Sustainable Supply Chain Management

Supplier Code of Conduct
Supply Chain Layout

Supplier Code of Conduct

In 2022, Wiwynn established a Supplier Code of Conduct, covering five major aspects: labor, health and safety, environment, business ethics, and management systems. The code includes biodiversity, zero deforestation, and land protection, aiming for the sustainable use of resources and ecosystem protection. The company requires suppliers to sign and comply with this code to jointly promote sustainable development.
As of Q1 2024, the signing rate, including new suppliers, reached 94.69%

Supply Chain Layout

Since 2020, Wiwynn has been promoting a global supply chain reorganization based on security and risk diversification, adopting a "multi-region" and "localization" strategy. A new factory was established in Malaysia in 2023, gradually increasing production capacity in the country. The company encourages key component suppliers to implement global capacity layouts and collaborates with customers to ensure that over 80% of key suppliers support the production strategy at manufacturing sites.
In 2023, the local procurement ratio reached 72.90%

Supplier Selection
Sustainability Risk Assessment

Supplier Selection

Wiwynn has established selection criteria for suppliers (both new and existing suppliers), covering three dimensions: "Basic Information," "Core Competencies," and "Sustainable Resilience." Besides signing the Code of Conduct and various declarations, we encourage suppliers to issue ESG reports and require them to obtain ISO-related international certification standards or pass the RBA VAP validity audit.
In 2023, 100% of new suppliers were selected based on international certification standards in the "Sustainable Resilience" dimension

Sustainability Risk Assessment

To understand the sustainability status of the supply chain, in 2023, Wiwynn conducted an annual Self-Assessment Questionnaire (SAQ) survey for 88 key suppliers with procurement amounts over NTD 10 million (accounting for 99.75% of procurement amounts). A total of 79 suppliers responded, achieving a response rate of 89.77%. The questionnaire covered five dimensions: "Transparency and Business Ethics," "Sustainable Operation Management," "Labor and Human Rights," "Environmental Management," and "Responsible Procurement." Based on the responses, suppliers with potential high risks in economic, environmental, and social aspects were identified.

Five Dimensions of SAQ Survey

Audit
Improvement Actions

Audit and Improvement Actions

Wiwynn evaluates suppliers through various methods. In 2023, Wiwynn conducted SAQ audits on 79 suppliers. Sustainability risks are classified into four levels, with C level and below considered high risk. In 2023, no suppliers scored below 60 on the SAQ; however, based on three additional criteria, one supplier was rated high risk. This supplier submitted an RBA VAP report in Q1 2024 with a non-compliance rate of 4.3%, primarily related to health, safety, and environmental issues, requiring improvement within 90 days.

Reward, Elimination/Exit Mechanism
Education, Training, and Counseling

Reward, Elimination/Exit Mechanism

Wiwynn adopts quarterly evaluations and annual SAQ assessments as the basis for rewarding and eliminating suppliers. Evaluation criteria include core competencies and sustainable resilience (10%). Suppliers with A grade for three consecutive quarters and B grade or above in the SAQ assessment receive more orders and opportunities for new projects. Suppliers with E grade for three consecutive quarters and C grade or below in the SAQ assessment are downgraded to secondary suppliers and required to improve. Those who fail to improve within two years will be suspended or disqualified. In 2023, no suppliers were suspended or eliminated.

Quarterly Evaluation Grading

Reward and Elimination Mechanism Based on Evaluation Results