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Supplier Management

The Group’s suppliers can primarily be divided into four main categories: IT (software and hardware), facilities maintenance, printing, and other. There have been no substantial changes in the structure of these supplier categories in recent years. In terms of purchase value, the IT category is the largest. Purchases are primarily conducted with local, Taiwan-based suppliers.

To avoid conducting transactions with dishonest vendors and ensure our suppliers are adhering to principles of integrity management, in June 2013 the Group set out the Integrity Management Best Practices and Behavioral Guidelines and Guidelines for Integrity Management. We have also set out Key Points for Procurement, Requisition, and Verification and a Procurement Contract Signing Checklist and Integrity Declaration, facilitating evaluations of contracts with external suppliers regarding the outright purchase and sale of products they own. The Declaration of Commitment to Integrity that is attached to the checklist is to be signed by 100% of suppliers and serves as evidence that the signatory has completed the checklist. Additionally, when the Company signs a procurement contract, the supplier is expected to fully comply with the integrity clauses and the Integrity Management Best Practices and Behavioral Guidelines. We also conduct capability assessments and audits of both new and old suppliers to reduce purchasing risk. On top of this, as each year’s procurement contracts are renegotiated, we conduct Supplier Evaluations, using these to ensure the quality of our products and services while also effectively managing and reducing operating costs.

Supplier Selection Process of the Group
Develop supplier selection criteria
Assess supplier
Follow-up supervision
  • Supplier scale

  • Professional qualities and experience
  • Passed ISO or other QA certification
  • Refer to past performance in the industry
  • Pass internal proof-of-concept

  • Has the supplier had a positive working relationship with the company
  • Proof of outstanding capabilities or services
  • Offer recommendations or request documents as necessary to clarify outsourcing requirements or specifications
To ensure product and service quality and effectively control operating costs, Yuanta requires its suppliers adhere to the Group’s integrity management policies Integrity Management Guidelines Procedures for Integrity Management and Guidelines for Conduct
Promoting CSR Among Suppliers

Starting in November 2015, the Group began requiring the major suppliers of its subsidiaries to agree to CSR terms in their contracts by signing an “Environmental Sustainability and Human Rights Commitment,” clearly laying out the working conditions, occupational health & safety, environmental protection, and labor rights protections expected of suppliers under the law. In the contracts, terms are laid out for the contract to be terminated in the event of a violation by the supplier, serving as a demonstration of the Group’s determination to pursue CSR among its suppliers.

At the same time, the Group has incorporated green purchasing provisions in the procurement rules of each subsidiary, bringing suppliers on board with our implementation of green purchasing in the hopes of further driving green production and helping protect the environment, reduce environmental impact, and further implement environmentally sustainable operations. When making purchases, the Group gives priority to Green Mark, recyclable, low-pollution, and energy efficient green products, as well as those produced with renewable materials.

In addition to continuing to push for signing of Environmental Sustainability and Human Rights Commitment, the Company also focuses on labor rights, occupational safety & health, environmental protection, and working conditions in line with the particular nature of each supplier, encouraging stronger management and taking concrete measures to effectively set up a green supply chain for the Group.

Environmental Sustainability and Human Rights Commitment
綠色採購 绿色采购 Green Purchasing

Yuanta has not only established a green corporate culture, built a green and friendly workplace, and actively pursued reductions in negative environmental impacts in its operations, it also recognizes that as a corporate consumer, we must also strive to be a green consumer in our own consumption, helping further raise the market share of green products.

To implement green purchasing, the Group prioritizes purchasing of products and consumables certified as environmentally friendly, energy efficient, or fuel efficient by the government. Office renovation projects are conducted primarily with green building materials.

In staff training, the Group continues to promote green purchasing and related concepts among our employees and the purchasing departments of our subsidiaries, explaining green purchasing and how to prioritize legally compliant green products, and listing out government-approved green products, including those that have received Green Mark approval from the EPA; those that are in line with our requirements for use of renewable materials, low pollution, recyclability, and resource efficiency; and other products with the same or similar functionality than others, but with greater potential to benefit society or reduce social costs. In addition, we also implement training programs for purchasing staff and share with them relevant information. In this way, we are able to maximize the benefits of green purchasing decisions with regard to our products/services.

In addition, in our purchasing and business coordination, we continue to encourage the use of environmentally labeled materials among our suppliers and promote concepts of environmental sustainability and green consumptions, getting them to work together with us on these and help create a larger market for green consumption.

In recent years, the Group has participated in the Taipei City Government’s project to promote green purchasing among private enterprise and civil groups, promoting green purchasing activities. For six consecutive years (2011-2016) we have been recognized by the Taipei City Government as setting the benchmark, and for five consecutive years, the Environmental Protection Agency of the Executive Yuan has issued certificates of appreciation for our outstanding performance in the promotion of environmental protection and implementation of green purchasing. In the future, we intend to continue building on our environmental awareness, passing the concepts on to all of our employees and doing our part to help the planet.

2016 Green Purchasing Breakdown
Unit: NTD mn
Amount Percentage
Other Eco-Label Products 20.17 51.1%
Green Sticker Products 4.92 12.4%
Green Bldg. Materials 0.23 0.6%
Eco-Friendly Consumables 0.12 0.3%
Green IT Equipment 14.07 35.6%
Green Purchasing Value by Year
Unit: NTD mn
2014
50.61
2015
103.24
2016
39.51
Note: Due to the Group’s 2015 purchase of new, environmentally friendly computers, the green purchasing figure for that year is much higher than the previous year