Supplier Evaluation, Audit, and Sustainability Requirements

Suppliers that intend to apply for business dealings with the Company must pass a documentary evaluation, and will be subjected to an on-site evaluation when necessary. We will only begin business dealings with suppliers that pass the evaluation and a profile is set up. If a supplier makes a late delivery, delivers products with poor quality, or is found in violation of labor safety rules, the Procurement Department's supplier evaluation mechanism will assess whether to blacklist the supplier. This allows us to select excellent partners for long-term cooperation.

We require that all suppliers comply with government laws and regulations during each procurement, including : applicable industrial safety qualifications, ISO qualifications, indications of hazardous materials, and illustrations. Manufacturers are required to properly recycle used containers or carrying aids, and give priority to products made by organizations for persons with disabilities. In the Quotation and Order Notice, suppliers are asked by the Company to precisely follow the requirements, furthermore, the Company's stance on the spirit of corporate sustainable management and the requirement to comply with fair trade principles are stated. Our goal is for vendors we do business with to meet requirements on environmental protection, labor safety, and human rights.

We began requiring vendors to sign the "supplier/contractor social responsibility commitment" and administering the "supplier/contractor social responsibility questionnaire" in 2019, so that vendors will understand our philosophy and jointly fulfill their social responsibility. Vendors are required to sign the commitment and respond to the questionnaire when they log into Formosa Technology E-Market Place or after placing an order, and are required to comply with related regulations. The environmental and social impact assessment was based on 1,490 commitment letters and 1,484 questionnaires, and the assessment results found no significant or potential negative impacts.

Vendor evaluations are arranged in the following year as needed based on the response to the "supplier/contractor social responsibility commitment "and" supplier/contractor social responsibility questionnaire" in the previous year, ensuring that our vendors fulfill their CSR according to requirements. Evaluation results in 2025 showed that no major risks, such as those associated with child labor, forced labor, freedom of association, and collective bargaining, were found among suppliers/contractors.