Pre-selection:
Screening, Assessment and Commitment
- New and major suppliers are required to sign the "Letter of Undertaking regarding Sustainability for Suppliers," and the Company continuously promotes the "Supplier Sustainability Management Guidelines."
- Conduct ESG screening and transaction risk assessment for new suppliers.
- Conduct annual evaluations of new and major suppliers based on ESG factors to assess risks related to human rights, environment, and ethical corporate management, and promotes awareness and mitigation.
- The signing rate has remained at 100% since 2017.
- Completed for 46 new suppliers, with a 100% ESG screening rate.
- 287 new and major suppliers, with the ESG compliance rate maintained at 100% since 2017.
- Both tender documents and procurement system orders include the "Supplier Sustainability Management Guidelines." Procurement contracts include standard clauses on ethical corporate management, ESG requirements, and penalties.
- To expand the sustainable management promotion, the Company continues to conduct training for new suppliers with transaction amounts below TWD 500,000.
- Supplier service satisfaction assessments and annual evaluations are conducted after tender acceptance.
- No suppliers were terminated or suspended due to poor service/performance, significant ESG violations, or other serious circumstances.
- Completed for 18 suppliers, with a 100% training rate.
- Completed for 112 suppliers, with 24 rated A, 81 rated B, and 7 rated C; none rated D or E. The overall average score was 4.29, consistent with 2024.
Post: Tracking and Audit
- Conducted ESG due diligence on major suppliers.
- On-site audits of suppliers.
- Tracking the improvement of suppliers penalized in the previous year.
- Conducted annual evaluation of service excellence suppliers.
- Held a supplier conference to recognize outstanding service suppliers, deliver a keynote speech focused on the shared task of sustainable development between ourselves and our suppliers, and provide sustainability education and advocacy.
- Completed for 253 suppliers, accounting for 88.2%. The Company has continuously improved the due diligence checklist and online training on risk identification and sustainable development.
- The Company has completed on-site audits of 3 major suppliers and continuously improved the on-site audit record.
- 15 suppliers were penalized in 2024, with a 100% improvement tracking rate.
- The annual evaluation was conducted on 26 Feb. 2026, with 5 service excellence suppliers selected.
- Supplier Conference was held on 17 Apr. 2026 to promote sustainability and implementation, awarding 5 service excellence suppliers. A keynote speech on the theme of "AI & ESG Twin Transformation and Supply Chain Management" was delivered.
Supplier Sustainable Management
KGI Financial has long promoted, advocated, and continuously improved sustainable management and practices among its suppliers. This effort extends from within the Group to its major suppliers, including contractors and their subcontractors, fostering a sustainable ecosystem within KGI Financial Group to facilitate balanced and sustainable development across economic, social, environment.
Supplier Sustainability Commitment
KGI Financial continues to invite new and major suppliers to sign the commitment, clearly stating that “If the undersigned violates the contents of this commitment, and it is verified to have caused significant impact on the environment and society or committed major acts of dishonesty, the Company may terminate/rescind the contract, claim damages as stipulated, suspend transactions, or take other management measures as provided in the contract.” The Company also continues to promote sustainability awareness among its suppliers.
Human Rights and Environmental Risk Mitigation Measures
To jointly promote the practice of sustainable development in labor rights protection (no discrimination, anti-bullying, and anti-harassment, personal data / privacy protection and cybersecurity), ethical corporate management (anti-corruption, fair trade), environmental sustainability, and climate change resilience among our suppliers, we aim to reduce human rights, environmental, and climate change impacts. In order to understand the potential human rights and environmental risks of suppliers, risk assessments and mitigation measures have been implemented. construction and repair suppliers exhibit higher potential human rights and environmental risks, and additional risk mitigation measures have been adopted. The Company will regularly evaluate and track these measures.
