Corporate Sustainability

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Letter from the CEO

Apart from advocating ePaper’s core value: make the world more energy-efficient and cleaner with ePaper, we promote the smart and paperless applications of ePaper in both everyday life and commercial scenarios to reduce paper use and minimize logging to achieve sustainable development through energy conservation and carbon reduction. With ePaper’s bi-stable and reflective characteristics, we have earned credits worldwide for building the easy-on-the-eyes eReader. Through constant business optimization and expansion, we invest resources in plants and participate in social welfare activities worldwide to link to the ePaper’s core value based on the operational strategy established in collaboration with partners in the ePaper ecosystem. We further implement various local care programs to fulfill our corporate social responsibilities through social welfare.

We also correspond to the 17 Sustainable Development Goals (SDGs) set by the United Nations as the guidelines for countries in the world to implement sustainable development by 2030. Based on the core value of our products, we selected choose six SDGs* in 2016 as the goals for organizational, product, and business development. These SDGs encompassing three main aspects: economic growth, social progress, and environmental protection and complying with the environmental, social, and governance (ESG) criteria enable us to practice sustainable development in the economic, social, and economic categories in accordance with the SDGs.

Looking back at 2018, we were awarded three awards at the 11th Taiwan Corporate Sustainability Awards (TCSA): “Top 50 Corporate Sustainability Award”, “Corporate Sustainability Report Award”, and “Best Performance in Specific Categories—Social Inclusion Award”. These awards recognize our efforts and achievements to “extend our contributions to social and environmental sustainability with the product’s core value” in CSR practice. We are deeply honored!

Transparent and integral governance: Promoting corporate sustainable development with steady income

At the end of 2016, we successfully transformed to the R&D and manufacture of ePaper products, and both the management team and all employees have since been working persistently and gingerly for the company’s steady growth. Upholding integrity and transparency in management, at the 2018 OTC Companies Governance Evaluation by the Securities and Futures Institute, we were ranked the Tier 2 (top 6-20%), which is a big step forward compared to the results in the previous year. This result also demonstrates our self-motivated practice in governance optimization.

In addition, for the company’s sustainable development, we have constantly invested an average of 13% of the revenue every year in R&D over the past five years of so to enhance technological competitiveness, in order to make the edge-cutting and innovative ePaper technologies and product applications as the engine driving corporate sustainable development.

Subscription of most RECs in the industry: Supporting the sustainable development of the environment with ePaper's core value

In the sustainable development of the environment, apart from taking the initiative to constantly implement energy conservation, GHG reduction, and water resources recycling in our plants worldwide, we invest resources in enhancing the efficiency of existing equipment and introduce pollution control equipment for environmental protection to reduce the environmental impacts of manufacturing activities to support the sustainable development of the environment.

In energy conservation, we persistently increase the use of renewable energy and subscribe green power and renewable energy certificates (RECs) to support green power development in Taiwan. By April 10, 2019, we have accumulated 948 RECs, the highest among all subscription enterprises, to demonstrate our determination to support green power and practice environmental protection in real actions.

To make the world more energy-efficient and cleaner by replacing traditional paper with ePaper is our vision. Apart from replacing paper books with the eReader, which is known to the public, we proactively develop ePaper technologies and product applications in collaboration with the supply chain, customers, and partners in different sectors. We have developed the electronic shelf label (ESL) for smart retailing and the smart bus stop info panel for smart transport to bring “a smart and paperless world” to a new pedestal.

Corporate expertise and employment participation: Promoting e-reading with partners in the industry

In 2017, we launched the “e-Reading for the Future” eReader library program to pay back society with corporate resources in collaboration with supply chain partners using the eReader built with ePaper’s blue-light-free and comfortable reading characteristics to provide students with a quality, focus, and easy-on-the-eyes e-reading experience and promote the development of literacy. After initiating the program at Taiwan HQ, we have implemented it in the Yangzhou Plant and South Korea branch to promote the eReader and eBook to the world and encourage students to engage in e-reading and e-learning.

