Human Rights Reports

1. Human rights management declaration: H TT endorses and respects the protection of internationally proclaimed human rights, and fully endeavors to avoid any involvement in the human rights violations. This declaration and principle apply to all workers (Contract workers, temporary workers, foreign workers, migrant workers, etc.) of all global business sites of HTT (including subsidiaries), as well as all stakeholders we come into contact with through our business activities, including partners, customers, and local communities. Human rights management principles include the following: (1) Prohibition of Forced Labour, (2) Prohibition of Child Labour, (3) Respect for diversity, equity, inclusion and nondiscrimination, (4) Gender Equality Achievement, (5) Guarantee of Freedom of Association and the Right to Collective Bargaining, (6) Decent Wage Payment and Stabilization of Livelihood, (7) Working Hours, (8) Health and Safety.

This prohibits all forms of forced labour that unjustly restrict physical or mental freedom. It also prohibits child labour, adhering to the legal minimum employment age in the relevant country, and commits to ensuring that no harmful or hazardous work is assigned to employees under the age of eighteen (18) in compliance with health and safety standards.

2. Code of Conduct: HTT has established an ethical code of conduct to ensure compliance with domestic and international laws and company management policies, and to practice ethical management. The ethical code applies to all stakeholders, including employees and suppliers.

3. Supply Chain Policies: HTT operates the following key policies to ensure a sustainable supply chain: Global Sustainable Purchasing Policy, which specifies our responsibility to respect and protect human rights in its supply chain; Supplier Sustainability Guidance, which provides guidelines for suppliers regarding the respect and protection of human rights; and Sustainable Natural Rubber Policy, which focuses on human rights protection and minimizing negative impacts in the supply chain of its main raw material, natural rubber. Furthermore, we have a Conflict Minerals Policy that prohibits sourcing raw materials from conflict regions where human rights are severely threatened.

1. Risk Identification and Mitigation
  - Human Rights Impact Assessment: We conduct annual human rights impact assessments throughout all global operations (Headquarters, domestic/overseas plants, R&D Center, and overseas subsidiaries and offices). By conducting annual assessments, we aim to proactively identify human rights concerns that may adversely impact employees and stakeholders, and make improvements on identified issues to protect human rights. We analyzed the human rights grievances collected over the past two years to select vulnerable areas and developed an in-depth questionnaire specific to our human rights conditions. The human rights risks identified through the assessment are shared with relevant teams, who develop action plans and continue monitoring the situation.

  - Supplier Assessment: HTT continuously monitors the ESG capabilities of its global suppliers and requests them to conduct self-assessments for ESG improvement. This assessment includes aspects of human rights and workers' rights protection. In 2023, 415 suppliers (raw materials, sub-materials, and equipment) underwent ESG assessments, achieving a 100% response rate. If a supplier is identified as high-risk, the company requests follow-up management and the development of improvement plans. In cases where severe risks are identified, penalties are applied in business transactions.

2. Grievance Mechanism
  - Grievance Committee: We operate a grievance mechanism to resolve employee grievances, prevent disputes in the workplace to ultimately create a positive corporate culture. This mechanism helps us heed employee grievances through various channels and seek solutions to protect the human rights of workers and build a wholesome working environment. Our employees are free to request improvement actions for discriminatory treatment, sexual harassment in the workplace, unjustified actions taken in relation to parental leave, workplace harassment, or any other personal grievances in their professional and personal life.

  - Misconduct Reporting: Misconduct reporting provides all stakeholders of HTT with a channel to report issues across the supply chain, wrong practices or policies, and misconduct by employees. The identity of the whistleblower and the content of the report are strictly confidentiall and the whistleblower will not face any disadvantage because of their report.

According to the human rights impact assessments and supplier evaluations conducted by HTL the parent company of HKCA, no significant human rights issues were identified within the supply chain. However, for natural rubber and conflict minerals, which are considered to have relatively high risks for forced and child labourr we are conducting the following risk assessments and management processes.

For the natural rubber supply chain, separate 'natural rubber supply chain ESG assessment items' were created in line with GPSNR (Global Platform for Sustainable Natural Rubber) standards and assessments were conducted to verify compliance with the sustainable natural rubber policy and prevent risks.

In addition, to manage the risks associated with conflict minerals, we monitor the evidence and risk assessment process on an annual basis. As a result of monitoring evidence and the risk assessment process concerning conflict minerals in 2023, no issues were identified, and we disclosed the survey list on our website. In addition to the four conflict minerals of 3TG (tin, tantalum, tungsten, and gold), we are also monitoring cobalt to expand our scope of monitoring.