Sustainable Procurement Policy

1 General Provisions

1. Purpose

Sieyuan Electric is committed to achieving sustainable development in all business and operations. When making procurement decisions, in addition to financial factors, environmental and social factors are also considered.  Our goal is to identify, select, and purchase products and services that have minimal environmental impact and a positive impact on society.

The Sustainable Procurement Policy (hereinafter referred to as the "Policy") is formulated in accordance with the ISO20400 Sustainable Procurement Guidelines, clarifying our high-level commitment to integrating sustainable development into procurement.  This policy complements and should be adopted in conjunction with Sieyuan Electric's Supplier Code of Conduct, Environmental Policy, Human Rights Policy, and Health and Safety Policy.  

2. Scope

This policy applies to all directors and employees worldwide, whether temporary or long-term, regardless of the specific entity or subsidiary of Sieyuan Electric (hereinafter collectively referred to as "Sieyuan Electric employees" or "employees"). We also encourage business partners, contractors, suppliers, and other stakeholders to apply this policy where feasible.

3. Responsibilities

The Sustainable Development Committee of Sieyuan Electric is responsible for developing, reviewing, and updating this policy annually to ensure compliance with the latest local laws, regulations, and industry standards.  By establishing internal control mechanisms, monitoring sustainable procurement performance and regularly reporting.

The senior management bears ultimate responsibility for complying with this policy in their business operations.  Ensure that all relevant employees are aware of this policy and understand their responsibilities in sustainable procurement  Employees have the obligation to strictly abide by the principles stipulated in this policy.  Actively participate in relevant training activities to enhance self-awareness.  Timely report any behavior that may violate this policy.

4. Communication and Reporting

Sieyuan Electric regularly communicates with all employees, business partners, contractors, suppliers, and other stakeholders regarding this policy.

We encourage suppliers, contractors, and other stakeholders to monitor the implementation of this policy and promptly report any violations of this policy.  We promise to protect the reporter's information from disclosure and prevent any possible retaliation.  The contact email for the report is  ESG@sieyuan.com  .

This policy should be updated every three years and communicated with stakeholders in a timely manner.

2 Core Principles

1. Comply with Laws, Regulations, and Industry Standards

Sieyuan Electric promises to comply with all applicable laws, regulations, and rules. In the event that laws and regulations fail to provide appropriate control, we will adopt stricter standards to promote the sustainable development of the supply chain.

2. Reduce Environmental Footprint

Sieyuan Electric evaluates the environmental and social impacts of its products and services throughout their entire lifecycle, including their impact on energy, water, and other natural resources, as well as the generation of waste.

l Prioritize the procurement of environmentally friendly products or materials, such as products that are easy to disassemble and recycle, and renewable materials;

l Prioritize the procurement of materials that have obtained relevant sustainable certifications.  Prioritize local procurement where reasonable and feasible;

l Minimize the purchase of disposable products as much as possible;

l Whenever reasonable and feasible, try to adopt honest and quantitative packaging;  Minimize the use of toxic and harmful products as much as possible;  Ensure responsible procurement of conflict minerals;  According to RoHS and other applicable laws and regulations, the use of hazardous substances is restricted.

3. Supplier Selection

Sieyuan Electric prioritizes suppliers who meet the following conditions.

l Showcasing commitment to sustainable development;  Develop policies and codes of conduct related to sustainable development: establish internationally recognized corporate social responsibility management systems, such as ISO14001 environmental management system, ISO45001 occupational health and safety management system, and other equivalent management systems;  Comply with all applicable laws and regulations related to corporate social responsibility, including but not limited to human rights, health, and safety protection;

l Having good environmental, health and safety, and human rights performance, meeting our requirements in the investigation or on-site audit of Sieyuan Electric, and committing to fully comply with the Sieyuan Electric Supplier Code of Conduct for all unacceptable items such as child labor and forced labor.

4. Supplier Management

Sieyuan Electric incorporates sustainable development elements into supplier management.

l Classify and categorize suppliers, and implement sustainable procurement requirements that are in line with their scale and management level, while promoting continuous improvement.

l Provide sustainable supply chain training and guidance to relevant suppliers.

l Encourage suppliers to identify supply chain sustainability risks and develop relevant risk management plans.

l Regularly review suppliers' environmental and human rights social responsibility performance to ensure compliance and continuous improvement.

l We advocate that suppliers implement this policy into their supply chain management.

5. Supplier Diversification, Equality, and Inclusiveness

Sieyuan Electric is committed to promoting diversity, equality, and inclusivity in our supplier network. The company actively participates in and supports diverse suppliers in our procurement process, including those owned by ethnic minorities, women, LGBTQ+individuals, and people with disabilities.  Sieyuan Electric is committed to creating a collaborative ecosystem that embraces diversity and provides equal opportunities for all.

3 Quantitative Indicators

【1】According to company regulations, the list of suppliers that should be audited is identified.

【2】Excluding emergency suppliers.