In 2024, we completed 111 audits of first-tier supplier manufacturing factories, all of which were carried out through on-site audits. These included 32 closure audits of non-compliance items and 3 new suppliers. One supplier was disqualified for failing to meet Acer's social and environmental management requirements. The number of direct employees of audited suppliers in 2024 exceeded 230,000, with 4,173 direct employees interviewed, of which over 80% underwent the RBA VAP. The audit completion rate for audits conducted within the two-year validity period was 98.3%. The few instances of failure to meet execution requirements are due to calculation discrepancies caused by the year transition or time differences. 

According to the aforementioned details, from 2008 to 2024, Acer has conducted a total of 1180 audits on first-tier suppliers. Furthermore, to effectively enhance the implementation of the supply chain, since 2017, Acer has required first-tier suppliers to conduct risk assessments on their important material suppliers at the next tier before audits. Summarizing the assessments, 5% were classified as high-risk and 19% as moderate-risk. Following this policy, audit activities continued in 2024, with a total of 971 audits conducted on second-tier factories. Since 2021, Acer has further deepened supply chain execution by extending audit activities to third-tier suppliers, achieving 665 audits in 2024. 

Looking ahead to 2025, we plan to conduct 70 on- site audits of first-tier supplier manufacturing factories, covering 140,000 direct employees and conducting interviews with 2,500 employees. Meanwhile, we have set annual RBA on-site audit compliance targets as follows: labor 87%, health and safety 87%, environment 95%, ethics 95%, and management systems 95%.We will also continue to drive audit activities for second and third-tier suppliers, actively enhancing improvements in labor practices and working environments, and deepening the long-term positive impact on the entire supply chain. 

Corrective Action Reports (CAR)

Acer issues Corrective Action Request (CAR) reports to higher-risk suppliers found to have non-compliance during audits. Upon receiving the report, suppliers are required to submit a written CAR within 30 days. Acer's audit management personnel conduct a written review, and continuous improvement tracking is carried out monthly. Improvement results are confirmed during the following year's on-site audits. For suppliers with higher audit risk results, Acer adjusts and manages procurement strategies accordingly. In 2024, a follow-up statistical audit was conducted on the VAP scores of suppliers who were still actively trading. It was found that there were a total of 11 priority non-conformance items and 456 other non-conformance defects. As of December 31, 2024, corrective actions have been implemented and continuously tracked for all cases, with 11 priority nonconformance items and 456 other non-conformance defects fully addressed. The implementation rate of corrective measures stands at 100%. Additionally, the corrective measures for other non-conformance items have also been fully implemented, achieving an implementation rate of 100%.