Green Procurement and Supplier Management

Green Procurement and Supplier Management

For TCFHC, key suppliers are suppliers of IT equipment and systems. In support of the government’s green procurement policy, the Group makes sustainability an element in the procurement process, and encourages suppliers to implement sustainable management while working with suppliers to achieve environmental sustainability.

Supplier Management

TCFHC continues to implement the “Supplier Management Policy”. 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 require explicitly that suppliers should comply with worker safety and health, environmental protection, and principal of integrity requirements. All these efforts are to enforce supplier management. In 2022, there were 347 domestic suppliers with a purchase of NT$1 million or higher signed the “Undertaking on Supplier CSR and Environmental Sustainability Clauses”.

Supplier's Human Rights Due Diligence

To implement supplier management policies and urge suppliers to comply with relevant labor laws and follow International Bill of Human Rights regulations concerning the protection of employee rights, human rights due diligence questionnaires are provided to suppliers in 2023. The questionnaire summarizes potential and possible human rights issues among suppliers and keeps abreast of the frequency of occurrence and level of influence of risks regarding human rights issues. This information will serve as a reference for future improvements to the supplier management policy.

Supplier Human Rights Due Diligence Results and Responsive Measures

TCFHC compiled 26 potential human rights risk issues based on human rights issues like “diversity in the workplace”, “gender equality”, “maternal health protection”, “work overtime”, “forced labor”, and “occupational health and safety”, formulating a questionnaire to survey suppliers (contractors) with an annual transaction amount of NT$1 million or more. A total of 106 questionnaires were sent out, with a return rate of 100%. The results that the overall risk is relatively low. This self-evaluation identified 3 potential human rights risk issues with higher risk exposure, so the following responsive measures are established:

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 and sustainable development to suppliers and credit customers to create a sound sustainable development ecosystem.

Green Procurement

To practice green procurement and implement environmental protection, TCFHC prioritizes the use of the green mark, energy labeled, water efficiency labeled, sustainable forestry labeled, and other environmentally friendly products. Upholding the principle of “green operations and eco-friendly,” the TCFHC uses green building materials for office repairs and constructions and implements low-carbon operations. In 2022, the green procurement amounted to NT$57.24 million. For 3 consecutive years, TCB has been recognized by the Taipei City Government’s Department of Environmental Protection and granted a letter of gratitude for its outstanding performance in participating in the “Private Enterprise and Groups Green Procurement Promotion Plan”.

Sustainable Procurement

In response to the global sustainable development trend, TCB is the first to adopt the "ISO 20400 Sustainable Procurement - Guidance" in April 2022, which has been approved by the British Standards Institution (BSI). TCB has formulated sustainable procurement policies to comply with and implemented the concept of sustainability in the procurement unit and expanded it to its suppliers with whom it cooperates. In addition, TCFHC and all other subsidiaries have also passed the BSI audit in January 2023. In the future, TCFHC Group will adhere to the concept of sustainability in the procurement process as a direction for procurement management and jointly move towards with suppliers and contractors the goal of sustainable development.