To our stakeholders:

Golden Arrow remains committed to supporting the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment, and Anti-Corruption. Our dedication starts with the highest standards. This means we go above and beyond for our employee care, supply chain management, ecological maintenance, energy-saving initiatives, and carbon reduction measures — resulting in practices that are both socially and environmentally responsible and therefore on par with our products.

This last year we faced many challenges, including COVID-19, and employee safety and environmentally-friendly material always remained a top priority throughout all of our operations. Golden Arrow engaged the Ten Principles by:

● Implementing the principle of voluntary overtime
● Establishing anonymous complaint channels to improve work environments
● Developing a program to prohibit underage and juvenile labor
● Offering employee benefits including bonus distribution, living essentials, educational opportunities, a legal leave system, and more
● Focusing on health and safety management and training for personnel
● Coordinating a Clean Team that spearheads clean production audits
● Continuing Carbon Collection, Noise Reduction, and Waste Management practices
● Maintaining Sustainability Certifications and applying for additional certifications
● Upholding high standards for ethics and integrity

This report outlines our self-assessment on how we met the UN Global Compact criteria in 2020. We witnessed these Principles strengthen daily operations, production management, and employee morale and participation in our efforts to protect the planet. And we will continue to support these Principles as they serve as the foundation for Golden Arrow’s continued success.

As we look toward the future, we continue to improve our mission of providing customers with green packaging products and innovative design services by integrating the Global Compact and its principles into our business strategy, culture, and daily operations. Our driving goal is to make a better future, getting more molded fiber packaging on shelves and replacing harmful plastic alternatives while inspiring the packaging industry to go green.

Golden Arrow prioritizes the earth and its inhabitants every day by making choices with care, from the very materials we source to our company employee care policies to the final packaging that arrives in the hands of consumers. We believe that the Ten Principles of the United Nations Global Compact is essential for playing a leading role in making sustainable living a reality.

Sincerely yours,

Jenda Chen
Corporate VP & Managing Director

Employees are our most important asset at Golden Arrow. We adhere to the human rights in the CSR organization of the United Nations Global Compact and implement the guidelines of the Responsible Business Alliance.
We provide our employees with a healthy and safe work environment, free from discrimination. We do not tolerate discriminatory treatment based on race, ethnicity, ancestry, social origin, religious belief, gender, sexual orientation, age, marital status, physical ability, or other forms of discrimination. Each plant has established a non-discrimination and anti-harassment “Code of Professional Ethics” found in employee-employer contracts created to protect employees’ related rights and interests.
Golden Arrow offers a generous leave policy. According to the leave management program specifications, the arrangements can be flexibly planned without worries.
Golden Arrow requires all factories to follow the joint human rights in the CSR organization of the Global Compact of China, formulate labor policies, pay attention to the needs of employees, work performance, and family conditions at any time, and provide employees with a healthy and safe working environment.

In order to protect the rights and obligations of dispatched personnel, the dispatching company is strictly reviewed and audited to confirm
that the company meets the local minimum salary standards, five social insurances, and one housing fund, etc.
Through planning the most appropriate systems and programs, we can cultivate and retain the most competent employees and also formulate relevant human rights protection and implementation-related procedures.

Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

Employees are our most important asset at Golden Arrow. We adhere to the principles of human rights in the CSR organization of the United Nations Global Compact and implement the guidelines of the Responsible Business Alliance.

Each plant has established a non-discrimination and anti-harassment “Code of Professional Ethics” found in employee-employer contracts created to protect employees’ related rights and interests. We provide our employees with a healthy and safe work environment, free from discrimination. We do not tolerate discriminatory treatment based on race, ethnicity, ancestry, social origin, religious belief, gender, sexual orientation, age, marital status, physical ability, or other forms of discrimination.

Golden Arrow requires all factories to follow the joint human rights in the CSR organization of the Global Compact of China, formulate labor policies, pay attention to the needs of employees, work performance, and family conditions at any time, and provide employees with a healthy and safe working environment. Moreover, Golden Arrow offers a generous leave policy. According to the leave management program specifications, the arrangements can be flexibly planned without worries.

