Issue Date: August 23, 2026
Supply Chain Management
Suppliers are key partners in Coretronic's sustainable operations. Therefore, the Company manages suppliers by categorizing them according to their characteristics and the products or services they provide. Adopting a “prioritizing local procurement” strategy, the Company promotes local economic development, ensures operational stability, accelerates production efficiency, and minimizes carbon emissions generated during transportation.
To achieve the vision of “sustainable and mutual benefit” with its supplier partners, Coretronic has established the “Sustainable Supply Chain Management Regulations” for suppliers of production materials, which were formally approved and signed by the President and business group supervisors. These regulations include requiring supplier partners to adhere to established standards, conducting supplier risk assessments, audits, training and guidance, and recognizing outstanding suppliers while sharing sustainability trends during the Annual Supplier Conference. These efforts aim to ensure that its supplier partners can operate sustainably. In addition, the Company manages suppliers in accordance with the Responsible Business Alliance Code of Conduct (RBA CoC) by implementing the “RBA Code of Conduct Management Handbook”. The Company strives to encourage suppliers to give due attention to ethics, labor and human rights, environmental protection, health and safety, and to thoroughly implement risk management and business continuity plans in order to build a sustainable supply chain. If supplier partners have any suggestions or inquiries related to sustainability, they may contact the Company via ESG@coretronic.com.
Adherence to Guidelines
▶ Sustainability Commitment Statement
Since 2021, the Company has established the “Sustainability Commitment Statement” based on the “Sustainable Development Best Practice Principles” approved by the Board of Directors, the “Sustainable Supply Chain Management Regulations” approved by the President and business group supervisors, and the Responsible Business Alliance Code of Conduct (RBA CoC). All production material suppliers are required to sign the Sustainability Commitment Statement (except suppliers that meet exemption criteria).
If suppliers proactively provide sustainability-related supporting documents, personnel from the ESG Department will conduct an “exemption review” based on the “Exemption Review Criteria”. Suppliers that pass the review qualify for signing exemption status and are not required to submit additional exemption applications. If a supplier fails the review, the Procurement Department must request sustainability-related supporting documents from the supplier. If the supplier cannot provide such documents, or if the ESG Department determines, based on the “Exemption Review Criteria”, that sustainability-related risks still exist after evaluation, the Procurement Department must apply for an exemption approval form for the supplier. The form must clearly specify the categories, details, and severity of the supplier’s sustainability-related risks. After approval and signature by the President, the exemption approval form is submitted to the ESG Department for recordkeeping as a basis for future tracking and guidance.
If a supplier fails to comply with the requirements of the “Sustainability Commitment Statement” and causes significant environmental or social impacts, the Company reserves the right, in accordance with relevant contractual terms, to require corrective actions or terminate the contract.
In response to the release of “Version 8.0 of the Responsible Business Alliance (RBA) Code of Conduct” and the Company’s implementation of the SA8000 management system, the Company revised and issued the “2025 Sustainability Commitment Statement” to ensure that suppliers comply with “Version 8.0 of the RBA Code of Conduct”, the “Green Product Warranty” (promise and guarantee that the products meet the "Green Product Procurement Specifications", and provide RoHS test laboratory testing reports from third-party certification bodies, environmental hazardous substance questionnaires, lead-free component reliability questionnaires, safety data sheets (SDS), material certificates, and test summary forms), “Conflict Minerals Policy”, “Conflict Minerals Declaration”, “Integrity Commitment”, “Environmental Sustainability and Occupational Safety and Health Policy”, and “Human Rights and Social Responsibilities Policy”.
To improve supplier signing convenience, efficiency, signing rates, and internal management efficiency, the Company officially launched the online “Document Signing Management System” in 2025. The Company also produced instructional videos explaining platform operations, document requirements, and the reasons for signing each document. During the 2025 Supplier Conference, the Company further shared common questions regarding document signing and key RBA compliance considerations with suppliers.
