Sustainable Supply Chain

Supplier Code of Conduct
Supply Chain Strategy

Supplier Code of Conduct

Wiwynn has established a Supplier Code of Conduct, covering five areas: labor, health and safety, environment, business ethics, and management systems. The code incorporates biodiversity, zero deforestation, and land protection principles, aiming to promote sustainable resource use and protect ecosystems. Suppliers are required to sign and comply with the code to jointly promote sustainable development.
From 2022 to Q1 2025, the supplier signing rate reached 95.52% (including new suppliers).

Supply Chain Strategy

Since 2020, Wiwynn has pursued global supply chain restructuring based on safety and risk diversification through “multi-region” and “localization” strategies. In 2023, a new factory was established in Malaysia, gradually ramping up capacity. The company also encourages key component suppliers to deploy global capacity and supports a manufacturing strategy where over 80% of key suppliers align with local production needs.
In 2024, the local sourcing rate reached 82.26%.

Supplier Selection
Sustainability Risk Assessment

Supplier Selection

Wiwynn has established supplier evaluation criteria for both new and existing suppliers, covering three dimensions: "Basic Information," "Core Competence," and "Sustainability Resilience." In addition to signing the Code of Conduct and various declarations, we encourage suppliers to publish ESG reports and require them to obtain relevant international ISO certifications or pass RBA VAP audits.
In 2024, 100% of new suppliers were selected based on international certification standards under the “Sustainability Resilience” dimension.

Sustainability Risk Assessment

To understand the sustainability status of the supply chain, in 2023, Wiwynn conducted an annual Self-Assessment Questionnaire (SAQ) survey for 88 key suppliers with procurement amounts over NTD 10 million (accounting for 99.75% of procurement amounts). A total of 79 suppliers responded, achieving a response rate of 89.77%. The questionnaire covered five dimensions: "Transparency and Business Ethics," "Sustainable Operation Management," "Labor and Human Rights," "Environmental Management," and "Responsible Procurement." Based on the responses, suppliers with potential high risks in economic, environmental, and social aspects were identified.

Five Dimensions of SAQ Survey

Audit
Corrective Actions

Audit and Corrective Actions

Wiwynn evaluates suppliers through various methods. In 2023, 79 suppliers underwent SAQ audits. Sustainability risk is classified into four levels, with grades below C considered high risk. In 2024, assessments continued based on 2023 findings and included three criteria: (1) audit performance over the past two years, (2) feedback from users and procurement teams, and (3) whether customer logos appear on materials. One supplier was identified as high risk and was requested to submit an external RBA VAP audit report. The non-compliance rate was 3.7%, mainly in the “Labor” category, and corrective actions were required to be completed within 90 days as per regulations.

Incentive / Disqualification Mechanism
Training, Guidance, and Capability Building

Incentive / Disqualification Mechanism

Wiwynn adopts quarterly evaluations and annual SAQ assessments as the basis for supplier incentives and disqualifications. Evaluation criteria include core competence and sustainability resilience (10%). Suppliers rated A or above for three consecutive quarters and B or above in the SAQ are eligible for more orders and new project opportunities. Suppliers rated E for three consecutive quarters and below C in the SAQ are downgraded to secondary suppliers and required to improve. Those failing to improve within two years will be suspended or disqualified. No suppliers were suspended or disqualified in 2024.

Quarterly Evaluation Ratings

Incentive and Disqualification Mechanism Based on Evaluation Results