In order to protect the rights and obligations of dispatched personnel, the dispatching company is strictly reviewed and audited to confirm that the company meets the local minimum salary standards, five social insurances, and one housing fund, etc.

Through planning the most appropriate systems and programs, we can cultivate and retain the most competent employees and also formulate relevant human rights protection and implementation-related procedures.

Prohibition of Forced Overtime
Golden Arrow implements the principle of voluntary overtime and formulates “Working Time Management Regulations” for employees, which strictly prohibits overtime.

Major Violations, Discrimination, & Harassment
Golden Arrow has no major violations of discipline, discrimination, or harassment. We have established complaint channels and issued employee care cards to each employee. By encouraging our employees to come forward with any complaints or concerns, we believe we are better equipped to improve the work environment across our facilities.

Prohibition of Child & Underage Labor
The company does not use child labor or underage labor. The “Prohibition of the Use of Child Labor and Juvenile Labor” program file has also been developed to ensure the prevention of child and juvenile labor on a daily basis. Through ID recognition and registration, all employees and contractors are screened for age, preventing the possibility of underage labor.

Social Insurance & Commercial Insurance
Since the establishment of the company, physical and mental health has been our top priority. We currently pay for social insurance for employees, offer work-related accident insurance, and provide safety liability insurance for high-risk production employees. Additionally, in order to improve the welfare of our employees, we pay a housing provident fund for China District employees.

Health Examinations
Employees are provided with annual health checks to improve the chance of early detection and early treatment — ultimately reducing the impacts of potential health conditions. Employees are an important asset of Golden Arrow, and we pride ourselves on taking the initiative to care about employees anytime and anywhere.
Our support reaches beyond employees — we provide assistance to employees and their families if needed. The health and safety of our workers are paramount, and we are happy to give a helping hand where it is needed.

Golden Arrow strives to implement the highest standards for human rights and to track our success. During our hiring process, we use fair judgment, and only measure applicants based on the job description and requirements. In order to maintain these standards in hiring, daily operations, and work with vendors, we are happy to report that 67% of employees have taken Business ethics training from June-Dec in 2020, and we plan to complete 100% of employees by the end of June 2021.

Another way that Golden Arrow monitors human rights situations is through litigation cases, and we are pleased to announce that the company has had zero litigation cases between the company and employees. Through our established and anonymous complaint channels, Golden Arrow stays up to date with employee welfare, complaints, and concerns. Communication means happier employees.

EcoVadis, the world’s largest and most trusted provider of business sustainability ratings, awarded Golden Arrow a 62/100 overall rating with a 60/100 rating for Labour & Human Rights. We were listed as strong in areas of comprehensive policy, quantitative objectives, and employee satisfaction.

We adhere to all labor standards in the CSR organization of the United Nations Global Compact and implement the guidelines of the Responsible Business Alliance.
We provide our employees with a healthy and safe work environment, free from discrimination. We do not tolerate discriminatory treatment based on race, ethnicity, ancestry, social origin, religious belief, gender, sexual orientation, age, marital status, physical ability, or other forms of discrimination. Each plant has established a non-discrimination and anti-harassment “Code of Professional Ethics” found in employee-employer contracts created to protect employees’ related rights and interests.

Golden Arrow offers a generous leave policy. According to the leave management program specifications, the arrangements can be flexibly planned without worries. Golden Arrow requires all factories to follow labor standards in the CSR organization of the Global Compact of China, formulate labor policies, pay attention to the needs of employees, work performance, and family conditions at any time, and provide employees with a healthy and safe working environment.

We are continuously investing in our employees. Golden Arrow bases employees’ academic background, functions, skills, and seniority as the standard for a salary increase, and the starting salary standard is equal to or better than the minimum salary required by local statutory regulations. The salary standards of employees are never affected by race, ethnic group, ancestry, social origin, religious belief, gender, sexual orientation, age, marital status, physical disability, etc.

