Respect for Human Rights

Operational Guidelines (GRI3-3)

CKPower upholds Universal Human Rights in its business practices and proactively manages potential human rights impacts throughout its value chain. To ensure this commitment, the Company has developed comprehensive management guidelines comprising seven key components:

1

Human Rights Policy

2

Human Rights Due Diligence

3

Human Rights Risk Assessment

4

Risk Monitoring and Control Measure Improvement

5

Human Rights Complaints and Whistleblowing Channels

6

Promotion of Human Rights Practices within the Organization and Value Chain

7

Human Rights Awareness Building

1. Human Rights Policy

CKPower has announced and enforced its human rights policy and fair labor practices across 100% of the Company, its subsidiaries, Tier 1 suppliers, and business partners, taking into account the human rights of at-risk and vulnerable groups to prevent human rights violations across the value chain. The human rights policy complies with labor laws of each country where CKPower operates as well as other international standards and requirements to ensure strict implementation.

Additionally, the human rights policy is regularly reviewed, taking into consideration changes relevant to the Company. CKPower has also developed and implemented a Human Rights Roadmap, which aligns with its 5-year sustainability strategy (from 2022 to 2026), in order to clearly define the goals and directions for its risk assessments and prevent human rights violations in the future.

2. Human Rights Due Diligence

CKPower carries out Human Rights Due Diligence (HRDD) systematically and efficiently every three years in adherence to the UN Guiding Principles on Business and Human Rights (UNGP). An external third-party organization is appointed to conduct human rights due diligence for the Company to ensure alignment with international standards and the ability to prevent or mitigate potential risks arising from its business operations.

CKPower’s human rights due diligence covers all sites of operation across its value chain and is conducted to identify key human rights issues and rights holders as well as impacted vulnerable groups across 100% of its business. The process consists of five major steps as follows:

1

Policy commitment

2

Human rights risk and impact assessment

3

Integration of human rights assessment results

4

Monitoring and reporting progress of human rights actions.

5

Remediation of those affected by human rights impacts

1. Policy commitment
   • Establish and implement the Human Rights Policy that adheres to international principles
   • Communicate the policy to employees, suppliers, and all stakeholder groups for acknowledgment and compliance.
2. Human rights risk and impact assessment
   • Assess human rights risks at national, industry, operational area, and individual levels
   • Analyze impacts on vulnerable groups, such as migrant workers, indigenous communities, and women
3. Integration of human rights assessment results
   • Formulate risk mitigation and control measures to prevent potential impacts
   • Integrate these measures into the Company’s roadmaps
4. Monitoring and reporting progress of human rights actions.
   • Implement monitoring and verification systems for preventive and corrective measures
   • Report progress to the Board of Directors and disclose to stakeholders through sustainability reports
5. Remediation of those affected by human rights impacts
   • Provide transparent and accessible complaint channels
   • Implement appropriate remediation measures for affected individuals in accordance with international principles

3. Human Rights Risk Assessment

CKPower systematically conducts human rights risk assessments across its key activities at industrial and national levels and at its significant locations of operation every three years as well as across its suppliers, placing emphasis on at-risk or vulnerable groups who may be affected by the Company’s operations.

Human rights risk assessment is conducted every three years, with the human resources division of the Company designated as the unit responsible to ensure alignment with international standards and appropriate risk identification and prioritization.

The risk assessments consider two key factors, which are likelihood and severity, and are conducted to enable the Company to identify human rights risk issues, formulate preventive guidelines, and establish control and mitigation measures for potential impacts, covering nine human rights risk topics. Furthermore, human rights issues relevant to its business operations across the value chain as well as the corresponding control measures are reviewed annually to ensure its action plans and its mitigation, rectification, and remediation measures are effective and aligned with the operational targets.

• Factors in risk assessment

  CKPower’s risk assessments consider two key factors:

  1. Likelihood – Analysis of the probability of potential risks in business operations
  2. Severity – Assessment of the extent of potential impacts on affected parties, including workers, communities, suppliers and contractors, customers, and the environment

This process enables the Company to effectively identify human rights risk issues and establish preventive, control, and mitigation guidelines.

• Human Rights Risk Assessment Framework

  CKPower’s human rights risk assessment encompasses the following key issues:

  1. Working conditions
  2. Occupational health and safety
  3. Discrimination and harassment
  4. Freedom of association and right to collective bargaining
  5. Illegal forms of labor, including human trafficking, forced labor, and child labor
  6. Data privacy
  7. Security management
  8. Discrimination in the procurement process
  9. Standard of living
  10. Land acquisition and forced re-settlement