Supplier Management

1. Suppliers are key partners in UVB's sustainable development. We share the same values with our suppliers to ensure the quality of our products and services. Through annual supplier conferences, regular or ad-hoc meetings or video conferences, establishing communication channels, and utilizing electronic communication tools such as email or Line, we maintain a strong and interactive communication process. This enables us to build consensus and fosters strategic cooperation between both parties, with the ultimate goal of delivering better products and services to our customers. We will continue to collaborate with our suppliers on essential topics such as environmental protection, social inclusiveness, corporate governance, and other areas, working together to enhance the sustainability of our supply chain.

1. Our company has established the “Vendor Management Procedures,” which outline specifications for the development, evaluation, assessment, and quality management of suppliers. This ensures that qualified suppliers maintain stable product quality in the long term and assists in the continual improvement of product quality.
2. Our company has implemented the “Supplier Sustainable Development Management Guidelines” based on the principles of environmental protection, occupational health and safety, and labor rights. These guidelines facilitate the integration of sustainable practices into our supply chain management and serve as a reference for the responsible units involved in procurement operations.

1. Manage supplier capabilities in terms of product quality, cost leadership, delivery capability, service team competence, and sustainability to meet the requirements of UVB, enhancing competitiveness. Regard suppliers as strategic partners, guiding them towards long-term collaboration and jointly establishing a stable and sustainable supply chain. At the same time, assist upstream and downstream manufacturers in enhancing their green competitiveness and creating sustainable business opportunities.
2. Our procurement is divided into four major categories, each with different management strategies based on the nature of the products and market conditions. Depending on individual procurement requirements, we may request suppliers to provide relevant certifications, such as ISO 9001 Quality Management, ISO 13485 Medical Device Quality Management, ISO 22000 or HACCP Food Safety Management, GMP Pharmaceutical Factory Management, SGS third-party certifications, and licenses issued by the Taiwan Ministry of Health and Welfare for pharmaceuticals and medical device sales, among others.

1. Our company integrates procurement resources to obtain the most competitive value in the supply chain through strategic collaborations. Many of our collaborative suppliers are internationally renowned manufacturers of pharmaceutical consumables and medical equipment. In addition to adhering to regulations in their respective countries of origin, if the products are medical devices, suppliers are required to obtain ISO 13485 certification for Medical Device Quality Management Systems. Possession of this certification indicates that the supplier has met the necessary standards within their quality management system. When we introduce relevant products to Taiwan, we also request international suppliers to assist in preparing the required documentation and facilitate registration for medical equipment inspection with the competent authority, the Food and Drug Administration under the Ministry of Health and Welfare.
2. Our main international suppliers, such as ZEISS from Germany, Alcon from Switzerland, and CooperVision from the United States, all have considerable recognition in the global supply chain. Most of them are publicly listed companies in their respective countries, and they are required to meet ESG (Environmental, Social, and Governance) criteria and issue sustainability reports to comply with local government regulations concerning publicly traded companies. This includes meeting standards in product quality, financial performance, corporate governance, and corporate sustainability, among other aspects.
3. Our company regularly conducts procurement meetings with international suppliers. During these meetings, we collaborate with relevant business units to assess aspects such as product delivery schedules, quality management, and potential supply chain disruptions. Additionally, we hold periodic training sessions and forums as part of our commitment to sustainable operations. Through various forms of communication, we work collaboratively to advance sustainability.

1. Our company is committed to diversifying and localizing our supply sources by establishing long-term strategic partnerships with domestic suppliers. Through these relationships, we aim to strengthen our influence and jointly build a sustainable and environmentally friendly supply chain. We prioritize issues related to environmental sustainability, occupational health and safety, and labor rights. Currently, our main collaborations with domestic suppliers include BrightenOptix, the leading provider in the Taiwan hard contact lens market, Clinico, a group specializing in ophthalmic instruments with over 30 years of expertise, and GreenYN, a bio-tech company. Each of these partners discloses their ESG efforts and social responsibility practices on our company's official website.
2. In terms of expanding and developing our business outlets at each location, we place a strong emphasis on the occupational safety and health of our construction project collaborators. We conduct an annual "Supplier Conference" (on January 6, 2023, and January 14, 2022) to promote compliance with the rules of occupational safety and health management, emphasize construction safety measures, and the use of personal protective equipment. Furthermore, we have established specific regulations in accordance with labor safety, health, environmental protection laws and regulations. These regulations are incorporated into our contractual agreements, and we conduct periodic, unannounced inspections during the course of projects to ensure that our suppliers are adhering to the specified guidelines and implementing them as required. In cases where a supplier is found to be in violation of our social policies and has a significant impact on the environment and society, we retain the right to terminate or rescind the contract at any time.

1. In order to promote our suppliers' enhancement of their economic, social, and environmental performance and to establish sustainability within our supply chain, our company has prepared a "Supplier Sustainability Declaration." This declaration explicitly outlines various topics such as environmental concerns, safety, health, human rights, ethical standards, and government-issued social responsibility guidelines. We encourage domestic suppliers to adhere to these established standards and join us in fulfilling corporate social responsibilities. Given that the top ten suppliers in each of the four categories - "Optical Products," "Pharmaceutical Consumables," " Equipment and Devices," and "Interior Construction Projects" - account for over 80% of our total procurement, our initial efforts are focused on raising awareness and advocacy among these top suppliers. As of the end of August 2023, we have successfully completed the advocacy process with 40 domestic and international suppliers. Moving forward, we will gradually expand the reach of this declaration to encompass suppliers responsible for procurement in our subsidiary units, ensuring comprehensive supplier management.

1. Our company proactively implements sustainable procurement practices, seeking economic benefits while also considering environmental friendliness and human rights preservation. We continuously promote the concept of "ESG Procurement" to our procurement units. When making procurement decisions, our procurement units prioritize suppliers who demonstrate ESG effectiveness as our procurement strategy partners. In addition to ensuring quality and reasonable pricing, we favor suppliers with green certification for environmentally friendly materials, recyclable and reusable products, and energy-efficient specifications as part of our procurement options. We encourage our suppliers not only to contribute to environmental protection but also to make a positive impact on ESG practices related to social inclusion, corporate governance, and sustainability.
2. In 2022, there were no significant actual or potential negative impacts on our supply chain due to ESG considerations. The following highlights the specific achievements in ESG sustainable procurement over the past two years: ESG procurement has increased from 74% to 81%, gradually demonstrating the performance of our ESG sustainable supply chain.