Simplo Technology conducted a total of 28 supplier audits in 2024. According to the audit results, they were divided into three levels of red, yellow, and green, and they were managed according to different levels. In the 2024 audit results, there were no red-light disqualified manufacturers. There were a total of 169 non-compliant issues identified, with the highest proportions found in the "labor" and "health and safety" aspects. These issues included overtime work violations, incorrect calculation of social security contribution base, inaccurate personal protective equipment allocation and fitting, and blocked emergency exits or evacuation routes. Regarding the non-compliant issues, suppliers have been requested to provide improvement plans and their implementation is being monitored to ensure all deficiencies are effectively addressed. In response to common deficiencies among suppliers, we have planned to conduct relevant courses to provide guidance and assistance for their improvement. This initiative aims to foster shared resources and mutual growth.
Responsible Mineral Procurement Management
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