Supplier Management Policies

Radiant Opto-Electronics has established the "ROE Supplier Code of Conduct" and the "Environmental & Substances Management Standards" to ensure that its supply chain complies with standards related to labor, health and safety, environmental protection, business ethics, and management systems. The goal is to create a supply chain in which all workers enjoy fair and free employment opportunities and a safe working environment.

Radiant Opto-Electronics strengthens the overall sustainability of its supply chain through four key strategies: "Supplier Policy," "Supplier Sustainability Risk Identification," "Supplier Sustainability Risk Audit," and "Supplier Guidance." The company incorporates environmental, social, and governance (ESG) sustainability aspects into the procurement operations evaluation (Quarterly Business Review, QBR) metrics. Additionally, through regular supplier education and training, Radiant collaborates with supply chain partners to achieve sustainable prosperity.

Radiant Opto-Electronics Suppliers Supply Chain

Radiant Opto-Electronics is an upstream manufacturer in the panel industry, mainly producing backlight modules that provide uniform and sufficient brightness for various information, communication, and consumer products, making them a crucial component of TFT-LCDs. The industry structure can be broken down to material, panel, module and upstream materials for LCDs. Besides the backlight module, the upstream materials include glass substrate, color filter, polarizer and driver IC. The upstream raw material industries include LGP, light source, optic films and plastic frame, while the downstream includes the manufacture and assembly of LCD panel and a range of applications for all kinds of electronics.

Supplier Standards Compliance

Radiant Opto-Electronics Corporation has developed a "ROE Supplier Code of Conduct" that draws upon the Responsible Business Alliance's Code of Conduct, the UN Guiding Principles on Business and Human Rights, the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, and the UN Universal Declaration of Human Rights. The Supplier Code of Conduct covers five key areas: labor, health and safety, environment, business ethics, and management systems. To ensure suppliers understand the relevant content, Radiant Opto-Electronics has published the "Supplier Code of Conduct Commitment" on its internal system and official website for supplier partners. This aims to create a sound and healthy supply chain ecosystem, including respect for employees, environmental safety, workplace conditions, and adherence to business ethics.

Supplier Risk Assessment and Improvement

Radiant Opto-Electronics regards its suppliers as one of its most important business partners and is committed to building a win-win collaborative relationship. To ensure a stable supply of raw materials, Radiant Opto-Electronics conducts regular annual audits of its suppliers to verify alignment in quality standards, management capabilities, sustainability performance, and strategic direction.

Supplier Review and Selection

Radiant Opto-Electronics conducts an annual ESG sustainability self-assessment survey for its suppliers to monitor their progress in implementing sustainability practices. The questionnaire consists of five key dimensions and 55 questions, providing an in-depth review of suppliers’ sustainability management practices. In implementing sustainable supply chain management, ESG scores are incorporated into the Group's Quarterly Business Review (QBR) assessments, amplifying the impact and value of sustainability.

In A-D tiered management, Radiant Opto-Electronics conducts sustainable risk assessments for suppliers based on criteria such as raw materials, transaction volumes, critical components, and exclusivity of supply. The Company identifies "Tier 1 Critical Suppliers" and distributes self-assessment questionnaires to these critical suppliers to investigate potential environmental and social risks.

Audit and Tracking

Based on the results of the self-assessment survey scores, Radiant Opto-Electronics further categorizes suppliers by "risk level." For those assessed as "high risk," on-site audits are conducted by the Environmental Health and Safety (EHS) and Human Resources (HR) departments. The audit criteria were based on the RBA foundation, encompassing five main aspects: labor, health and safety, environment, business ethics, and management systems. Deficiencies were classified into four levels: priority, major, minor, and observation. Suppliers were required to submit improvement plans to ensure risks were effectively managed and reduced. In 2024, a total of 29 suppliers from Taiwan and Mainland China were selected based on the definition of "Tier 1 Key Suppliers." These suppliers accounted for 81.2% of the total procurement amount and were tasked with conducting a self-assessment audit of sustainability risks.

After reviewing the documents, on-site audits were conducted for 12 suppliers identified as potentially high risk. The results of the 2024 supplier risk assessment indicate that there are no immediate or significant risk situations. None of the suppliers exhibited priority or major deficiencies, and all received a rating of B or above, resulting in a 100% qualification rate.

Risk Management Policies for Key Materials

Radiant Opto-Electronics conducts risk identification for critical materials, which include PMMA plastic pellets, prismatic lenses, LEDs, LED modules, LED light panels, metal parts, plastic parts, and others. To strengthen supply chain resilience, Radiant Opto-Electronics proactively plans contingency measures to address potential disruptions in the supply of critical materials.