In 2025, the Company included a total of 282 suppliers required to sign the Sustainability Commitment Statement (excluding affiliated companies and customer-designated suppliers). Following exemption reviews, seven suppliers qualified for signing exemptions; an additional three suppliers obtained exemption approvals but were identified as high ESG risk targets due to potential economic or labor risks or a lack of publicly available sustainability information. The Company has initiated risk management mechanisms and plans to conduct sustainability risk assessments and RBA audits for them in 2026. All remaining 272 suppliers required to sign completed the “2025 Sustainability Commitment Statement”, achieving a 100% signing rate.
In 2026, to further implement the “Sustainable Supply Chain Management Regulations”, and in response to international ratings, customer requirements, and supplier suggestions, the Company revised the “Green Product Warranty”, the “Environmental Sustainability and Occupational Safety and Health Policy”, the “Integrity Commitment”, and the “Human Rights and Social Responsibilities Policy”. The Company also newly added the “Environmental Sustainability Policy”, the “Occupational Safety and Health Policy”, and the “Biodiversity Conservation and No Gross Deforestation Commitment”. Through the online “Document Signing Management System”, the Company distributed the “2026 Sustainability Commitment Statement”, requiring new production material suppliers, as well as existing suppliers that meet signing requirements but have not yet signed the “2026 Sustainability Commitment Statement”, to complete the signing process.
Risk Assessment
▶ ESG Risk Assessment System
The Company is committed to enhancing supply chain resilience. Since 2023, it has initiated the development of the “ESG Risk Assessment System”, incorporating an AI-based automated preliminary review mechanism that can reduce approximately 60% of manual review and administrative processing time while effectively ensuring consistency in review standards.
In 2025, the Company completed the design of bilingual Chinese-English questionnaires and optimized platform functions. Referring to supplier procurement amounts in 2025 and risk data derived from RBA audit results, the Company precisely formulated the supplier assessment list. In 2026, sustainability risk assessments will be conducted for 20 tier-1 critical suppliers and 6 new suppliers.
During the third quarter of each year, the Company will send invitations through the system platform for selected suppliers to complete online questionnaires. Based on the assessment results, the system will systematically identify suppliers’ levels of awareness and implementation of sustainability management practices, classify sustainability risk levels, and develop corresponding improvement and guidance measures for suppliers with different risk levels, thereby fulfilling the goals of responsible supply chain management.
▶ Conflict Minerals Survey
Conflict Minerals Policy: The Company upholds responsible procurement principles and treats conflict minerals as key raw materials subject to relevant management controls. The use of illegally sourced minerals from conflict-affected and high-risk areas (including the Democratic Republic of the Congo) is strictly prohibited. The scope of management follows the due diligence guidance of the Organisation for Economic Co-operation and Development (OECD) and covers gold (Au), tantalum (Ta), tungsten (W), tin (Sn), cobalt (Co), and mica. Therefore, all production material suppliers (excluding customer-designated suppliers and affiliated companies) are required to sign the “Sustainability Commitment Statement” (including the “Conflict Minerals Policy” and the “Conflict Minerals Declaration”) to ensure compliance with conflict minerals requirements. Relevant policies and survey results are also disclosed on the Company’s official website.
Conflict Minerals Management System: In 2025, the Company officially launched the “Conflict Minerals Management System”, fulfilling digitalized survey management. At the current stage, the management unit regularly downloads and imports the Conformant Smelters List published by the Responsible Minerals Initiative (RMI), enabling automated verification and blocking functions through the system to ensure the compliance of declared sourcing information. To further improve management efficiency and accuracy, the Company plans to complete automated system integration with the RMI list in the future. Once completed, the system will support real-time synchronization updates and retrospective alert functions, enabling immediate tracking of changes in smelter status and strengthening resilient supply chain monitoring.
Due Diligence Scope and Implementation: The Company adopted RMI reporting templates, including the Conflict Minerals Reporting Template (CMRT), Extended Minerals Reporting Template (EMRT), and Additional Minerals Reporting Template (AMRT), to conduct comprehensive investigations covering 100% of production material suppliers (excluding customer-designated suppliers and affiliated companies). To ensure full-category monitoring, the Company proactively expanded the investigation scope to include non-electronic material suppliers, such as packaging material and mechanical component suppliers, achieving comprehensive supply chain management coverage without blind spots.
