Amount of green procurement up 5% compared with 2022
Increase green procurement items and coverage, participate in government agency or external screening
1. Green procurement amounted to NT$360 million in 2023, which was better than expected. 2023 green procurement accounted for about 19.8% of the total amount of green procurement, which is a slight increase compared with 17.3% in 2022.
2. KGI Financial continuous awarded by Taipei City Department of Environmental Protection with Green Procurement award, green procurement award from MOENV, and MOEA Buying Power Award.
98.7% share of local suppliers, a slight increase from 97.3% in 2022.
Routinely conduct supplier evaluation and recognize best supplier implementing corporate sustainability
Conduct annual supplier evaluation to evaluate the overall performance of suppliers in three stages.
Evaluated a total of 110 suppliers, including 4 Grade-A (best) companies, 93 Grade-B (better) companies, 13 Grade-C (average) companies, and no Grade-D or Grade-E companies.
Supplier Management
The Group has continued to strengthen the coverage of procurement internal control operations and external supplier management, formulated the "Procedures for Supplier's Sustainability", and continued to enhance supplier management measures, through measures such as prior screening, performance management, on-site audit, supplier annual evaluation and annual self-assessment, irregular handling of supplier corporate responsibility advocacy and annual praise of excellent suppliers, etc., based on the professional quality of suppliers and licenses/certificates, actual performance, friendly environment, supplier human rights issues and climate change... And invite them to sign the "Letter of Undertaking regarding Sustainability for Suppliers", agree to comply with the relevant provisions of labor rights and human rights (including the prohibition of child labor), labor health and occupational safety and health, environmental protection and integrity management ethics, etc., so as to promote the balance and sustainable development of the economy, society and the environment.
In accordance with the requirements of the contract, we will supervise and manage to avoid significant negative impacts on the environment and society, and fulfill our sustainability. If there is a violation that has a significant impact on environmental, social and labor human rights, etc., and the improvement is not improved or incomplete after the deadline for improvement, the Group may terminate or terminate its contract, fine or suspension at any time, and if the circumstances are serious, and be removed from the list of qualified suppliers, etc.
The aforementioned new suppliers and principal suppliers of KGI Financial have signed “Letter of Undertaking regarding Sustainability for Suppliers” with 100%. The content has stipulated “The Undersigned hereby agrees to comply with its own and KGI Financial' corporate sustainable development and ethical management policy. Any violation or significant impact or material unethical conduct on the environment or society that have been investigated to be true, the undersigned shall agree for KGI Financial to terminate or cancel the contract according to the contract.” Moreover, the annual ESG educational training, ESG self-evaluation for, improvement by specified date, right suspension (suspension of transaction) by group companies, and contract termination and cancellation will avoid the negative impact caused by supplier on the environment, labor human right and society.
