모트렉스

KEY POLICIES & ACTIVITIES

Sustainable Procurement

SUPPLY CHAIN MANAGEMENT STRATEGY

Sustainable Procurement Vision

Beyond Procurement Building a Supply Chain Based on Principles and Trust

Core Values, Goals & Initiatives

4 Core Values of Sustainable Procurement

Safety

Zero tolerance for human rights, environmental, and regulatory violations across the supply chain

Stability

Strengthening ESG management stability across the supply chain

Responsibility

Managing responsible partnerships with suppliers

Resilience

Enhancing supply chain resilience and risk response capabilities

Qualitative Goals

Establish a safe supply chain free from conflict minerals, hazardous substances, and human rights and labor violations.

Ensure the stability of supply chain ESG management systems.

Embed ESG risk management systems throughout supplier selection, evaluation, and contract renewal processes.

Proactively manage supplier risks and enhance the ability to respond to potential risks.

Quantitative Goals

100% Implementation: Annual risk monitoring and due diligence for target suppliers

100% Completion: Establishment of management standards by sourcing group and completion of target supplier segmentation

100% Collection: Supplier Code of Conduct and compliance pledges from all target suppliers

Interview Requirement: Conduct at least one interview per year with high-risk suppliers

Strategic Initiatives

Systematize supplier ESG risk assessment and due diligence processes.

Internalize management standards for conflict minerals and hazardous substances.

Establish management standards for target supplier groups and operate a classification and grading system.

Incorporate regulatory compliance requirements into supplier management standards and maintain a supplier database.

Integrate ESG criteria into supplier selection, evaluation, and contract renewal processes.

Strengthen management of the Supplier Code of Conduct and Compliance Pledges.

Establish and operate a supplier risk mapping system.

Systematize regular interviews and corrective actions for high-risk suppliers.

Sustainable Procurement Organization

MOTREX advances sustainable procurement under the direction of the CEO and COO, with the Global Operations Division serving as the central function. The Purchasing Department oversees overall supply chain management, including supplier classification and selection, procurement policy management, supplier evaluation, regular due diligence, and procurement data management.

MOTREX plans to incorporate ESG elements into its procurement process on a progressive basis, conducting risk assessments and supporting improvement activities, while strengthening its procurement framework to align with global customer requirements and international standards.

Mid- to Long-Term Sustainable Procurement Roadmap

MOTREX has established a phased procurement roadmap to strengthen supply chain sustainability.

In the short term, the Company will establish a foundational infrastructure by improving supplier classification and management standards and systematically incorporating ESG factors into its processes. In the medium term, the Company will foster a responsible procurement culture by regularly conducting ESG evaluations of suppliers and providing improvement support. In the long term, the Company plans to establish a procurement system aligned with international standards, expand incentives for high-performing suppliers, and enhance performance disclosure to support the development of a sustainable value chain.

2025–2026

Foundation Building Phase

- Review the incorporation of ESG elements, in compliance with legal requirements, into existing supplier classification and management criteria.

- Pilot a supplier risk labeling and grouping system (High / Medium / Low).

- Establish and operate an online system for target suppliers to submit Supplier Code of Conduct and Compliance Pledges.

2027–2028

Operational Integration Phase

- Institutionalize regular supplier ESG assessments and due diligence, including document reviews and on-site assessments.

- Implement corrective action plans for at-risk suppliers by providing detailed guidelines and training programs.

- Establish a systematic framework for supplier grading and ESG performance management through database operations and formal reporting processes.

2029–2030

Expansion & Advancement Phase

- Establish a sustainable procurement management framework aligned with international standards (e.g., ISO 20400, RMI).

- Expand partnerships and incentives for suppliers demonstrating outstanding ESG performance.

- Enhance transparency by disclosing ESG performance across the supply chain and strengthening responses to external assessments.

Sustainable Procurement Policy

MOTREX has established a Sustainable Procurement Policy to incorporate environmental, human rights, safety, and ethical considerations into its supply chain management practices.

The Company applies fundamental principles, including compliance with environmental and fair trade regulations, greenhouse gas and waste reduction, protection of labor rights, workplace safety, and fair business practices, to all suppliers and procured goods and services directly related to its business operations. These ESG criteria are integrated into supplier evaluation and registration processes.

MOTREX Sustainable Procurement Regulations(Korean) MOTREX Sustainable Procurement Regulations(English)

Supplier Code of Conduct

To build a responsible supply chain in collaboration with its suppliers, the Company operates a Supplier Code of Conduct and a Supplier Compliance Pledge. All suppliers are required to comply with this Code of Conduct and renew their compliance pledge annually in order to continuously strengthen the effectiveness of the responsible procurement system.

Supplier Code
of Conduct

The MOTREX Supplier Code of Conduct aims to promote business sustainability by ensuring that suppliers, as key business partners, pursue corporate growth and socially responsible management in accordance with this Code.

All suppliers must comply with this Code and ensure that their sub-tier suppliers providing assemblies, components, raw materials, packaging, or related materials also comply with its requirements.

If any conduct recommended or required under this Code conflicts with the laws and regulations of the applicable country, such laws and regulations shall take precedence. The Code of Conduct may be revised in accordance with domestic and international industry trends and developments.

MOTREX and all its suppliers are expected to fulfill their social responsibilities, achieve sustainable and sound performance, and grow together by complying with this Code through mutual efforts.

Supply Chain Management Activities

Supplier Evaluation & Due Diligence

New Supplier Evaluation

- Conduct administrative information checks and assess compliance with ESG-related regulations when entering into new contracts.

Supplier Evaluation

- Assess credit ratings and Early Warning (EW) ratings for active suppliers on a quarterly basis.

Regular Supplier Evaluation

- Review procurement competitiveness and ESG-related supply chain risks for component suppliers and outsourcing partners on an annual basis.

Supply Chain Due Diligence

- Conduct regular on-site evaluations of key suppliers, assess manufacturing operations and facility safety management practices, and incorporate ESG compliance into the evaluation process.

Supply Chain Communication

Supplier VOS (Voice of Supplier) Management

- Conduct quarterly supplier visits and remote communication to receive supplier concerns and grievances, while providing anonymous reporting and grievance submission channels through the Cyber Reporting Center.

Supplier Roundtable Meetings

- Hold regular roundtable meetings with suppliers to strengthen strategic partnerships.

Supplier Profit-Sharing Program

- Establish and operate a profit-sharing program that rewards suppliers by sharing a portion of cost savings derived from Value Engineering (VE) cost-reduction proposals.

Supply Chain Diversity Management

Supply Chain Diversity Principles

- Respect the human rights and labor rights of workers throughout the supply chain.

The Company does not differentiate contract decisions or terms based on non-business-related factors such as gender, age, religion, or nationality, and ensures that all suppliers are evaluated and selected based on objective and equitable criteria.

The Company incorporates DEI survey items to capture diversity-related attributes, including women, persons with disabilities, veterans, LGBTQ+ individuals, ethnic minorities, and social enterprises, in supplier profile assessments.