Supplier Sustainability Code of Conduct

Sustainability Policies » Corporate Governance Policy

Quanta Computer Supplier Sustainability Code of Conduct

  • Quanta firmly believes that technology is the driving force behind human progress. We are committed to technological innovation with the vision of improving lives and benefiting humanity. In addition to giving back to society, shareholders, and employees, we proactively engage with stakeholders to jointly create a better society, fulfill our corporate citizenship, and achieve sustainable development.
  • Beyond Quanta itself, we believe that the supply chain is also a key factor in realizing sustainability goals. Quanta regards co-existence and shared prosperity with suppliers as a core value. We work to exclude suppliers that violate sustainability-related regulations, and we are dedicated to promoting decent working conditions, respect for human rights, and environmental responsibility across the supply chain. Together with our partners, we aim to contribute to sustainable development.
  • This Code of Conduct has been developed with reference to Quanta’s ESG Commitments and Policies, the SASB Standards, the Responsible Business Alliance (RBA) Code of Conduct, the UN Guiding Principles on Business and Human Rights (UNGPs), the UN Global Compact (UNGC) Ten Principles, and the Universal Declaration of Human Rights (UDHR). Quanta conducts regular risk assessments and audits of our direct suppliers, and when necessary, also evaluates indirect suppliers. Based on these international standards and guidelines, Quanta’s Supplier Sustainability Code of Conduct applies to all Quanta suppliers and their business partners.
  • This Code of Conduct consists of two parts: (1) Supplier Requirements: Responsible Business Conduct, Environmental Responsibility, Social Responsibility, Responsible Use of Critical Raw Materials, and Supplier Management Responsibility; and (2) Management Mechanisms: Assessment and Monitoring, Non-Compliance Management, and Communication and Grievance Mechanisms.
  • I. Supplier Requirements
  • ○ Responsible Business Conduct
    • Integrity and Business Ethics
      Integrity and business ethics are the core values of Quanta Computer. Suppliers are required to comply with all applicable laws and regulatory requirements relevant to their operations, including but not limited to fair competition and antitrust regulations, anti-corruption and anti-money laundering, personal data protection, intellectual property rights, and transparency of information disclosure. Suppliers shall also comply with international codes of conduct, such as the Responsible Business Alliance (RBA) Code of Conduct, as well as Quanta’s internal policies, including the Integrity and Ethics Policy, Corporate Governance Best Practices, Code of Ethical Conduct, Insider Trading Prevention Procedures, and Intellectual Property Management. For details, please refer to: Quanta Corporate Governance Rules and Information https://www.quantatw.com/Quanta/english/corporategovernance/ruleandinfo.aspx
    • Prevention of Conflicts of Interest
      All business interactions between suppliers and Quanta must be conducted free of any conflict of interest. Potential conflicts may arise when Quanta employees or their immediate family members (e.g., parents, spouses, children, or siblings) are employed by or have significant financial interests in a supplier. Excessive or inappropriate interactions between suppliers and Quanta employees may also create risks. All supplier-employee relationships must remain within normal business boundaries. If any conflict of interest arises, suppliers are obligated to immediately report the issue and take corrective actions to prevent misconduct.
    • Information Security and Privacy
      Quanta values the protection of customer and personal data, strictly complies with data privacy regulations, and prohibits unauthorized use or sharing of information. Hardware and service suppliers are required to complete self-assessment questionnaires annually and participate in online or on-site audits to ensure that their information security systems meet Quanta’s requirements. Suppliers must establish information security management systems, regularly report risks and performance, and obtain relevant certifications such as ISO 27001. Suppliers are expected to expand certification coverage and continuously strengthen incident response capabilities to safeguard both Quanta and its customers against cybersecurity risks.
