The Group is committed to sustainability throughout its entire supply chain, from product design and material sourcing to procurement measures. To fulfil the environmental requirements set by the regulators, customers, industry, and other stakeholders, the Group has established specialised divisions. These divisions ensure compliance with various regulations, including the “Product Quality Law of the People’s Republic of China”, the European Union’s “Restriction on Hazardous Substances Directive” (RoHS) and the European Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, restrictions on the use of conflict minerals as well as Halogen-Free (HF) certifications and GHG emission reduction expectations. The outcomes of these endeavours are transformed into practical internal measures that can be effectively incorporated and implemented within the Group’s operations.

The Group established a Chemical Management Committee, comprising the safety division, procurement division, human resources division, environmental protection division, and testing centre representatives, taking several measures to enhance the safe use and storage of chemicals, safeguarding the well-being and assets of its employees while preventing accidents. These measures include the “Specification for Safety Management of Hazardous Chemicals”, “Specifications for Chemical Substance and Materials Management”, and “Material Safety Data Sheet (MSDS) Management Process”. Additionally, the Group has developed the “Specification for Chemical Substance Replacement” and “Specification for Chemical Substance Classification Management” to gradually substitute hazardous substances. These efforts aim to protect the health, safety, and property of the Group’s personnel while minimising any adverse impact on the natural environment.

Under the Design for Environment programme set up by the Hon Hai Technology Group, the Group integrates five key principles — environmentally friendly, energy and resource efficiency, reduction, recyclability, and ergonomics — into its product design process. The Group requires its suppliers to ensure that their downstream suppliers comply with mandatory regulations to limit the use of toxic and hazardous substances, promote the deployment of GHG emission reduction solutions and other environmentally friendly practices, and strengthen their capabilities to manufacture eco-friendly products, such as the utilisation of recyclable materials when possible. The Group has formulated the “Foxconn Supplier GHG Management Process”, which lists out the Group’s expectations on suppliers’ GHG management. For example, suppliers shall conduct a GHG management system according to ISO 14064-1 and verify the GHG emission data by a third party, thus obtaining energy management system certification. Suppliers shall also actively participate in the carbon trading market, use renewable energy, and formulate carbon reduction and neutrality targets. To ensure alignment with sustainability goals, the Group also monitors all aspects of the operational process through systematic platforms. The “FIH Supplier Quality Management and Green Procurement Platform” was developed in 2023 in response to digital transformation that contains a supplier ESG Scorecard. The Platform conducts digital management in terms of suppliers’ material compliance and manufacturing compliance. It served FIH India, Vietnam and other BUs, with more than 3,300 visits/times and managed more than 200 suppliers. If environmental-abnormal substances or materials are found in the Group’s products, the Group will immediately initiate its recall procedures upon notification, including the segregation of suspected products, inventory, and substances/materials for further investigation.