In 2022, we conducted a total of 105 audits, 100% of which were on-site audits. These include two new suppliers that began production of Acer products in 2022. Meanwhile, one supplier that failed to meet Acer's social and environmental requirements was removed. Implementation methods include: third-party audits (CMA or AMA), RBA Validated Audit Process (VAP), BSCI, SA-8000, accreditation, etc.In 2022,more than 260,000 direct Supplier employees were audited and 4,318 direct employees were interviewed,with more than 80% using the RBA Validated Audit Process (VAP).

Per the above description, between 2008 and 2022 a cumulative total of 986 first-tier Supplier audits have been carried out. In addition, to effectively improve implementation through the supply chain, Acer has required its first-tier suppliers to conduct pre-audit risk assessments of their next-tier suppliers of critical raw materials since 2017. After aggregation, high-risk suppliers accounted for 6% of the total, with mediumrisk suppliers at 22%.We continued to carry out auditing activities in 2022 along these lines, auditing a total of 893 second-tier factories. In 2021, we deepened our implementation across the supply chain, extending our auditing activities to third-tier suppliers, of whom we conducted 422 audits in 2022.    

In 2023, we still plan to conduct on-site audits of 70 firsttier supplier manufacturing plants, covering 140,000 direct employees and interviewing 2,500 other employees. The annual RBA site audit compliance targets are: labor: 87%, health and safety: 87%, environment: 95%, ethics: 95%, management systems: 95%. We will continue to pursue auditing activities for secondand third-tier suppliers to actively improve the workforce and operating environment and deepen the long-term positive impact on the overall supply chain.

Corrective Action Reports (CAR)

Acer issues Corrective Action Reports (CAR) to higherrisk audited suppliers in response to any issues of noncompliance identified. Within 30 days of receiving such reports, suppliers must produce a written risk CAR of their own and submit it to Acer for approval by management personnel. These reports will be followed up on each month and verified against the on-site audit the following year. With regard to high-risk suppliers, as found in the audits, Acer will make the necessary adjustments to our purchasing strategy to manage the issue. As of the end of 2022, 210 deficiencies have been identified in higherrisk suppliers with VAP audit scores below 160 or priority non-conformance deficiencies, and as of December 31,2022, 210 deficiencies have been tracked and improvement measures have been implemented. A total of 15 deficiencies including priority non-conformances were listed, and all of them have been listed for corrective action, the implementation rate of which is 100%. The other nonconformances have also been listed for corrective action,the implementation rate of which is 100%.