O Firmie

Sustainable Supply Chain

03/09/2012

GIGABYTE considers suppliers to be our long-term partners and we work together to set up a reliable sustainable supply chain. All tier-1 suppliers are required by GIGABYTE to set up an environmental management system and currently all tier-1 suppliers have passed ISO 14001 certification. In terms of products we procured, all suppliers are expected to conform to GIGABYTE’s Eco Product Requirement. Due to the EU RoHS and REACH directives, suppliers must also conform to GIGABYTE’s guidelines on lead-free process, lead-free product, halogen-free process and halogen-free product as well as sign a declaration to that effect. Apart from the quality, delivery time, cost and service, suppliers are also asked to respect human rights and pay attention to global environmental protection issues so they can work with GIGABYTE to build a sustainable supply chain and fulfill their corporate social responsibility.

Fair Trade and Green Procurement
GIGABYTE takes a "Fair Trade and Green Procurement" approach to suppliers. Apart from offering reasonable purchasing prices to avoid suppliers using hazardous substances to cut costs, we also require all purchased products to conform to the "Harmful Chemical Substances Requirements" (HCSR) of our company to avoid any potential harm to the human body and environment from the use of hazardous substances in products. To help suppliers understand GIGABYTE's methods in CSR and sustainable development, we host suppliers' conferences before each policy or initiative is implemented so both parties can exchange opinions and any necessary assistance provided.

Supplier Evaluation
As a part of supplier evaluation, suppliers are required to fill out the "Product Environment Management Substance System " assessment form and the "Environmental Safety and Health Management" assessment form. Besides the basic assessment criteria (e.g. quality, price, delivery time and service), they must also conform to GIGABYTE's "Harmful Chemical Substances Requirements" (HCSR) and sign a declaration of conformity. In order to have a closer and more collaborative relationship with components suppliers, we can use GSCM (Green Supply Chain Management) to link with the specification approval verification procedure and to enable effective communication, tracking, management and ultimately the exclusion of parts that contain restricted chemicals. The GIGABYTE platform enables each supplier to learn about the latest HCSR and green product guidelines.

Partner Excellence Award
Not only has GIGABYTE hosted supplier conferences in order to promote our ideals on quality, environmental, and supply chain management issues, we have also achieved quality consensuses during annual banquets with our suppliers for three straight years, further emphasizing our focus and determination in pursuing sustainability matters. To thank supplier partners for their long-term support and contribution, outstanding suppliers are presented with the "Partner Excellence Award" and "Best Partner Award" as well.

Human Rights and EICC
The Electronic Industry Citizenship Coalition (EICC) has been focusing on the human rights of workers in the electronic industry supply chain. In addition to following local laws and the Electronic Industry Code of Conduct (EICC) standards to the highest ethical standards, GIGABYTE also requires suppliers in its supply chain to conform to the standards set for environmental protection, safety & health, workers' human rights and working conditions. These include non-use of "conflict metals", respect for employees, equitable treatment of employees as well as taking responsibility for the production process and environment. For more information about the EICC please visit the EICC website atwww.eicc.info

Non-Use of Conflict Minerals
GIGABYTE has used our official website and long-term supply contracts to communicate to the suppliers in our supply chain our opposition and non-use of metals mined in the condition of armed conflicts, illegal mining operations and poor working conditions. These are also referred to as "conflict minerals". Suppliers in the GIGABYTE supply chain are also asked to not use the above "conflict minerals" in the parts and components they supply. We hope self-regulation by the supply chain will translate into actual action on "Non-use of Conflict Minerals".