PSMC’s Supplier Management Regulations is based on the “Code of Conduct of the RBA” (formerly known as EICC), specifying a statement on supplier code of conduct, requiring suppliers to duly comply with the code in terms of labor, health and safety, environment, business ethics, management systems, and other business conduct and to fully comply with the laws and regulations of the country/ region where they operate. We also audit our suppliers in the annual audit.

In order to conform to the global trend of green products, PSMC has given priority to evaluate the use of green label products and services recognized by governments and international organizations, and has included them in the selection mechanism of procurement methods and supplier evaluation. In 2022, the total amount of green procurement by PSMC was approximately NT$160 million, including domestic products and services with Type I environmental protection labels, energy saving labels, carbon labels, green building materials labels, solar power and certificate purchases, LED lamps, as well as green products from overseas, Energy Star products, EPEAT Registry tools, and TCO-Certified products by the Swedish Federation of Professional Employees; PSMC will continue to expand its investment in green procurement in the future.

PSMC is committed to respecting and protecting human rights, practicing high standards of social ethics and fulfilling corporate responsibilities. To this end, PSMC asks all target and gas suppliers with whom we have dealings to commit to not using upstream suppliers and countries of origin in conflict minerals areas in order to achieve the goal of 100% conflict-free minerals. We also call on all of our supplier partners who have business dealings with PSMC to join the Responsible Business Alliance's "No Minerals Accepted from Conflict Mines" pledge and ask our raw material suppliers to comply with the following requirements:

• Suppliers must fulfill their social and environmental responsibilities.
• Suppliers must ensure that no products are made from the minerals extracted in the areas of Congo, or its neighboring countries that are in armed conflicts, or extracted in poor working conditions.
• Suppliers must disclose the source of the minerals, such as Ta, Sn, Au, and W; and complete investigation forms.
• Suppliers must convey PSMC’s policy of "no conflict minerals" to their upstream suppliers and supply chains.

Conflict minerals are from the Conflict-Affected and High Risk Areas, or neighboring armed countries that illegally mine such minerals: tantalum (Ta), tin (Sn), tungsten (W), gold (Au) and Cobalt(Co).

• Tantalum (Ta), tin (Sn), tungsten (W) , gold (Au)：PSMC and its suppliers have committed themselves to avoid using conflict minerals, have proceeded to conduct an annual detail research in its supply chain and updated its research data, and checked and collected the latest information on the RMI official website every year. If there are any updates, the supplier will be requested to provide the update and feedback.
• Cobalt(Co)：If there are any updates in the conflict mineral template, the supplier will be requested to provide the update and feedback. This encourages suppliers to participate in Responsible Minerals Assurance Process (RMAP). If cobalt is in the scope of CMRT management, PSMC will require suppliers to strictly obey the rule of CMRT.

PSMC established the Supplier Code of Conduct based on the「Responsible Business Alliance (RBA, formerly known as EICC) Code of Conduct」. It requires suppliers to make sure that their labor, health and safety, environment, business ethics and the management system are subject to the code, and that suppliers are to strictly obey the laws/ rules of the country/ area where their business run. The aforementioned will be checked in the pre-selection and annual supplier audit, suppliers’ status of compliance with this Code will be one of the considerations for PSMC’s evaluation of and decision making on the purchasing.

RBA Commitment