Arcadyan CSR
Arcadyan CSR

環境永續

Environmental Sustainability

Sustainable Supply Chain

Sustainable Procurement Policy

Arcadyan updated its Sustainable Procurement Policy at the end of 2025. Based on supply chain due diligence, the policy integrates UNGC, RBA, OECD, UNGP, and ISO 20400 guidelines. It applies to Arcadyan's headquarters, R&D centers, and overseas manufacturing, extending to suppliers, contractors, and business partners. The Sustainability Office plans and reviews the policy, the Sustainability Executive Taskforce tracks implementation, and the Sustainability Development Committee reports progress to the Board of Directors for ultimate oversight.

Arcadyan integrates its Sustainable Procurement Policy into new supplier evaluations, regular performance appraisals, and audit processes, implementing risk-tiered management based on location, industry, procurement value, and ESG risks. For highrisk or non-compliant suppliers, the Company intensifies oversight through Supplier Self-Assessment Questionnaires (SAQ), document reviews, on-site or remote audits, and Corrective Action Plan (CAP) tracking. In cases of material violations, Arcadyan reserves the right to enforce time-bound remediation, suspend transactions, or terminate partnerships.

 

Supplier Sustainability Codes and Commitment Management

Since 2021, Arcadyan has embedded environmental and social clauses into purchase orders, mandating supplier compliance with local and international standards. All products and services must strictly comply with relevant laws, treaties, and directives, including the Montreal Protocol, WEEE, RoHS, REACH, conflict minerals regulations, and general product safety standards. Concurrently, suppliers must adhere to the information security, anti-bribery, and corporate social responsibility requirements outlined in Arcadyan's supplier policies.

By linking sustainability to transactional terms, Arcadyan embeds environmental compliance, human rights, ethics, and information security into supplier performance obligations, strengthening procurement risk control. To enhance supplier ESG resilience, the Company added information security clauses to its updated Supplier CSR Commitment Letter, which spans seven dimensions: governance, labor rights, occupational health and safety, environmental protection, management systems, ethics, and grievance mechanisms. In 2025, Arcadyan achieved a 100% completion rate, with all 384 suppliers signing and returning the commitment.

 

Supply Chain Human Rights Management

Arcadyan requires suppliers to comply with local labor laws and international human rights standards. The Supplier Corporate Social Responsibility Commitment Letter explicitly prohibits child labor, forced labor, human trafficking, discrimination, and mistreatment, while ensuring employees' rights to freedom of association, reasonable working hours, fair wages and benefits, and a safe and healthy working environment. To address international supply chain human rights regulations and strengthen forced labor risk management, Arcadyan incorporated the U.S. Uyghur Forced Labor Prevention Act (UFLPA) requirements into the Commitment Letter since 2024. Suppliers are prohibited from using materials, products, or services involving forced labor, human rights violations, or high-risk sources. The Company mitigates these risks through supplier questionnaires, declaration documents, supply chain traceability, and risk identification mechanisms.

Arcadyan incorporates human rights risks into its supplier sustainability risk assessment and audit processes. Enhanced scrutiny is applied to high-risk regions, industries, or supplier types. If any supplier is found to violate labor rights, engage in forced labor, or fail to comply with Arcadyan's supplier code of conduct, the Company requires the supplier to submit an improvement plan and continuously monitors progress. In serious cases, measures such as suspension of transactions or termination of cooperation may be implemented to strengthen supply chain human rights risk control.

 

New Supplier Onboarding and Assessment

To ensure new suppliers meet Arcadyan's quality, technical, compliance, and sustainability standards, the Company has established a rigorous new supplier selection process. The Supplier Evaluation Form integrates four primary dimensions: quality, environment, engineering technology, and Corporate Social Responsibility (CSR). Additionally, candidate suppliers must provide relevant supporting documentation and sign the Supplier Corporate Social Responsibility Commitment Letter as mandatory prerequisites for admission. Arcadyan progressively elevates ESG weight in procurement decisions, with ESG metrics accounting for 23% of the total evaluation across five dimensions: environment, labor rights, safety, ethics, and grievances. Only suppliers meeting the designated score threshold are placed on the Qualified Vendor List (QVL). In 2025, the Company evaluated 23 new suppliers; among them, three were deferred due to insufficient documentation and required to submit supplementary evidence.

