WT has formulated a Supplier Code of Conduct to regulate vendors in five major aspects. In order to continuously optimize vendor management, new vendors of 2023 were required to conduct a six-part self-evaluation of human rights, labor practices, consumers, ethical management, environment, and health and safety. A self-assessment questionnaire was used to analyze a vendor’s current risk level, including its sustainability awareness, whether there are major deficiencies or illegal situations, etc. In addition to Taiwan, the operating sites in China also began to require general vendors to conduct the self-evaluation in 2023.

WT requires new vendors to conduct a self-evaluation of social responsibility, labor practices and environmental protection, fill in the “Supplier Self-Assessment Form” truthfully, and sign back the “Supplier Corporate Social Responsibility Commitment Letter”. The return rate was 100% in 2023. According to the supplier self-assessment, four companies were exposed to high environmental risks, mainly due to lacking specific energy-saving measures (such as using renewable energies, replacing with energy-saving devices and energy-saving awareness measures, etc.). As neither of these four companies was a key vendor, individual communication, energy conservation awareness outreach and other measures were taken to enhance their sustainability awareness. In addition, a vendors assembly and training is being organized for 2024 to promote WT’s sustainability vision, cultivate joint sustainability implementation capabilities, and strive to maximize ESG development benefits through supply chain cooperation.

All vendors (other than vendors) with an annual transaction amount totaling more than NT$ 1 million or more than 12 transactions are subject to an annual assessment. The average evaluation score was 84.07 points in 2023 is 84.07 points, with A-level suppliers (scoring 80 points or more) accounting for 79.7%, up 4.4% relative to 2022. WT will optimize vendors evaluation items and standards to address ESG in a more comprehensive manner in the key vendors assessments.
 
On the occasion of World Earth Day, WT held a beach cleanup event and invited vendors to join and make a difference for the marine environment. To keep the Company’s sustainability commitment in line with its growth, WT will increase sustainability-related activities and training to create more opportunities to engage in sustainability dialogues with vendors.


Tracking vendors’ environmental and social management guidelines
Abiding by key vendors’ code of conduct
Vendors of a certain size always have comprehensive code of conduct in place to ensure that their operations comply with relevant laws and regulations and international standards. In addition, WT continues to track if a vendor complies with the Responsible Business Alliance Code of Conduct (RBA Code of Conduct). As of the end of 2023, 66.67% of the vendors making up 95% of WT’s purchase amounts have passed RBA audits.
 
All the products that WT represents comply with national regulations and standards on substances of concern
Considering the impact of the use of products on users’ health and safety, WT aims to 100% comply with the laws and regulations on substances of concern in the countries required by customers. It keeps a close watch and timely updates the control list accordingly. When a customer requests a list of materials used in a product, WT assists the customer in obtaining relevant lists from the vendors (such as a declaration for non use of prohibited substance, a product composition analysis report, a hazardous substance test report from a third-party testing agency, etc.). All the products sold in 2023 met customers’ chemical management requirements, and the vendors making up 95% of WT’s purchase amounts declared that they comply with relevant chemical management regulations.

In the future, as soon as the bill of materials is create for a finished product on the system, the relevant competent units will be notified to obtain relevant information of the materials from their respective vendors (such as product composition analysis report, hazardous substance testing report from a third-party testing agency, etc.). This could prevent repeatedly processing requests from different customers for the same product and enable timely provision of information.

Tracking and requiring vendors to use materials sourced from 100% conformant smelters as a humanitarian effort
The international community has been concerned about conflict minerals from areas involving human rights abuses. In response, WT released its conflict minerals policies in line with the universal value of a humanitarian supply chain on its official website in 2023, requiring all vendors purchase materials in compliance with international regulations relating to responsible minerals. WT continuously tracks whether vendors’ products contain substances involving conflict minerals, including gold (Au), tantalum (Ta), tin (Sn), tungsten (W), etc. WT keeps updated on information relating to qualified smelters by requiring vendors to provide information based on the Conflict Minerals Reporting Template (CMRT).