Sustainable Supply Chain Management

Sustainable Supply Chain Management

Inventec's supply chain management framework is structured around four key dimensions: Responsible Procurement, Risk Management, Strategic Partnerships, and ESG Ecosystem Co Prosperity. Inventec actively encourages its supply chain partners to align with the United Nations Sustainable Development Goals (SDGs), aiming to achieve consistent management goals across the upstream and downstream of the sustainable supply chain. The Company works collaboratively with suppliers to improve ethical management, labor rights, healthy workplaces, climate change actions, and information disclosure, while pursuing corporate sustainable development.

 

To evaluate the maturity of supply chain sustainability risk management, the Group categorizes suppliers into three major product types: electronic components, mechanical components, and modular materials. Simultaneously, geographical locations, industry characteristics, and various performance indicators are integrated to establish Environmental, Social, and Governance (ESG) screening criteria. In 2025, Inventec conducted transactions with 1,912 suppliers, implementing tiered management based on transaction scale and material criticality to optimize operational efficiency.

 

Supplier Classification	Definition (Electonic components, mechanical components, modular materials)	2025
Tier 1 Supplier	Suppliers engaged in direct transactions	1,912 Suppliers
Tier 1 Critical Supplier	Suppliers engaged in direct transactions Annual transaction amount exceeding US$40,000	1,307 Suppliers
Tier 1 Significant Supplier	From strategic suppliers with direct transactions, industry benchmarks, high-volume vendors Note 1, selected key suppliers with high commercial importance to Inventec, as well as high-risk suppliers requiring closer attention due to significant actual or potential impacts. Note 2	275 suppliers
Tier 1 Significant Suppliers as a Percentage of Total Spend	The percentage of transaction amount	75.5%
Non-Tier 1 Supplier	Suppliers that transact through agents	348 Suppliers
Non-Tier 1 Significant Supplier	From strategic suppliers with direct transactions, industry benchmarks, high-volume vendors Note 1, selected key suppliers with high commercial importance to Inventec, as well as high-risk suppliers requiring closer attention due to significant actual or potential impacts. Note 2	4 Suppliers
Number of Audited Tier 1 Significant Suppliers	Number of Tier 1 significant suppliers passing audits	65 Suppliers

Note 1: Suppliers accounting for the top 80% of the annual procurement spend.

Note 2: No high-risk suppliers requiring attention were identified in 2025.

2025 Supplier Compliance Document Signing Rate

• Note: Excluding customer-designated suppliers.

Supply Chain Risk Management

To strengthen sustainability risk management, Inventec has established a supplier risk identification and tiered management mechanism based on Environmental, Social, and Governance (ESG) dimensions, integrating industry characteristics, procurement models, and geopolitical contexts to systematically identify potential risks. For high-risk suppliers, the Company continuously drives improvement through tailored audit and counseling mechanisms, mitigating environmental and social impacts. Inventec has implemented "Monthly Supplier Performance Evaluation" and "Annual Risk Assessment" mechanisms to drive continuous supplier quality improvements. For suppliers failing to meet monthly benchmarks, exhibiting quality anomalies, or encountering material risk incidents, phased response measures are deployed to ensure a high level of supply chain stability and fulfill our commitment to product excellence.

Guided by the core principles of the annual supplier risk assessment mechanism, Inventec oversees the comprehensive performance of both Tier 1 and non-Tier 1 suppliers. The systematic evaluation and its quantitative scoring results from the foundation for subsequent supplier management, determining whether to conduct near-term re-assessments, implement targeted counselling and improvement programs, or re-initiate the new supplier evaluation process according to established procedures to guarantee quality and operational stability.

Inventec conducts risk classification for critical components, segregating them into "single-source supply" and "high-pollution process" materials, with strategic weights assigned based on country of origin, inventory levels, and delivery stability. This systematic approach serves as the foundation for adjusting procurement allocations, mitigating the risk of supply disruptions while enhancing supply chain resilience and operational stability. In terms of supplier management, the Company leverages both RBA VAP (Validated Assessment Program) audits and annual routine audits to ensure full compliance with responsible business conduct and sustainable development requirements.

Supplier Audit

• Third-Party Assessment of High-Risk Suppliers

  On-site supplier audits are conducted in accordance with the latest audit guidelines, covering labor, health and safety, environment, ethics, and management systems to ensure compliance with regulatory and customer requirements, while identifying and mitigating operational risks related to the RBA Code of Conduct. Out of 1,912 suppliers in 2025, 32 were identified as high-risk, leading to the notification of 16 suppliers to undergo the Validated Assessment Program (VAP) audit; of these, 13 have successfully completed the process within the year.

   

• The audit findings of existing suppliers in 2025

Supplier Counseling

In accordance with internal control procedures, supplier audits are conducted annually. Suppliers identified with significant actual or potential negative impacts are classified as high risk focus suppliers, with their subsequent counseling or replacement tracked and monitored.

Supplier Sustainability Evaluation

Each year, suppliers' ESG performance is evaluated based on the following criteria. High-performing suppliers are designated as preferred suppliers, receiving priority in evaluation and adoption in next generation design projects, and commended at the Inventec Sustainable Supply Chain Summit.