Aside from promoting social-inclusion with the “e-Reading for Future” program, we participate in various social welfare activities by combining organizational and employee resources based on the needs of the local society of individual plants. In 2018, Hsinchu HQ purchased eight m.t. of grade A bananas at a price higher than the retail price in collaboration with the Chuchi Farmers’ Association in Chiayi to help banana farmers sell quality bananas and acquire higher income. The Yangzhou Plant in mainland China continued the Maitian Program to help rural students through fundraisers and in-kind donations within the organization. The USA Plant constantly engaged in community care and initiated fundraisers and in-kind donations within the organization to support local communities. The South Korea subsidiary Hydis engaged in the home renovation and cleansing service for elderly people living alone and vulnerable families, provided scholarships and career consultation to support education development and talent cultivation. By investing in funds and human resources, we engage in social welfare with employees to realize social inclusion and development.

As an outlook, we will continue to proactively develop and innovate ePaper technologies and products provide employees with better benefits and career development, and promote the company’s sustainable operations and growth through transparent and integral governance. We will also implement CSR activities and practice the three categories of sustainable development: economic, environmental, and social in collaboration with worldwide employees, supply chain partners, and ecosystem partners, and synchronize sustainable development within and outside of the enterprise to make E Ink a respectable, sustainable business.

Johnson Lee
CEO

Vision and Mission of Sustainable Development

E Ink Sustainability Policy

As a specialist in ePaper and LCD R&D, design, and manufacturing company re-invested in by YFY, E Ink has undergone steady operations for years and several transformations before achieving today’s success. Extending YFY’s papermaking expertise, strength from strength, E Ink upholds its “Innovation, Discipline, and Teamwork” business philosophy; work culture of accountability; and “One Team, One E Ink” operational thinking to develop new-generation products and contribute to changing human life and creating social value. It is our commitment to investing in resources and making aggressive contributions and continual improvement in consideration of the following aspects, hoping to fulfill our corporate social responsibilities and uphold our determination to sustainable development.

CSR Committee

In early 2016, we established the CSR Committee with a prime mission to compile the annual CSR Report. At the beginning of establishment, we arranged internal education and training for seed staff to raise awareness and to get familiar with GRI G4 guidelines. Then, we asked all departments to provide data, explanations, and reports with regard to the GRT G4 guidelines based on their roles and responsibilities in order for the CSR Committee to compile the 2015 CSR Report which was published in June 2016.

In addition, we set up different divisions according to the duties of each functional group and held meetings to discuss their tasks, plan and implement sustainable activities, in order to constantly promote work relating to CSR and sustainable development.

Stakeholders Communication

Response to Stakeholders

At E Ink, we identify stakeholders and material topics with respect to the AA 1000 Stakeholder Engagement Standard (AA 1000 SES), in order to understand the material environmental, social, and governance topics that concern stakeholders. At the CSR Committee meeting, representatives of the E Ink departments assessed the stakeholders in terms of five aspects: dependency, influence, tension, responsibility, and diverse perspectives (AA 1999 SES: 2011) before identifying nine main stakeholder groups.

Identification and Management of Material

To identify the report boundary and to ensure that the information disclosed in this report can best cover the topics and aspects that concern stakeholders, we have identified material topics with regard to the identified stakeholder groups in collaboration with the CSR Committee and relevant units. Based on the methods for defining report contents and the principles for determining material aspects in the GRI G4 Guidelines, with “the significance of a topic’s economic, environmental, and social impacts on the organization” as the x-axis, and “the influence on stakeholder assessments and decisions of a topic” as the y-axis, representatives of E Ink departments assessed the topics that concern stakeholders. After discussion between three higher-level executives, we summed up and distinguished the “core topics” of high sensitivity, “main topics” of medium sensitivity, and “supplementary topics” of low sensitivity. Information disclosures and future operational strategies in this report emphasize the response to the core and main topics and timely demonstrate the effectiveness of supplementary topics to fulfill the expectations on the part of stakeholders.

