Sustainable Supply Chain

Sustainability

Supply Chain Overview

Connectors and Wireless Products

In the connector (cable) industry, Wieson operates as a midstream connector manufacturer and distributor. The upstream materials for connectors (cables) mainly include metals, plating materials, and plastics. Metal materials are selected based on mechanical properties and conductivity, with brass or phosphor bronze being commonly used, while high-performance electronic connectors may use beryllium copper or titanium copper.

Plating materials are chosen for protection, conductivity, solderability, and electrical properties such as contact resistance, with gold, tin, nickel, or silver plating being typical. Plastic materials are selected for injection molding properties, heat resistance, and wear resistance, with PBT, PPS, Nylon, and LCP resins being commonly used. Recently, environmental concerns and sharply rising global raw material costs have made it increasingly important to select appropriate materials or adjust product designs.

Wieson has established a material recycling mechanism, recycling plastic scrap, raw materials, and other materials either directly or indirectly. Based on this, we are actively expanding the use of environmentally friendly products, including but not limited to eco-friendly cartons/bags, soluble PE bags, and recycled wooden pallets. In terms of downstream industry applications, our primary market is the 3C (computer, communication, consumer electronics) industry.

Automotive Electronics Products

Wieson’s automotive electronics products are part of the midstream of the automotive industry chain. The upstream raw materials primarily include rubber, plastics, chemical materials, copper, aluminum, steel, iron, and their metal alloys. The downstream includes automotive manufacturers and some component suppliers.

With increasing global environmental issues, there is a growing recognition of the importance of sustainable development. As a major mode of transportation, automobiles play a crucial role in environmental concerns. Automotive components, being core parts of vehicles, also significantly contribute to the sustainable development of the automotive industry. The choice of materials for automotive components has a major impact on environmental protection. High-quality automotive components use eco-friendly materials, such as recyclable and low-pollution materials, to reduce environmental damage and resource consumption. Additionally, to address factors such as raw material cost fluctuations, shortages, or quality improvements, the company conducts alternative material evaluation plans. The procurement department, in collaboration with R&D, manufacturing, and engineering departments, negotiates with customers in advance to introduce alternative materials and avoid supply chain disruptions. We are committed to driving positive interactions with our supply chain, ensuring effective communication and cooperation.

Supplier Management

Our core principles for supplier management are win-win collaboration, commitment, fairness, and impartiality. We are dedicated to establishing mutually beneficial and cooperative relationships with suppliers, actively supporting their development, and protecting their legitimate rights and interests. By constructing a comprehensive supplier management system, we aim to foster the healthy development of our suppliers and create a community of shared interests, values, and destinies.

Our company has established a "Procurement Management Procedure" that includes evaluating whether suppliers meet environmental and safety standards. The past record of suppliers regarding environmental and social impacts is also an important assessment criterion. For key products requiring special manufacturing capabilities, we ensure that the procured materials adhere to principles of quality, price, timeliness, location, and quantity.

Policy Directions

Social Aspects (S): The "Supplier Contract" specifies ethical standards and conduct codes that suppliers must follow to comply with human rights and conflict mineral regulations and to continually assess sustainability risks.

Environmental Aspects (E): Suppliers are required to sign the "Supplier Environmental Quality Requirements," "Supplier Environmental Product Guarantee," and "Conflict-Free Minerals Commitment." These documents not only declare our commitment to environmental friendliness but also require our supplier partners to jointly implement these practices. Wieson's environmental policy focuses on "Resource Development," "Reasonable Use," "Legal Compliance," "Strict Adherence," "Pollution Prevention," "Integrated Governance," "Environmental Protection," and "Continuous Improvement."

Supplier Management Flowchart:

Evaluation of New Suppliers

The procurement department initiates the supplier evaluation process by submitting an evaluation application. Upon approval, the evaluation is conducted according to the "Supplier Evaluation and Audit Checklist." Key evaluation team members—including procurement, engineering, and quality assurance—assess the supplier's manufacturing capabilities, quality management, warehousing, safety and health management, compliance with environmental management material requirements, and corporate social responsibility through on-site evaluations.

