Supply Chain Human Rights and Environmental Due Diligence Management Rules

15-MAR-2021

Chapter 1 General Provisions

Article 1 Purpose of Formulation

To comply with the sustainable development compliance requirements of clients and strictly abide by the current laws and regulations of the People's Republic of China, standardize the management of human rights, labor affairs, anti-corruption, environmental protection and other work across the company’s entire supply chain, establish a systematic supply chain due diligence system, identify, prevent and rectify supply chain compliance risks, and ensure the sustained compliance of business operations, these Rules are hereby formulated.

Article 2 Scope of Application

These Rules shall apply to all departments and on-the-job employees of the Company, as well as all direct suppliers, indirect suppliers, subcontractors, service providers, external cooperation partners and other business partners throughout the supply chain. The Company and all supply chain partners shall comply with these Rules, relevant laws and regulations, and external compliance agreements.

Article 3 Basic Principles

1.Full-chain Coverage: Due diligence shall extend to primary, secondary and downstream multi-level supply chains. All partners are required to pass down compliance requirements layer by layer.

2.Priority of Local Laws: Prioritize compliance with the laws and regulations of the People's Republic of China while meeting external cooperation compliance standards.

3.Proactive Risk Prevention: Adhere to pre-inspection, in-process supervision and post-rectification to continuously mitigate risks relating to human rights, labor affairs, the environment and integrity.

4.Transparency and Traceability: Cooperate with audits and inspections conducted by partners and third parties in accordance with laws, and truthfully submit relevant due diligence documents.

5.Accountability and Rectification: Initiate rectification immediately upon discovery of violations. Terminate cooperation in accordance with laws and regulations for parties who refuse to rectify or commit serious violations.

Chapter 2 Compliance Implementation and Contract Constraints

Article 4 Standard Dissemination Requirements

1.Prior to contract signing, the Procurement/Supply Chain Department shall fully inform all partners of these Rules and external compliance obligations.

2.A special compliance clause shall be added to all external cooperation contracts, stipulating that partners must abide by these Rules and all external compliance requirements, and shall impose corresponding constraints on their downstream suppliers to ensure compliance requirements are implemented throughout the entire supply chain.

3.All new suppliers shall pass compliance access review. No cooperation shall be launched for suppliers failing the review.

Article 5 Compliance with Laws and Regulations

1.The Company and its supply chain partners shall strictly abide by the current laws and regulations of the People's Republic of China and the regions where operations are conducted. Superior laws and regulations shall prevail over subordinate ones; in case of conflicts between regulations at the same level, actions shall be taken in line with compliance principles.

2.Fully implement anti-corruption requirements: establish systems to prevent bribery, facilitation payments overseas and improper transfer of interests. Any form of commercial bribery and improper interest transactions are strictly prohibited.

3.Strictly implement the core labor standards of the International Labour Organization and relevant laws and regulations on remuneration to protect employees' legitimate right to labor remuneration.

Chapter 3 Due Diligence on Human Rights and Labor Rights

Article 6 Prohibition of Child Labor and Regulation of Juvenile Workers

1.In strict compliance with the laws and regulations of the People's Republic of China, the employment of persons under the age of 16 (child labor) is strictly prohibited. In line with clients' compliance requirements, the employment of juvenile workers aged 16 to 18 is generally not allowed. If the employment of juvenile workers is truly necessary, relevant provisions on the labor protection of juvenile workers shall be strictly enforced.

2.Persons under the age of 18 shall not be arranged to engage in enslavement, human trafficking, debt bondage, forced labor, adult entertainment-related work, high-risk work or work harmful to physical and mental health. Minors who have not completed nine-year compulsory education shall not be employed.

3.Due Diligence Content: Verify employee rosters, identity documents and entry files, check attendance records, conduct random on-site inspections of labor conditions, and carry out full-coverage inspections on the age of employees of downstream suppliers on a quarterly basis.

Article 7 Prohibition of Forced Labor and Exploitation

1.Any form of forced labor, debt bondage, human trafficking, physical detention, serfdom, workplace oppression, economic exploitation, personal humiliation and sexual exploitation are strictly prohibited.

2.Due Diligence Content: Verify voluntary employment declarations and resignation procedures of employees, inspect access control and accommodation management, and identify practices involving restriction of personal freedom and forced labor.

