SCC Logistics Group Industry Code of Conduct

2024.10.18

SCC is committed to becoming China's leading brand in the automotive parts logistics industry, a nationally renowned trademark, and an industry pacesetter, striving to lead and drive the upgrading and development of the automotive logistics sector. We are dedicated to conducting business in a sustainable manner and always comply with applicable laws.

This Code of Conduct serves as a critical standard reflecting SCC Group's values and represents the behavioral guidelines for all SCC employees.

Our code is founded on compliance with legal and international standards and adherence to fundamental principles of social, environmental, and governance responsibilities, including the UN Guiding Principles on Business and Human Rights, the UN Global Compact, International Labour Organization ("ILO") conventions, the OECD Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the Rio Declaration on Environment and Development, and the Paris Agreement. This code is also based on the Driving Sustainability / AIAG Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain, the RBA Code of Conduct, and the Unified Supplier Code of Conduct developed by the European Association of Automotive Suppliers ("CLEPA").

Our Code of Conduct in the Supply Chain

People and the environment are our most important resources. We deeply recognize that enterprises should fulfill their social responsibilities and obligations to achieve healthy and harmonious development between enterprises and employees, enterprises and society, and enterprises and the environment. To this end, we work together with stakeholders to achieve the highest standards of business integrity and social and environmental performance throughout the entire supply chain.

The purpose of establishing this code is also to help our employees understand our values and what we expect of their behavior.

The code covers business ethics, working conditions, human rights, health and safety, environmental leadership, and supply chain due diligence standards.

Business Ethics

Adhere to the highest standards of integrity and conduct business honestly and fairly throughout the entire supply chain.

A business ethics management system should be adopted, including the following:

• Anti-Money Laundering: Do not assist, tolerate, or support money laundering activities. Report any suspicious transactions and remain vigilant for signs of money laundering.

• Anti-Corruption: Regardless of local customs, all forms of bribery and corruption are improper business practices. We will never, for any reason, pay or accept bribes, kickbacks, or benefits. Do not participate in or support any form of corruption, including offering or accepting bribes, excessive gifts, entertainment, or benefits to or from any party (private or government-affiliated). All applicable anti-corruption laws must be complied with, and compliance with all UN and OECD anti-corruption conventions must be ensured. Ensure that employees, subcontractors, and agents do not offer, promise, or provide any benefits to any of our employees or related parties to obtain orders or any other form of preferential treatment in business transactions.

• Invitations and Gifts: At our company, we do not accept or offer gifts, benefits, or entertainment. Even if such activities comply with our policies, they are not permitted if their purpose is to influence any decision-making. We require suppliers not to extend any invitations or give gifts to our employees to obtain any form of benefit. Gifts given (if any) must be reasonable and appropriate in scope and design, i.e., of low economic value, compliant with applicable laws and regulations, and consistent with local general business practices. We require our employees not to solicit or offer any improper benefits to our related parties.

• Prevention of Conflicts of Interest: Make decisions in business dealings based on objective criteria. At no time shall any private, commercial, or other conflicting interests influence decision-making factors, including but not limited to the interests of relatives and other related parties. Ensure that employees avoid and disclose financial or other interests that conflict with their job responsibilities, or circumstances that may suggest impropriety.

• Data Protection and Data Security: When collecting, storing, using or disseminating, and processing personal data, comply with applicable data privacy laws and respect privacy and civil liberties.

• Financial Responsibility / Accurate Records: Internal controls to ensure that the books and records related to our company comprehensively and accurately reflect our business and financial transactions and their underlying commercial purposes. Conduct business in a transparent manner and accurately reflect these transactions in the company's financial reports and filings. Establish appropriate financial reporting system controls.

• Information Disclosure: Disclose financial and non-financial information in accordance with applicable regulations and industry practices.

• Counterfeit Parts: Avoid introducing counterfeit and/or diverted parts and materials into delivered products and comply with relevant technical regulations during the product design process.

• Intellectual Property: Respect valid intellectual property rights.

• Export Controls, Trade and Economic Sanctions: Comply with restrictions on the export or re-export of goods, software, services, and technology, as well as trade sanctions involving transactions with certain countries, regions, companies, or entities and individuals.

• Grievance Mechanism: Establish an effective grievance mechanism in accordance with Article 31 of the UN Guiding Principles on Business and Human Rights, allowing workers, community members, and other third parties to report issues related to health and safety, business ethics, human rights, or any other topics. The grievance mechanism shall allow issues to be raised anonymously, confidentially, and without retaliation.

• Prevention and Remediation: Take action to prevent adverse impacts on the environment and people arising from business activities. If business activities cause or contribute to adverse impacts on the environment or society, remediate or seek cooperative remediation through legal procedures.

• Anti-Retaliation: Avoid any form of threat, intimidation, physical or legal attack against employees or other stakeholders.

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