The matrix below shows the 24 material topics disclosed in our 2016 CSR report. After identification and prioritization, we have categorized them into eight core topics, ten main topics, and six supplementary topics.

Environment Prioritization, Safety Supremacy, Total Participation, Sustainable Operations

In 1992, YFY founded E Ink in Hsinchu Science Park to specialize in the research, development, manufacture, and sale of TFT-LCD, EPD, and miscellaneous display and peripheral technologies. Besides caring about employee safety and health and environmental and energy topics, E Ink management firmly believes that environment, safety, health, and energy (ESHE) are the foundation of business operations. Furthermore, E Ink management agrees that by assessing ESHE with appropriate tools, drawing up management plans, and enforcing them during routine operations and control to achieve safe operation, clean production, environmental protection, and energy conservation are key to sustainable operations. For these reasons, we are committed to making continual improvement to:

Since 2002, all E Ink plants passed ISO 14001 certification. Further in 2005, the Hsinchu Plant and Yangzhou Plant obtained the Verification Statement of Greenhouse Gas Assertions through ISO 14064-1 GHG inventory and passing external verification. Although the Linkou Plant is not an EPA-required GHG inventory plant, it implemented voluntary GHG inventory and external verification to review the effectiveness of inhouse energy conservation and emissions reduction and provide a reference for making future progress.

E Ink’s Supplier Code of Conduct

E Ink is a leading global ePaper manufacturer. We are committed to ensuring that workers are treated with respect and dignity that working conditions in its supply chains are safe, and that business operations are environmentally responsible and conducted ethically. E Ink established this Supplier Code of Conduct (“Code”) and requires our suppliers to operate in accordance with the principles outlined in this Code and in full compliance with the laws, rules and regulations of the countries in which they operate. In addition, E Ink also expects our suppliers to hold their suppliers to the standards defined in this Code, and to shoulder social, environmental and ethical responsibilities together.

The provisions in this Code are derived primarily from the Responsible Business Alliance (RBA, Formerly EICC) Code of Conduct and are in alignment with the UN Guiding Principles on Business and Human Rights, as well as key international human rights standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights.

All the E Ink’s suppliers must sign the "E Ink’s Supplier Code of Conduct" to ensure E Ink’s suppliers clearly understand and indeed comply with the requirements. E Ink will assess its suppliers’compliance with this Code when making purchasing decisions. It is our intention to collaborate closely with our suppliers to drive continuous improvement through communication, audits, and follow-up assessments.

The Code is made up of five sections, in order of Labor, Health and Safety, Environment, Ethics and Management Systems

 

A. LABOR

Suppliers are committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community. This applies to all workers including temporary, migrant, student, contract, direct employees, and any other type of worker. The recognized standards, as set out in the annex, were used as references in preparing the Code and may be a useful source of additional information.

The labor standards are,

1. Freely Chosen Employment

Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons is not permitted (including forced labor provided by North Korean citizens or nationals as set forth under U.S. CAATSA, or Countering America’s Adversaries through Sanctions Act). This includes transporting, harboring, recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility in addition to unreasonable restrictions on entering or exiting company- provided facilities including, if applicable, workers’ dormitories or living quarters. As part of the hiring process, all workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment. Foreign migrant workers must receive the employment agreement prior to the worker departing from his or her country of origin and there shall be no substitution or change(s) allowed in the employment agreement upon arrival in the receiving country unless these changes are made to meet local law and provide equal or better terms. All work must be voluntary, and workers shall be free to leave work at any time or terminate their employment without penalty if reasonable notice is given as per worker’s contract. Employers, agents, and sub-agents’ may not hold or otherwise destroy, conceal, or confiscate identity or immigration documents, such as government-issued identification, passports, or work permits. Employers can only hold documentation if such holdings are required by law. In this case, at no time should workers be denied access to their documents. Workers shall not be required to pay employers’ agents or sub-agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.

