Sustainable Supply Chain

The main suppliers of the TCFHC Group are IT equipment and system manufacturers. To actively respond to green procurement and to deeply embed the concept of sustainability in procurement operations, the Group implements supplier sustainability management and collaborates with suppliers in fulﬁlling environmental sustainability.

Supplier Management

TCFHC continues to implement the "Supplier Management Policy". Since 2020, TCFHC has required suppliers with purchases of NT$1 million or higher to sign the "Undertaking on Supplier CSR and Environmental Sustainability Clauses" and include CSR provisions in procurement contracts to explicitly require compliance with worker safety and health, environmental protection, and principles of integrity. As far as the commitment to the human rights of workers is concerned, in particular, suppliers are asked to follow national labor laws and regulations, including the minimum criteria of labor (working hours, wages, paid annual leave, and pay equality, etc.) speciﬁed in the Labor Standards Act to protect the rights of workers, to reinforce the employee-employer relationship, and to promote social and economic developments, and related procedures and precautionary reporting of the Act for Worker Protection of Mass Redundancy to prevent against mass layoffs by business owners that undermine the rights of workers or put their rights in jeopardy so that social stability may be maintained. In 2025, a total of 594 suppliers with individual procurement amounts over NT$1 million signed the commitment letter.

Supplier Management Policy

Suppliers' Human Rights Due Diligence

To enforce the Supplier Management Policy, TCFHC urges suppliers to comply with labor laws and regulations and adhere to international human rights conventions. Potential and possible human rights issues are identiﬁed and compiled, and regular human rights due diligence is conducted for suppliers in order to keep track of the risks in terms of both their frequency and level of inﬂuence and to deﬁne mitigation measures against potential human rights risks. Such information will serve as reference in the future upon reﬁnement of the supplier management policy.

Supplier Human Rights Due Diligence Results and Responsive Measures

In 2025, TCFHC's human rights due diligence categorized risk issues into 7 major areas: "workplace diversity", "gender equality", "maternal health protection", "forced labor", and "occupational safety and health". A total of 28 potential human rights risk issues were identiﬁed and compiled. A survey was conducted among suppliers (contractors) with suppliers (contractors) with transaction amounts of more than NT$1 million in 2023 and 2024 and more than NT$500,000 in 2025; the recovery rate over the past three years was 100%. The overall risk level reﬂected in the survey results was low. For the 3 potential human rights risk concerns identiﬁed in the self-assessment with relatively high risk exposures, the countermeasures deﬁned are as follows:

Supply Chain Empowerment

Promoting ESG Implementation among Suppliers

To collaborate with suppliers in promoting ESG and achieving sustainable development goals, TCB has established "Supplier ESG Incentive Guideline". This guideline applies to suppliers with single-item purchases exceeding NT$1 million who have signed a "Undertaking on Supplier CSR and Environmental Sustainability Clauses", and who have maintained a relationship with TCB for more than one year, or those with a relationship of less than one year but who have provided ESG sustainability reports. The evaluation is based on environmental sustainability, integrity in business operations, labor and human rights, and other aspects (performance quality, employee training, etc.). The assessment is conducted through a combination of supplier self-assessment and on-site veriﬁcation. Suppliers meeting the requirements for grades A to C are eligible for incentives such as reduced performance bonds and warranty deposits, public commendation, and invitations to participate in ESG education, training, and workshops. Suppliers rated D and E are encouraged to participate in ESG-related courses and workshops organized by the bank, with additional assessment points awarded based on the number of sessions attended.

In 2025, ESG self-assessments were completed for 48 suppliers and on-site ESG visits were conducted for 16 suppliers. The self-assessment results showed that 8.33% of suppliers were rated Grade A, 14.58% Grade B, 37.50% Grade C, 31.25% Grade D, and 8.33% Grade E. Self-assessments and on-site inspections help understand ESG practices of suppliers, continuously encourage and urge suppliers to value environmental sustainability, corporate social responsibilities, and corporate governance, and enforce ethical corporate management.

Carbon Neutrality Supplier Management Conference

To leverage the influence of financial institutions and to join efforts with suppliers and credit clients in accomplishing net-zero transformation by 2050, the Company held the "4 ^th Joint Supplier Conference for State-Owned Financial Enterprises" in 2024 and the "first Taiwan Cooperative Financial Holding Supplier Conference" on September 10, 2025 as part of its continuous commitment to deepening partnerships with suppliers and to creating a joint sustainable value chain. Meanwhile, we have successfully passed the ISO 14068-1 carbon neutrality international standard verification and become the first financial institution in the country to obtain a carbon neutrality certiﬁcate, conveying the consensus on sustainable procurement and carbon reduction to suppliers and internally and leading in low-carbon transition of the supply chain, living up to ESG and sustainable management goals while at the same time reaching a new milestone in sustainable development. The Carbon Neutrality Report and related certiﬁcates are already released on the Company's ofﬁcial website.

Green Procurement

In the practice of green procurement and fulfillment of environmental protection, TCFHC prioritizes the use of environmentally friendly products with environmental protection labels, energy-saving labels, water-saving labels, and sustainable forestry labels. To go with its very ﬁrst original intention of "green operations and environmental friendliness", ofﬁce renovations follow the principle of using only green materials. In 2025, the amount of green procurement reached NT$113.16 million. In addition, TCB received the Certiﬁcate of Appreciation from the Taipei City Government's Department of Environmental Protection under the "Promoting Green Procurement Plan for Private Enterprises and Groups" for outstanding performance for the 5 ^th year in a row.