|Sustainability Requirement||Supplier Commitment Letter:
We request our suppliers to sign the Commitment Letter to gurantee their compliance with our Supplier Code of Conduct, which covers “labor, health and safety, environmental, business ethics and the management system”. In addition, we amended and added EICC terms to our ASE Group Purchase Order pursuant to which our suppliers agree to comply with all regional, country laws and follow the EICC and ASE supplier Code of Conduct.
Supplier Sustainability Assessment Questionnaire:
New suppliers must pass our sustainability assessment, and critical suppliers need to complete the sustainability assessment questionnaire annually, which covers multi-aspects including environment, health and safety, climate change, canbon management, water management, risk management, legal compliance, human rights and conflict minerals.
|Risk Assessment 1:
We conduct an initial risk assessment of tier 1 suppliers in accordance with the manufacturing location, manufacturing processes, purchasing amount, and we also perform risk assessments for critical suppliers based upon the sustainability assessment questionnaire to determine which supplier has potential high-risk.
Risk Assessment 2:
The potential high-risk suppliers need to complete the EICC Self-Assessment Questionnaire (SAQ) to facilitate risk identification and to identify the high-risk suppliers.
On-site or document audits are carried out to ensure effective management of high-risk suppliers.
|Improvement||Training and Communication:
We help our suppliers to improve their performance through meetings, trainings, workshops, seminars, QBR (Quarterly Business Review) and the annual best supplier ceremony.
• USI’s sustainability management
• EICC requirement
• Conflict minerals regulations and USI policy, due diligence, auditing procedures, checklists and use of Conflict Minerals Reporting Template
• USI’s green product requirements
• “Zero Tolerance” policy on corruption
(a) Being diligent in their assessment and validation of their supply chains to ensure ASE Group’s objectives of a transparent supply chain and conflict-free purchases are inputs to the services and products we produce.
(b) Be in compliance at all times with all regional and international regulations for conflict minerals.
(c) Be in compliance at all times with industry standards for the sourcing and reporting of conflict minerals.
(d) Being diligent and accurate in their formal assurances of conflict-free minerals provided to us.
|*||“Conflict minerals” are columbite-tantalite (coltan), cassiterite, gold, and wolframite, or their derivatives as defined in the Dodd-Frank Act Section 1502 and SEC Rule 13p-1 under the Securities Exchange Act of 1934.|
|**||“Conflict-free minerals” are conflict minerals that through their distribution directly or indirectly do not benefit violent organizations in the Democratic Republic of the Congo and its adjacent regions.|
|We ask our suppliers to be diligent in their assessment and validation of their supply chains and encourage them for only sourcing conflict-free smelters.|
of Origin Inquiry
|We identify our suppliers who contain 3TG* metals in our supply chain through the Conflict Minerals Reporting Template ("CMRT") and Audit Checklist they provided. We ask our suppliers to sign the Representation Letters to keep their promises and reveal the source information of the smelters or refiners (“SoRs”) they sourced from.|
|We design our due diligence measures to conform to the Organization for Economic Co-operation and Development ("OECD") Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, including the related supplements on tantalum, tin, tungsten, and gold.|
|We undertake an Independent Private Sector Audit (“IPSA”) of our Conflict Minerals Report in compliance with the requirements set forth in the SEC Conflict Minerals Final Rule and subsequent SEC Guidance.|
|1.||Taking proactive measures to ensure our purchasing practices are in compliance with the highest standards of professionalism and business ethics, abiding by all laws and regulations where we operate, and emphasizing fair competitions among suppliers and fair business between suppliers and ASE.|
|2.||Fully implementing green procurement and conducting purchasing activities in accordance with ASE’s conflict minerals policy and green product regulations.|
|3.||Building stable partnerships with suppliers, pursuing mutual benefits through full communications and collaborations while emphasizing risks and benefits sharing.|
|4.||Requiring suppliers to abide by all applicable laws and regulations, adhere to high standards of business ethics, safeguard human rights, attach great importance to physical safety and mental health of employees, protect the environment and use their best efforts to fulfill corporate social responsibility.|
|5.||Being actively engaged in supplier management and coaching to assist suppliers with continuous improvement in competitiveness, undertaking supplier risk assessments which include delivery, quality, cost, service, technology and sustainability as criteria, and incorporating the assessment results into ASE’s purchase decisions. Any supplier still unable to meet ASE’s standards after receiving coaching will be replaced by an alternative supplier after full communication.|
|6.||Integrating green product design into customers’ requirements as well as collaborating with customers and suppliers on developing innovative materials and equipment with an aim to advance technologies and enhance competitiveness in the whole supply chain network.|