Supply Chain Management

Sustainable Supply Chain Management

EGAT's major suppliers are aircraft maintenance component suppliers. Aircraft components and raw materials provided by suppliers affect the quality of maintenance services and products, so EGAT places great importance on supplier qualification screening and management.

EGAT has established a sustainable supply chain management framework and improves supply chain sustainability performance through four major items.

Given the broad overall scale of the supply chain, EGAT classifies suppliers by industry and management level as follows to support tiered management.

Supply chain management diagram — Sustainable Supply Chain Management Framework

Major Transaction Supplier Industries	Tier 1 Suppliers
Aerospace product material suppliers Suppliers of non-aerospace products, tools, cutting tools, machinery, and equipment Outsourced processing suppliers Special process suppliers Aerospace electronic product material suppliers Computer, software, and communication equipment suppliers/maintenance providers Engineering and other service suppliers	Belongs to a major transaction supplier industry Annual transaction amount above NT$6 million

Policy Formulation and Qualification Review

Policy Formulation

EGAT uses the Supply Chain Sustainability Policy and Supplier Code of Conduct (SCoC) as the guiding principles for overall supply chain management, and has established work instructions such as the Supplier Review Management Regulations and Supplier Performance Management Regulations as detailed operating standards. In addition to complying with regulations of civil aviation authorities, suppliers must review and sign the SCoC, which includes specific requirements on labor human rights, business ethics, anti-corruption, environmental protection, occupational safety and health, and sustainable supply chain management. EGAT's sustainability policy link is also included in orders, and ESG evaluation is incorporated into annual supplier performance evaluation so suppliers can understand implementation of EGAT's ESG policies.

ESG Aspect	Code of Conduct Requirements
Environment	Environmental Protection Protect natural resources, minimize or eliminate hazardous substances, reduce energy consumption and greenhouse gas emissions, and promote resource recycling and reuse. Adopt efficient operating methods to minimize adverse environmental impacts and strive to maintain and protect forests and biodiversity to achieve climate and natural ecosystem stability and balance.
Social	Human Rights and Labor Conditions Commit to safeguarding labor human rights and providing workers with due protection and respect. Occupational Safety and Health To prevent occupational accidents, improve worker safety and health awareness and capabilities, assess workplace safety, and provide and maintain safety protection devices to build a safe and healthy high-quality work environment.
Corporate Governance	Business Ethics Comply with the highest ethical and moral standards and maintain integrity and reliability to implement business ethics. Sustainable Supply Chain To reduce the risk of business interruption, implement supply chain sustainability communication and compliance requirements to continue moving toward sustainable operations. Confidentiality Obligations and Information Security To maintain good business relationships, fulfill information protection responsibilities and ensure exchanged information is not leaked.

ESG Aspect

Code of Conduct Requirements

Environment

Environmental Protection

Protect natural resources, minimize or eliminate hazardous substances, reduce energy consumption and greenhouse gas emissions, and promote resource recycling and reuse. Adopt efficient operating methods to minimize adverse environmental impacts and strive to maintain and protect forests and biodiversity to achieve climate and natural ecosystem stability and balance.

Social

Human Rights and Labor Conditions

Commit to safeguarding labor human rights and providing workers with due protection and respect.

Occupational Safety and Health

To prevent occupational accidents, improve worker safety and health awareness and capabilities, assess workplace safety, and provide and maintain safety protection devices to build a safe and healthy high-quality work environment.

Corporate Governance

Business Ethics

Comply with the highest ethical and moral standards and maintain integrity and reliability to implement business ethics.

Sustainable Supply Chain

To reduce the risk of business interruption, implement supply chain sustainability communication and compliance requirements to continue moving toward sustainable operations.

Confidentiality Obligations and Information Security

To maintain good business relationships, fulfill information protection responsibilities and ensure exchanged information is not leaked.

Qualification Review

In addition to requiring suppliers to sign the SCoC, responsible units carefully evaluate supplier qualifications, quality, and business integrity requirements. Under the Supplier Review Management Regulations, new suppliers or suppliers resuming qualifications after two years without transactions must complete the Supplier Selection Scorecard before applying to become suppliers. In 2025, ESG aspects accounted for 15% of EGAT's supplier selection scorecard, and suppliers must score at least 10 points for ESG and at least 70 total points to apply as new suppliers. This strengthens ESG review intensity and encourages suppliers to understand and cooperate with EGAT's sustainable supply chain policy.

In 2025, 119 new suppliers joined and all signed the SCoC. For suppliers with 2025 transaction amounts above NT$6 million, EGAT conducted the triennial SCoC re-signing process; 103 suppliers signed, bringing the 2025 SCoC signing rate to 95.37%. Suppliers that did not sign were mainly customer-designated suppliers. Although the signing rate did not reach 100%, EGAT continues to track through a more proactive supplier performance evaluation mechanism to promote supplier sustainability actions.

EGAT continues to communicate with suppliers and require implementation of corporate sustainability commitments, including ethical standards, labor human rights, environmental sustainability, and related practices, while also promoting anti-corruption among suppliers to jointly develop sound conduct for corporate sustainability.

