Sustainable Supply Chain Management

SDGs

Sustainable Supply Chain Management

For Qisda’s supplier selection procedures, we investigate the suppliers’ management systems of production capacity, technical innovation ability, quality and services based on our future product demand trend and procurement strategies to see if the Company’s requirements are met. For our existing qualified suppliers, Qisda conducts careful supplier risk assessments. This involves regular and ad-hoc investigations into the financial status of suppliers, with a focus on high-risk groups, to ensure supply chain continuity. Strengthening supplier sustainability and building a green supply chain are also vital and ongoing efforts in Qisda's sustainable development initiatives. We vigilantly monitor labor and environmental issues and updates in regulations, and communicate international trends and demands to our suppliers.

Qisda's supplier ESG program

Qisda has planned the promotion of the green supply chain in three stages: Awareness, Promotion, and Sustainability. In the first stage, Qisda will assess the current sustainability capabilities and performance of the supply chain by conducting surveys and discussions with suppliers to understand their status in sustainable development. Moving into the second stage, Qisda will map the sustainability capabilities of suppliers against the company's material issues, prioritize capacity building, and select the ESG learning programs to be promoted in that year. To enhance suppliers' awareness and capabilities regarding sustainability, Qisda will hold ESG workshops for the supply chain.In the final stage, Qisda will require participating suppliers to provide verbal or written feedback to evaluate the effectiveness of the learning initiatives and make adjustments for improvement, ensuring the continuous promotion and development of the green supply chain.

Awareness

Through training and workshops, Qisda disseminated information regarding relevant laws and sustainability. Furthermore, the company assisted suppliers in conducting inventory of direct materials, indirect materials and energy consumption; disclosing waste emissions and energy consumption from transportation; calculating product life cycle; and understanding the potential impacts their operations may have on ecosystems.

Qisda has required more suppliers to sign the social responsibility and business ethics commitment letter; performed inspections of the supplier’s social responsibility, environment, safety and health; and ensures compliance with international standards such as the environmental management system (ISO 14001), occupational safety and health management system (ISO 45001), social responsibility management system (SA8000), the RBA Code and other regulations and standards.

Inspection of the supplier’s social responsibility, environment, safety and health
Self-assessment on the Responsible Business Alliance Code of Conduct (RBA Code)
Education and training of key suppliers on GHG inventories

Implementation

The sustainable development capability was assessed according to three metrics: self-management, conformity to social responsibility, and ESH management performance. In addition, Qisda performs paper-based inspections for social responsibility and ESH, as well as ensures the signing of the social responsibility and business ethics commitment letter and conducts audits thereof. For any noncompliance identified, we request that suppliers submit an improvement plan, in turn improving supply chain sustainability.

In 2025, Qisda completed paper-based inspections and audits for 100% of our critical Tier 1 suppliers, and make corresponding improvements. Simultaneously, we teach individual suppliers how to perform GHG inventories and draw up reduction plans in order to strengthen the suppliers’ participation in and management of climate change-related issues.

On-site audit of the supplier’s social responsibility,environment, safety and health
Implementation of the Responsible Business Alliance Code of Conduct (RBA Code)
Self-disclosure and reduction of GHG generated from key components

Sustainability

For management in the future, we will continue to prioritize education and resource provision to our Tier 1 suppliers. In addition to enhancing the environmental awareness and social responsibility among our suppliers, this approach will allow our suppliers to join Qisda in leading environmental protection for the manufacturing industry.

By strengthening the self-management capability of our Tier 1 suppliers, relevant requirements and management practices can be extended to Tier 2 suppliers, thus creating a green supply chain.

Supplier’s independent management
Preparation of the Corporate Social Responsibility Report
Extension to the Tier 2 supplier

Suppliers' Capacity Building

Name of Capacity Building Project	Project Timeline and Operation	Capacity Building
Supplier's GHG Inventory	Qisda recognizes that the green transformation of the value chain is a key enabler for achieving net-zero targets. In 2025, the Company proactively engaged in in-depth dialogue with more than 300 suppliers, focusing on the practical implementation of greenhouse gas inventory questionnaires. During the one-hour intensive training sessions, the Company not only clarified the data collection standards for Scope 1 and Scope 2 emission activities, but also encouraged suppliers to disclose Scope 3 information. Real-time consultation services were provided to address any questions arising during the completion process. These efforts effectively enhanced suppliers' understanding of carbon management policies and their level of engagement, ensuring transparency and accuracy of data across the value chain, thereby serving as a scientific foundation for future decarbonization pathway planning. In accordance with the GHG Protocol, Qisda completed the greenhouse gas inventory for first-tier suppliers in 2025, covering a total of 365 suppliers. Qisda will continue to support suppliers in setting carbon reduction targets, strengthening energy management, and implementing decarbonization actions, with the aim of achieving a 30% supplier carbon reduction target by 2030.	In 2025, we assisted 365 Tier 1 suppliers (including 259 key Tier 1 suppliers) in building their own GHG inventory capabilities.
Continuous Improvement Program	In the first and second half of 2025, Qisda supported suppliers in implementing a six-month “ Continuous Improvement Program ” (CIP), which is demand-driven and leverages cross-functional collaboration to identify root causes of issues and develop concrete improvement solutions, while also evaluating project effectiveness. This initiative not only optimized Qisda's existing processes and operational efficiency, but also strengthened suppliers' capabilities in problem analysis and problem-solving.	In 2025, a total of 24 "CIP" projects were carried out. Several of these projects focused on enhancing performance in areas such as energy saving and carbon reduction, green transformation, and material recycling, which are highly aligned with ESG principles. Other projects involved process improvements, product yield enhancement, and reduction of material scrap rates, contributing to improved resource efficiency and supporting corporate sustainable development.

KPI Goals for Sustainable Supply Chain and the Performance Achievement

Sustainable Supply Chain KPIs	2025
Sustainable Supply Chain KPIs	Performance	Goal
Proportion of suppliers surveyed with Supplier Sustainability Risk Questionnaire (%)	100%	100%
Suppliers' Capacity Building	259 suppliers	259 suppliers
Percentage of Suppliers' Capacity Building	66.24%	50%
Percentage of Paper Survey of New Suppliers' Behavior in Terms of Human Rights, Environment, and Labor	100%	100%
Percentage of New Suppliers Engaged in Conflict Minerals Paper Survey	100%	100%
Audit Percentage of Significant High-risk Suppliers	100%	100%
Percentage of Guidance on the Improvement for Audited Supplier Deficiency	100%	100%

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