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Huawei Supplier Social Responsibility Code of Conduct

Huawei is a leading global information and communications technology (ICT) solutions provider. We have long been committed to a vision of sustainability which includes bridging the digital divide and supporting harmonious, sustainable development for the economy, society, and environment. Huawei is committed to support the United Nations Sustainable Development Goals and we also work closely with our partners up and down the supply chain to create a sustainable Better Connected World. 

This Huawei Supplier Social Responsibility Code of Conduct (hereinafter referred to as the "Code") has been developed in response to the needs of our customers. We have consulted the Responsible Business Alliance Code of Conduct and JAC Supply Chain Sustainability Guideline, and integrated them with the CSR assessments and standards in Huawei's supplier qualification program. Huawei requires suppliers to comply with all the applicable laws and regulations as a prerequisite for cooperation with Huawei. We also encourage suppliers to draw on internationally recognized standards and best practices to improve their standards of CSR management in an ongoing way.  

With reasonable notice, Huawei has the right to carry out onsite audits of suppliers to assess their compliance with this Code. Huawei incorporates CSR into every phase of the procurement process, from materials qualification, supplier qualification and selection to supplier management, performance evaluation, and phase-out. CSR is an intergal factor in supplier performance evaluation. For those suppliers with poor CSR performance, especially those which violated CSR red line requirements, Huawei will require suppliers to correct within agreed timeframe and at the same time decrease procurement volume, restrict business opportunities or, in the worst case, to terminate the business relationship. 

This Code applies to all suppliers who provide products and/or services to Huawei Investment & Holding Co., Ltd. or its global subsidiaries and affiliates (hereinafter referred to as "Huawei"). This Code applies to all workers, including temporary, migrant, student, contract, direct employees, and any other type of workers.

This Code consists of five sections: Labor, Health and Safety, Environment, Business Ethics, and Management Systems.

1. Labor

1.1 Freely Chosen Employment

Suppliers must ensure that all workers are employed on a purely voluntary basis. Suppliers must not employ in any way of slave labor (including Modern Day Slavery), forced labor, bonded labor, indentured labor, or prison labor. Suppliers must not restrict workers' freedom of movement, retain workers’ identity documents, or engage in any form of human trafficking. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. Workers shall not be required to pay any deposit, recruitment fee, or any other fee to their employer or an agent.

1.2 Child Labor and Young Workers

1. Suppliers must comply with all applicable laws in their country relating to minimum working age, and must not use child labor. "Child labor" shall be defined in the following terms:

(1) Any person under the minimum working age as defined in national/local law; or where no such law exists, 

(2) Under the age for completing compulsory education; or where no such law exists, 

(3) Under the age of fifteen (15).

2. Workers under the age of 18 shall not perform work that is likely to jeopardize their health or safety. 

3. Suppliers shall ensure proper protections for student workers and apprentices in accordance with applicable law and regulations, particularly to prevent the use of child labor. 

1.3 Working Hours

Suppliers shall comply with all applicable laws and regulations relating to working hours and breaks. All overtime must be on a strictly voluntary basis. The standard working week (excluding overtime) should be defined based on local law, but should not exceed 48 hours; total working hours in any week should not exceed 60 hours. Workers should at least have one day of rest for every six consecutive days worked. 

1.4 Wages and Benefits

Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. Workers should receive their wages directly, in full and on time, and must be provided with an understandable wage statement. 

1.5 Humane Treatment

Suppliers must not use violence, verbal abuse, threats, corporal punishment, sexual abuse, or physical coercion against workers; nor is there to be the threat of any such treatment. 

1.6 Non-discrimination

Suppliers must not engage in discrimination based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, membership of an organization, , protected genetic information or marital status in hiring and employment practices such as wages, promotions, rewards, access to training, or termination. In addition, workers or potential workers should not be subjected to medical tests or physical exams that could be used in a discriminatory way.

1.7 Freedom of Association

In conformance with local law, suppliers shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Suppliers should establish channels for communication between the company and its workers or their representatives, and should hold regular engagement sessions. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment.

2. Health and Safety

Suppliers must provide a healthy, safe working environment. They must ensure that workers do not have to work in conditions which seriously threaten their health, safety, or life. Risks of fire and explosion must be controlled, and steps must be taken to prevent any fatalities in industrial accidents.

2.1 Working Conditions

1. Suppliers must obtain, maintain, and keep up to date all the required health and safety certificates, and must comply with the requirements of those certificates. 

2. Suppliers should identify potential safety hazards(including fire safety, occupational safety, occupational injury and illness, industrial hygiene, physically demanding work, machine safeguarding, and so on)and control them through proper design, replacement of dangerous equipment, engineering controls, preventative maintenance and safe working procedures (including lockout/Tagout). Where necessary, workers are to be provided with proper personal protective equipment. Supplier should take reasonable action to protect female workers, especially for pregnant women/nursing mothers.

3. Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness including provisions to implement corrective actions to eliminate their causes and facilitate return of workers to work.

4. Suppliers shall provide workers with appropriate health and safety training in local language. Health and safety related information shall be clearly posted in the facility.

