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
Statement of Conflict minerals
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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 2023, Novatek surveyed a total of 29 suppliers related to manufacturing and packaging services. According to the survey results, 148 smelters have been identified, covering 28 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
In 2022, Novatek held its first "Sustainable Supply Chain Management Forum", which was conducted virtually due to the COVID-19 pandemic. This event brought together important representatives from our supply chain partners, including wafer manufacturing, packaging, and testing companies from home and abroad. This year's theme was climate change, and experts of suppliers were invited to share global carbon reduction trends, waste reduction, and circular economy achievements. Through this forum, Novatek expressed sincere gratitude to our supplier partners and presented the ESG Excellent Supply Chain Award to recognize suppliers' efforts in sustainable action. We also communicated the requirements of the "Novatek Supplier Code of Conduct" and worked together with our supply chain to promote greenhouse gas inventory and green operation targets (annual electricity savings rate≧1% compared to the previous year; zero production downtime days due to water shortage). A total of 70 participants attended the forum, serving as the exchange and learning platform for supplier partners. In the future, we will continue to focus on energy conservation, carbon reduction, environmental protection, pollution prevention, and circular economy issues. We hope to deepen supply chain competitiveness through this forum and work together with suppliers towards the ultimate goal of net-zero emissions and sustainable operations, creating a green and sustainable environment.
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 2023, a total of 44 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 93 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. Therefore, in 2022, based on the "Responsible Business Alliance Code of Conduct," Novatek formulated the "Novatek Supplier Code of Conduct" and required suppliers to comply with and sign it. In addition, new suppliers must also sign the Supplier Code of Conduct to ensure that they understand and agree to comply with it before they can qualify for cooperation. As of 2023, all Novatek suppliers signed the Supplier Code of Conduct, including three new suppliers, achieving a signing rate of 100%. Moreover, all suppliers have passed the evaluation to obtain ISO 14001 certification.
Responsible Minerals Management Performance
In 2023, Novatek surveyed a total of 29 suppliers related to manufacturing and packaging services. According to the survey results, 148 smelters have been identified, covering 28 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. We review and evaluate customer satisfaction periodically in order to propose a responsive improvement plan for analysis and improvement based on the management cycle of P-D-C-A. Through participating in regular customer meetings (acquired by customer evaluation) or customer satisfaction surveys, and after comprehensive analysis, review and feedback of relevant improvement measures are proposed at the management review meeting. In 2023, customer satisfaction reached 96%, achieving the target of 90%. This shows that the Company has gained recognition from customers in terms of quality management and improvement.