 

Supplier Sustainability Risk Assessment

To strengthen risk control, Arcadyan implements risk-tiered management based on supplier location, industry, procurement value, and ESG risks. Integrating audit records from the past two years, the comprehensive evaluation spans nine dimensions: geographic location, product category, transaction scale, sales model, conflict minerals, hazardous substances, business continuity, labor rights, and CSR performance. Arcadyan applies differentiated measures, intensifying reviews, audits, and corrective tracking for medium- and high-risk suppliers, while utilizing these outcomes to guide subsequent supplier coaching, procurement decisions, and partnership management.

During its 2025 assessment of 377 suppliers, Arcadyan identified 1 high-risk (0.27%) and 36 medium-risk vendors, completing all reviews per standard procedures. The high-risk vendor, a customer-directed material supplier, exhibited quality and ESG vulnerabilities that threatened product stability and supply chain sustainability. Consequently, Arcadyan immediately suspended transactions with this supplier to mitigate operational and sustainability risks.

 

Supplier Auditing

In alignment with the Responsible Business Alliance (RBA) Code of Conduct, Arcadyan has developed a Supplier CSR Audit Checklist to perform document reviews and onsite audits for high-risk or key suppliers. The audit covers labor, health and safety, environment, ethics, management systems, and grievance mechanisms. Environmental management and occupational health and safety account for 55% of the total score, with the remaining categories making up 45%. In 2025, Arcadyan conducted audits on 26 Tier 1 suppliers selected from the medium risk list, achieving a 100% completion rate. To meet customer requirements, the Company also completed on-site audits and corrective guidance for 2 Tier 2 suppliers, further strengthening supply chain sustainability, compliance, and risk management.

 

Supplier Coaching

Arcadyan regards supplier coaching as a key measure to enhance sustainable performance across the supply chain. The Company provides regular follow-up and improvement guidance for nonconformities identified during Corporate Social Responsibility (CSR) audits. In 2025, Arcadyan assisted 39 suppliers in resolving CSR-related issues, with the main improvement areas being "Health and Safety," "Environmental Management," and "Working Hours and Overtime," accounting for approximately 70% of total non-conformities. Through this tracking and coaching mechanism, Arcadyan helps suppliers strengthen their sustainable management capabilities and reduce potential risks in occupational safety, environmental compliance, and labor rights.

In environmental management, Arcadyan has developed a professional green information platform that provides the latest international environmental regulations and compliance information. This helps suppliers track regulatory changes, maintain compliance, and monitor document uploads and updates, thereby enhancing supply chain compliance and sustainable management effectiveness. Arcadyan actively participates in customer-initiated Sustainable Development Programs (SDP), guiding suppliers to adopt Responsible Business Alliance (RBA) standards. The two-year program covers 10 ESG dimensions—including sustainable strategy, management systems, stakeholder engagement, resource and environmental management, lifecycle thinking, labor practices, human rights, and supplier development—to help suppliers build comprehensive sustainable management systems. In 2025, five suppliers achieved "Silver Grade" certification, while all six suppliers that underwent JAC audits successfully completed corrective actions, further strengthening supply chain capabilities in labor, health and safety, environment, business ethics, and management systems.

