In addition to creating a green corporate culture and an environmentally friendly workplace, a company shall leverage its influence from the procurement perspective to reduce the negative environmental impact of its own operations— encouraging and practicing green consumption, helping increase the market share of green products, and in collaboration with suppliers to factualize sustainability initiatives.
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.
In 2025, 100% of 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 of Goods” 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 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. For suppliers without formal contracts, the Group also communicates expectations through awareness efforts, including the Integrity Management Guidelines and Supplier Sustainable Procurement Guidance.
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
Supplier Feedback and Complaints
To safeguard stakeholders' rights to seek remedies and to continuously improve sustainable procurement practices, the Group has established a comprehensive supplier grievance mechanism, which is publicly available on its official website. Suppliers and relevant stakeholders can submit complaints— either with their names or anonymously—through the supplier feedback and grievance channel. This mechanism is open to employees, suppliers, and other stakeholders. No complaints were received from suppliers in 2025.
The Group is committed to maintaining strict confidentiality for any future cases, protecting the privacy of involved parties while ensuring fairness and impartiality throughout the investigation process.
- 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
To establish a comprehensive “sustainable procurement process,” all subsidiaries have implemented the ISO 20400 Sustainable Procurement Guidance and obtained certification, enabling them to systematically manage their sustainable procurement processes and fully integrate sustainability principles into their procurement operations.
In terms of management systems, the Group requires all subsidiaries to include the “Supplier’s Terms and Conditions for Sustainable Procurement” and “Integrity Management Terms and Conditions” in procurement contracts signed with suppliers. These contracts explicitly stipulate that suppliers must meet the Group’s screening criteria and must fully comply with all applicable laws and regulations regarding labor conditions, occupational safety and health, environmental protection, the circular economy, and labor rights. The contract also contains a clause which stipulates the contract may be terminated or canceled if suppliers violate the relevant laws and regulations.
Supplier Sustainability Risk Assessment
(1)Supplier Annual Self-Assessment
The Company continues to strengthen its sustainable supplier management. Each year, based on the results of its internal sustainable procurement risk analysis, it refines its questionnaire to assess six key areas: human rights, labor practices, fair operations, the environment, consumer issues, and organizational governance. It has also added advanced items such as significant workplace accidents and greenhouse gas inventories to comprehensively monitor supplier sustainability risks and initiatives. The results from the self-assessments are used to analyze the current risk levels of key suppliers, categorizing them into major deficiencies, general deficiencies, and legal violations.
The 2025 self-assessment questionnaire was sent to the Group’s key suppliers, including new suppliers and those rated Grade C in the previous year, for a total of 179 companies. The questionnaire response rate reached 100 percent, meeting the 2025 target.
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 an annual evaluation of major suppliers, covering: (1) The top 150 suppliers in annual transaction amounts with the Group; (2) The top five suppliers in annual transaction amounts with Yuanta subsidiaries in the previous year; and (3) New suppliers of Yuanta subsidiaries evaluated in the previous year. The evaluation is based on the seven core themes of the ISO 20400 Sustainable Procurement Guidance and other relevant international standards, with “sustainable development” included as one of the evaluation criteria.
Based on the assessment results, major suppliers are classified into three grade levels: A, B, and C (as shown in the diagram below). Grade A suppliers are commended publicly at supplier exchange conferences and selected over their competitors if they offer similar conditions during price comparison, negotiation, or supplier selection processes. Grade C suppliers will receive enhanced training and will be re-evaluated the next year for tracking purposes. The Company may refuse to do business with suppliers rated as Grade C for three consecutive years who failed to improve despite consultation and guidance. Furthermore, if a supplier is found to violate sustainable development policies resulting in considerable negative environmental and social impacts, the Group will refuse to deal with the supplier.
Note: A-Excellent; B-Qualified; C-Engaging and coaching.
Supplier Risk Control Procedures
Sustainable Supply Chain Engagement
We are committed to promoting sustainable corporate development. In addition to our own efforts, we also ask our supplier partners to fulfill corporate social responsibility. Beyond communicating our sustainability philosophy to suppliers through correspondence, the Company further advocates ESG principles and the spirit of sustainable development through supplier exchange conferences and educational training, inviting suppliers’ participation in the journey toward sustainability.
Supplier ESG Exchange Conferences
In 2025, we held three supplier ESG exchange conferences. A total of 102 major suppliers participated. Through this event, we share the concepts and practices of supply chain management and sustainable procurement and explain how to make the most of corporate social influence and actively embrace a new future of sustainability. We give recognition to Grade A suppliers with excellent sustainable performance; each year, the theme is changed to facilitate suppliers to get on board with the new trends in sustainability and the invitations are adjusted according to different themes and major suppliers.
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