2. Young Workers

Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. Suppliers shall implement an appropriate mechanism to verify the age of workers. The use of legitimate workplace learning programs, which comply with all laws and regulations, is supported. Workers under the age of 18 (Young Workers) shall not perform work that is likely to jeopardize their health or safety, including night shifts and overtime. Suppliers shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable laws and regulations. Suppliers shall provide appropriate support and training to all student workers. In the absence of local law, the wage rate for student workers, interns, and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks. If child labor is identified, assistance/remediation is provided.

3. Working Hours

Studies of business practices clearly link worker strain to reduced productivity, increased turnover, and increased injury and illness. Working hours are not to exceed the maximum set by local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. All overtime must be voluntary. Workers shall be allowed at least one day off every seven days.

4. Wages and Benefits

Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor will be within the limits of the local law.

5. Humane Treatment

There is to be no harsh or inhumane treatment including violence, gender-based violence, sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, bullying, public shaming, or verbal abuse of workers; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.

6. Non-Discrimination

Suppliers should be committed to a workplace free of harassment and unlawful discrimination. Companies shall not engage in discrimination or harassment based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training. Workers shall be provided with reasonable accommodation for religious practices. In addition, workers or potential workers should not be subjected to medical tests, including pregnancy or virginity tests, or physical exams that could be used in a discriminatory way. This was drafted in consideration of ILO Discrimination (Employment and Occupation) Convention (No.111).

7. Freedom of Association

In conformance with local law, suppliers shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively, and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation, or harassment.

 

B. HEALTH and SAFETY

Suppliers recognize that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. Suppliers also recognize that ongoing worker input and education is essential to identifying and solving health and safety issues in the workplace. Recognized management systems such as ISO 45001 and ILO Guidelines on Occupational Safety and Health were used as references in preparing the Code and may be useful sources of additional information.

The health and safety standards are,

1. Occupational Safety

Worker potential for exposure to health and safety hazards (e.g., chemical, electrical and other energy sources, fire, vehicles, and fall hazards) are to be identified and assessed, mitigated using the Hierarchy of Controls, which includes eliminating the hazard, substituting processes or materials, controlling through proper design, implementing engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/ tagout), and providing ongoing occupational health and safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well-maintained, personal protective equipment and educational materials about risks to them associated with these hazards. Reasonable steps must also be taken to remove pregnant women/nursing mothers from working condition with high hazards, remove or reduce any workplace health and safety risks to pregnant women and nursing mothers, including those associated with their work assignments, and provide reasonable accommodations for nursing mothers.

2. Emergency Preparedness

Potential emergency situations and events are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures including: emergency reporting, employee notification and evacuation procedures, worker training and drills. Emergency drills must be executed at least annually or as required by local law, whichever is more stringent. Emergency plans should also include appropriate fire detection and suppression equipment, clear and unobstructed egress, adequate exit facilities, contact information for emergency responders, and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment and property.

3. Occupational Injury and Illness

Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness, including provisions to encourage worker reporting, classify and record injury and illness cases, provide necessary medical treatment assistance; investigate cases and implement corrective actions to eliminate their causes; and facilitate return of workers to work.

4. Industrial Hygiene

Worker exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled according to the hierarchy of controls. If any potential hazards were identified, suppliers shall look for opportunities to eliminate and/or reduce the potential hazards. If elimination or reduction of the hazards is not feasible, potential hazards are to be controlled through proper design, engineering and administrative controls. When hazards cannot be adequately controlled by such means, workers are to be provided with and use appropriate, well-maintained, personal protective equipment free of charge. Protective programs shall be ongoing and include educational materials about the risks associated with these hazards.

5. Physically Demanding Work

Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled.