    • Export Controls and Economic Sanctions
      Suppliers must regularly conduct compliance reviews to ensure their activities do not violate applicable export control and sanctions laws, such as the Uyghur Forced Labor Prevention Act (UFLPA), the Export Control Reform Act (ECRA), including the Denied Persons List and Entity List, as well as trade regulations from the United Nations, the United States, the European Union and its member states, the United Kingdom, and other jurisdictions. Quanta emphasizes reducing legal risks and ensuring transparency and compliance throughout the supply chain. Suppliers are required to cooperate with Quanta to ensure full compliance and avoid exposure to legal or reputational risks.
    • Counterfeit Parts
      Quanta places the highest importance on product integrity and counterfeit prevention. The use of unauthorized, counterfeit, fraudulent, substituted, or modified components is strictly prohibited, as is the misrepresentation of parts as original or legitimately manufactured. Suppliers must establish effective counterfeit prevention and control systems to ensure counterfeit components are not delivered to Quanta or into the downstream supply chain.
  • ○ Environmental Responsibility
    • Environmental Management System
      Suppliers must establish and periodically review an environmental management system (EMS), strive to obtain certification such as ISO 14001, and provide Quanta with valid certification documents. The EMS should cover production processes and facilities, continuous improvement, and external validation, and must include mechanisms to identify, monitor, and disclose environmental impacts such as energy use, water consumption, wastewater discharge, noise, waste, waste, and hazardous substances. Suppliers are expected to publish regular environmental performance reports.
    • Energy Management System
      Suppliers must establish and periodically review an energy management system (EnMS) to minimize energy waste and improve efficiency, obtain certifications such as ISO 50001, and provide evidence of certification to Quanta. Suppliers are also encouraged to adopt renewable energy and, where applicable, provide Quanta with implementation plans and timelines.
    • Environmental Due Diligence
      Suppliers must comply with local and international environmental laws and standards, conduct periodic climate- and nature-related risk assessments, and evaluate dependencies, impacts, risks, and opportunities across their operations and supply chains. In line with the precautionary principle, suppliers must take proactive measures to prevent environmental harm. Suppliers are expected to develop and implement environmental policies, disclose commitments and progress, and report on their management of environmental risks and challenges.
    • GHG Emissions and Decarbonization Plans
      To reduce greenhouse gas emissions, Quanta has committed to adopting the Science-Based Targets initiative (SBTi) approach , targeting a 42% reduction in Scope 1 and Scope 2 emissions by 2032 compared to the 2022 baseline, a 25% reduction in Scope 3 emissions, 50% renewable energy usage by 2030, and achieving net zero by 2050.
      Suppliers are required to transparently disclose their emissions data, such as product life cycle assessments (LCA, ISO 14067), CDP disclosures, or Quanta’s internal carbon disclosure questionnaires, and provide regular reporting. Suppliers are also encouraged to set their own SBTi-aligned decarbonization targets and manage Scope 1, 2, and 3 emissions in alignment with Quanta’s strategy to collectively achieve net zero.
      Suppliers are further expected to adopt green and recycled materials where feasible, invest in technological innovation, and share relevant information with Quanta. By enhancing material recovery and recycling practices, suppliers contribute to circular economic objectives and reduce dependence on virgin resources.
    • Water Resources and Soil Quality
      Suppliers shall evaluate the impacts of their production discharges on water resources and soil quality, ensuring that such impacts are fully assessed in the context of local ecosystems. Suppliers must prevent pollution risks and implement effective controls to ensure that procurement and production processes do not compromise access to safe water or degrade soil conditions. Suppliers located in water-stressed regions are required to adopt preventive measures to safeguard the community’s access to sufficient and clean water, avoiding any actions that exacerbate existing water scarcity.
    • Biodiversity and Deforestation
      Suppliers must ensure that their business activities do not involve deforestation or negatively affect biodiversity, thereby preventing ecosystem conversion. Suppliers are required to conduct environmental due diligence across their supply chains and, where risks are identified, implement robust and verifiable measures to provide long-term ecosystem protection. Suppliers must work towards eliminating practices that cause deforestation or ecological degradation, even if deemed “legally permitted,” to ensure alignment with global biodiversity conservation targets.
