Novatek’s conflict minerals sourcing policy and efforts
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Gold, Tantalum, Tin, and Tungsten are listed as minerals regulated by the U.S. Conflict Minerals Act, which originates from the mining and trade of fruit in the Democratic Republic of Congo. The mining activities are controlled by local activist groups and lead to serious human rights violations, forced labor and child labor, etc. Novatek has formulated a responsible mineral procurement policy(Conflict minerals sourcing policy), and cooperated with suppliers to require suppliers to only purchase non-conflict raw materials from environmentally and socially responsible suppliers, and continues to communicate its "Supplier Code of Conduct" regarding responsible mineral procurement policies to its suppliers, use the Conflict Minerals Form to conduct investigations every year to avoid problems such as labor oppression, force coercion, child labor abuse, and ecological damage caused by illegal operations. |
Responsible minerals management process
Novatek Responsible Minerals Sourcing Policy
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Novatek supports the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSI) in their "Responsible Mineral Procurement" advocacy. In accordance with the requirements of the Responsible Minerals Assurance Process (RMAP), Novatek requires suppliers to procure non-conflict minerals only from environmentally and socially responsible sources. Novatek continues to communicate its "Supplier Code of Conduct" regarding responsible mineral procurement policies to its suppliers. Every year, surveys are conducted through the Conflict Minerals Reporting Template (CMRT) to identify the source of minerals and information of smelters in the supply chain. |
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Responsible minerals management performance
Novatek Supply Chain Smelter Refiner List
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In 2024, Novatek surveyed a total of 30 suppliers related to manufacturing and packaging services. According to the survey results, 148 smelters have been identified, covering 29 countries. 100% of the suppliers adopted RMI (Responsible Minerals Initiative) approved smelters to provide products that meet the requirements. |
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In addition to paying attention to the 3TG conflict minerals, Novatek has followed the international trend and acted in concert with the RMI and customer requirements to list cobalt and mica as management targets for responsible mineral procurement. The Company conducts due diligence on suppliers and requires disclosure of smelters from which they sourced. Smelter information and investigation results are disclosed for customers who have cobalt and mica investigation needs. Novatek continues to pay attention to the management requirements of international organizations for cobalt and mica, and communicates with suppliers in a timely manner.
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Sustainable Supply Chain Management Forum
Novatek held its inaugural "Sustainable Supply Chain Forum" in 2022, bringing together key representatives from its supply chain, including wafer, packaging, and testing industries both domestically and internationally, with climate change as the central topic of discussion. The forum invited experts and scholars to share insights on international carbon reduction trends, waste reduction, and achievements in promoting a circular economy. In addition to expressing sincere gratitude to partner suppliers through this forum, Novatek awarded the ESG Excellence Supply Chain Award to recognize suppliers' efforts in sustainable actions. At the same time, Novatek announced the requirements of the "Novatek Supplier Code of Conduct," collaborating with the supply chain to promote greenhouse gas inventory and green operation goals. These goals include increasing the annual power-saving rate by at least 1% compared to the previous year and ensuring zero days of production interruption due to water shortages. A total of 70 participants joined the forum, providing a platform for communication and learning among supplier partners. Looking ahead, Novatek plans to host the Supply Chain Sustainability Forum again in 2025 to further enhance mutual understanding of sustainability issues and risk management capabilities, and to deepen partnerships with suppliers. This initiative will aid Novatek and its supply chain in progressing along the path of sustainable development, creating a more competitive green economy.
Supplier Sustainability Risk Assessment
To gain a deeper understanding of the supplier situation, Novatek not only adheres to the “Responsible Business Alliance (RBA) Code of Conduct” but also actively implements RBA-related management systems and training programs within the Company. Additionally, Novatek requires its supply chain partners to conduct the "Self-assessment Questionnaire for Sustainability Management" covering five major areas: labor rights protection, occupational safety, environmental protection, compliance with ethical requirements, and management systems. This process helps Novatek identify supplier adherence to the “Responsible Business Alliance (RBA) Code of Conduct” and assesses sustainability risks. In 2024, a total of 45 suppliers responded to the sustainability management questionnaire, representing a response rate of 100%, and the suppliers’ scores on the “Self-assessment Questionnaire for Sustainability Management” were all above 96 points. In addition to the self-assessment scores, Novatek also reviewed the suppliers’ responses. If the responses to individual items were incomplete or if documents required additional supporting evidence, the suppliers were requested to provide explanations during regular meetings with Novatek so both parties could grasp the risks of suppliers. A total of 9 suppliers have accepted the RBA-verified audit process (VAP) and have corrected the deficiencies during the audit process.
Supplier Code of Conduct
Novatek pays attention to international sustainable development issues and believes that suppliers need to have a certain system to fulfill corporate social responsibility. Since 2022, Novatek used the "Responsible Business Alliance (RBA) Code of Conduct" as its basis for formulating the "Novatek Supplier Code of Conduct" and required suppliers to comply with and sign it. In 2024, Novatek successfully established and implemented a RBA Management System based on version 8.0 of the RBA Code of Conduct. In the RBA VAP audit conducted in November 2024, Novatek achieved a score of 193.8 out of 200, earning Silver Recognition—demonstrating outstanding performance in corporate social responsibility and sustainable development. This achievement included enhancements to the Supplier Code of Conduct and expansion of its scope to include outsourced on-site suppliers stationed within Novatek’s facilities, ensuring full compliance with version 8.0 of the RBA Code. The aforementioned supplier partners, including two newly engaged vendors, completed the signing of the updated Supplier Code of Conduct in 2024, achieving a 100% compliance rate.
Responsible Minerals Management Performance
In 2024, Novatek surveyed a total of 30 suppliers related to manufacturing and packaging services. According to the survey results, 148 smelters have been identified, covering 29 countries. 100% of the suppliers adopted RMI (Responsible Minerals Initiative) approved smelters to provide products that meet the requirements.
Feedback of Customer Satisfaction
Novatek has established the “Customer Application Service Operating Procedure” to ensure that our customers are satisfied with the products and services provided by Novatek, and the internal activation and execution of opinions of customers. The Company reviews and evaluates customer satisfaction periodically in order to propose responsive improvement plans for analysis and improvement based on the management cycle of P-D-C-A. Through participating in regular customer meetings (to receive customer assessment) or customer satisfaction surveys, after comprehensive analysis, review, and feedback, relevant improvement measures are proposed at the management review meeting. Since 2021, the Company has continued to strengthen the front-end management and monitoring of new products, accelerating the resolution of quality issues and implementing corrective actions. In 2024, customer satisfaction reached 97%, surpassing the target of 90%. This shows that the Company has gained recognition from customers in terms of quality management and improvement.