6. Machine Safeguarding

Production and other machinery shall be evaluated for safety hazards. Physical guards, interlocks and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers

7. Sanitation, Food, and Housing

Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided by the supplier or a labor agent are to be maintained to be clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, adequate lighting and heat and ventilation, individually secured accommodations for storing personal and valuable items, and reasonable personal space along with reasonable entry and exit privileges. For infectious diseases, supplier shall develop and implement a program to take reasonable steps to prepare for, prevent, and respond to the potential for an infectious disease among its employees.

8. Health and Safety Communication

Supplier shall provide workers with appropriate workplace health and safety information and training in the language of the worker or in a language the worker can understand for all identified workplace hazards that workers are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training is provided to all workers prior to the beginning of work and regularly thereafter. Workers shall be encouraged to raise any health and safety concerns without retaliation.

9. Natural Disaster Risk Mitigation

Supplier shall be aware of the natural disasters, such as earthquakes, droughts, floods, typhoons, etc. relevant to its facilities, and assess their likelihood and impact of personnel injury, property damage, and operational disruptions. The risks should be mitigated through establishing hardware protection, developing emergency response procedures, training and drills, and conducting emergency plans.

C. ENVIRONMENTAL

Suppliers recognize that environmental responsibility is integral to producing world class products. Suppliers shall identify the environmental impacts and minimize adverse effects on the community, environment and natural resources within their manufacturing operations, while safeguarding the health and safety of the public. Recognized management systems such as ISO 14001 and the Eco Management and Audit System (EMAS) were used as references in preparing the Code and may be a useful source of additional information.

The environmental standards are,

1. Environmental Permits and Reporting

All required environmental permits (e.g. discharge monitoring), approvals and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed.

2. Pollution Prevention and Resource Reduction

Emissions and discharges of pollutants and generation of waste are to be minimized or eliminated at the source or by practices such as adding pollution control equipment; modifying production, maintenance and facility processes; or by other means. The use of natural resources, including water, fossil fuels, minerals and virgin forest products, is to be conserved by practices such as modifying production, maintenance and facility processes, materials substitution, re-use, conservation, recycling or other means.

3. Hazardous Substances

Chemicals, waste and other materials posing a hazard to humans or the environment are to be identified, labelled and managed to ensure their safe handling, movement, storage, use, recycling or reuse and disposal.

4. Solid Waste

Supplier shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste (non-hazardous).

5. Air Emissions

Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting substances, and combustion by-products generated from operations are to be characterized, routinely monitored, controlled and treated as required prior to discharge. Ozone-depleting substances are to be effectively managed in accordance with the Montreal Protocol and applicable regulations. Supplier shall conduct routine monitoring of the performance of its air emission control systems.

6. Materials Restrictions

Suppliers are to adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances in products and manufacturing, including labeling for recycling and disposal.

7. Water Management

Supplier shall implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required prior to discharge or disposal. Supplier shall conduct routine monitoring of the performance of its wastewater treatment and containment systems to ensure optimal performance and regulatory compliance.

8. Energy Consumption and Greenhouse Gas Emissions

Suppliers are to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions are to be tracked and documented, and publicly reported against the greenhouse gas reduction goal. Suppliers are to look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.

D. ETHICS

The highest standards of integrity are to be upheld in all business interactions. Suppliers shall have a zero tolerance policy to prohibit any and all forms of bribery, corruption, fraud, extortion and embezzlement.

1. Business Integrity

Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons is not permitted (including forced labor provided by North Korean citizens or nationals as set forth under U.S. CAATSA, or Countering America’s Adversaries through Sanctions Act). This includes transporting, harboring, recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility in addition to unreasonable restrictions on entering or exiting company- provided facilities including, if applicable, workers’ dormitories or living quarters. As part of the hiring process, all workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment. Foreign migrant workers must receive the employment agreement prior to the worker departing from his or her country of origin and there shall be no substitution or change(s) allowed in the employment agreement upon arrival in the receiving country unless these changes are made to meet local law and provide equal or better terms. All work must be voluntary, and workers shall be free to leave work at any time or terminate their employment without penalty if reasonable notice is given as per worker’s contract. Employers, agents, and sub-agents’ may not hold or otherwise destroy, conceal, or confiscate identity or immigration documents, such as government-issued identification, passports, or work permits. Employers can only hold documentation if such holdings are required by law. In this case, at no time should workers be denied access to their documents. Workers shall not be required to pay employers’ agents or sub-agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.