Article 8 Occupational Health and Safety Management

1.Strictly implement national laws and regulations on occupational safety and health, fully equip safety protection facilities, conduct regular safety training, and eliminate potential risks of work-related injuries and occupational diseases.

2.Due Diligence Content: Inspect on-site operating conditions, configuration of protective equipment, safety training records, work injury ledgers and hazard rectification records.

Article 9 Freedom of Association and Anti-Discrimination Management

1.Employees' legitimate right to freely form and join trade unions and engage in legal association shall be protected. No interference or obstruction is permitted.

2.Employment discrimination based on nationality, ethnicity, family background, health status, disability, sexual orientation, age, gender, political views or religious beliefs is strictly prohibited. The principle of equal pay for equal work shall be fully implemented.

3.Due Diligence Content: Conduct employee interviews, verify remuneration systems, reward and punishment rules and promotion records to screen for discriminatory practices.

Article 10 Remuneration and Welfare Management

1.Salaries shall be paid in full and on time, and the remuneration standard shall not be lower than the local statutory minimum wage. Wage payment vouchers and attendance ledgers shall be properly retained.

2.Due Diligence Content: Conduct random inspections of payrolls, bank payment records, attendance records and overtime salary calculation documents.

Article 11 Land, Security and Other Human Rights Requirements

1.Illegal land acquisition, illegal occupation of land, forest land and water areas relied on by local residents, and illegal eviction of residents are prohibited.

2.Standardize the management of security personnel, strengthen security training and supervision, and prohibit personal injury or infringement caused by improper security management.

3.Dereliction of duty that obviously violates laws or seriously infringes upon others' legitimate rights and interests is prohibited.

Chapter 4 Due Diligence on Environmental and Climate Protection

Article 12 Control of Chemicals and Mercury-containing Products

1.The production, procurement and use of mercury-added products are prohibited. Phase out the use of mercury and mercury compounds in production in accordance with the timeline set by the Minamata Convention, and standardize the disposal of mercury-containing waste.

2.The production, procurement and use of persistent organic pollutants listed in the Stockholm Convention are prohibited.

3.Due Diligence Content: Verify raw material lists, chemical ledgers, hazardous chemical usage records and material procurement sources.

Article 13 Control of Waste and Cross-border Waste

1.All waste shall be collected, stored, transported and disposed of by environmentally sound means. Random dumping and illegal stacking of waste are forbidden.

2.Comply strictly with the Basel Convention and domestic solid waste management regulations. Illegal cross-border import and export of hazardous waste and general waste are prohibited.

3.Due Diligence Content: Verify waste disposal contracts, qualifications of disposal entities, transport waybills, environmental protection ledgers and pollutant discharge records.

Article 14 Pollution and Resource Control

Any production and business activities that cause soil damage, water pollution, air pollution, excessive noise and excessive water consumption are prohibited. Conduct regular on-site environmental inspections and keep records of inspections and rectification.

Chapter 5 Implementation Procedures of Due Diligence

Article 15 Organizational Responsibilities

1.Supply Chain Management Department: Take the lead in coordinating the entire due diligence process, supplier access, daily supervision, standard dissemination and contract management.

2.Administrative/Human Resources Department: Conduct compliance verification on labor affairs, human rights, remuneration and employment issues for internal staff and suppliers.

3.Environment, Health and Safety (EHS) Department: Conduct compliance verification on environmental protection, hazardous chemicals, waste and occupational safety.

4.Legal/Risk Control Department: Review compliance clauses, determine violations, supervise rectification and conduct risk assessment.

Article 16 Classification and Frequency of Inspections

1.Access Inspection (Mandatory): Conduct full due diligence on human rights, labor affairs, integrity and environmental protection for new suppliers prior to cooperation, and issue a Supplier Compliance Access Report. No cooperation shall be approved for unqualified suppliers.

2.Regular Routine Inspection: Conduct random inspections of existing suppliers on a quarterly basis, and complete full-coverage due diligence on all suppliers every year.

3.Special Unannounced Inspection: Launch immediate special unannounced inspections upon receipt of risk clues, client alerts or industry risk warnings.

Article 17 Inspection Methods

1.Document Review: Examine qualification certificates, contracts, ledgers, payrolls, attendance records, environmental approval documents, hazardous chemical records and waste disposal documents.

2.On-site Verification: Conduct field visits to suppliers' production sites, offices and accommodation areas to inspect on-site compliance status.

