Supply Chain ESG Risk Assessment

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 2025, both of the 10 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 246 signatures as of 2025, with a 96% signature rate.
 

Supplier Sustainability Management Survey

In 2025, sustainability questionnaires were distributed to a total of 22 suppliers, covering 6 battery cell manufacturers, 12 electronics manufacturers, and 4 mechanical component manufacturers. The results of this survey show that 68% of suppliers have published sustainability reports, demonstrating steady progress in information disclosure and transparency. In terms of climate action, 23% have set SBTi science-based carbon reduction targets and 32% have set RE100 renewable energy targets, showing that the supply chain's low-carbon transition continues to advance. An additional 68% completed the CDP climate questionnaire, reflecting suppliers' continued attention to climate risk management. In terms of responsible supply chain management, 31% of suppliers have obtained RBA VAP validation, progressively strengthening compliance with international responsible business conduct standards. In terms of management system adoption, 50% have passed ISO 27001 information security management systems, 100% have passed ISO 14001 environmental management systems, 58% have adopted ISO 50001 energy management systems, and 77% have passed ISO 45001 occupational health and safety management systems, showing that the supply chain has established a certain foundation in environmental management, energy efficiency, information security, and occupational health and safety. In addition, in promoting supplier greenhouse gas inventories, 92% of suppliers have completed GHG inventory work in accordance with ISO 14064-1, of which 82% have obtained third-party verification, enhancing the supply chain's carbon management capability.