2. No Improper Advantage

Bribes or other means of obtaining undue or improper advantage are not to be promised, offered, authorized, given or accepted. This prohibition covers promising, offering, authorizing, giving or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. Monitoring, record keeping and enforcement procedures shall be implemented to ensure compliance with anti-corruption laws.

3. Disclosure of Information

All business dealings should be transparently performed and accurately reflected on supplier’s business books and records. Information regarding supplier labor, health and safety, environmental practices, business activities, structure, financial situation and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Falsification of records or misrepresentations of conditions or practices in the supply chain are unacceptable.

4. Intellectual Property

Intellectual property rights are to be respected; transfer of technology and know- how is to be done in a manner that protects intellectual property rights; and, customer and supplier information is to be safeguarded.

5. Fair Business, Advertising and Competition

Standards of fair business, advertising and competition are to be upheld

6. Protection of Identity and Non-Retaliation

Programs that ensure the confidentiality, anonymity and protection of supplier and employee whistleblowers (any person who makes a disclosure about improper conduct by an employee or officer of a company, or by a public official or official body) are to be maintained, unless prohibited by law. Suppliers should have a communicated process for their personnel to be able to raise any concerns without fear of retaliation

7. Responsible Sourcing of Minerals

Suppliers shall have a policy and exercise due diligence on the source and chain of custody of the tantalum, tin, tungsten, and gold in the products they manufacture to reasonably assure that they are sourced in a way consistent with the Organization for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework.

8. Privacy

Suppliers are to commit to protecting the reasonable privacy expectations of personal information of everyone they do business with, including suppliers, customers, consumers and employees. Suppliers are to comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.

9. Performing Services as Agreed in Contract

Passing on obligations under a contract or purchase order for products or services to another party, that E Ink expects you to perform, or providing products or services without a properly executed purchase order, supply contract or service contract is prohibited.

10. Complying with Export and Import Regulations

Know and follow all laws related to the shipping, handling and transportation of products to or on behalf of E Ink. This includes source country export and customs laws, destination country import and customs laws, paying all necessary duties and taxes and following local transportation laws. Procedures and training will be provided to employees and contracted service providers to ensure safe handling of materials to, from and at E Ink.

E. MANAGEMENT SYSTEMS

Suppliers shall adopt or establish a management system whose scope is related to the content of this Code. The management system shall be designed to ensure: (a) compliance with applicable laws, regulations and customer requirements related to the supplier’s operations and products, (b) conformance with this Code, and (c) identification and mitigation of operational risks related to this Code. It should also facilitate continual improvement.

The management system should contain the following elements,

The management system should contain the following elements,

A corporate social and environmental responsibility policy statements affirming supplier’s commitment to compliance and continual improvement, endorsed by executive management and posted in the facility in the local language.

2. Management Accountability and Responsibility

The supplier clearly identifies senior executive and company representative[s] responsible for ensuring implementation of the management systems and associated programs. Senior management reviews the status of the management system on a regular basis.

3. Legal and Customer Requirements

A process to identify, monitor and understand applicable laws, regulations and customer requirements, including the requirements of this Code.

4. Risk Assessment and Risk Management

A process to identify the legal compliance, environmental, health and safety and labor practice and ethics risks associated with supplier’s operations. Determination of the relative significance for each risk and implementation of appropriate procedural and physical controls to control the identified risks and ensure regulatory compliance

5. Improvement Objectives

Written performance objectives, targets and implementation plans to improve the supplier’s social and environmental performance, including a periodic assessment of supplier’s performance in achieving those objectives.

