Supply Chain Management
Responsible Procurement and Conflict Minerals Management

Innolux strictly forbids the use of conflict minerals (minerals extracted through armed conflicts and human rights violations) in its supply chain. This is stipulated in the Company’s Restricted Substances Management Standard. The Company conducts annual review for high risk supplier of materials and inspection of mineral origin and demands suppliers to source from Responsible Minerals Initiative (RMI) certified smelters. The number of inspected manufacturers has increased to 777 in 2018, 772 of which are conformant makers, i.e., companies that do not source 3TG or companies that only source 3TG from certified smelters. Innolux shall continue to require that the remaining five high-risk suppliers convert to conformant smelters, report their conversion progress back to Innolux, and update the inspection announcement.

Innolux plans to conduct a review of moderate to high risk suppliers on 250 suppliers in 2019 and establish a smart conflict minerals management system in order to enhance working efficiency.