Performance Evaluation and Improvement Actions

Performance Evaluation

The Company conducts supplier evaluations once a year. Suppliers in the top 20% by the union of transaction amount and number of transaction items are evaluated using five dimensions: delivery stability (30%), abnormal invoice ratio (30%), order delivery quality (30%), reporting of special good or poor supplier cases (5%), and supplier ESG evaluation (5%). In 2025, 81 suppliers in the above top 20% scope were evaluated. After comprehensive evaluation across the five dimensions, EGAT provided feedback to the five lowest-scoring suppliers and required explanations and follow-up improvement methods.

In 2025, EGAT completed establishment of the Tier 1 supplier sustainability risk assessment survey (SAQ) mechanism and conducted a current-status survey, covering 52 Tier 1 suppliers with results analyzed. Going forward, the Company will use occasions such as supplier conferences to strengthen communication of expectations and outlook for supplier ESG development, seek OEM support, and continue expanding survey targets and management scope to identify high-sustainability-risk suppliers and issues and plan supplier guidance and improvement goals.

To understand suppliers' current ESG progress, EGAT further surveyed Tier 1 suppliers on ESG implementation progress. A total of 37 suppliers completed the survey, covering sustainability management, environment, social aspects including human rights management, and governance. Nearly 30% of suppliers scored above 90, demonstrating mature ESG implementation, while more than half currently scored below 70, indicating room for improvement.

Aspect	Sustainability Management	Environment	Social	Governance
Topics	Sustainability management unit Sustainability report Sustainability management policy	GHG inventory Air quality Energy management Waste reduction targets Biodiversity commitment	Customer privacy policy Information security Product quality and safety Anti-forced labor Employee occupational safety and health training Diversity and inclusion policy Gender pay equality	Product design and lifecycle management Supply chain management policy Sustainable procurement Business Ethics Emergency response Risk management process

Aspect

Sustainability Management

Environment

Governance

Topics

Sustainability management unit

Sustainability report

Sustainability management policy

GHG inventory

Air quality

Energy management

Waste reduction targets

Biodiversity commitment

Customer privacy policy

Information security

Product quality and safety

Anti-forced labor

Employee occupational safety and health training

Diversity and inclusion policy

Gender pay equality

Product design and lifecycle management

Supply chain management policy

Sustainable procurement

Business Ethics

Emergency response

Risk management process

Improvement Actions

If a supplier ranks among the bottom three for poor performance for two consecutive years, the procurement unit may submit an evaluation report and, when necessary, remove the supplier from the qualified supplier list and cease transactions. In 2025, no suppliers were repeatedly listed for poor evaluation performance, and no suppliers with significant actual or potential negative environmental or social impacts were identified.

Supplier and Procurement Personnel Training

To improve suppliers' and procurement personnel's understanding of sustainable supply chain management strategies and targets and strengthen practical execution capabilities, EGAT held supplier and procurement personnel training. In 2025, training focused on greenhouse gas inventories, covering global carbon reduction trends, aerospace industry emission reduction strategies, GHG inventory principles, and common emission sources. Training was conducted both in person and online, with 53 participants and 132.5 total training hours.

Supply Chain Conference

EGAT also holds supply chain conferences to share the latest ESG trends and the Company's sustainability target progress with supplier partners. This conference included 1.5 hours of thematic sharing and exchange, covering analysis of sustainability information disclosure systems, key carbon reduction actions in the aerospace industry, and human rights issue management. A total of 45 suppliers and 48 representatives participated. EGAT will continue holding the conference in future years to ensure supply chain partners understand the future outlook of aerospace ESG and connect it with core business, moving together toward a sustainable future.

Local Procurement

Beyond supplier sustainability performance, EGAT values resilience of key raw materials and focuses on supporting local suppliers to fulfill corporate social responsibility. For key raw material management, EGAT checks material arrivals, production, and shipment schedules through weekly production meetings with customers. Because key raw materials are supplied by customer-designated material suppliers and customers control price and quality, any abnormal supply situation is reported immediately and customers are asked to meet with material suppliers to discuss solutions. For local procurement, EGAT actively cooperates with suppliers in Taiwan, its main operating location, to create local employment opportunities. In 2025, EGAT's local procurement ratio in Taiwan was approximately 14.57% (Note).

Note: EGAT's main procurement items include raw materials, equipment, and services. Raw materials account for approximately 85% of total procurement. However, raw material procurement mainly comes from aircraft manufacturers in Europe and the United States, so the overall local procurement ratio declined.

Green Procurement

To reduce environmental impacts from procurement activities, EGAT also promotes green procurement measures, prioritizing environmentally friendly products and services in procurement decisions and using domestic and international green product certifications as references. In 2025, EGAT's green procurement totaled approximately NT$5.47 million. Purchased items included photocopy paper certified by the Programme for the Endorsement of Forest Certification (PEFC), Green Seal cleaning products, toner cartridges with Taiwan's Type I environmental label, and property insurance services with Taiwan's Type III environmental label.