Performance and Risk Management: In 2025, the Company investigated a total of 480 suppliers. After excluding customer-designated suppliers and non-electronic and non-metal material suppliers, the number of suppliers required to respond was 465, of which 461 suppliers submitted responses, resulting in a 99% response rate. All investigated suppliers had signed the “Sustainability Commitment Statement”, and all declared smelters complied with the RMI Conformant Smelters List. In cases where non-conformant smelters were detected, the Company established an immediate warning mechanism and adopted the principles of “immediate substitution and resubmission” for risk control, ensuring that 100% of the final listed smelters complied with the RMI Conformant Smelters List.
▶ Financial Risk Assessment
Since 2020, the Procurement Department has annually provided a list of suppliers with potential risks (approved by business group supervisors) to the Finance Department for financial risk assessment. The Finance Department classifies supplier risk levels based on their public financial data, financial statements, and third-party credit reports (e.g., from Dun & Bradstreet or insurers’ partnered credit agencies). The results are then submitted to the Procurement Department for final approval. In 2025, a total of five suppliers underwent financial risk assessments, including three high-risk suppliers and two medium-risk suppliers. The corresponding risk response measures are as follows:
High-Risk Suppliers: For the first supplier, its parent company is a globally renowned enterprise and a member of the Responsible Business Alliance. Its financial condition gradually improved in 2026, and the Procurement Department continues to monitor and track its status. For the second supplier, in addition to actively seeking alternative sources and suspending new project outsourcing, the Company also reduced material shortage risks for projects where alternative solutions could not be immediately introduced by implementing long-term strategic material stocking. For the third supplier, considering its significant cost competitiveness, the Company currently maintains its cooperative relationship. However, to strengthen supply chain resilience management, the Procurement Department has synchronously established four alternative suppliers with equivalent quality standards to ensure stable supply capabilities under various risk scenarios and effectively minimize material shortage risks.
Medium-Risk Suppliers: Risk management strategies have been established.
Audit System
▶ RBA Audits
The Company conducts annual RBA audits to assess ESG-related risks associated with the environmental and social impacts of production material suppliers. Prior to on-site RBA audits, all suppliers required to undergo RBA audits are requested to complete RBA self-assessment questionnaires, allowing suppliers to first evaluate their own sustainability implementation status.
In 2024, the Company established annual RBA audit targets, requiring the completion of RBA audits for 50 tier-1 suppliers each year with an audit rate of 100%. In 2025, in addition to conducting RBA audits for tier-1 suppliers, the Company commissioned tier-1 critical suppliers to conduct RBA audits for tier-2 critical suppliers in response to requirements from major projector customers. In 2025, the Company completed RBA audits for 57 tier-1 suppliers, achieving an audit rate of 100%, and additionally conducted RBA audits for tier-2 critical suppliers, completing a total of 85 audits.
All new suppliers (excluding customer-designated suppliers) are required to undergo RBA audits. For new suppliers of the Visual Solutions Business Group, procurement personnel must enter the RBA audit score into the “New Supplier Evaluation Form”, and the score accounts for 10% of the supplier’s total evaluation score. For new suppliers and tier-1 suppliers of the Energy Saving Business Group, the RBA audit score is evaluated as an independent measure.
In 2025, the Company strengthened internal audit coverage and report review procedures. The ESG Department directly reviewed suppliers’ original audit reports to ensure data accuracy and transparency regarding substantive improvements. In addition, the management focus shifted from a “passive qualification rate” approach to a “proactive corrective improvement effectiveness” approach, ensuring that all non-conformities receive substantive corrective actions.
▶ Annual Audit
To assist suppliers in delivering higher-quality products, Coretronic’s Quality Assurance Department conducts on-site audits each year for designated key component manufacturers. The audit scope for evaluation and documentation includes assurance of outgoing product quality, handling of quality anomalies, verification of testing methods and regulations for environmentally restricted substances, review of internal environmental audit plans, communication and dissemination of environmental substance information, and testing equipment maintenance records. All findings during the audit are documented. For suppliers who fail to meet standards, the Company will provide guidance to assist them in improving within a specified period. After submitting a corrective action report, the responsible unit will conduct a re-evaluation. In 2025, 122 annual audits were completed, with all 122 suppliers passing the audit, resulting in a 100% audit rate and a 100% passing rate.
