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Supplier Management

The Company not only focuses on the growth of the Group's business, but also attaches importance to the control of procurement risks and the implementation of responsible procurement. We have invited suppliers to join sustainable action to create a resilient and sustainable future by promoting sustainable supply chain management. This year, 100% of new suppliers with contractual relationships met our sustainability standards. In addition, we continue to screen and evaluate new and existing suppliers according to the “Key Points for Procurement and Disposal of Goods (Labor Services)”and ESG three dimensions that was established internally. At the same time, we consider the conditions of bribery-related Judicial Yuan record, the size, professionalism and experience of the suppliers, and acquisition of international standards, etc., and also conduct terrorism financing checks on major suppliers of procurement amount of NT$25 million or more. Only those who pass the checks become qualified suppliers of the Company.

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.

Sustainable Procurement Declaration
Supplier Selection Process of the Group

Suppliers who sign contracts with us, in accordance with the company’s “Procedures for Integrity Management and Guidelines for Conduct”(hereinafter referred to as “Conduct Guidelines”), are required to comply with the terms and conditions of the “Integrity Management Guidelines” and “Conduct Guidelines”. In addition, to facilitate the evaluation of procurement contracts with suppliers, the Company conducts supplier management checks when suppliers provide their quotation.


Sustainable Supply Chain


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

Supplier Feedback and Complaints

The Company has established a comprehensive supplier feedback and complaints process to provide affected stakeholders with avenues for redress and to assist the Company in continuing to improve sustainable procurement practices. The cases will be handled with a high degree of confidentiality; the privacy of the parties involved will be protected; and, impartiality and fairness will be maintained during the investigation of the case.

  • Types of cases received by the Feedback and Complaints Channels: cases related to integrity management, labor rights, environmental protection, procurement processes, and procurement transactions.
  • Feedback and Complaints Channels: Stakeholder communication channels are available (link below)
    https://www.yuanta.com/EN/ESG/Stakeholder-Engagement/Contacts
  • The Company will encourage stakeholders to use these channels to provide feedback or concerns by engagement.
Supplier Sustainable Procurement Guidance

In order to establish a better “sustainable procurement process”, the Group's subsidiaries continued to introduce the ISO 20400 Sustainable Procurement Guidance in 2022 and obtained the certification. Through systematic management of the sustainable procurement process, we have implemented the concept of sustainability in the procurement process of all subsidiaries. In terms of management system, the Group has required subsidiaries to incorporate the "Supplier’s Terms and Conditions for Sustainable Procurement "and "Integrity Management Terms and Conditions” into the procurement contract with major suppliers. The terms and conditions specify that suppliers are to fulfill and comply with various laws and regulations of labor conditions, occupational safety and health, environmental protection, and labor human rights, etc. The contract also contains a clause which stipulates the contract may be terminated or canceled if suppliers violate the relevant laws and regulations.

Yuanta Group Supplier Sustainable Procurement Guidance
Supplier Management

The Company implement sustainable supplier management by keeping optimizing the supplier self-assessment mechanism and setting the self-assessment target standard for suppliers with annual transaction amounts reaching a specific amounts and update the self-assessment questionnaire to classify the assessment into six categories: human rights, labor practices, consumers, integrity management, environment, and health and safety. Using information collected through the self-assessment questionnaires, we analyze the current risk level of suppliers, including the presence of major deficiencies or violations, and classify them into three levels: high, medium, and low risks, so that we can effectively monitor the deficiencies of suppliers with respect to specific indicators to make sure the risk is under control.

(1) Supplier Assessment

In 2022, the self-assessment questionnaire response rate was 90.67%, which was 9.51% increase compared to 2021. The types of risk violated by suppliers were mainly human rights, labor practices and integrity management, including suppliers' lack of awareness of relevant sustainability issues and labor-related violations. In order to enhance suppliers' sustainability awareness and self-awareness, the Company advocates the supplier self-assessment mechanism through three supplier conferences held in each year, individual communications, training, and promotions. In addition, to increase the response rate and he suppliers’ awareness of sustainability, we will communicate and follow-up on the individual supplier that do not turn in the self-assessment form.