    • Animal Welfare
      Suppliers shall comply with recognized animal welfare standards during their operations, prioritizing non-animal alternatives whenever feasible, except where required by law. Suppliers must adhere to international standards, such as the “3Rs” principle (Replacement, Reduction, Refinement), the Five Freedoms of the Animal Welfare Committee (AWC), and the World Organization for Animal Health (WOAH/OIE) guidelines. If suppliers or their supply chains conduct animal testing or use animal-derived materials, they must disclose relevant certification or evidence to Quanta.
    • Hazardous Substances and Waste Management
      Suppliers must establish systems to effectively identify, manage, and minimize the risks of hazardous chemicals and waste that could harm human health or the environment. This includes safe handling, transport, storage, use, recycling, and disposal, in compliance with all applicable laws and customer requirements. Suppliers must train employees to prevent pollution of air, water, and soil and are expected to substitute hazardous materials with safer alternatives whenever possible. Waste minimization plans should be implemented, and relevant data must be provided to Quanta upon request to support transparency and accountability.
    • Resource Efficiency
      Suppliers shall minimize resource consumption and waste generation in compliance with international standards and local regulations. They are required to adopt best practices in energy, water, and raw material efficiency, including process optimization and resource recovery. Efforts must be made to enhance energy and water efficiency and promote circular resource use throughout procurement and production activities.
    • Noise Emissions
      Suppliers must establish noise management programs, including control measures to prevent occupational and environmental noise pollution. At the workplace level, suppliers must identify noise-exposed groups, conduct mandatory health examinations as required by law, and implement management controls to minimize worker exposure. For external environments, suppliers must ensure compliance with regulatory limits and implement preventive measures to protect surrounding communities.
  • ○ Social Responsibility
    • Human Rights Due Diligence
      Suppliers must implement effective procedures to safeguard human rights across their operations and supply chains. They are required to design and execute systematic due diligence processes to identify, prevent, and mitigate potential or actual adverse human rights impacts. This includes providing supporting evidence and documentation upon request. The objective is to ensure proactive human rights protection across the entire value chain, thereby avoiding human rights-related risks within the supply chain.
    • Freely Chosen Employment
      All forms of forced labor are strictly prohibited, including bonded labor, forced labor , fraudulent recruitment, and human trafficking, as well as practices involving withholding of wages or identification documents. Suppliers must establish clear recruitment policies and ensure that all employment is based on voluntary choice. Employees must be informed of their rights and responsibilities in a language they understand before employment, and such terms must remain consistent thereafter. Employees must also be allowed to terminate their employment freely with reasonable notice under applicable law. Suppliers must communicate these requirements to labor agencies and conduct periodic audits to ensure compliance.
    • Child Labor
      Suppliers must comply with the minimum age requirements defined by the International Labour Organization (ILO) conventions and applicable laws, prohibiting the use of child labor in their operations or supply chains. Suppliers must ensure that work does not interfere with children’s education or development and does not expose them to unsafe conditions. If child labor is identified in the supply chain, suppliers must not only terminate the practice but also implement corrective actions to protect affected children.
    • Working Hours, Wages, and Benefits
      Suppliers must comply with all applicable local laws and international standards governing working hours, wages, and benefits. Compensation must meet or exceed minimum legal standards and be paid in full and on time. Overtime must be voluntary and compensated at legally required rates. Suppliers must provide workers with clear wage statements for each pay cycle and regularly review compensation and benefits to meet local living wage standards .
    • Diversity, Equity, Inclusion, and Humane Treatment
      Suppliers must foster a diverse, equitable, and inclusive workplace where all workers are treated with respect and fairness. Discrimination in recruitment, hiring, training, promotion, compensation, or termination is strictly prohibited, including discrimination based on gender, pregnancy, race, color, disability, union membership, political affiliation, origin, religion, age, or sexual orientation. Suppliers must communicate anti-discrimination and anti-harassment policies clearly to all employees, provide training, and establish grievance mechanisms. All reported cases must be investigated, and protections for affected parties must be guaranteed.
