Category: Sustainable Supply Chain

WT is committed to promoting sustainable development in the supply chain. We encourage our major suppliers to provide high-quality products and services while complying with national regulations and policies. They must ensure that their products and manufacturing processes adhere to environmental and social responsibility standards. Suppliers are required to prohibit the use of hazardous substances (such as those restricted by the EU RoHS directive), ensure that raw materials do not contain conflict minerals, and sign a Conflict-Free Minerals Declaration.

 

Additionally, WT encourages suppliers to adopt ISO certifications to enhance quality management. Suppliers are also urged to implement occupational safety measures, labor rights protections, and environmental protection initiatives, working together to establish a responsible and sustainable supply chain.

 

WT considers suppliers as long-term partners and maintains close communication with them. Through continuous engagement, we promote the implementation of environmental sustainability, social responsibility, and ethical standards. We also emphasize compliance and corporate responsibility in operations, ensuring that suppliers commit to ethical business practices, human rights principles, and corporate integrity.

 

Self-Regulation of major Supplier Codes of Conduct

The major suppliers have established comprehensive business conduct guidelines to ensure compliance with relevant regulations and international standards.

 

Supplier Environmental Management and International Standard Certifications

WT places high importance on supply chain responsibility. WT has identified and prioritized 36 key suppliers, which collectively account for over 80% of total revenue. Annually, WT conducts assessments on these suppliers, covering areas such as Responsible Business Alliance (RBA) compliance, restricted substance commitments, and conflict minerals policies. Additionally, the list of key suppliers is reviewed and updated at the beginning of each year.

 

The key suppliers have adopted ISO certifications to ensure their operations meet international standards. By implementing strict management systems, they enhance operational efficiency and minimize environmental impact.

 

As of the end of 2024, key suppliers have achieved the following certifications:

ISO 14001 Environmental Management System : In the 36 key suppliers, 33 have obtained certification, accounting for 92%. ISO 9001 Quality Management System : In the 36 key suppliers, 34 have obtained certification, accounting for 97%.

 

Employee Rights and Labor Protection

The suppliers must comply with local laws to protect employee rights, ensuring:

• Respect for employees’ rights to unionize, engage in collective bargaining, and enjoy freedom of association.
• Establishment of communication channels to safeguard labor rights and prevent forced labor, child labor, or discrimination.

Responsible Business Alliance (RBA) Code of Conduct

WT supports and adheres to RBA Code of Conduct, striving to improve labor rights, health and safety, and environmental standards to ensure compliance with international and ethical norms.

As of the end of 2024, WT continuously monitors 36 key suppliers, of which 22 are official RBA members, representing 61% and having established comprehensive RBA guidelines. Additionally, WT actively tracks whether suppliers undergo RBA audits to promote ongoing improvements in labor conditions throughout the supply chain.

 

---

Compliance of Agency Products with Global Substance Regulations

 

 

Chemical Management and Product Compliance

With increasing global emphasis on environmental protection, WT continues to monitor regulatory developments and ensures that suppliers’ agency products fully comply with relevant global substance regulations. We actively track and update compliance measures to meet customer requirements.

 

When customers request material substance lists for products, WT assists in obtaining relevant documentation from suppliers, such as non-use declarations, product composition reports, and third-party hazardous substance testing reports.

 

In 2024, all sold products complied with customer chemical management requirements. All of 36 key suppliers publicly declared full compliance with relevant chemical management regulations.

 

As of the end of 2024, compliance rates of key suppliers are as follows:

EU RoHS (Restriction of Hazardous Substances Directive):In the 36 major suppliers, 24 suppliers have publicly disclosed compliance, accounting for 66.7%, while 12 suppliers have not disclosed, accounting for 33.3%, but these suppliers are required to submit declaration letters confirming that their product materials comply with major international environmental regulations. REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals): In the 36 major suppliers, 23 suppliers have publicly disclosed compliance, accounting for 63.9%, while 13 suppliers have not disclosed, accounting for 36.1%, but these suppliers are required to submit declaration letters confirming that their product materials comply with major international environmental regulations.