• SBTi Carbon Reduction Target Validation
• Annual Greenhouse Gas (GHG) Inventory Completion
• ISO 14064 Verification and Attainment
• Signing the Inventec RBA Code of Conduct
• Cooperating in RBA VAP Audits
• Participating in Inventec's ESG Initiatives
• Completing Supplier Cybersecurity Questionnaires

Responsible Procurement

As a member of RBA and RMI, Inventec is committed to promoting and complying with relevant standards, and publicly announcing Inventec Responsible Minerals Sourcing Statement. Since 2011, Inventec has conducted responsible minerals due diligence utilizing the RMI’s Conflict Minerals Reporting Template (CMRT). The Company launched an e-system in 2013 and expanded its due diligence scope to include cobalt and mica in 2018. To address periodic updates within the Responsible Minerals Assurance Process (RMAP), an automatic smelter matching function was integrated into the e-system, enabling real-time verification of supplier smelter information to ensure compliance with RBA and RMI requirements. In 2025, following the RMI’s inclusion of copper, lithium, nickel, and graphite into the Extended Minerals Reporting Template (EMRT), Inventec deployed the latest CMRT and EMRT versions to conduct comprehensive surveys. This process requires suppliers to perform reasonable due diligence across their supply chains and disclose mineral origins, ensuring alignment with Organization for Economic Co-operation and Development (OECD) guidelines or the total exclusion of minerals sourced from conflict-a ected and high-risk areas as defined by recognized organizations like the RMI.

Inventec's Responsible Minerals Goals

• Supplier Day and Sustainable Supply Chain Forum

  The "2025 Supplier Day" brought together 694 representatives from 378 key supplier partners. Through face-to-face dialogues with senior executives, attendees shared the milestones of the Sustainable Supply Chain Summit and subsequent sustainability workshops, mutual growth across the value chain.

• Sustainable Supply Chain ESG Philanthropic Initiatives

  In partnership with the Sunshine Social Welfare Foundation, Inventec supports disadvantaged families affected by facial disfigurements while engaging deeply with suppliers to strengthen social participation. The Company prioritizes suppliers that champion philanthropic and social causes to enhance value chain resilience. By advocating these sustainability ideals, Inventec elevates the supply chain's environmental awareness, while employing transparent procurement processes and cooperation guidelines to ensure sustainable procurement delivers quality, compliance, and governance value.

• Earth Day Supply Chain Workshop

  On April 22, Inventec hosted the "Earth Day Sustainable Supply Chain Action" forum, convening 70 suppliers to accelerate value chain decarbonization and sustainability management through knowledge sharing. Focusing on a "low-carbon economy" and "responsible governance," the workshop covered low-carbon trends, greenhouse gas (GHG) management, carbon accounting practices, the latest RBA requirements, and digital tool applications to help suppliers navigate transition challenges. Guided by the strategic vision of "balancing profitability with responsibility," Inventec continuously drives carbon reduction through supply chain collaboration, advancing toward green and low-carbon operations.

• Sustainable Supply Chain Online Briefing

  In 2025, Inventec piloted the Group's Sustainable Supply Chain Online Briefing, convening 106 participants from 76 suppliers. The session provided detailed briefings on net zero transition trends, responsible minerals due diligence, the RBA VAP 8.0.2 standard, supplier cybersecurity questionnaires, and our digital sustainability platform. Through institutionalized management and diverse communication channels, we continuously enhance supply chain transparency and risk response capabilities.

• Group ESG Sustainable Supply Chain Workshop

  The "ESG Sustainable Supply Chain Workshop" focused on critical themes, including iSupplier greenhouse gas inventory guidelines, the supplier learning platform, automotive supply chain responsibility and transition, RBA risk management, and sustainable information security. These initiatives enable suppliers to fully align with the latest ESG requirements from Inventec and brand customers, while fortifying the supply chain's collective capabilities in responsible governance, decarbonization, and cybersecurity.

  

   

   

  Sustainability Capability Building

   

• Internal Employee Training

  Facing the ESG wave, the Company actively trains its procurement personnel—who play a critical role in value chain sustainability— to empower suppliers in addressing ESG challenges, enhancing awareness, and drive overall supply chain advancement. The curriculum encompasses the RBA Code of Conduct, carbon reduction, and international standards. In 2025, internal procurement training focused on greenhouse gas (GHG) inventory and carbon management, capturing 121 participants. These trained professionals now integrate these capabilities into procurement workflows, leveraging engagement and auditing to assist suppliers in conducting GHG inventories, improving energy e iciency, and enhancing transparency, thereby fortifying supply chain resilience.

   

• External Supplier Training

  Inventec actively drives ESG capability-building initiatives, simultaneously strengthening the understanding and practical capabilities of both internal personnel and suppliers across key dimensions, including carbon reduction and sustainable supply chain management.

Note: The proportion of Tier 1 significant suppliers and non-Tier 1 significant suppliers participating in Inventec's ESG Capability-Building Training Program.

• ESG Portable GHG Carbon Inventory

  Inventec leverages carbon accounting, risk monitoring, and digital systems to enhance supplier decarbonization and governance capabilities. By expanding carbon emission data collection, the Company leverages the iSupplier platform for data uploads and provides remote assistance, successfully completing GHG inventories for 652 critical suppliers. Furthermore, Inventec encourages suppliers to obtain third-party verification, establish carbon reduction targets, and participation in the SBTi validation process to collectively advance toward the 2050 net-zero emissions vision.