 

Outstanding Supplier Recognition

Arcadyan encourages partners to continuously improve in quality, delivery, service, environmental protection, and social responsibility through its Outstanding Supplier Recognition program. The evaluation criteria encompass incoming material quality, customer complaints, improvement of non-conformities, service coordination, CSR performance, ESG on-site audits, JAC audits, and supply chain carbon reduction
results. In 2025, Arcadyan presented the "Outstanding Supplier" and "Best Carbon Reduction" awards to a total of 11 outstanding partners. This recognition encourages suppliers to continuously enhance their quality, service, and sustainable management capabilities, working together with Arcadyan to build a resilient and sustainably competitive supply chain.

( Learn More: Arcadyan Honors Outstanding Suppliers to Drive Sustainability Together)

 

 

Go Green with Arcadyan Carbon Reduction Project

In response to the global net-zero transformation, the EU Carbon Border Adjustment Mechanism (CBAM), and escalating customer demands for supply chain decarbonization, Arcadyan views supplier carbon reduction as a pivotal strategy for achieving its SBTi and Scope 3 targets. Given that upstream supply chains and product lifecycles represent the primary drivers of Arcadyan's carbon footprint, effective supplier carbon management is paramount to realizing its net-zero ambitions. To drive low-carbon transformation across the value chain, Arcadyan launched the "Go Green with Arcadyan" supply chain decarbonization project in 2023. The initiative helps key suppliers build capabilities in greenhouse gas inventories, product carbon footprints, and carbon reduction strategies through training, guidance, technical exchanges, and progress tracking, thereby enhancing supplier carbon management maturity and expanding decarbonization impact across the value chain.

 

Project Implementation Steps

Through the Go Green with Arcadyan project, Arcadyan supports suppliers in building carbon reduction capabilities through system development, technical support, and external partnerships.

 

Go Green 1.0 Achievements

Launched in October 2023, the Go Green 1.0 project initially invited 14 key high-carbon suppliers across six major component categories—adapters, cables, casings, connectors, heat sinks, and printed circuit boards. Through systematic coaching, these suppliers have built carbon management capabilities and implemented reduction actions. The cumulative achievements are as follows:

 

Go Green 2.0 Focus Areas

To further strengthen supply chain decarbonization, Arcadyan launched the "Go Green with Arcadyan 2.0" project in October 2025. The program expands coaching from basic carbon inventory to target setting, energy efficiency improvement, renewable energy adoption, low-carbon material application, and product carbon footprint management. Suppliers will be guided through four phases, with regular tracking and improvement plans to establish sustainable carbon management mechanisms.

 

 

Local Procurement

With its Vietnam manufacturing center as a key production base, Arcadyan actively implements a localized procurement strategy to improve production efficiency, ensure supply stability, and reduce transportation-related environmental impacts. In response to growing product applications and customer demand, the Company is developing new local suppliers in Vietnam and neighboring regions while encouraging existing partners to establish production and service sites in Vietnam or Southeast Asia. This approach shortens transit distances, lowers logistical risks, improves delivery flexibility, and reduces carbon emissions from cross-border transportation.

In addition to optimizing packaging design, improving loading efficiency and space utilization, and adopting recyclable packaging materials, Arcadyan actively explores opportunities with local suppliers to increase the proportion of localized sourcing. In 2025, the local procurement ratio at Arcadyan's Vietnam manufacturing center reached 23.2%, successfully achieving the annual target of 22%. Moving forward, Arcadyan will continue to promote supplier localization, regionalization, and diversification. Through supplier evaluation, quality management, and sustainability risk assessment mechanisms, the Company ensures that local suppliers meet its standards for quality, delivery, and sustainable management.

 

Historical Local Procurement Amount Ratio at Vietnam Manufacturing Center

 

 

Responsible Minerals Management

Arcadyan places strong emphasis on responsible minerals management. In line with the Responsible Minerals Initiative (RMI) and customer requirements, the Company has established supply chain sourcing investigation and risk management mechanisms. Suppliers are required to disclose the origins of tin (Sn), tantalum (Ta), tungsten (W), cobalt (Co), and gold (Au) used in their products. Using Responsible Minerals Assurance Process tools, Arcadyan collects smelter and refiner information to ensure compliance with responsible minerals procurement standards. At the end of 2025, Arcadyan revised its Sustainable Procurement Policy to incorporate responsible minerals management and supply chain due diligence into procurement decisions and supplier management. The Company also requires suppliers to extend responsible minerals requirements to their upstream supply chains, tracing back to smelters and refiners, to minimize risks of conflict minerals, human rights violations, or illegal mining.

