Demonstrating verified compliance with RBA VAP standards

TAIPEI, April 1, 2025 /PRNewswire/ -- Hon Hai Technology Group ("Foxconn") (TWSE:2317) has completed independent, third-party audits of nine manufacturing campuses covering five countries, demonstrating, for a second year, a commitment to critical compliance and transparency in social and environmental responsibility by the world's largest electronics manufacturing service provider.

No priority findings were assessed for the most part in the audits conducted under the Responsible Business Alliance Validated Assessment Program (RBA VAP), an industry standard that recognizes a factory's commitment to social and environmental responsibility and focuses on verified closure of issues identified in a VAP assessment.

The audits covered Foxconn manufacturing sites in China, Vietnam, Malaysia, India and Mexico, showing an overall compliance rate of 89%. The Quang Chau campus in Vietnam'sBac Giang province was recognized at a Silver level under RBA VAP, outperforming the average score in the local industry.

According to RBA, customers, investors, governments and other stakeholders consider the verified closure of audit findings critical to demonstrating compliance to their requirements. To enhance sustainability in Foxconn's operations and serve as a global best-practice model, the audits in 2024 also focused on campuses needing to strengthen third-party checks based on comprehensive assessment of their operational complexity, employee size, and past record in third-party audits. Audit areas covered labor rights, occupational health and safety, environment, ethics, supply chain management and interviews with 1,067 employees. Total scope included 210,000 employees and took the equivalent of 96 man-days.

No priority findings were assessed, with the exception of one priority non-compliance in supply chain management due to overtime hours of an outsourced service provider, which has been addressed. The compliance rates for environment and ethics each reached over 97%, while those for labor, health and safety, and supply chain management each reached over 80%. Findings indicated a need to strengthen the management of the ratio of dispatched workers, overtime hours, calculation for social insurance and on-time severance payment, as well as attention to the on-site working environment in India.

By end 2024, RBA VAP audits have been done at 58 sites with 8 recognized at Platinum level, 17 at Gold, and 20 at Silver. The first audits in 2023 covered eight sites in China and India.

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