3.Personnel Interviews: Randomly interview frontline employees and management staff to learn about actual conditions of employment, remuneration, safety and environmental protection.

4.Written Commitment: Require all suppliers to sign the Supply Chain Compliance Commitment Letter.

Article 18 Risk Classification

1.Low Risk: Minor non-compliance without substantial harm, which can be rectified on site immediately.

2.General Risk: Existing compliance defects, which shall be rectified within a specified time limit with a rectification report submitted.

3.High Risk: Severe violations including child labor, forced labor, serious pollution, major potential safety hazards and commercial bribery.

Chapter 6 Training, Reporting and Transparency Management

Article 19 Compliance Training

1.Internal Training: Organize no less than 2 compliance training sessions on human rights, labor affairs, environmental protection and anti-corruption for internal staff every year, and retain training sign-in sheets, course materials and assessment records.

2.Supplier Training: Deliver supply chain compliance promotion activities every year, and require partners to conduct synchronous compliance training for their own employees.

Article 20 Reporting Mechanism Management

1.Inform all staff and supply chain partners of the usage of the client’s designated reporting system. The Company does not compel anyone to use this overseas reporting channel; employees and partners may choose reporting channels voluntarily.

2.The Company prohibits obstruction or restriction on the use of legal reporting channels, and strictly prohibits retaliation against whistleblowers.

3.An internal compliance reporting channel is established to accept clues of supply chain violations. All reports shall be handled confidentially, verified in a timely manner and closed with proper follow-up. When reporting via overseas systems, it is forbidden to disclose state secrets, corporate trade secrets and others' sensitive personal information.

Article 21 Document Retention and Audit Cooperation

1.All due diligence records, ledgers, reports, training documents and rectification materials shall be retained for at least 3 years to ensure traceability and accessibility.

2.Clients may conduct inspections and audits on their own or entrust third-party institutions during normal business hours based on risk assessment. All audits shall comply with national laws and regulations on data security and personal information protection. The Company has the right to refuse to provide confidential information, core trade secrets and sensitive personal data. The Company shall submit relevant compliance documents as required and cooperate with audits.

Chapter 7 Violation Handling and Rectification Mechanism

Article 22 Handling of General Violations

1.Issue a Compliance Rectification Notice specifying rectification items, time limits and acceptance criteria.

2.Increase inspection frequency during the rectification period and follow up on progress. Conduct re-verification after rectification; normal cooperation may resume only after passing re-verification.

3.Temporarily suspend business cooperation according to the risk level until risks are eliminated.

Article 23 Handling of Severe Violations

Cooperation shall be terminated immediately and the relevant partner shall be permanently blacklisted in the event of any of the following severe violations:

1.Malignant violations including child labor, forced labor, human trafficking, serious environmental pollution, illegal cross-border hazardous waste disposal, major work safety accidents and commercial bribery;

2.Failure to meet rectification requirements within the time limit or repeated occurrence of similar violations;

3.Intentional concealment of violations or refusal to cooperate with investigations and rectification.

Article 24 Joint Rectification with Clients

If the client identifies compliance problems within the Company or its supply chain, the Supply Chain Department shall take the lead to jointly formulate a rectification plan with the client, implement it strictly and feed back rectification results on schedule.

Chapter 8 Supplementary Provisions

Article 25 System Revision

These Rules shall be revised in a timely manner in accordance with updates to external cooperation compliance standards, national laws and regulations, and international conventions.

Article 26 Effective Date

These Rules shall take effect as of the date of issuance. All employees of the Company and all supply chain partners must comply strictly.

供应链人权与环境尽职调查管理细则

第一章总则

第一条制定目的

为落实客户可持续发展合规要求，同时严格遵守中华人民共和国现行法律法规，规范公司全供应链人权、劳工、反腐败、环境保护等管理工作，建立系统化供应链尽职调查体系，识别、预防并整改供应链合规风险，保障业务合作持续合规，特制定本细则。

第二条适用范围

本细则适用于本公司全体部门、在职员工，以及所有直接供应商、间接供应商、分包商、服务商、外协合作方等全链条商业伙伴。公司及所有供应链合作方，均须遵守本细则及相关法律法规、对外合规约定。

