Procurement CSR Management System

Huawei has established its procurement CSR management  system based on the OECD Due Diligence Guidance for Responsible Business Conduct and the IPC-1401  Corporate Social Responsibility Management System  Standard , and incorporated CSR requirements into our  procurement strategy and business processes. We require  all of our suppliers to comply with all applicable laws and  regulations, and encourage them to promote diversity and  improve their own CSR management by adopting globally  recognized industry standards. The CSR agreements that  we sign with suppliers are prepared according to the  Responsible Business Alliance (RBA) Code of Conduct and the Joint Audit Cooperation (JAC) Supply Chain  Sustainability Guidelines . These agreements cover labor  standards, health and safety, environmental protection,  business ethics, and management systems. Huawei  requires that all suppliers abide by the CSR agreements  and convey the same requirements to their own suppliers.

We consider the use of child labor or forced labor to be red-line issues, and we have zero tolerance for any behavior that  crosses CSR red lines. In 2023, none of our suppliers were found to have crossed any CSR red lines.

Huawei's CSR red lines in procurement

1. Use of child labor
2. Use of prison labor (including using prisons  as suppliers or subcontractors) or forced labor  (including restricting personal freedom or  detaining personal identity documents)
3. Violence, physical punishment, sexual harassment,  illegal body searches, cross-gender body searches,  and other similar behavior
4. Salary payments below the local minimum wage
5. Negligence that leads to major fires or explosions
6. Working conditions that seriously endanger personal health and safety or lead to fatal field incidents
7. Illegal emissions of any hazardous or toxic wastes,  including waste water, gas, and residue.
8. Negligence that leads to media crises or serious  mass disturbances, such as collective labor  disputes, mass brawls, mass poisoning, unnatural  deaths, or other incidents causing casualties.
9. Unsafe and unhealthy working environments  that lack effective measures to prevent potential  health and safety accidents, or diseases that may  be caused due to exposure in workplaces (e.g.,  collective infections).
10. Corruption or dishonest acts that violate the  requirements of "no bribery, no gifts, no conflicts  of interest, no falsification, no cutting corners, no  fraud, and keeping promises".

To support the strategic goal of sustainable procurement, we regularly deliver CSR training to all members of the  procurement team. This training covers CSR agreements, red lines, processes, and audit practices related to CSR in  procurement. CSR requirements are incorporated into the performance indicators of all teams in our procurement  department.

The Group Annual Report includes Huawei Switzerland adherence to the due diligence and reporting obligations required by Art. 964j-l of the Swiss Code of Obligations and the Swiss “Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour” (DDTrO). During the Report, Huawei Switzerland complied with the due diligence obligations regarding child labor.

Please read full version of annual report 2023.