In order to protect the rights and obligations of dispatched personnel, the dispatching company is strictly reviewed and audited to confirm
that the company meets the local minimum salary standards, five social insurances, and one housing fund, etc. Through planning the most appropriate systems and programs, we can cultivate and retain the most competent employees and also formulate relevant labor policies and implementation-related procedures.

Comply with Minimum Wage Standards
We are continuously investing in our employees. Golden Arrow bases employees’ academic background, functions, skills, and seniority as the standard for a salary increase, and the starting salary standard is equal to or better than the minimum salary required by local statutory regulations.

Open & Transparent Labor-Management Meetings
Golden Arrow attaches great importance to the harmony between our employees and management. The general manager personally acts as the representative of the management and listens to the needs of employees. The labor-management meeting not only acts as an important internal communication bridge, but it also serves as the basis for the company’s continuous improvement in various manpower policies.

Superior to the Legal Leave System
According to the regulations of the Labor Standards Law, workers who remain with an employer for more than six months and less than one year are to be given three days of special leave. New employees of Golden Arrow have the right to use the three-day holiday in advance from the date of registration as a benefit so that new employees can balance work and life.

Labour Unions
On January 12, 2021, the labor union held its first meeting. One hundred percent of our employees are enrolled in the labor union. The attending representatives voted to approve the collective cooperation of Golden Arrow Printing Technology (Kunshan) Co., Ltd.

Group Employee Contract & Wage Agreement
The trade union works to wholeheartedly support employees and will continue to conscientiously perform its responsibilities of organizing members. This looks like keeping them informed and engaged, providing practical work to better serve employees, and playing to the full advantages of organization and mobilization.

The trade union further protects the legal rights of employees, connecting them to necessary resources, helping them make informed decisions, and providing collective support. As the union continues to grow, it is able to make greater contributions and offer more worth to its members.

2020 Staff Representative Conference
The company’s trade union was established in August 2020 and is comprised of 82 members. The union helps to deeply implement the company’s decision-making and deployment, unite and mobilize the majority of employees to continuously improve their work conditions and awareness of rights protections. The union is comprised of 2,800 employees, 60 employee representatives, and 200 participating employee representatives.

Benefits
● Social insurance & commercial insurance
● Employee performance, bonus distribution
● Superior to the legal leave system
● Food, housing, & transportation
● Electric shuttles
● Fun & Joy
● Health Examinations
● Reasonable salary policy
● Golden Arrow Printing Division Technology
● Group Employee Contract & Wage Agreement
● 2020 Staff Representative Conference
● Report, Appeal, & Feedback
● Staff Symposium

Golden Arrow understands the importance of monitoring and evaluating our procedures to support the care of our workers. We have an occupational health and safety management team as well as a number of training to help protect our workers.

We keep an open channel for communication by implementing a complaints submission box for workers so that anonymous complaints can be considered, evaluated, and rectified. Our Ethics and Integrity Committee manages all complaints. July 2020 - The Ethics and Integrity Committee established a reporting mailbox where employees of all departments are able to submit feedback

Occupational Health & Safety Management
Golden Arrow established a security risk assessment group. Working with the general manager, department heads, safety management personnel, and technical personnel, we established a security risk assessment working group composed of employee representatives fully integrated with the public.

Sustainable Procurement Certifications:
In 2019, Golden Arrow completed the FSC certification and completed the annual review in 2020.
In 2020, the company mainly used the raw material FSC, which accounted for 70-80%. The use of recycled yellow kraft paper as raw materials accounted for about 50% (purchasing recycled yellow kraft paper about 37T, recycling cartons about 5T).
All raw materials are compliant with MSDS/TDS, ROHS2.0+ halogen, and all suppliers must comply with the Supplier Code of Conduct Evaluation.

Status of Existing Suppliers
The company has 571 suppliers, 97 raw material manufacturers, 102 processing plants, 138 equipment and hardware manufacturers, and 280 other suppliers.
Our suppliers are located in China (mostly located in Sichuan, South and East China), Taiwan, and some European and American regions.
The raw material manufacturers are divided into 28 A-level suppliers, 58 B-level suppliers, and 11 C-level suppliers.
In December 2020, 199 of our raw material manufacturers and processing manufacturers carried out the Supplier Code of Conduct Commitment. A total of 160 companies have signed back on in 2021 (coverage rate is about 80%).
We have conducted on-site evaluations of five companies.

