Supplier ESG Management

Goertek values its partnership with suppliers and is committed to building a transparent, green, fair and responsible supply chain system. We collaborate with partners for coordinated development, advance the integration of economic, environmental and social values, and jointly build a sustainable development ecological chain.

Goertek requires that all suppliers strictly comply with all applicable laws and regulations of the countries/regions where they operate, which serves as a prerequisite for cooperation with Goertek. While fulfilling its own responsibilities to respect employees and protect the environment, Goertek also requires suppliers to actively assume corresponding social responsibilities in areas such as labor human rights protection and environmental protection. With reference to the Responsible Business Alliance (RBA) Code of Conduct and relevant laws and regulations, Goertek has formulated the Goertek Supplier Social Responsibility Code of Conduct, which all Goertek suppliers and their upstream suppliers must be aware of and comply with. Upon reasonable notice, Goertek reserves the right to conduct on-site audits on its suppliers to assess their compliance with the Code of Conduct.

·  Supplier Selection and Audit

We incorporate four core dimensions into our supplier selection process, namely the business dimension (procurement costs, scale and goodwill, quality management, customer requirements, etc.), social dimension (labor management, occupational health and safety, hazardous substances, etc.), environmental dimension and governance dimension. In compliance with corporate and industry standards, we prioritize suppliers with outstanding performance in the social and environmental dimensions, focusing on their performance in labor human rights protection, the improvement of working conditions, the implementation of policies against forced labor and child labor, and the management of adverse impacts on communities, the environment and natural resources, so as to actively fulfill our corporate social responsibility (CSR).

Goertek conducts systematic social responsibility audits for all high-risk suppliers and guides them to achieve continuous improvement. Suppliers failing to meet compliance standards are subject to business restrictive measures, including exclusion from new projects, downgrading, or termination of the business relationship.

·  Controversial Sourcing

Goertek maintains a firm commitment to responsible mineral sourcing, and neither supports nor uses 'Conflict Minerals' extracted from armed conflict areas, illicit mining operations, or environments with substandard working conditions. We mandate all suppliers to adhere to the Responsible Business Alliance (RBA) Code of Conduct, to formalize this by executing the Conflict Minerals Commitment Letter. In alignment with the Organisation for Economic Co-operation and Development (OECD) due diligence guidance for responsible supply chains of minerals, we require suppliers to implement due diligence and traceability mechanisms for conflict minerals to ensure 100% country-of-origin traceability for all 3TG (Tantalum, Tin, Tungsten, Gold) raw materials utilized in our products. The identified potential countries of origin for 3TG minerals within our supply chain include:
Tantalum (Ta): Brazil, China, Germany, India, Kazakhstan, Mexico, Thailand, etc.
Tin (Sn): Malaysia, Peru, the Philippines, Brazil, China, India, Indonesia, Poland, etc.
Tungsten (W): Austria, Brazil, China, Germany, India, Japan, the Philippines, Vietnam, etc.
Gold (Au): Chile, China, Indonesia, Kazakhstan, the Philippines, Sweden, Uzbekistan, etc.

To jointly enhance ESG performance with all partners, we regularly conduct ESG-related training and activities, covering labor management, business ethics, environmental protection, energy conservation and carbon reduction.

Goertek has established an accessible, well-safeguarded and standardized grievance mechanism for supply chain workers, with grievance channels directly linked to the Company, to ensure that supply chain workers can safely and conveniently submit grievances regarding suppliers’ labor practices to the Company and safeguard the legitimate rights and interests of supply chain workers. We have released the formal policy Supply Chain Worker Grievance Mechanism of Goertek, and mandate all suppliers to inform their employees of the grievance channels through staff training, special briefings and other communication approaches.

Supplier Social Responsibility Code of Conduct of Goertek

Policy of Goertek Inc. on Responsible Mineral Sourcing for the Supply Chain

Supply Chain Worker Grievance Mechanism of Goertek