Green Supply Chain

Coretronic requests suppliers to build the green supply chain and follow the measures below to develop a sustainable supply chain together.

Compliance with the Code of Green Product Procurement

Suppliers are required to promise and ensure their products comply with the Code of Green Product Procurement, and provide RoHS lab test and examination report from an accredited third-party unit, Green product commitment, Environmentally hazardous substance questionnaire, Lead-free part reliability report, Safety data sheet (SDS), Certificate of authenticity (COA), Test integrated form, and Conflict Minerals Statement. From the part confirmation system, engineers can confirm the green product supply capacity of suppliers. All of Coretronic (Energy-saving Soutions) and Champ Vision Display's top 100 suppliers in 2018 (except for OEM and customer-specified suppliers) have signed Green Product Commitment, and 95% Coretronic (Visual Soluionts) suppliers have signed Green Product Commitment.

Compliance with RBA Code of Conduct

The RBA 6.0 specifications have been fully implemented and the supplier assessment will be officially implemented in 2019, to ensure that the all suppliers meet the requirements of the Responsible Business Alliance Code of Conduct. In 2018, the RBA 5.1 audits were conducted in 19 of the suppliers and all 19 suppliers were qualified, with a qualification rate of 100%.

Conflict Minerals and Responsible Cobalt Purchase Policy

Conflict metal refers to minerals from the conflict mining area of the Democratic Republic of the Congo. These minerals are refined into tantalum (Ta), tin (Sn), tungsten (W) (referred to as tri-T mineral), gold (Au), and cobalt (Co), which are used in electronics and other products, respectively. Some of the metal minerals have become the main source of financial resources for armed rebel groups in the African Democratic Republic of the Congo. They are used to trade arms, carry out bloody conflicts with the government, and desecrate local civilians. As a result, international disputes have arisen. As a global citizen, we recognizes that the exploitation, trading, processing, and exporting of mineral resources in conflict-affected and high-risk areas have risks that may cause major adverse effects, and we recognize that we have respect for human rights, do not contribute to conflicts and are not environmentally friendly. And society has a negative impact. We declare and promise not to accept the use of metals from conflict mining areas. At the same time, we also require our suppliers to:

• Must fulfill social environmental responsibility
• Ensure that products do not use “conflict minerals” from Congo-King and its neighboring countries and regions
• Trace all sources of Au, Ta, Sn, W, and Co contained in all products
• Intolerance cannot be done in any way to benefit, encourage, assist or facilitate any party to commit serious human rights violations
• It will not tolerate any direct or indirect support from organized armed groups that have been mined, transported, traded, processed or exported through mineral resources
• Do not provide, promise, give or demand any bribe and resist bribery or extortion. It will not cover up or falsify the origin of mineral resources, and falsely report the taxes and expenses that mineral resources exploitation, trade, processing, transportation, export and other activities Bribery with royalties will pay to the government
• Do not participate or benefit from mining resources on land that does not receive free, prior, informed consent from local and indigenous peoples, including those with legal title, lease, and concession or permitted
• This requirement is communicated to its upstream supplier

In order to practically implement the corporate social responsibility and international justice, we follow the Responsible Business Alliances (RBA) Code of Conduct – “conflict-free minerals statement,” to request our suppliers to provide declarations according to the procedures management of parts recognition operations; and we also carry out investigations through the electronic information system to fulfill the requirements of customers and legislation.

In order to investigate the information of smelters for the Tantalum, Tin, Tungsten and Gold required in the products, Coretronic(Visual Solutions) and Young Green Energy have successfully received responses of the “conflict minerals survey form” based on CFSI CMRT version 4.10 from 80 suppliers. Moreover, we will proactively request suppliers to sign a conflict-free minerals statement from 2019, with a target response rate of 100%.

In 2018, the Energy-saving Solutions Business Group received 32 conflict materials statement (including electronic version). Suppliers who did not send us the statement have posted related information on their corporate website. In the future, we will continue to keep track of conflict materials to relieve the impact from conflict minerals.