Hon Hai Technology Group (Foxconn) Strengthens Sustainability With Independent Audits At 8 Manufacturing Sites

Rhea-AI Summary

Hon Hai Technology Group ("Foxconn") has completed independent audits at eight of its major manufacturing sites in China and India as part of its sustainability efforts. These audits, conducted by BSI and LRQA (formerly ELEVATE), found no major hidden risks but identified 144 deficiencies, primarily in health and safety and labor conditions. The audits, taking six months and covering over 200,000 employees, reviewed various aspects including labor rights, occupational health, environment, and supplier management. Foxconn has already addressed 49 of these deficiencies, with ongoing efforts to rectify the remainder. Future audits are planned for sites in Southeast Asia, Europe, and the United States to ensure comprehensive risk assessments and sustainable governance.

Positive

• No major hidden risks found in audits of eight manufacturing sites.
• Proactive sustainability efforts with independent third-party audits.
• 144 deficiencies identified and 49 already addressed, showing commitment to improvement.
• Future audits planned for Southeast Asia, Europe, and the United States.
• Audits covered over 200,000 employees, ensuring comprehensive assessment.

Negative

• 144 deficiencies identified, primarily in health and safety and labor conditions.
• Ongoing efforts required to rectify remaining deficiencies.
• Sporadic issues found in environment, ethics, and supply chain management.

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

TAIPEI, June 12, 2024 /PRNewswire/ -- 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 major hidden risks 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.

About Foxconn here.

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SOURCE Hon Hai Technology Group (Foxconn)

FAQ

What were the major findings of Foxconn's recent independent audits?

No major hidden risks were found, but 144 deficiencies were identified, primarily in health and safety and labor conditions.

How many manufacturing sites did Foxconn audit for sustainability?

Foxconn audited eight major manufacturing sites in China and India.

Who conducted the independent audits for Foxconn?

The audits were conducted by BSI and LRQA (formerly ELEVATE).

What standards were used in Foxconn's audits?

China sites used the RBA VAP 7.1 standard, while India sites used the ERSA 3.0 standard.

How many employees were covered in Foxconn's recent audits?

The audits covered more than 200,000 employees.

What areas were reviewed in Foxconn's audits?

The audits reviewed labor rights, occupational health and safety, environment, and supplier management.

What actions has Foxconn taken following the audit findings?

Foxconn has improved on 49 of the identified deficiencies and is working on rectifying the remainder.

Where will Foxconn conduct future audits?

Future audits are planned for Southeast Asia, Europe, and the United States.