6. Training

Programs for training managers and workers to implement supplier’s policies, procedures and improvement objectives and to meet applicable legal and regulatory requirements.

7. Communication

A process for communicating clear and accurate information about supplier’s policies, practices, expectations and performance to workers, suppliers and customers.

8. Worker Feedback, Participation and Grievance

Ongoing processes, including an effective grievance mechanism, to assess employees’ understanding of and obtain feedback on or violations against practices and conditions covered by this Code and to foster continuous improvement. Employees must be provided with a safe environment where they can raise grievances and opinions without fear of retaliation.

9. Audits and Assessments

Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code and customer contractual requirements related to social and environmental responsibility.

10. Corrective Action Process

A process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations and reviews.

11. Documentation and Records

Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company requirements along with appropriate confidentiality to protect privacy.

12. Supplier Responsibility

A process to communicate Code requirements to next-tier suppliers and to monitor their compliance to the Code

E Ink Conflict Minerals Policy

As a member of the global electronics industry supply chain, E Ink Holdings Inc. is not only active in product development and improvement, but also continuously committed to responsible procurement, including social responsibility and environmental protection issues. E Ink Group supports the Responsible Minerals Initiative (RMI) jointly initiated by RBA with practical actions, and does not support or use minerals from armed conflicts, illegal mining and poor working conditions. It also requires all suppliers to use the Conflict Minerals Reporting Template (CMRT) and The Cobalt Reporting Template (CRT) provided by RMI to investigate their products containing tantalum (Ta), tin (Sn), tungsten ( W), gold (Au) and cobalt (Co) and due diligence should be used to confirm the source of these minerals. In order to meet the specifications and customer requirements, we will continue to update the survey results in the future.

According to this policy, E Ink will:

1. Conduct supply chain due diligence in accordance with the OECD Due Diligence Guidelines for Responsible Mineral Supply Chains in Conflict-Affected and High-Risk Areas.

2. If the material of product contains minerals such as tantalum (Ta), tin (Sn), tungsten (W), gold (Au) and cobalt (Co), due diligence on conflict minerals should be carried out and the tantalum (Ta) used in the product should be fully disclosed. , tin (Sn), tungsten (W), gold (Au) and cobalt (Co) and other mineral sources.

3. We require suppliers to cooperate in filling out the conflict minerals survey template (please go to the RMI website to download the latest version), and provide relevant proof of origin. Suppliers should communicate this policy to their upstream suppliers and supply chain, and require their upstream suppliers to comply with it.

4. Pursue conflict-free minerals and refuse products containing tantalum (Ta), tin (Sn), tungsten (W), gold (Au) and cobalt (Co) from illegally mined areas in the People's Republic of Congo or its neighboring countries.

RoHS Policy

In order to ensure the parts, raw materials, packaging materials and components of E Ink 's products do not use environmental management substances containing prohibited substances, and comply with current laws and regulations, meet customer needs, protect the global environment, and reduce the impact on the ecosystem, etc. at the same time. E Ink requires all raw materials provided by suppliers must meet the requirements of the product environmental quality policy when developing new components of the products, and the requirements of each customer's controlled substances have passed the internal review of the company and included them in E Ink Controlled Substances, All products in the list must be RoHS compliant products.

The EU Restriction of the Use of Certain Hazardous Substances in EEE (RoHS for short) stipulates that electrical and electronic equipment sold to the EU market from July 1, 2006 shall not contain lead, cadmium, mercury, Hexavalent chromium, polybrominated biphenyls (PBBs), polybrominated diphenyl ethers (PBDEs) and other substances. Since the announcement of the RoHS Directive (2002/95/EC), E Ink has completed raw material confirmation and process conversion in accordance with the relevant requirements of the law. On July 1, 2011, the European Union officially announced the revised version of the RoHS directive (2011/65/EU), commonly known as RoHS 2.0, which officially replaced the old directive (2002/95/EC) on January 3, 2013, and further on June 24, 2015, it announced to amend Directive (EU) 2015/863, adding four new phthalates (DEHP/BBP/DBP/DIBP) as controlled substances. E Ink has responded to the requirements to ensure that the products fully meet the requirements.