 

Arcadyan Conict Minerals Management Policy:
  1. Prohibit the use of conflict minerals from the Democratic Republic of the Congo (DRC) and adjoining countries.
  2. Require suppliers to sign a Declaration of Non-Use of Conflict Minerals.
  3. Require suppliers to disclose sources of Ta, Sn, W, Co, and Au and complete the Conflict Minerals Reporting Template (CMRT).
  4. Require upstream due diligence to the smelter level before procurement.
Management Targets:
  1. Ban the purchase or supply of products containing conflict minerals mined in the Democratic Republic of the Congo (DRC).
  2. Conduct conflict mineral audits on 100% of metal material suppliers by 2030.

 

Responsible Minerals Management Mechanism and Implementation Process

Arcadyan conducts annual responsible minerals due diligence surveys with its suppliers using the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) developed by the Responsible Minerals Initiative (RMI). These surveys gather detailed information on the use of regulated minerals, upstream smelters and refiners, countries of origin, and whether the smelters/refiners conform to the Responsible Minerals Assurance Process (RMAP). In 2025, Arcadyan received 370 completed CMRT and EMRT reports, achieving a 97% response rate. The Company thoroughly reviewed the submissions for data completeness and potential risks, and followed up with suppliers that had high-risk sources or insufficient information. These efforts aim to enhance transparency in minerals sourcing and strengthen responsible procurement practices.

The Arcadyan Green Product Team conducts regular conflict minerals analysis on key products by disassembling them to the smallest components to verify whether any metals originate from high-risk sources. Investigation results are recorded in the supplier conflict minerals management system. The Green Product Department reviews submitted data and supporting documents to improve transparency, completeness, and traceability of responsible minerals information. Since implementing responsible minerals management, Arcadyan has not encountered any product returns, customer complaints, or reputational risks related to non-compliance.

Furthermore, Arcadyan incorporates responsible minerals performance into regular supplier evaluations, covering incoming material quality, customer complaint handling, environmental and social responsibility, conflict minerals management, and hazardous substance control. Evaluation results guide procurement strategy and supplier management—excellent performers are prioritized, while those with poor results, incomplete data, high-risk sources, or insufficient improvement are required to provide additional information, update questionnaires, or submit improvement plans. In severe cases, they may be subject to the supplier exit mechanism. The Company has set a target to complete conflict minerals audits for 100% of metal material suppliers by 2030, further expanding responsible minerals management coverage.

 

Reporting Channels and Traceability Mechanisms

Arcadyan has established a dedicated reporting mailbox (ethics@arcadyan.com) to encourage suppliers, employees, and other stakeholders to report any suspected issues related to conflict minerals, human rights violations, illegal mining, or inaccurate information. Upon receiving such reports, the Company promptly initiates investigations and follow-up actions. Suppliers are required to provide improvement explanations or alternative sources. Where necessary, Arcadyan may adjust procurement strategies or terminate cooperation with high-risk suppliers to uphold responsible procurement principles.

 

Sustainable Procurement Policy

To support suppliers in adopting ESG practices and strengthening their sustainability resilience, Arcadyan has established the "Supplier Sustainability Investigation Standard", covering four key mechanisms: new supplier evaluation, ongoing supplier management, auditing, and coaching. "Arcadyan Sustainable Procurement Policy" serves as a key framework for implementing sustainable supply chain governance. In 2024, Arcadyan officially incorporated information security clauses into the updated "Arcadyan Supplier CSR commitment" covering seven key areas: organizational governance, labor rights, occupational health and safety, environmental protection, management systems, ethics standards, and grievance mechanisms. 325 suppliers have signed back on this commitment, achieving a 100% compliance rate. Arcadyan continues to require all suppliers to fully comply with domestic and international environmental and social laws and regulations, while strengthening the protection of confidential information to prevent potential data leakage in business transactions. These actions demonstrate Arcadyan's strong commitment to sustainable supply chain management and information security governance.

