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RESPONSIBLE SUPPLY CHAIN MANAGEMENT (ARSM) MECHANISM

Acer has been a member of the Responsible Business Alliance (RBA) since 2008, and actively participates in actions and discussions around supply chain social and environmental responsibility to better understand international trends in CSR and share in the practical experience of its members. With Acer’s adoption of the RBA Code of Conduct, all Acer manufacturers and service providers are required to comply with both the RBA Code and local regulations, regardless of any regional variation. We also carry out annual on-site RBA Code of Conduct supplier audits, gaining a deeper understanding of each location’s working environment and the human rights conditions of the staff. We encourage and require vendors to uphold their corporate responsibility by ensuring they implement socially and environmentally responsible management and advocate for RBA Code of Conduct adherence, thus improving the working environment in the electronics supply chain worldwide.

We have also established the Acer Responsible Supply-Chain Management (ARSM) system, not only setting in place the social and environmental responsibilities of our first-tier suppliers, but also rolling it out to second- and third-tier suppliers in phases. The goal of this is to further expand the reach of our social responsibility and influence. Acer requires first-tier suppliers to implement risk assessment and management of second-tier suppliers based on the RBA Code of Conduct. For higher-risk suppliers, we also carry out on-site audits and tracking of improvements. Additionally, in 2019, we incorporate performance in this regard into our vendor CSR scorecard assessments. We anticipate the scope of supply chain responsibility management to have expanded to third-tier suppliers by 2021.

We carry out supplier CSR scorecard evaluations, reviewing the implementation of CSR among our suppliers and their performance. Such assessments are part of proper CSR practice and performance, and in quarterly business review meetings, the results have been provided to senior management of Acer and our suppliers, driving our bilateral business relationships forward.

We continue to communicate with vendors and enhance their ability to respond to sustainability issues, as well as encouraging vendors to incorporate sustainable development matters into their management agendas. In line with Acer’s sustainable development strategy, we hold a variety of vendor sustainability conferences, and in our annual vendor CSR communication meetings, provide information on the latest in CSR developments and trends, as well as analyzing important supply chain matters and potential actions that we can take together. These meetings also provide an opportunity for two-way communication between Acer and vendors, strengthening the supply chain's environmental and social responsibility and deepening our CSR-related cooperative relationships.