A. For approved suppliers, the responsible departments require the supplier to provide relevant business registration documents, bank payment notifications, and sign the following documents: "Supplier Contract," "Integrity Commitment," "Supplier Environmental Quality Requirements," "Supplier Environmental Product Guarantee," "Wieson Environmental Standards," and "Conflict-Free Minerals Commitment."

B. Major suppliers must have ISO 9001 certification. Suppliers without this certification must present a validation plan. Additionally, suppliers of automotive electronic products must hold IATF 16949 certification; those without it must also submit a validation plan.

Qualified Supplier Evaluation:
1. Annual Evaluation: Suppliers classified as C-level (medium-high risk) are included in the evaluation for the following year.
2. Ad-Hoc Evaluation: Evaluations are conducted in response to significant quality issues.Suppliers rated as non-compliant during regular or ad-hoc audits, and who fail to improve after three months of corrective guidance, will have their supplier status revoked.

Regular Supplier Evaluation and Assessment：

2023 Supplier Evaluation Results：

Grade	Number of Suppliers	Proportion
Grade A	505	88%
Grade B	59	10%
Grade C	9	2%
Total	573	100.0%

Note:
Grade A: Low-risk suppliers
Grade B: Medium-low risk suppliers
Grade C: Medium-high risk suppliers

Local Procurement

Our company's production strategy emphasizes local procurement for all raw materials, aiming to enhance procurement efficiency and delivery effectiveness while fostering close collaboration with local suppliers. Adhering to the principles of sustainability and reducing unnecessary resource consumption, we are committed to a local procurement approach. This strategy optimizes procurement processes and reduces production waste, thereby lowering the carbon footprint of raw materials.

To promote the sustainability of the supply chain, we integrate sustainable development into our supplier management system, working with partners to enhance sustainability management, quality, and environmental, health, and safety (EHS) standards. We prioritize supporting local Taiwanese suppliers, implementing local procurement practices, and pursuing mutual industry benefits.

Restricted and Prohibited Substances

Our company has established the "WIESON Environmental Protection Standards," requiring that products delivered by suppliers strictly adhere to environmental substance regulations and policies, including EU regulations (such as RoHS and WEEE directives) and customer requirements (such as REACH). For raw materials, semi-finished products, finished products, packaging materials, auxiliary materials, consumables, and purchased goods used in our designs and manufacturing, if a substance or use is not explicitly defined in these standards but is explicitly prohibited or restricted by our customers or regulations, compliance with these regulations is still required.

Following the EU's adoption of the RoHS directive in 2003, international companies such as Sony and Dell spearheaded product environmental management actions, which shifted the focus from product safety and reliability to include environmental specifications, introducing a series of green requirements for the materials used in products. In response, our company has conducted comprehensive product material investigations of our suppliers, requiring all partners to sign the "Supplier Environmental Product Assurance," and provide RoHS reports and other relevant documentation required by customers, to strengthen the positive impact of suppliers on society and the environment. This forms a necessary basis for selecting suppliers.

Although our company does not include IEC 62474 specification frameworks, we can fully comply with halogen-free specifications in accordance with IEC 62474 for materials not applicable to our product range.

Conflict Minerals Management

Our company conducts thorough investigations to ensure that our products and supply chains do not contain conflict minerals such as gold (Au), tantalum (Ta), tungsten (W), cobalt (Co), and tin (Sn). We ensure that these metals are not sourced from mining areas in conflict zones of the Democratic Republic of Congo (DRC) or obtained through illegal smuggling routes.

Additionally, metals exported from the following countries are not compliant with the "Conflict-Free Standard": Democratic Republic of Congo (DRC), Rwanda, Uganda, Burundi, Tanzania, and Kenya (as recognized by the United Nations Security Council as sources of conflict minerals from Congo).

Sustainability