 

2024 Sustainable Supply Chain Achievements Summary

 

Supplier Sustainability Risk Assessment

Arcadyan developed a supplier sustainability risk assessment mechanism to enhance supply chain management efficiency and resilience through the identification of potential risks. The assessment covers nine key dimensions: location, product category, transaction size, sales model, conflict mineral management, hazardous substances control, business continuity risk, labor rights, and CSR performance. A comprehensive evaluation is conducted through questionnaires and data analysis. In 2024, the assessment results indicated no high-risk suppliers. For forty-one medium-risk suppliers, Arcadyan completed 100% of integrity due diligence investigations, ensuring integrity and responsible governance across the supply chain.

 

Supplier CSR Audits

In alignment with the Responsible Business Alliance (RBA) Code of Conduct, Arcadyan developed a Supplier CSR Audit Checklist to conduct on-site reviews for suppliers identified as having potential high-risk factors. The audit covers eleven key dimensions, with "Environmental Management" and" Health and Safety" accounting for 55% of the total score, and the remaining nine dimensions comprising the other 45%. In 2024, Arcadyan selected nineteen key suppliers from the medium-risk list for on-site audits, completing sixteen onsite inspections and three document reviews, achieving a 100% completion rate. Additionally, in response to clients' requirements, Arcadyan conducted an on-site audit and improvement guidance for one Tier-2 supplier, further expanding the depth of sustainable supply chain management and enhancing accountability.

Since 2016, Arcadyan has actively participated in the Joint Alliance for CSR (JAC), working with global telecommunications operators to advance Corporate Social Responsibility (CSR) practices within the Information and Communications Technology (ICT) industry supply chain. In 2024, Arcadyan arranged six suppliers to participate in JAC audits. For suppliers that did not meet the required standards, Arcadyan provided immediate assistance in setting improvement targets and timelines, along with support resources, to continuously strengthen the effectiveness of sustainable supply chain management.

 

Supplier Coaching

Arcadyan continues to strengthen the sustainability capabilities of its suppliers by regularly following up and providing improvement guidance on non-conformities identified during Corporate Social Responsibility (CSR) audits. In 2024, Arcadyan guided nineteen suppliers to complete corrective actions for CSR-related deficiencies, with the three primary areas of improvement—Health and Safety, Environmental Management, and Working Hours & Overtime—accounting for approximately 70% of all findings. In the area of environmental management, Arcadyan established a professional green information platform to provide the latest updates on international environmental regulations and procedural requirements. This platform enables suppliers to stay informed about regulatory changes, monitor compliance status, and access real-time records of document submissions and updates, thereby enhancing overall supply chain compliance capability.

Arcadyan also actively participates in client-initiated Sustainable Development Programs (SDP), assisting suppliers in adopting the management standards of the Responsible Business Alliance (RBA) and the Joint Alliance for CSR (JAC). The program focuses on ten aspects of ESG, including strategy, management system, stakeholder engagement, resource management, environmental management, life cycle thinking, worker treatment, labor practices, human rights, and supplier development. This is a two-year project aimed at improving sustainability performance, during which Arcadyan supports suppliers in developing sustainability management programs. In 2024, two suppliers participated in this initiative and achieved Silver-level sustainability performance certification.

