The main suppliers of TCFHC Group are IT equipment and system manufacturers . In order to actively respond to the government’s green procurement policy and deeply embed the concept of sustainability in procurement operations, the Group promotes supplier sustainability management and collaborates with suppliers to jointly practice environmental sustainability.
Supplier Management
TCFHC continues to implement the "Supplier Management Policy". Since 2020, TCFHC requires suppliers with a purchase of NT$1 million or higher to sign the "Undertaking on Supplier CSR and Environmental Sustainability Clauses", and list the CSR provisions in procurement contracts to explicitly ask that suppliers should comply with worker safety and health, environmental protection, and principal of integrity requirements. In 2023, domestic suppliers with a single purchase amount of more than NT$1 million have signed a total of 369 "Undertaking on Supplier CSR and Environmental Sustainability Clauses". 
Supplier’s Human Rights Due Diligence
In order to implement supplier management policies and urge suppliers to comply with relevant labor laws and international human rights conventions, we have conducted human rights due diligence on suppliers, compiled potential and possible human rights issues, and understood the frequency and impact of risks. In the future, we will still regularly conduct supplier human rights due diligence and formulate mitigation measures for potential human rights risk issues as a reference to improve supplier management policies in the future.
Supplier Human Rights Due Diligence Results and Responsive Measures
TCFHC compiled 26 potential human rights risk issues focusing on human rights concerns such as "workplace diversity", "gender equality", "maternal health protection", "overtime work", "forced labor" and "occupational safety and health". A survey was conducted on suppliers (contractors) with an annual transaction amount of more than NT$1 million. A total of 143 questionnaires were sent out, with a response rate of 100%. The overall risk ratio of the survey results was low. For the 2 potential human rights risk concerns identified in the self-assessment results as having relatively high relative risk exposure values, the response measures are formulated as follows:
Guidelines to Incentives for Suppliers in Response to ESG
In order to work with suppliers in the promotion of ESG and to fulfill sustainable development goals, TCB defined the "Guidelines to Incentives for Suppliers in Response to ESG" and introduced incentives such as reduced performance bond and warranty fund, public recognition, and invitation to take part in ESG educational trainings and workshops. TCB tried to understand suppliers’ ESG behaviors through their self-assessments and on-site inspections, and encourage suppliers to pay attention to and implement environmental sustainability, corporate social responsibility and corporate governance.
Supplier Conference
Climate change is an important issue that all businesses have to face. To extend its influence and work together with partners in pursuit of environmental sustainability, TCFHC supports the "Supplier Conference", which is hosted in turn by different state-owned financial institution every year. The conference extends the concept of ESG to suppliers and credit customers to create a sound sustainable development ecosystem.
Green Procurement
In order to practice green procurement and implement environmental protection, TCFHC prioritizes the use of environmentally friendly products with environmental protection labels, energy-saving labels, water-saving labels, sustainable forestry labels, etc., adhering to the original intention of "green operations, friendly to the environment", while the office renovation project is also based on the principle of green building materials. In 2023, the amount of green procurement reached NT$88.98 million. In addition, TCB has been awarded the "Promoting Green Procurement Plan for Private Enterprises and Groups" by the Taipei City Government Environmental Protection Bureau for outstanding performance for 4 consecutive years.
Sustainable Procurement
In order to comply with the international sustainability trend, TCFHC has also clearly formulated a "Sustainable Procurement Policy" to follow, implementing the sustainability concept in the procurement units of each company in the Group and extending it to cooperative suppliers. In addition, TCB is the 1st to adopt the "ISO 20400 Sustainable Procurement - Guidance" in April 2022, which has been approved by BSI. TCFHC and all other subsidiaries have also passed the BSI audit in January 2023.