In addition to establishing a green corporate culture, creating a green-friendly workplace, and making efforts to reduce negative impacts on the environment in its own operations, Yuanta Financial Holding Company (FHC) also recognizes that as one of the corporate consumer groups, the issue of corporate sustainability has expanded from the Company itself to the supply chain. Companies should play an influential role in encouraging and practicing green consumption from the procurement side, helping to increase the market share of green products, and working together with suppliers to implement sustainable practices and make a contribution to environmental sustainability.
The Company has established the “Sustainable Procurement Declaration,” “Integrity Management Guidelines,” “Procedures for Integrity Management and Guidelines for Conduct,” “Yuanta Group Supplier Sustainable Procurement Guidance,” and “Guidelines of Supplier Management,” and continues to regulate suppliers with the “Integrity Commitment Statement” and “Supplier’s Terms and Conditions for Sustainable Procurement” in supplier contracts. Furthermore, each subsidiary has “Green Procurement Terms and Conditions” in its procurement regulations.
The Company continues to work on sustainability issues from our entrepreneurial nature and actively exert our influence to cooperate with suppliers, including requiring suppliers to sign Integrity Commitment Statement and Supplier’s Terms and Conditions for Sustainable Procurement, holding annual supplier conferences for sustainability-related education and training, and conducting annual supplier evaluations and human rights due diligence surveys, etc. The Yuanta Group has obtained the “ISO 20400 Sustainable Procurement Guidance” certification in 2020 to optimize the sustainable procurement process.
By strengthening the management of suppliers’ environmental and human rights issues, Yuanta Group’s philosophy of emphasizing corporate social responsibility (CSR) is implemented in the supply chain management, so as to reduce the risks posed by suppliers to the Company itself and to achieve the purpose of constructing the Yuanta Group's green supply chain in a concrete and effective manner.
In addition to pursuing our own sustainable management, we also hope to work together with our suppliers to fulfill our CSR and abide by the principle of integrity management. Starting from June 2013, suppliers who wish to enter into contracts are required to understand our integrity management principles, CSR strategies and practices in accordance with the Company’s “Procedures for Integrity Management and Guidelines for Conduct” (hereinafter, “Conduct Guidelines”), and are required to comply with the relevant integrity management terms and conditions and the regulations of the Conduct Guidelines.
Develop supplier selection criteria
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Assess supplier
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Follow-up supervision
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In order to establish a better sustainable procurement process, Yuanta FHC and its subsidiaries are actively implementing the “ISO 20400 Sustainable Procurement Guidance” to establish a better and more effective sustainable procurement process through systematic management, and have obtained the “ISO 20400 Sustainable Procurement Guidance" certification in 2020. Led by Yuanta FHC, we look forward to the further implementation of the concept of sustainability in the procurement process of all our subsidiaries.
Since November 2015, the Yuanta Group has required its major suppliers (including new suppliers) to sign the “Supplier’s Terms and Conditions for Sustainable Procurement” as set out in their procurement contracts, clearly laying out the working conditions, occupational health and 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 Yuanta Group’s determination to pursue CSR among its suppliers.
The supplier assessment not only examines the major suppliers’ compliance with the regulations on integrity management, confidentiality, personal data protection, and CSR, but also includes five major items: price, quality, service, reputation, and sustainable development, with the sustainable development assessment based on the seven core themes and 37 sustainable issues of the ISO 20400 Sustainable Procurement Guidance. Supplier assessment criteria are scored out of 100 points. If the assessment result is less than 60 points, the Company will communicate with the supplier, and if there is no improvement after the communication, the procurement contract with the supplier will be terminated.
Sustainability Standards | Risk Assessment | Communication and Improvement |
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In order to improve the implementation of human rights system by suppliers, the Company conducts annual supplier human rights due diligence and defines human rights high-risk suppliers as those that have had violations of laws, labor disputes, and labor health and safety incidents in the past three years (2017 to present). Procurement personnel will conduct on-site visits and communication with high-risk suppliers to understand their management practices on labor and health and safety issues and improvement situation in the face of incidents, in order to reduce the risk of suppliers’ human rights and to enhance the suppliers’ attention to human rights issues. If there is no improvement after communication, we will exclude the supplier from the procurement contract.
Supplier Human Rights Risk Assessment Management TableThe Company is committed to promoting sustainable corporate development, and in addition to fulfilling our own CSR, we also ask our supplier partners to do the same. Along with the annual awareness-raising and training on human rights and environmental issues at the bargaining meetings for procurement cases over NT$1 million, the Company has continued to hold annual “supplier conference” from 2019 onwards. Through continuous and deepening communication, we are working with our supplier partners to fulfill the commitment and vision of sustainability issues, and build a bridge between communication and the practice of sustainable management. Three supplier conferences were held in 2020, with 118 major suppliers participating.