 

Recognition of Outstanding Suppliers

Arcadyan revised its Outstanding Supplier Selection Mechanism, with evaluation criteria covering suppliers' incoming material quality performance, number of customer complaints, effectiveness of corrective actions, and service coordination capability for the year. In addition, Corporate Social Responsibility (CSR) performance has been added as a scoring category to strengthen the overall sustainability performance of the supply chain. In procurement decisions, Arcadyan gives priority consideration to suppliers recognized as outstanding, to acknowledge their overall performance. For suppliers whose performance does not meet the standard, procurement allocation may be adjusted based on their improvement progress, and such performance serves as a reference in the supplier phase-out mechanism.

To commend partners that have excelled in environmental and social performance, Arcadyan awarded 15 outstanding suppliers, encouraging the supply chain to collectively enhance CSR performance. Arcadyan continues to focus on innovative products and technologies, integrating upstream and downstream resources to provide clients with comprehensive sustainable solutions, while actively taking responsibility for Arcadyan's economic, social, and environmental impacts to foster a positive cycle of industrial and environmental sustainability.


 

Go Green with Arcadyan Carbon Reduction Project

Program Background

In response to growing international policy trends and the increasing attention from brand clients on carbon reduction and supply chain sustainability performance, Arcadyan actively addresses the challenges of carbon footprint management, energy efficiency improvement, and net-zero commitments. In 2022, Arcadyan joined the Science Based Targets initiative (SBTi) and officially launched its long-term carbon reduction roadmap. Arcadyan has committed to reduce Scope 1 and 2 greenhouse gas emissions by 50% and Scope 3 emissions by 66% compared to the base year by 2030, reduce Scope 1 and 2 emissions by 90% in 2024, and achieve net-zero emissions across all scopes by 2050.

To fulfill these commitments, Arcadyan launched the "Go Green with Arcadyan" Supply Chain Carbon Reduction Project in October 2023. In the first phase, 14 high carbon emission suppliers were invited to participate, covering six major categories of key components: adapters, cables, casings, connectors, heat sinks, and printed circuit boards. The program promotes supplier carbon inventory, target setting, and carbon reduction actions to enhance climate resilience and international competitiveness.

Program Timeline

The "Go Green with Arcadyan" project began in October 2023 and run for one and a half years. Based on the progress of supply chain carbon management, the program is implemented in four phases:

 

Project Results

Through the "Go Green with Arcadyan" initiative, Arcadyan has helped suppliers establish carbon management capabilities and practical implementation mechanisms, enhancing their awareness of and responsiveness to climate risks and resource management issues. The results are as follows:

 

 

Local Procurement

Arcadyan positions its Vietnam manufacturing center as a key production base and has actively promoted a local procurement strategy over the years to enhance production and supply efficiency and expand economies of scale. The major components covered include power supply units, electronic parts, electromechanical parts (such as printed circuit boards), and mechanical parts, with primary supply sources from Taiwan, China, and Vietnam. As product applications have expanded and clients demand has increased, many Taiwan-based suppliers have not only expanded their existing plants but also established manufacturing facilities in China and Vietnam to provide localized support for production needs. To reduce energy consumption and carbon emissions from long-distance transportation of raw materials and products, Arcadyan has optimized packaging design, improved material space utilization, and adopted recyclable packaging while actively supporting local procurement to reduce transportation costs and environmental impacts.

To balance operational continuity with greenhouse gas emissions management from raw material transportation, Arcadyan implements a systematic procurement management process to continuously develop local suppliers and gradually increase the proportion of local procurement. However, in 2024, following the transformation of the China manufacturing center into an operations Office with no physical manufacturing operations, the local procurement ratio for the year was 0%. Arcadyan will continue to monitor supplier expansion and relocation progress, gradually increasing the proportion of local procurement to diversify and localize its supply chain. This approach aims to strengthen supply chain resilience, enhance manufacturing efficiency, and effectively reduce the carbon footprint from raw material transportation, thereby advancing the sustainable objectives of a green supply chain.