REACH Policy

In order to ensure that the parts, raw materials, packaging materials and components of E Ink 's products do not use environmental management substances containing prohibited substances, and comply with current laws and regulations, meet customer needs, protect the global environment, and reduce the impact on the ecosystem, etc. at the same time. E Ink requires the raw materials provided by suppliers must meet the requirements of the product environmental quality policy when developing new product components, and the requirements of each customer's controlled substances have passed the internal review of the company and included them in E Ink Controlled Substances In the list, all products must be REACH compliant with EU regulations.

REACH (the Regulation for Registration, Evaluation, Authorization and Restriction of Chemicals) The EU chemical control policy came into effect on June 1, 2007. E Ink will take the responsibility of managing chemicals in products for human health and environmental protection. Parts, raw materials, packing materials and components all need to comply with REACH specifications, E Ink will continue to carry out chemical management to reduce the impact of products on the ecological environment, so that the products sold can meet the regulatory requirements.

The EU REACH regulation (Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals) has been officially implemented. According to REACH regulations, all chemicals manufactured in the EU or imported into the EU market must be registered before the specified number of years as long as the annual operation volume exceeds 1 ton,. The main purpose of REACH is to achieve the ultimate goal of protecting human health and the environment by strictly controlling chemicals produced in the EU or imported into the EU

E Ink Holdings Human Rights Policy

E Ink Holdings believes that respecting human rights and promoting a decent work environment are important throughout the Company and its supply chain. E Ink Holdings abides by local laws and regulations in all countries and regions where we operate, and upholds the human rights of all workers, including regular, contract and temporary employees, and interns. We also invite our partners to act in the same fashion, as addressing human rights issue in complex supply chains is a shared responsibility. This policy applies to E Ink Holdings and its affiliated companies.

We support the UN Universal Declaration of Human Rights (UDHR), and are committed to treating all workers with dignity and respect as understood by international human rights standards, including The International Bill of Human Rights, The International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, The UN Guiding Principles on Business and Human Rights (UNGPs), The OECD Guidelines for Multinational Enterprises and The Ten Principles of The United Nations Global Compact (UNGC). We also align our actions with the Responsible Business Alliance (RBA) Code of Conduct.

Guiding Principles:

Guiding Principles:

1. Incorporate respect for economic, social, cultural, civil, political rights and development in our operations.

2. Provide a safe and healthy working environment with zero harassment; eliminate unlawful discrimination and ensure equal job opportunities.

3. Child labor is prohibited; forced labor is prohibited; any2. Provide a safe and healthy working environment with zero harassment; eliminate unlawful discrimination and ensure equal job opportunities. form of human trafficking or illegal behavior is prohibited.

4. Commitment to responsible mineral procurement.

5. No one shall be discriminated against due to race, color, nationality, sexual orientation, religion, disability, age, political opinion, pregnancy, marital or family status, or similar factors; and protect indigenous people, women, migrant workers, and contract personnel Work rights with disadvantaged or marginalized groups such as people with disabilities.

6. Abide by all applicable salary and working hours laws and regulations, pay attention to equal pay for equal work; pay a fair and full living wage on time, and state the legal deductions with the salary slip.

7. Create an environment that is willing to communicate and establish an open management model; support and assist employees in maintaining physical and mental health and work-life balance.

8. Freedom of association is permitted under legal regulations, and dialogue is conducted through various open dialogue channels.

9. Provide multiple open dialogue channels including anonymous reporting methods, so that suppliers, business partners, and other stakeholders can give feedback to the company or report suspected violations.

10. In response to changing circumstances and the needs of stakeholders, it is necessary to review and evaluate related risks, practices and impacts.

Corporate Sustainability Report