Furthermore, WT is actively implementing system-based management. In the future, when creating new product materials, relevant departments will be notified to obtain the necessary material substance lists (such as product composition reports and third-party hazardous substance testing reports). This will ensure compliance and improve the efficiency of providing relevant material disclosures.

 

PFAS (Per- and Polyfluoroalkyl Substances) Management

In 2023, the EU introduced a proposal to ban PFAS, a broad class of synthetic chemicals known for their persistence, long-range transport potential, and bioaccumulation risks. These substances pose significant environmental and health hazards, including water pollution.

 

In industries such as semiconductors, no viable alternatives currently exist, and immediate production cessation is not feasible. Therefore, a transition period of 13-15 years will be implemented upon enforcement of the regulations.

 

WT continues to investigate PFAS usage in supplier products and discloses this information to customers, aiming to mitigate environmental and health risks.

 

Carbon Footprint and Net-Zero Emission Goals

In response to global carbon reduction initiatives, WT is dedicated to carbon footprint assessments, aiming to reduce, capture, and reuse greenhouse gas emissions. The long-term goal is to achieve Net Zero Emissions by 2050, transforming carbon reduction efforts into competitive advantages and steadily implementing sustainability initiatives.

 

---

The customer requests products with conflict minerals traceability, 100% sourced from qualified smelters

Conflict Minerals Sourcing and Traceability Mechanisms

Referencing international concerns about conflict minerals from regions with human rights issues, in order to uphold the universal values of humanitarianism in the supply chain, WT published a Conflict Minerals Policy on its website in 2023. This policy mandates that all major suppliers comply with the U.S. Securities and Exchange Commission’s (SEC) conflict minerals regulation, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA). Suppliers must fully disclose the sources of conflict minerals used in their manufacturing processes, including gold (Au), tantalum (Ta), tin (Sn), and tungsten (W) (collectively known as 3TG), and confirm whether these materials originate from non-compliant mines in the Democratic Republic of Congo and neighboring regions.

 

Survey results indicate that the products supplied by suppliers contain conflict minerals such as gold, tantalum, tin, and tungsten. WT actively monitors updates from the Responsible Minerals Initiative (RMI) regarding smelter assessments to obtain the latest versions of conflict-free documentation (Conflict Minerals Reporting Template – CMRT, Extended Minerals Reporting Template – EMRT, and Additional Minerals Reporting Template – AMRT). In alignment with customer requirements on conflict minerals policies, WT requests CMRT, EMRT, or AMRT reports from suppliers to ensure full supply chain compliance.

 

As of the end of 2024, WT tracked 36 key suppliers, with the following compliance rates:

29 suppliers have publicly disclosed that they do not use conflict minerals, accounting for 80.6%. 7 suppliers have not disclosed, accounting for 19.4%, but these suppliers are required to provide corresponding compliance declarations to demonstrate their adherence to RBA principles and relevant regulations.

 

 

 

 

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).

In recent years, the proportion of purchases from the top 20 suppliers of WT’s revenue has reached more than 90% of the total group’s purchase amount. The relevant supplier management is also mainly focused on the top 20 suppliers. Considering WT as an agent channel in the supply chain, the three main management goals for the supplier environmental and social policy management are to implement supplier code of conduct, chemical management, and responsible minerals.

Implementation of Supplier Code of Conduct

WT has a code of conduct that governs its own operations and business relationships with suppliers, to ensure that all operations comply with applicable laws and international business ethics standards. WT’s major supplier are also required by their end-customers to comply with the Code of Conduct of the Responsible Business Alliance (RBA), which covers the aspects of ethics, human rights, environment, safety, and management systems. In addition, 18 of WT’s top 20 suppliers have passed RBA audits in 2022, strengthening the credibility of compliance results through third-party audits.

