Environment, Social, and Governance Report 2023

Driving operational excellence, integrity, accountability, and sustainability within our strong governance practices

Sustainability Sub-Committee

Formalized the creation of the Sustainability Sub-Committee reporting up to the Audit Committee

Better Mining

Through our Better Mining partnership, 1,907 suppliers were surveyed on conflict minerals

Cloud-Based Supply Chain Monitoring Platform

Implemented a cloud-based supply chain monitoring platform used to efficiently gather, analyze and manage sustainability data from our suppliers

Corporate Governance

We continue to strengthen our governance practices as we adopt codes and policies to reinforce accountability within our operations and across our supply chain.

1999
- Harassment and Discrimination Policy
- Health and Safety Policy
2009
- Security and Social Responsibility Policy (includes Environmental Management Policies)
2010
- Complaint Resolution Policy
- Environment manual (updated, 2021)
2012
- Supplier Code of Conduct (renamed to Business Partner Code of Conduct in 2016)
2013
- Conflict Minerals Declaration and Due Diligence
- Data Protection Policy
2015
- Invention Reward Policy
- Conflict Minerals Policy
2016
- Business Partner Code of Conduct (updated, 2020)
- Code of Ethics and Business Conduct (updated, 2019)
2017
- Policy Against Modern Slavery and Human Trafficking (updated, 2019)
2019
- Cobalt Procurement Policy and Due Diligence
- Anti-Corruption Policy
- Anti-Trust Policy
- Product Safety and Consumer Product Regulatory Compliance Policy
2020
- Global Trade Sanctions Compliance Policy
2024
- Began Verifying Scope 1 and Scope 2 Emissions Annually

Other corporate governance policies are available on our website.

MATERIAL TOPIC

Ethics & Integrity

Ensuring stakeholder trust through accountability, transparency, and risk mitigation across our entire value chain.

MATERIAL TOPIC

Supply Chain Accountability

Prioritizing ethical, environmental, and social implications of our business across our entire value chain.

MATERIAL TOPIC

Ethics & Integrity

Ensuring stakeholder trust through accountability, transparency, and risk mitigation across our entire value chain.

MATERIAL TOPIC

Supply Chain Accountability

Prioritizing ethical, environmental, and social implications of our business across our entire value chain.

MATERIAL TOPIC

Ethics & Integrity

Ensuring stakeholder trust through accountability, transparency, and risk mitigation across our entire value chain.

Internally spearheading operational initiatives and engaging in global stakeholder partnerships to prevent ethical violations across our value chain.

GOALS AND TARGETS

Zero legal cases of non-compliance with international and local laws on corruption and anti-trust
Zero cybersecurity breaches or incidents
Maintain business continuity and sustainable growth
Ensure full compliance with data privacy regulations: PIPL for PRC, GDPR, California Consumer Privacy Act, and others

PROGRESS

Zero cases of leaks, theft, or loss of customer and personal data
All relevant associates complete training on the CoC, and all other relevant policy training
Annually, all relevant associates complete training on intellectual property and cybersecurity
Increased diversification and localization of manufacturing, warehousing, and the supply chain across the globe

VALUE CHAIN

Suppliers

Operations

Customers

Community

RISKS	OPPORTUNITIES	RESPONSES
Geopolitical tensions and drastic change in trade regulations	Diversify operations and supply chains to build resilience and promote environmentally responsible practices across the value chain	Ongoing efforts to source and produce goods closer to markets Reducing dependency on single suppliers within essential categories
Non-compliance with international and local laws	Foster a culture of ethical behavior and good governance across the value chain to enhance accountability and transparency	Robust policies, training and compliance programs on ethics and anti-corruption Internal audit investigations and compliance hotline
Breaches of data privacy and intellectual property, data loss and cyberthreats	Protect business and customer information data, improve business systems, enhance operational integrity, and maintain stakeholder trust	Data privacy and cybersecurity policies Robust training to all colleagues Global cybersecurity initiatives IP protection and enforcement process

MATERIAL TOPIC

Supply Chain Accountability

Prioritizing ethical, environmental, and social implications of our business across our entire value chain.

Aligning our supply chain on decarbonization and safeguarding human and labor rights to drive an industry-wide transformation.

GOALS AND TARGETS

Increase the number of effective engagements with NGOs in major countries of operation and where there is a greater risk of human rights violations within the supply chain
Map Scope 3 emissions across our supply chain
Train 100% of suppliers on our Business Partner Code of Conduct (BPCoC)

PROGRESS

Membership to Responsible Business Alliance
Mapping Scope 3 emissions in the supply chain and building resilience for climate change-related risk
100% of suppliers trained on BPCoC and human rights policies

VALUE CHAIN

Suppliers

Operations

Community

RISKS	OPPORTUNITIES	RESPONSES
Reputation and environment of not collaborating with suppliers and partners to tackle the issue of responsible sourcing	Establish partnerships to drive positive change across the industry and supply chain	Membership to Responsible Business Alliance and other organizations (i.e., Responsible Mineral Initiative, Responsible Labor Initiative, the Better Mining Initiative, The Mekong Club)
Human rights violations and environmental non-compliance within the supply chain	Build capacity and align our supply chain on human rights and environmental protection	Investigations, compliance monitoring on ethics and human rights and participation in the Better Mining Initiative Conflict minerals and cobalt procurement initiatives Require suppliers to have EMS and other certifications that align with the principles of ISO
Disruptions in the supply chain due to increasing climate-related risk (i.e., extreme weather events, impact on labor from increased heat and disease)	Implement responsible production and consumption measures in the supply chain to reduce GHG emissions and build resilience	Work with suppliers to measure and reduce GHG emissions Renewable energy and recycling initiatives within the supply chain

GOVERNANCE

Driving operational excellence, integrity, accountability, and sustainability within our strong governance practices

Corporate Governance

Ethics & Integrity

Supply Chain Accountability

Ethics & Integrity

Supply Chain Accountability