2.2 Living Conditions

Workers should be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage and eating facilities. Workers dormitories should be clean and safe and have adequate personal space. 

2.3 Emergency Preparedness

Potential emergency situations and events are to be identified and assessed, including, but not limited to, risk of fire, explosion, fatal accident, mass poisoning, etc. Suppliers shall create and implement emergency plans and response procedures including: emergency reporting, emergency treatment, employee notification and evacuation procedures, worker training and drills, recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment and property.

2.4 Absolute Rules

Supplier shall observe the following safety rules, and ensure that all staff are aware and comply and monitor staff's compliance:

1. Working at height:

(1) Never working at height without appropriate qualifications and training

(2) Always using suitable Personal Protective Equipment (PPE)

(3) Never walking or standing underneath hoisting equipment

(4) Never dropping tools or other objects when working at height

2. Driving:

(1) Always wearing seat belts when traveling in or operating vehicles

(2) Never using a hand-held phone whilst driving

(3) Never exceeding speed limits

(4) Never driving when fatigued

3. Electrical work:

Never working on electrical equipment without proper qualifications

4. Alcohol and drugs:

Never working under the influence of alcohol or other drugs

3. Environmental Protection

3.1 Environmental Permits and Reporting 

Suppliers shall obtain, maintain and keep current all necessary environmental permits (e.g. waste management, transportation), approvals and registrations and shall comply with their operational and reporting requirements.

3.2 Products Environmental Requirements

Suppliers shall respect all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances such as RoHS and REACH, and so on. And taking effective measures to prohibit or restrict the use of specific substances in products and manufacturing.

3.3 Pollution Prevention

Suppliers shall respect all applicable environmental laws and regulations on hazardous waste, wastewater, gas emissions and solid waste, including rules on their creation, transport, storage, disposal and release into the environment and minimize or eliminate emissions and discharges of pollutants and generation of waste at the source. No harmful pollutants may be released into the environment, including but not limited to waste water, gases, slurry and noise.

3.4 Energy Consumption and Greenhouse Gas Emissions

Suppliers should take steps to cut their use of resources and find low-impact substitutes, reduce their consumption of energy, water, and natural resources and minimize greenhouse gas emissions.

4. Business Ethics

4.1 Integrity

Suppliers may not engage in bribery or unethical conduct. Suppliers must make good on their commitments, and must not: engage in transactions that may create conflicts of interest, bribe, substitute low-quality materials, modify quality requirements, falsify data, or engage in fraud. For details, see the Honesty & Integrity Commitment/Agreement.

4.2 Intellectual Property

Intellectual property rights are to be respected; transfer of technology and know-how is to be done in a manner that protects intellectual property rights and customer information is to be safeguarded.

4.3 Fair Business, Advertising and Competition

Standards of fair business, advertising and competition are to be upheld. Appropriate means to safeguard customer information must be available.

4.4 Protection of Identity and Non-Retaliation

Programs that ensure the confidentiality, anonymity and protection of supplier and employee whistleblowers are to be maintained, unless prohibited by law. Supplier should have a communicated process for their personnel to be able to raise any concerns without fear of retaliation.

Whistleblower: Means any person who makes a disclosure about improper conduct by an employee or officer of a company, or by a public official or official body.

4.5 Responsible Sourcing of Minerals

Suppliers shall commit and take reasonable action to prevent that the tantalum, tin, tungsten, gold, and cobalt, is used in the products they mine and trade directly or indirectly supporting armed groups, or human rights abuses environment pollution or health and safety concerns. Suppliers shall exercise due diligence on the source and chain of custody of these minerals and make their due diligence measures available to customers upon the laws and customer request.

4.6 Privacy 

Supplier shall commit to protecting the reasonable privacy expectations of personal information of everyone they do business with, including suppliers, customers, consumers and employees. Supplier shall comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.

5. Management Systems

5.1 Company Commitment, Management Accountability and Responsibility

Supplier top management shall endorse a corporate social and environmental responsibility policy statement affirming their commitment to compliance with all applicable laws, customer requirements, the code and continuous improvement.

Suppliers should clearly identify a senior executive responsible for corporate social responsibility. Suppliers should identify and control risks, regularly review and audit their systems and develop internal accountability mechanisms to drive ongoing improvement. 

5.2 Risk Assessment and Risk Management

Suppliers shall identify CSR risks and potential impacts connected with their own operations on the basis of all applicable law and customer requirements (including this Code). They shall determine the relative significance for each risk and implement appropriate procedural and physical controls to control the identified risks and minimize impact.

5.3 Management of upstream Suppliers

Suppliers should setup a CSR management system in their procurement process and incorporate this Code into the overall management system. They should require their upstream suppliers to make a written commitment and make this a condition for supplier qualification. They should regularly review to ensure ongoing compliance and drive improvements. 

5.4 Internal Audit and Management Review

Suppliers shall undertake periodic self-evaluations and evaluations of the factories of their upstream suppliers, to ensure compliance with the law and this Code and with the requirements of customers.

Senior management shall regularly assess their own and their suppliers' social responsibility systems to ensure that they remain relevant, sufficient, and effective.

Huawei reserves the right to interpret this Code.

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