100% of the top 20 supplier are in compliance with chemical management regulations.‬‬‬‬‬‬‬‬‬‬‬‬‬

WT is always aware of the latest updates to chemical use regulations in various countries. Based on customer needs, we actively require suppliers to provide international regulatory declarations and relevant documents for individual product needs to ensure compliance with regulations and industry standards. Currently, the regulations included in the management include the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Chemicals Registration, Evaluation, Authorization, and Restriction Act (EU REACH), the US Toxic Substances Control Act (TSCA), the Chinese Administrative Measure on the Control of Pollution Caused by Electronic Information Products (China RoHS) and the California Proposition 65 (Prop 65).

 

In the future, we will establish an e-based management process. During product filing, the relevant departments will obtain relevant chemical management documents for individual products from suppliers in the process (such as non-use of banned substances guarantee certificates, electronic component composition analysis reports, and hazardous substance test reports from third-party testing organizations). A document update verification mechanism will also be established to ensure that customers can obtain chemical management documents that meet the current status of the product when purchasing the product.

 

WT set a Social Policy & Code of Conduct. It is a guideline for WT and its business partners in their operational activities, which includes labor rights, health and safety, ethics, management system, etc. It expressly regulates the appropriate conduct of all operational activities and the commitment to continuous improvement. WT also communicates the guidelines to all types of suppliers and monitors them, so that only those suppliers who adopt the same standards as those pledged will be WT’s partners for continuous collaboration.

 

In addition, environmental protection and safety are also included in the selection criteria for the procurement of common services in Taiwan’s operating bases, and products that do not meet safety standards are not used. For example, tea bags and coffee beans in the staff break room must be labeled as having passed food safety inspection tests, construction materials cannot use building materials containing dangerous chemicals or elements, and curtains and carpets must have flame-resistant labels, etc.

Criteria for screening and evaluating suppliers

In accordance with the Procurement Management Regulations to evaluate suppliers, WT added the Management Points for General Service Suppliers in 2020, requiring general service suppliers at each operating base in Taiwan to sign the Supplier Corporate Social Responsibility Pledge and fill out the online Supplier Self-Assessment Form. The self-assessment includes the operation and provision of products and services with special attention to no significant negative impact on the environment or violation of environmental regulations, and the social policies and codes of conduct of suppliers and environmental standards are evaluated accordingly. In addition, we evaluate the supplier’s social policies, code of conduct, and environmental standards. In addition to quality, technology and finance, social responsibility, labor practices and environmental protection will also be included in the evaluation. If the evaluation results do not meet the requirements, the supplier will be counseled through supplier meetings on how to improve the situation. If the re-evaluation still fails to meet the management requirements, the transaction volume will be reduced or not renewed.

Adopting EU chemical standards, 100% of WT’s top 20 suppliers have passed

WT has adopted the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Registration, Evaluation, Authorization and Restriction of Chemicals Act (EU REACH) and the US Toxic Substances Control Act (TSCA) to conduct environmental assessment standards for suppliers’ products, and obtains third-party test reports for confirmation when the products are sold as agents. In 2021, 100% of WT’s top 20 semiconductor suppliers passed the EU RoHS and EU REACH chemical management regulations.

WT’s strict control over the environmental and social requirements of its products

With regard to the restriction of banned hazardous chemical substances, WT aims to meet 100% of its clients’ requirements. According to a client’s individual requirements for various products, upstream suppliers are required to provide relevant guarantee certificates of the non-use of banned substances, component composition analysis reports and harmful substance test reports from third-party testing institutes according to product material numbers, so as to comply with the relevant environmental requirements of the products.

 

In response to customer’s requests to provide information on the non-inclusion in the materials purchased of conflict minerals such as tin, tantalum, tungsten and gold from regions with human rights disputes, WT also requires upstream suppliers to provide Conflict Minerals Reporting Template (CMRT) in order to fulfil the universal value of supply-chain humanitarianism.

 

Localization of common services procurement, with a high expense ratio of 96.8%

Since WT’s semiconductor suppliers are major suppliers in the global IC technology fields, the management of local procurement issues focuses on the procurement of non-agent items for common services. In 2021, the proportion of expenses for Taiwan headquarters’ purchases from local suppliers in Taiwan reached 96.80%, and the scope of the statistics included purchases for administrative services, information equipment, logistics centers and application engineering.

ISO14064 Greenhouse Gas Statement