第三条基本原则

1.全链条覆盖：尽职调查延伸至一级、二级及下游多级供应链，要求所有合作方逐层传递合规要求。

2.属地法优先：优先遵守中华人民共和国法律法规，同时满足对外合作合规标准。

3.主动防控：坚持事前排查、事中监督、事后整改，持续降低人权、劳工、环境、廉政风险。

4.透明可查：依规配合合作方及第三方审计、核查，如实提交尽职调查相关资料。

5.问责整改：发现违规立即启动整改，拒不整改或存在严重违规的，依法依规终止合作。

第二章合规要求承接与合同约束

第四条标准传递要求

1.采购/供应链部门在合同签订前，向所有合作方完整告知本细则及对外合规义务。

2.所有对外合作合同必须增设合规专项条款：约定合作方须遵守本细则及对外合规全部要求，并要求其向下游供应商同步约束，确保合规要求贯穿整条供应链。

3.新引入供应商必须完成合规准入审核，未通过审核不得开展合作。

第五条法律法规遵从

1.公司及供应链合作方须严格遵守中华人民共和国及经营所在地现行法律法规，上位法优先于下位法；同级法规出现冲突时，按合法合规原则执行。

2.全面落实反腐败要求：建立防贿赂、防境外疏通费、防利益输送制度，严禁任何形式商业贿赂及不正当利益往来。

3.严格执行国际劳工组织核心劳动标准、薪酬相关法律法规要求，保障员工合法劳动报酬。

第三章人权与劳工权利尽职调查

第六条禁止童工及未成年工管理

1.严格遵守中华人民共和国法律法规，严禁聘用未满16周岁人员（童工）；对标客户合规要求，原则上不聘用16–18周岁未成年工。确需聘用未成年工的，严格执行未成年工劳动保护相关规定。