Supplier Human Rights Due Diligence Investigation Table
(2) Supplier Evaluation

The Company hopes to encourage and guide our suppliers to continuously enhance product and service quality through implementing the self-assessment mechanism, as well as developing sustainable actions. In accordance with the“Guidelines of Supplier Management”, the Procurement Department conducts evaluation once a year, and evaluates major suppliers whose annual transaction amounts reached a specific amounts. "Sustainable Development" is one of the assessment items. It is based on the seven core themes of ISO 20400 Sustainable Procurement Guidance and other relevant international standards. Based on the assessment results, major suppliers are classified into A, B and C three grade levels Note. We will give public recognition to Grade A suppliers at our supplier conferences, strengthen guidance and refinement, and re-evaluate in the next year to track Grade C suppliers.

Supplier Risk Control Procedures
Sustainability Specifications Risk Assessment Communication and Improvement
  • Supplier Integrity Management Guideline
  • Supplier Sustainable Procurement Guidance
  • Guidelines of Supplier Management
  • Supplier sustainability risk analysist
  • Supplier evaluation
  • Tracking counseling and improvement for sustainability risk analysis results
  • Supplier conferences (including education and training)

(3) Supplier Education and Training

Starting in 2019, each supplier conference also provided educational training on diverse topics to strengthen suppliers' cognition and practices on sustainability issues. The theme of our educational training in 2022 is "Net-Zero Emissions and Global Carbon Reduction Trends" which focuses on the current carbon reduction trends at home and abroad, methods of carbon footprint verification used by enterprises, and international green procurement trends. In addition, through the post-meeting questionnaires, we were able to further understand whether suppliers had fully absorbed the training contents and use the feedback as a reference for the future direction of the education and training topics.

綠色採購 绿色采购 Green Procurement

To lessen environmental impact and promote green procurement to drive a green production chain, the Group has established "Key Points for Procurement and Disposal of Goods (Labor services)" and “Guidelines of Supplier Management,” in the procurement regulations, giving priority to products with the labels of eco-friendly, energy saving, Energy Star, water conservation, green building materials, FSC sustainable forestry, and carbon reduction. Through green procurement and supplier management, we exert a green influence and support local companies that provide low-carbon and sustainable goods or services, while reducing procurement risks. The suppliers can be separated into eight categories: information (software and hardware), building construction and renovation, office equipment, consulting (labor), stationery and printing, media and advertising, gifts, and miscellaneous. The bulk of the money spent for procurement are for products in the information category. To implement environmental friendly concept, we give priority to local suppliers in our purchases; so, our purchases are mainly with local suppliers in Taiwan. The proportion of local suppliers is 97% in 2022.

Green Procurement Performance

The amount of green procurement in 2022 is NT$212,316,000, accounting for 6.51% of the total procurement amount. For the sake of the large purchase of green electricity and the replacement of information hardware equipment for green label products this year, the green procurement ratio increased by 4.71% compared with 2021. In addition, the Company continued to participate in the “Green Procurement Program for Private Enterprises and Organizations” promoted by the Taipei City Government, and actively responded to green procurement activities. The Company has been awarded by the Taipei City Government in recognition of its “outstanding performance in green procurement” for twelve consecutive years (2011-2022) and has been awarded by Taiwan’s Environmental Protection Administration of the Executive Yuan in recognition of its outstanding performance in implementing green procurement for eleven consecutive years (2012-2022).

Promoting Sustainable Procurement Internally

In 2022, four quarterly procurement meetings were held to share the key points of improvement for procurement-related audits of the Group and promote the integration of ESG and supplier management practices. Procurement personnel training is also organized during the quarterly procurement meetings in order to advocate sustainable procurement. A total of 71 persons were trained with the cumulative number of training hours reaching 569 and 100% training completion rate. Various sustainable procurement tasks have been implemented, including amending the procurement operating guidelines, adopting and advocating consistent and green procurement reporting boundaries by the Group, initiating sustainable procurement consultancy, optimizing the Group’s supplier database, and organizing supplier engagements. Through these actions, we continue to carry out supplier management and review procedures, strengthen management effectiveness, and integrate the ESG aspects with supplier management in practice. In addition, we held six "Procurement Seminars" for the Procurement Department this year, which not only enhanced the ability for joint negotiation, but also strengthened the awareness of green purchasing and promoted related auditing and improvement issues to put into practice the Group's green purchasing spirit.


Group Green Procurement Amount
Year 2020 2021 2022
Amount (NT$1000) 83,849 68,446 212,316