Supplier Risk Assessments
We have completed 100% of risk assessments for 199 production suppliers.

The assessment is divided into severity and degree of impact, frequency of occurrence, laws and regulations, and scope as the hazard classification, further divided into major and general classifications. Suppliers who do not pass the risk assessment will need to propose improvement and control measures. Golden Arrow will conduct a second audit after some time to confirm whether the supplier has improved in line with their proposed changes. Suppliers who have failed to improve and are not in compliance with Golden Arrow’s risk standard will have their contracts terminated.

Supplier Commitment
When introducing new supplier cooperation, the supplier is required to sign the Purchase Contract, the “Legacy” Clean Commitment, the Supplier Code of Conduct Commitment, and must complete a Supplier Code of Conduct Evaluation Form. This thorough process helps us to better understand new suppliers and ensure that their operations are in line with Golden Arrow’s sustainable mission. This also helps us to avoid any violations of our business ethics principles and any unfair procurement activities.
Suppliers must proclaim that their products comply with the relevant national and regional environmental protection laws and regulations. If the purchase contract is violated, suppliers shall bear legal liability and compensation obligations.

Supplier Conference in Suzhou, China
The supplier conference is a chance to educate suppliers on corporate social responsibility in regards to the environment, safety and human rights, and business ethics and sustainable procurement. Golden Arrow has conducted CSR training at the 2018 and 2019 Supplier Conference. Due to COVID-19, Golden Arrow offered online CSR training during the 2020 Supplier Conference, and a total of 199 suppliers participated in the training. Of those 199 suppliers, 171 companies were admitted, accounting for 85.9%.

In order to achieve our goal of a better and greener future, Golden Arrow is committed to formulating a corporate social responsibility (CSR) report to maintain the company’s mission and vision. From environmental protection materials, technology control, production management to waste recycling, the concept of environmental protection is injected into the entire product manufacturing process. Sustainability is our primary goal, though we pride ourselves on achieving and upholding uncompromised packaging value. We actively implement energy saving and emission reduction to help customers improve their product image.

Finally, we were pleased to receive an EcoVadis rating of 70/100 for our Environment initiatives. Golden Arrow believes in the importance of formalized procedures for our waste management, energy audits, carbon footprint data collection, eco-design services, water consumption reduction, and so much more. We are ready to continue our journey to improve our Environmental policies to receive a higher score in the future.

The EcoVadis rating of 60/100 for Sustainable Procurement highlights our efforts to work with environmentally responsible suppliers with thoughtful social practices. EcoVadis noted our strengths to include Supplier CSR code of conduct, FSC chain-of-custody certification, on-site audits, regular training, and standard reporting on sustainable procurement practices. Golden Arrow is ready to continue this work.

Certifications list:

Sustainable Certifications
PC (SUSTAINABLE PACKAGING COALITION)
The American Sustainable Packaging Alliance has a broad environmental vision for the packaging industry: Continue to expand cooperation with the supply chain, strive to establish and promote economic prosperity, and establish a packaging system that uses sustainable materials.

United Nations Global Compact
The United Nations Global Compact calls on all companies in addition to complying with human rights, labor, environmental standards, and more. We adhere to the ten general principles related to the environment and anti-corruption, and take actions to advance the goals of society and the implementation of sustainable development goals. We put forth efforts to promote responsible enterprises and incorporate ethical decision-making into all of our operations.

FSC (FSC MIX PAPER C084763)
Forest Management Committee certified forests, recycled materials or mixed materials, can be used to mitigate the risk of unacceptable sources.

CENTRE TECHNIQUE DU PAPIER (CTP)
According to European Directive 2018/851/EC, our packaging meets two important recycling standards: 1. More than 50% of the packaging materials are recyclable. 2. The raw materials are compatible with mature recycling technologies.