 

 

Responsible Minerals Management

To fulfill its corporate social responsibility and in response to global concerns over human rights and environmental sustainability, Arcadyan has actively supported the "Conflict-Free Minerals" initiative since 2010, promoting the investigation and management of material sources across its supply chain. Recognizing the issues of armed conflict, child labor exploitation, and environmental destruction in the Democratic Republic of the Congo (DRC) and its surrounding regions, Arcadyan has established the "Arcadyan Sustainable Procurement Policy", which requires all supply chain metals to be legally sourced, compliant, and responsibly obtained, in accordance with the standards of the Responsible Minerals Initiative (RMI).

 

Arcadyan Conflict Minerals Policy
  1. Prohibit conflict minerals from the Democratic Republic of Congo (DRC) and surrounding regions.
  2. Suppliers are required to sign the "Non-use Conflict Minerals Declaration" to comply with relevant environmental and social responsibility regulations.
  3. Suppliers are required to disclose the source of the metals used, such as tantalum (Ta), tin (Sn), tungsten (W) (called 3T), cobalt (Co) and gold (Au), and fill in Conflict Minerals Reporting Template (CMRT).
  4. Taking the same requirements to manage the upstream supply chain, metal suppliers in related parts and components should investigate the refinery site before purchasing.

 

Management Mechanism and Implementation Process

Following the "Responsible Minerals Initiative" (RMI) standards, Arcadyan incorporates the prohibition of conflict minerals into its "Sustainable Procurement Policy". Arcadyan clearly stipulates that suppliers must sign "Arcadyan Supplier CSR commitment", pledging not to directly or indirectly procure conflict minerals from Democratic Republic of Congo (DRC) or surrounding regions. Suppliers must also ensure that their smelters/ refiners comply with the Responsible Minerals Assurance Process (RMAP) standards. All suppliers are required to submit the Conflict Minerals Reporting Template (CMRT) to track and manage the sources of gold (Au), tantalum (Ta), tungsten (W), tin (Sn), and cobalt (Co). In 2024, Arcadyan collected 518 CMRT reports with a 100% submission rate. The results confirmed that no conflict minerals were used within the supply chain.

To strengthen management effectiveness, Arcadyan Green Product Team regularly conducts conflict mineral analysis on key products, disassembling them to the smallest components and verifying the sources of contained metals for potential high-risk origins. Findings are documented in the Supplier Conflict Minerals Survey System, where the Green Product Department reviews supplier reports and supports documentation to ensure transparency and compliance. Since implementing responsible minerals management, Arcadyan has never experienced incidents of product returns, customer complaints, or reputational risks arising from noncompliance.

Furthermore, all suppliers are subject to regular assessments covering incoming material quality, customer complaint handling, and environmental and social responsibility performance (including conflict minerals and hazardous substances). Evaluation results serve as a basis for procurement strategy—suppliers with excellent performance are given procurement priority, while underperforming suppliers are considered for removal from the Qualified Vendor List (QVL) to ensure supply chain compliance and sustainability.

 

Responsible Minerals Training

Arcadyan conducts annual internal awareness training and organizes online briefings for suppliers, covering topics such as Arcadyan's Conflict Minerals Policy, key points in completing the Conflict Minerals Reporting Template (CMRT), and updates on international regulatory developments. Additionally, Arcadyan provides case-by-case coaching for suppliers to help them understand smelter certification processes and compliance requirements, thereby strengthening the overall responsible sourcing capabilities of the supply chain.

 

Reporting Channels and Traceability Mechanism

To ensure transparency and integrity within the supply chain, Arcadyan has established a dedicated reporting email (ethics@arcadyan.com) for suppliers, employees, and stakeholders to anonymously raise concerns regarding conflict minerals, high-risk mining areas, or human rights violations. If preliminary verification confirms the validity of a report, Arcadyan will immediately cease procurement, require the supplier to provide an explanation and corrective measures, and continue to track the progress of implementation to ensure resolution.