Sustainable Raw Material Policy

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Sustainable Raw Material Management

Raw Material Prioritization Assessment

Zhen Ding identifies critical raw materials based on their share of total procurement cost and usage volume. Materials with a relatively high cost contribution are subject to prioritization for further analysis. For example, in 2025, six material categories collectively accounted for nearly half of total procurement value: flexible copper-clad laminate (FCCL), copper-clad laminate (CCL), polypropylene (PP) film, gold salts, steel sheets, and chemical solutions.

Raw Material Traceability

Zhen Ding implements a risk-based traceability mechanism for raw material sources. When international political and economic conditions, geopolitical developments, or other environmental and social risks pose potential impacts on specific material supplies, we initiate source audits and risk assessment procedures. For instance, in response to the global tariff uncertainties and export controls on critical strategic minerals triggered by the new US-China economic and trade policies in 2025, we conducted traceability and compliance verifications for specific critical metals and core materials to ensure that these materials were not subject to trade sanctions or export restrictions from any country, thereby maintaining uninterrupted production.

Reducing Environmental and Social Impacts of Raw Materials

By integrating recycled materials, we effectively reduce carbon emissions, water consumption, and heavy metal pollution during upstream mining and refining processes. On the social front, we require all suppliers to sign the Supplier Code of Conduct, committing to the prohibition of child labor, forced labor, discrimination, and hazardous working conditions, while encouraging the adoption of supply chain sustainability management standards. We conduct environmental and social responsibility audits and questionnaires for high-risk suppliers to ensure that production sources do not cause significant negative impacts on the environment and society.

Recycled Material Usage

We have set annual usage rate targets for various recycled materials. Targets for 2026 include:
• Solder paste: 90% (up from 85% in 2025)
• Gold salts: 90% (up from 65% in 2025)
• Copper: 100% (up from 94% in 2025)
• Copper foil: 100% (maintained at 100% in 2025)

For more details on 2025 recycled material usage and targets, please refer to the 2025 Zhen Ding Sustainability Report.

Internal Stakeholder Training

We regularly conduct compliance and sustainable procurement training on raw materials to departments such as Supply Chain and Quality Assurance, aiming to strengthen company-wide awareness and accountability on sustainable material issues.