CERTIFIED QC 08000:2017
QC 080000 is applicable to HSPM (Hazardous Substance Process Management). This system is designed to assess whether the processes of equipment manufacturers and related organizations comply with QC080000.

CERTIFIED ISO 9001:2015
ISO 9001 is a quality management system for continuous monitoring and management of the entire organization. This standard allows us to improve and meet customer needs.

CERTIFIED ISO 14001
The Environmental Management System (EMS) standard manages the organization’s products and services and follows a systematic framework for the short-term and long-term environmental impact of the process.

ISO 45001: 2018
Occupational Health & Safety (OH&S) Management System This set of standards guides the prevention of work-related injuries and poor health, and it helps drive active improvement of the overall health and safety of the workplace.

RECYCLING WEST MICHIGAN UNIVERSITY CERTIFIED / US
Our Molded Fiber, from premium to colored, has been certified to be recyclable by WMU. Obtaining certification means that our products can be recycled, repulped, deinked and are free of various waste materials.

ULZero waste to landfills.
IDEAALLIANCE CHINA-G7 CERTIFICATION
Printing standardization international certification to achieve and maintain specific color standards and fully meet the customer’s requirements for printing spot colors and stable color output.

Ethics & Integrity
Integrity is a pillar of our organization. As one of our four core values, integrity drives everything we do at Golden Arrow, from the most mundane daily operations to the
largest business decisions. To maintain this core value, we have established a “zero tolerance” corporate culture when it comes to the violation of business ethics.
In 2020, 67 percent of our employees were trained by Golden Arrow for business ethics education, where they learned the following three policies enacted by Golden Arrow to protect our company’s spirit of integrity:

ANTI-CORRUPTION & BRIBERY
Do not accept any illegitimate benefits in company-related behaviors. Every employee must engage in various businesses based on the principles of law compliance and honesty.
ANTI-CONFLICT OF INTEREST & UNCONTESTED COMPETITION
Do not do anything to damage the company for your own benefit.
SUPPORT INFORMATION MAINTENANCE & SECURITY
Any company information should be confidential and should not be arbitrarily disclosed to cause damage to the company.

Four Goals for 2021:
Zero violations of professional ethics, zero litigation incidents.
Every employee is familiar and compliant with the three major policies listed above.
Establish a complaint and report channel, with a complaint handling rate of 100%.
Zero incidents of damage to the company caused by information leakage.

Report, Appeal, & Feedback
The Ethics and Integrity Committee established a reporting mailbox in July 2020 where employees of all departments are able to submit feedback. Prior to establishing the mailbox, the Committee noted the low usage rate of email addresses of some grassroots and production line employees. To make this effort more accessible and inclusive, the Ethics and Integrity Committee established an employee whistleblower WeChat account in October. Submissions to WeChat are sent to external audits to protect the parties involved in the report.
The two initiatives have led to reporting boxes and scannable QR codes in the guard room and canteen of each factory — common spaces that allow for increased anonymity of submissions. Through these initiatives, we are able to better understand the needs and wants of our employees, offer more actionable insights to drive decision making for the workplace, and address concerns or problems at an earlier stage.
We are thorough in securing the anonymity and identity protection of individuals who submit reports through these channels. Identities are omitted from shared data reports, and the surname of the person(s) concerned when notifying relevant units to assist in handling an issue will not be disclosed unless necessary.

Golden Arrow is pleased to share that 67 percent of our employees participated in our business ethics educational program in 2020. Every employee received information on our anti-corruption policies and learned steps for upholding these policies throughout daily operations. Moreover, the Ethics and Integrity Committee publicized their employee whistleblower WeChat account and their anonymous reporting mailbox.

Based on the EcoVadis scorecard, Golden Arrow received a 50/100 for Ethics, and this category includes measurements of our anti-corruption policies, implementation, and measurement of outcomes. Some of our highlighted strengths include disciplinary sanctions to deal with policy violations, whistleblower procedures, and standard reporting on ethics issues. Through the work of our Ethics and Integrity Committee, we will continue and improve our policies and implementation.