2.严禁安排18周岁以下人员从事奴役、人口贩卖、债务奴役、强迫劳动、涉黄、高危及损害身心健康的工作；不得聘用未完成九年义务教育的未成年人。

3.尽职调查内容：核查员工花名册、身份证件、入职档案、考勤记录，随机现场抽查用工情况，每季度全覆盖排查下游供应商用工年龄。

第七条禁止强迫劳动与奴役剥削

1.严禁任何形式强迫劳动、债务奴役、人口贩卖、人身拘禁、农奴制及职场压迫、经济剥削、人格羞辱、性剥削行为。

2.尽职调查内容：核查员工入职自愿声明、离职流程、门禁管理、食宿管理，排查是否存在限制人身自由、强制用工现象。

第八条职业健康与安全管理

1.严格落实国家职业安全健康法规，配齐安全防护设施，常态化开展安全培训，杜绝工伤及职业健康隐患。

2.尽职调查内容：检查作业现场安全条件、防护用品配置、安全培训记录、工伤台账、隐患整改记录。

第九条结社自由与反歧视管理

1.保障员工自由组建、加入工会及合法结社的权利，不得干涉、阻挠。

2.严禁因国籍、民族、出身、健康、残疾、性取向、年龄、性别、政治观点、宗教信仰实施用工歧视，严格执行同工同酬规定。

3.尽职调查内容：访谈员工、核查薪酬体系、奖惩制度、晋升记录，排查歧视行为。

第十条薪酬福利管理

1.按时足额发放薪资，薪酬标准不得低于当地法定最低工资标准，留存工资发放凭证、考勤台账。

2.尽职调查内容：抽查工资表、银行流水、考勤记录、加班薪资核算记录。

第十一条土地、安保及其他人权要求

1.禁止非法征地、非法侵占民众赖以生存的土地、林地、水域，禁止非法驱逐居民。

2.规范安保人员管理，加强安保培训与管控，严禁因安保管理不当造成人员伤亡、人身侵害。

3.严禁存在明显违法、严重侵害他人合法权益的失职行为。

第四章环境与气候保护尽职调查

第十二条化学品与汞制品管控

1.禁止生产、采购、使用添汞产品；严格按照《水俣公约》时限，淘汰生产环节汞及汞化合物使用，规范含汞废弃物处置。

2.禁止生产、采购、使用《斯德哥尔摩公约》所列持久性有机污染物。

3.尽职调查内容：核查原材料清单、化学品台账、危化品使用记录、物料采购来源。

第十三条废弃物与跨境废物管控

1.所有废弃物分类收集、储存、转运、处置，全程采取环保方式，杜绝随意丢弃、违规堆放。

2.严格遵守《巴塞尔公约》及国内固废管理法规，禁止违规跨境出口、进口危险废物及一般废弃物。

3.尽职调查内容：核查废弃物处置合同、处置单位资质、转运联单、环保台账、排污记录。

第十四条污染与资源管控

禁止生产经营活动造成土壤破坏、水体污染、大气污染、超标噪音、水资源过度消耗。定期开展现场环境巡查，留存巡查及整改记录。

第五章尽职调查实施流程

第十五条组织职责

1.供应链管理部：牵头统筹全流程尽职调查、供应商准入、日常监督、标准传递、合同管理。

2.行政/人事部门：负责内部及供应商劳工、人权、薪酬、用工合规核查。

3.安环部门：负责环境、危化品、废弃物、职业安全合规核查。

4.法务/风控部门：负责合规条款审核、违规认定、整改监督、风险研判。

第十六条调查分类与频次

1.准入调查（必做）：新供应商合作前，完成人权、劳工、廉政、环境全项尽职调查，出具《供应商合规准入报告》，不合格不予合作。

2.常规例行调查：现有供应商每季度开展抽查，每年完成全供应商全覆盖尽职调查。

3.专项突击调查：收到风险线索、客户提示、行业风险预警时，立即启动专项突击核查。

第十七条调查方式

1.资料审查：查阅资质文件、合同、台账、工资表、考勤、环保手续、危化品记录、废弃物处置单据等。

2.现场核查：实地走访供应商生产、办公、食宿场地，检查现场合规状态。

3.人员访谈：随机访谈基层员工、管理人员，了解用工、薪酬、安全、环境实际情况。

4.书面承诺：要求所有供应商签署《供应链合规承诺书》。

第十八条风险分级

1.低风险：轻微不合规，无实质性危害，现场立即整改即可。

2.一般风险：存在合规瑕疵，限期完成整改并提交整改报告。

3.高风险：涉嫌童工、强迫劳动、严重污染、重大安全隐患、商业贿赂等严重违规。

第六章培训、举报与透明度管理

第十九条合规培训

1.公司内部：每年至少开展2次人权、劳工、环保、反腐败合规培训，留存培训签到、课件、考核记录。

2.供应商培训：每年组织供应链合规宣导，要求合作方对其员工同步开展合规培训。

第二十条举报机制管理

1.告知全员及所有供应链合作方客户指定举报系统使用方式。本公司不强制要求任何人使用该境外举报渠道，员工及合作方可自愿选择举报途径。

2.公司严禁阻挠、限制员工及合作方使用合法举报渠道，严禁打击报复举报人。

3.内部设立合规举报通道，受理供应链违规线索，做到保密受理、及时核查、闭环处理。通过境外系统举报时，严禁泄露国家秘密、企业商业秘密及他人敏感个人信息。

第二十一条资料留存与审计配合

1.所有尽职调查记录、台账、报告、培训记录、整改资料至少留存3年，做到可追溯、可查阅。

2.客户有权在正常营业时间内，基于风险评估，自行或委托第三方机构开展检查与审计。审计全过程须遵守中华人民共和国数据安全、个人信息保护等法律法规，我方有权拒绝提供涉密信息、核心商业秘密及敏感个人数据。我方按要求及时提交合规相关资料，配合审计工作。

第七章违规处置与整改机制

第二十二条一般违规处置

1.下达《合规整改通知书》，明确整改事项、整改时限、验收标准。

2.整改期间加大巡查频次，跟进整改进度；整改完成后组织复核，复核通过方可恢复正常合作。

3.视风险程度，可临时中止业务合作，直至风险消除。

第二十三条严重违规处置

出现以下严重违规情形，立即终止合作，并将合作方永久纳入合作黑名单：

1.存在童工、强迫劳动、人口贩卖、严重环境污染、非法跨境危废、重大安全事故、商业贿赂等恶性违规；

2.限期整改后仍未达标，或反复出现同类违规；

3.故意隐瞒违规事实、拒绝配合调查及整改。

第二十四条客户协同整改

若经客户认定我方或供应链存在合规问题，由供应链部牵头，联合客户共同制定整改方案，严格执行并按时反馈整改结果。

第八章附则

第二十五条制度更新

本细则根据对外合作合规标准、中华人民共和国法律法规、国际公约更新情况及时修订。

第二十六条生效日期

本细则自发布之日起正式执行，公司全体员工及所有供应链合作方必须严格遵守。

2021年3月15日