Human Rights Management
Nan Pao values human rights issues and continuously adjusts work regulations to comply with domestic and international laws and regulations. The Company has adjusted working hours, wages, and vacation rules according to the latest revised labor laws to ensure that every employee can work with peace of mind and enjoy protection and security in the workplace. Nan Pao is committed to creating a high-quality and friendly workplace.
To uphold the basic human rights of Nan Pao's employees and value chain partners (including customers, suppliers/contractors, agents, joint ventures, and local communities) and promote sustainable development in the environment, society, and economy, Nan Pao has formulated a Human Rights Policy. Nan Pao supports and respects the human rights principles of the United Nations, the International Labour Organization, and other international organizations. Nan Pao also complies with local laws and regulations to protect human rights and has implemented an Anti-discrimination and Anti-harassment Policy to create an equal and safe work environment for employees.
78
ESG risk assessment questionnaires requested from key raw-material suppliers (2025)
2
Suppliers visited on-site for human-rights audit (2026)
01Human Rights Management Policy and Implementation
Measures
| Human Rights Management Policy | Implementation Measures |
|---|---|
| Prohibition of Forced Labor | Comply with all labor-law requirements on regular/extended working hours and leave. Set overtime alerts in the time-and-attendance system; dedicated staff review and control hours to prevent excessive overtime. |
| Safe and Healthy Workplace | Establish an Occupational Safety and Health (OSH) unit and committee; employ professional nursing staff. Continuously upgrade safety facilities and personal protective equipment (PPE). |
| Wages and Protection | Pay in full compliance with wage laws; annually benchmark local living-wage levels and strive to align pay conditions (covering food, clothing, housing, transport, education). Calculate and pay all overtime according to law in the same payroll cycle; control via the time-and-attendance system to ensure accurate payment. Hold quarterly labor–management meetings to discuss working conditions and benefits. In addition to statutory labor and national health insurance, provide group insurance and employer's liability (accident) insurance. |
| Employee Welfare and Care | Hold regular recognition events and reward long-tenured employees. Offer flexible working hours for commuting. Provide partner-merchant employee discounts. Offer birthday cash gifts. Provide an Employee Stock Ownership Trust (ESOT) to support saving. Subsidize tuition for further education to help employees acquire new skills, degrees, or certifications. |
| Well-being and Work–Life Balance | Provide paid annual leave in accordance with law; track usage via the time-and-attendance system and remind employees to take leave to avoid long accumulations. Conduct regular health checks for all employees and targeted exams for high-risk groups. Subsidize diverse employee clubs and encourage participation (e.g., oil painting, yoga, tai chi, camping, saxophone, badminton, softball, bowling, golf). Offer health-promotion courses (e.g., meridian massage, aromatherapy, weight management, health talks). |
| Diversity, Equity and Inclusion | Regularly analyze gender pay gaps by department and grade to ensure equal pay for work of equal value; trigger review and adjustment if any unjustified gaps are found. Hire people from disadvantaged groups above legal requirements. Provide a Muslim prayer room. |
| Supplier Code of Conduct with Human-Rights Clauses & On-site Audits | In 2025, requested 78 ESG risk assessment questionnaires from key raw-material suppliers and conducted on-site visits to 2 suppliers. |
03Identification of Human Rights Risks
and Mitigation Measures
Nan Pao conducts human rights risk assessments based on workplace health and environmental conditions. Relevant departments periodically evaluate the impact of risk factors on employees, covering all operational sites (including subsidiaries) and production-related activities. In 2025, no human rights risks were identified.
0
Human rights risks identified in 2025
0
Human rights violations identified in customer audits (2025)
| Category | Assessment Coverage (%) | Incidence of Risk Events (%) | Mitigation Action Rate (%) |
|---|---|---|---|
| Own Operations (% of employees) | 100% | 0% | 0% |
| Contractors and Tier 1 Suppliers | 100% | 0% | 0% |
| Joint Ventures | 100% | 0% | 0% |
04Human Rights Risks Management Procedures
Human Right PDCA.png)
| Role | Target Group | Human Rights Issues | Key Policies | Responsible Unit | Due Diligence | Mitigation & Remediation Measures | Grievance Mechanism |
|---|---|---|---|---|---|---|---|
| Employer, Value Chain Partners (including joint ventures) | • All employees • Foreign workers • Female employees |
Freedom of choice of profession, working hours, wages and benefits, non-discrimination, sexual harassment | Human Rights Policy | HR Department, HR units of subsidiaries | Workplace Maternity Protection Plan, Employee Attendance Management Regulations, Internal Compliance Audit | 1. Conduct investigations and control of physical and chemical hazards according to the "Workplace Maternity Protection Plan." 2. Recruitment and hiring are based on ability, with no discrimination based on age, gender, race, or other criteria, ensuring equal pay for equal work, and no discriminatory provisions. |
1. Internal reporting channels: Internal reporting channels of each subsidiary (Audit Department) (audit@nanpao.com) 2. External reporting channels: Customer service mailbox (info@nanpao.com) |
| • All employees | Working hours | 1. The Company has established clear policies regarding working hours and overtime in its Employee Attendance Management Regulations. 2. The Company strictly prohibits overtime work once the legal monthly limit has been reached. |
|||||
| Collective bargaining | 1. As part of our commitment to sustainability, we regularly educate employees about their rights and responsibilities. The company supports employees' right to form or join labor unions
and engage in collective bargaining and peaceful assembly. 2. We maintain an open and inclusive workplace culture that respects employees' rights to form or join labor unions. |
||||||
| Forced labor, Human trafficking, Equal pay | 1. We respect our employees' human rights. We will not withhold any identification documents, and employees are free to leave their employment. 2. We promote our company's code of conduct, strictly prohibiting forced labor, human trafficking, and other human rights violations. |
||||||
| • Child labor | Adolescent workers | We are committed to protecting children and will not employ anyone under the legal working age. | |||||
| Procurement | • Suppliers/contractors | • Respect the freedom of choice of profession of their employees. • Protect adolescent workers. • Ensure reasonable working hours, fair wages and benefits. • Prioritize occupational safety and emergency preparedness. • Source minerals responsibly. • Protect data privacy and security. |
Supplier Code of Conduct | Strategic Procurement Department, Procurement Units of subsidiaries | Supplier Code of Conduct Statement, Supplier Audits, Internal Compliance Audit | Suppliers sign the "Nan Pao Supplier Code of Conduct" and assess the environmental, social, human rights, and corporate governance sustainability risks of key suppliers, and establish a termination mechanism. | 1. Internal reporting channels: Internal reporting channels of each subsidiary (Audit Department) (audit@nanpao.com) 2. External reporting channels: Customer service mailbox (info@nanpao.com) |
| Community | Neighboring communities and environment | Water resources, noise, air pollution | Corporate Sustainability Practices Guidelines | Operating plant sites | Regular monitoring of noise, wastewater, and gas emissions sources at the plant site | Regularly invite community administrative units and residents to visit the plant site to introduce environmental and safety management measures. | Community Affairs Management Unit and Telephone |
| Service Provider | Customers | Data privacy and security | Privacy and Personal Data Protection Policy | Operating plant sites | Annual risk assessment, internal compliance audit | Regularly conduct security vulnerability tests and strengthen backup management. | Business and business administration departments |
Human rights risk mitigation plans incorporating the measures described above are implemented across all operational sites. In 2025, Nan Pao did not cause or contribute to any human rights violations; therefore, no remediation actions were required.