Coretronic’s Visual Solutions Business Group independently developed an electronic audit platform to improve data management reliability, work efficiency, and supplier handling efficiency. The platform allows customization of audit items and criteria based on different business needs or audit targets, enabling precise supplier support and fostering win–win partnerships.
▶ Quarterly Reviews
Coretronic’s Visual Solutions Business Group conducts quarterly reviews for suppliers that have entered the mass production phase. The Energy Saving Business Group performs quarterly reviews for suppliers that are both in the mass production phase and have conducted more than five transactions. The review covers quality, delivery performance, and cooperation level to ensure the stability of supplier delivery quality. For suppliers who fail to meet standards, the Company will provide guidance to assist them in improving within a specified period. After submitting a corrective action report, the responsible unit of the Company will conduct a re-evaluation. In 2025, a total of 282 suppliers completed quarterly reviews, achieving a 100% audit rate. Among them, 281 suppliers passed the reviews, resulting in a qualification rate of 99%.
For suppliers that failed the reviews, in addition to actively seeking alternative sources and suspending new project outsourcing, the Company also reduced material shortage risks for projects where alternative solutions could not be immediately introduced by implementing long-term strategic material stocking.
Training and Guidance
Green Product Management System (GPMS)
This platform includes an announcement section, a Material Composition Declaration (MCD) Request section, and a supplier list section. The announcement section on the homepage provides updates such as the latest “Green Product Specifications” and GPMS training videos to prevent suppliers from following incorrect regulations or using improper forms. Meanwhile, it allows procurement personnel/engineers to check the status of supplier document uploads and maintain the contact list of raw material suppliers. Suppliers can fill in RoHS 2.0, SVHC, and SDS information, while administrators can download reports based on the model BOM.
Sustainable Supply Chain Website
To raise supplier awareness of sustainability and guide them to become part of a sustainable supply chain, Coretronic integrated all supplier-related management platforms and completed the structure and content design of the “Sustainable Supply Chain Website” in 2023. The website includes seven major functions: sustainability principles (signing the “Sustainability Commitment Statement”, “Sustainable Supply Chain Management Regulations”), risk assessments (conflict minerals survey, financial risk assessment, sustainability risk assessment), online courses, sustainability events (Annual Supplier Conference, Outstanding Supplier Awards, Earth Day activities), GPMS, material carbon footprint database, and online consultation. In 2025, the Company launched the “Conflict Minerals Management System”, “Document Signing Management System”, and “ESG Risk Assessment System”. The remaining systems are scheduled to be completed by 2027.
Sustainability Capacity Building for Procurement Personnel
To promote sustainable supply chain transformation and ensure sustainability strategies are integrated into daily procurement decision-making, the Company launched a series of professional competency training programs in 2025 for all personnel within the Supply Chain Center, including frontline executors and key decision-making managers. Training courses included “Supplier Performance Monitoring”, “Supplier Risk Management”, “Introduction to Procurement Processes and Supply Chain Concepts”, “Experience Sharing on Overseas Plant and Automotive Supplier Evaluations”, “Introduction and Application of the Product Carbon Footprint Platform”, and “Introduction and Application of the Sustainability-Related Document Signing Management System”. These training programs aim to facilitate frontline personnel to guide and assist suppliers in fulfilling relevant management requirements, while enabling key decision-making managers to assess the appropriateness of sustainability strategies and strengthen decision-making capabilities regarding supplier “audit priorities” and “exemption criteria”, to ensure a high degree of integration between sustainability indicators and commercial procurement strategies. In 2025, the Company organized a total of 10 training courses, with 58 attendances and cumulative training time reaching 74 hours.