    • Freedom of Association
      Suppliers must respect employees’ rights to freedom of association and collective bargaining, ensuring that workers can exercise these rights without fear of discrimination, retaliation, or harassment. Employees must have the right, in accordance with local laws and international standards, to freely join or not join trade unions, run for union office, and participate in union activities.
    • Community Engagement
      Suppliers are expected to assess and manage the impacts of their business activities on local communities, taking into account residents’ rights to adequate living conditions, education, employment, and participation in social and economic activities. Business operations must be conducted in accordance with Free, Prior, and Informed Consent (FPIC). Suppliers shall adopt preventive measures to avoid adverse impacts on the health, safety, and living standards of local communities and must not engage in or contribute to forced displacement of residents. Where relevant, suppliers are required to maintain dialogue and cooperation with local authorities and stakeholders to mitigate or remediate community-level impacts.
    • Private and Public Security
      Quanta is committed to minimizing all forms of violence and related harm. We will not engage with or contract private or public security forces that fail to respect human rights, nor will we directly or indirectly support non-state armed groups. Suppliers must ensure that contracted security personnel are trained and certified in human rights policies and procedures to prevent abusive or punitive practices.
    • Occupational Health and Safety
      Quanta is committed to fostering safe and healthy working environments that protect both physical and mental well-being. Suppliers must support continuous improvement in working conditions with the goal of achieving zero occupational accidents and diseases. Suppliers are required to establish occupational health and safety management systems, obtain recognized certification (e.g., ISO 45001), and provide documented proof to Quanta. Safe workplaces, necessary equipment, protective gear, and regular training opportunities must be ensured to protect employees from occupational hazards, exposure to harmful substances, and excessive physical or psychological stress.
  • ○ Responsible Use of Raw Materials
    • The extraction, trade, processing, and export of minerals from conflict-affected and high-risk areas—such as 3TG (tin, tungsten, tantalum, and gold) minerals as well as cobalt and mica—carry significant human rights, social, and environmental risks. Suppliers must adopt and broadly promote responsible mineral sourcing policies, committing not to contribute to conflict or human rights abuses. Suppliers are required to provide Conflict Minerals Reporting Templates (CMRT) and Extended Minerals Reporting Templates (EMRT) to Quanta. Suppliers must also oversee their own upstream partners to ensure due diligence is performed and report findings accordingly.
    • Quanta requires upstream smelters and refiners to participate in third-party audit and certification programs such as those of the Responsible Minerals Initiative (RMI) or the London Bullion Market Association (LBMA). Suppliers are required to source only from certified smelters and refiners, while continuing to support responsible sourcing practices in high-risk regions such as the Democratic Republic of Congo (DRC).
    • Suppliers must apply RMI due diligence tools and templates, assign responsible management units, and establish effective governance systems to ensure compliance. They are also required to cascade these requirements to their own suppliers, conduct training on responsible sourcing, and monitor implementation status, taking corrective actions where necessary to eliminate risks.
    • For other critical raw materials such as steel, aluminum, and rubber, suppliers are strongly encouraged to source from certified entities (e.g., ResponsibleSteel™, Aluminum Stewardship Initiative (ASI)). Where certification is not available, suppliers must provide Quanta with equivalent evidence (e.g., due diligence reports) to ensure responsible sourcing practices.
  • ○ Supplier Management Responsibility
    • To ensure alignment with Quanta’s sustainability values and standards, tier-1 suppliers are required to actively transmit the principles of this Supplier Code of Conduct throughout their own supply chains. This includes, but is not limited to, standards for quality, environmental protection, social responsibility, and sustainable development.
    • Tier-1 suppliers must establish effective mechanisms to ensure that sub-tier suppliers understand, comply with, and implement these standards. This may include training programs, sharing of best practices, and periodic audits. Suppliers must also embed sustainability requirements into contractual terms with their sub-tier suppliers and report any identified violations.
    • Quanta believes that such integrated collaboration and governance will help build a sustainable and responsible supply chain ecosystem. Quanta reserves the right to audit both Tier-1 and sub-tier suppliers to ensure that these standards are consistently upheld throughout the value chain.