Inclusive Workplace
Human Rights
USI firmly commits to its responsibility to respect and uphold human rights across its operations and value chain. We fully align our human rights commitments with internationally recognized standards, including the Universal Declaration of Human Rights, the United Nations Global Compact (Principles 1 and 2), the United Nations Guiding Principles on Business and Human Rights, the International Labor Organization Declaration on Fundamental Principles and Rights at Work, and applicable national laws and regulations in the countries where we operate. We are committed to preventing and addressing adverse human rights impacts and to promoting a workplace and business environment founded on dignity, equality, diversity, inclusion, and mutual respect. We work collaboratively with our stakeholders, including employees, joint ventures, contractors, business partners (suppliers and customers), governments, and communities.
To fully implement our commitments, the Company is dedicated to upholding human rights based on the following principles:
- Diversity, Equality, and Anti-Discrimination: Provide a fair workplace and eliminate discrimination based on gender, religion, race, and other factors.
- Equal Pay and Dignified Labor: Establish a fair compensation system and adopt a "zero tolerance" attitude toward workplace bullying and harassment.
- Prohibition of Child Labor and Forced Labor: Strictly prohibit human trafficking and involuntary labor.
- Freedom of Association and Expression: Respect employees' freedom of association and ensure unhindered communication channels.
- Healthy and Safe Workplace: Provide a safe working environment in accordance with international standards and care for employees' physical and mental health.
- Privacy Protection: Regard privacy as a fundamental human right and strictly protects the data security of our stakeholders.
- Product Responsibility and Conflict-Free Minerals: Adhere to conflict-free mineral sourcing to ensure the product supply chain does not violate human rights.
Human Rights Due Diligence
Guided by the PDCA approach, we establish a systematic process to minimize human rights impacts.
- Mechanism: Drives human rights risk management through task forces under the Sustainability Committee, conducts quarterly reviews on labor, ethics, and safety indicators, reports annual results to executive management, and regularly discloses outcomes on our website.
- Assessment: Conducts annual risk matrix assessments across all global sites, integrates self-assessments, third-party audits, and cross-site mutual audits, and corrects all identified non-conformities within defined timeframes.
- Value chain management: Extends Human Rights Due Diligence governance to joint ventures and suppliers, mandates annual risk self-assessments for JVs, and screens Tier 1 suppliers through annual sustainability risk assessments and on-site audits to target high-risk partners for enhanced monitoring and engagement.
Human Rights Risks Assessment Results
In 2025, USI identified potential risks across all global manufacturing facilities by integrating human rights risk assessments, third-party audit results, and employee grievance statistics, implementing corresponding risk mitigation plans based on the findings.
- Zero Major Non-Conformities: Verified that no incidents of child labor, young workers performing hazardous work impacting health or safety, forced or compulsory labor, or violations of indigenous rights occurred across global operating sites, with zero tolerance for any form of discrimination.
- Risk Self-Assessments: Achieved low-to-medium risk ratings across all global manufacturing facilities.
- Third-Party Audits: Demonstrated overall strong performance with the majority of facilities classified as lower-risk operating sites, with zero major non-conformities identified.
- Focus Issues: Identified "working hour management" and "workplace unlawful infringement" as labor and human rights focus areas requiring continuous attention, with ongoing commitments to optimizing our management mechanisms.
Grievance Mechanisms & Whistleblower Protection
USI views grievance mechanisms as a critical line of defense against human rights violations. To this end, we have established standardized employee reporting channels and a non-retaliation policy, while ensuring the impartiality of the verification process through investigations led entirely by an independent unit. Operating in strict accordance with the whistle-blower protection principle, we rigorously enforce confidentiality protocols across all reporting formats.
USI conducts annual training on the Employee Code of Conduct and Humane Treatment Policy for all global employees to enhance human rights awareness and compliance standards. In 2025, USI provided a total of 24,233 human rights training hours, with 25,231 participants (including former employees) and an average of 1.0 hour per employee. Training completion among active employees reached 100%.
Human Rights Training Participant Numbers and Training Hours:
USI's human rights policies are implemented as follows:
- Employee Rights: Building a Diverse, Inclusive Workplace with Equal Opportunities and Zero Discrimination or Harassment
- All USI facilities have established Work Rules to ensure employees understand their rights and responsibilities.
- Each facility also follows standardized Recruitment Guidelines to ensure fair, inclusive, and non-discriminatory hiring practices. Candidates are selected based on merit, helping USI attract a diverse range of talent.
- To promote our Policy on Humane Treatment in the Workplace, USI has created a dedicated intranet section that reflects our culture of respect, inclusion, and non-discrimination. This section also provides grievance channels to ensure all employees are protected from physical and mental harm while at work.
- Employee union: Respect employees' freedom of association and bargaining
- Unions are established at six of our seven facilities (Zhangjiang, Jinqiao, Huizhou, Kunshan, Mexico, and Vietnam), with the Nantou Facility being the exception. In 2025, 41.2% of global employees were covered by collective agreements (Collective agreement coverage rate = Number of employees covered by the collective agreement ÷ Total employees at the end of the year × 100%).
Overview of Global Employee Union Participation:
| Year | Unit | 2022 | 2023 | 2024 | 2025 |
| Number of Union Members | # | 5,901 | 6,887 | 6,608 | 8,474 |
| Union Density (As a % of Total Employees) | % | 35.4 | 40.4 | 44.1 | 51.8 |