Green Alliance
Annual Supplier Conference
Since 2017, Coretronic has been promoting a responsible supply chain by working closely with suppliers to improve across key areas such as quality, cost, delivery, labor practices, environmental safety, and occupational health. Through on-site guidance and face-to-face communication, the Company continues to enhance supply chain management capabilities and adaptability to fulfill its sustainability commitments.
To further deepen sustainable supply chain collaboration, the Company held a supplier conference in 2025 to share its sustainability strategies and implementation achievements with suppliers, while also clarifying the sustainability responsibilities that suppliers are expected to jointly undertake. These responsibilities include signing the “Sustainability Commitment Statement”, cooperating with RBA audits, and responding to supplier ESG risk assessment questionnaires and other management requirements.
The conference also featured three sustainability-themed seminars covering green product management, an introduction to the product carbon inventory platform, and greenhouse gas and energy management, supporting suppliers to better understand sustainability management trends and exchange practical experiences.
In addition, the Company officially announced the launch of the “ESG Risk Assessment System” during the conference. Through this platform, supplier partners can upload compliance documents and sustainability-related information, as well as complete ESG risk assessment questionnaires. The Company will utilize the assessment results as the basis for planning subsequent guidance and improvement measures. Going forward, the Company will continue working closely with supplier partners to deepen sustainability management practices and jointly build a resilient and sustainable supply chain. In 2025, 138 suppliers participating.
Main Topics:✔ Company sustainability strategies and implementation achievements
✔ Supplier sustainability responsibilities
✔ Introduction to the Supplier ESG Risk Assessment System
✔ Sustainability Seminar—Green Product Management
✔ Sustainability Seminar—Introduction to the Product Carbon Inventory Platform
✔ Sustainability Seminar—Greenhouse Gas and Energy Management
✔ Outstanding Supplier Awards
✔ Experience sharing of award-winning suppliersOutstanding Supplier Awards
Through the Annual Supplier Conference, Coretronic recognizes and rewards supplier partners who have demonstrated excellence in carbon reduction and sustainability performance. In 2025, a total of 27 outstanding suppliers were honored with the “Energy Saving and Carbon Reduction Contribution Award”, the “Outstanding Supplier Sustainability Award”, the “Outstanding Supplier Model Award”, and the “Outstanding Supplier Performance Award”. The Company aims to encourage broader participation in sustainability efforts through tangible incentives and public recognition.
The “Energy Saving and Carbon Reduction Contribution Award” honors suppliers with outstanding performance in energy conservation and carbon reduction, including reductions in electricity consumption, water consumption, solid waste, wastewater, and air emissions. The “Outstanding Supplier Sustainability Award” recognizes suppliers demonstrating high levels of completeness in green product documentation, strong material delivery performance, and excellent cooperation. The “Outstanding Supplier Model Award” highlights benchmark suppliers with outstanding overall performance aligned with the principles of R.I.S.E. (Responsibility, Innovation, Safety, Excellence). The “Outstanding Supplier Performance Award” is given to suppliers who excel in technical innovation, process optimization, and overall collaboration.
Supplier Circularity Alliance
Coretronic collaborates with suppliers to promote waste recycling and reuse programs, implementing recycling plans for packaging materials such as plastics and paper. In addition to packaging material recycling, the Company also adopts reusable packaging for material delivery and collection, which reduces the consumption of raw materials used in packaging or containers. This practice promotes the concept of circular economy by encouraging reuse and waste reduction, contributing to more eco-friendly operations. In 2025, a total of 10 suppliers participated in the recycling of materials such as acrylic protective boards, cartons, pallets, trays, plastic crates, trolleys, plastic, and foam protective materials. The quantity of materials recycled accounted for 99% of the total shipment volume.
External CDP’s Recognition of Partnership
In the 2025 CDP Supplier Engagement Assessment (SEA), The categories evaluated in the rating includ: Supplier engagement, Targets, Scope 3 emissions, Risk management process, and Governance and business strategy. Coretronic received the highest rating of A (Leadership Level) for the third consecutive year. Looking ahead, the Company will continue to invest in value chain management and work closely with suppliers and customers to demonstrate the highest level of operational resilience.
Local Procurement
Note: Supplier location is determined based on the registered company address.