No major risks found, proactive effort to cover global footprint this year 

12 June 2024, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) has completed independent, third-party audits of eight major manufacturing campuses in China and India, taking action as the world’s largest electronics manufacturing service provider to strengthen sustainability in its operations and serve as a global best-practice model.

The findings confirmed the rights and interests of employees. No significant non-compliance were found in the areas examined, including labor, environment, corporate ethics, supply chain management and management systems. 

Foxconn’s Sustainability Committee proactively raises awareness on sustainable and sound governance within the Group’s global operations. It began a process late last year to invite independent, third parties to audit campuses. With operations in China and India completing their audits in this round, the next set of third-party audits is being planned. Risk assessments will be performed this year at campuses in Southeast Asia, Europe and the United States to identify key business units for audit. 

In the latest round, the audits were conducted by BSI and LRQA (formerly ELEVATE), taking six months to complete, and reviewed operations in Zhengzhou, Chengdu, Guanlan and Hengyang in China; and Andhra Pradesh and Tamil Nadu in India. The audits covered more than 200,000 employees. 

The team of 18 auditors focused on labor rights, occupational health and safety, environment, supplier management and related issues. Management procedures, document record-keeping and implementation in each of the areas were examined. Spot checks were done on more than 900 positions and interviews held with direct and indirect reports in individual and group settings.

In this audit, China adopted the RBA VAP 7.1 standard that is common in the electronics industry; while India adopted the ERSA 3.0 standard that integrates various industries including electronics. No major hidden risks were found in the areas examined, including any involving forced labor, environment, corporate ethics, supply chain management and management systems. However, a total of 144 deficiencies were identified, primarily in the areas of health and safety and labor conditions. Led by Foxconn’s ESG team, the Group has improved on 49 of them, while the remainder are being tracked and rectified. Sporadic issues in other areas such as environment, ethics and supply chain management are also being improved.