Pre-selection:
Screening, Evaluation, and Commitment
- New and major suppliers are required to sign the "Letter of undertaking regarding sustainability for suppliers
- Conduct ESG check and transaction risk assessment for new suppliers
- Evaluate new and major suppliers based on ESG factors to understand risks related to human rights, environment, and ethical corporate management
- " Signing rate remains at 100% (since 2017)
- Completed for 21 new suppliers, accounting for 100%
- ESG compliance rate for suppliers is 100%
- Tender documents include supplier sustainability management advocacy, procurement contracts include standard clauses on ethical corporate management, ESG, and penalties
- Provided training and advocacy for new suppliers with transactions below NT$ 500,000.
- Conduct service satisfaction assessments and annual evaluation of suppliers after tender acceptance
- No suppliers were terminated or suspended due to significant ESG violations
- Completed for 16 suppliers, accounting for 100%
- Completed for 106 suppliers, with 28 rated A, 75 rated B, 3 rated C, and none rated D or E
Post: Tracking and training
- Conduct ESG due diligence for major suppliers
- On-site audits of suppliers
- Tracking improvement of suppliers penalized in the previous year
- Conduct annual evaluation of service excellence suppliers
- Held a supplier conferences, recognize service excellence suppliers, deliver ESG-themed speeches, and provide sustainability education and training
- Completed for 230 suppliers, accounting for 88.5%
- Completed for 3 suppliers
- Completed for 21 suppliers, accounting for 100%
- Held on 2025/2/11
- Held on 2025/4/22, during which awards presented to 5 service excellence suppliers
Supplier Sustainability Management
KGI Financial has established the "Procedure for suppliers sustainability" and has been promoting and continuously enhancing supplier sustainability management measures. These measures are extended from within the group to major suppliers (260 suppliers in 2024) and their subcontractors, creating a sustainable business ecosystem to promote economic, social, and environmental balance and sustainable development.
Supplier Sustainability Commitment
KGI Financial continues to invite new and major suppliers to sign the commitment, clearly stating that" To comply with our and KGI Financial’s policies in relation to corporate sustainability and code of ethics; and if it is verified that we commit any breach of policies, cause major impact on environment and society or have unethical behavior, KGI Financial may terminate or cancel the contracts between KGI Financial and us in accordance with the terms and conditions of the contracts." In 2024, no suppliers were terminated or suspended due to significant ESG violations.
Human Rights and Environmental Risk Mitigation Measures
To jointly commit to sustainable development such as labor rights protection (non-discrimination, anti-bullying, anti-harassment, personal data privacy protection), ethical corporate management (anti-corruption), environmental sustainability, and climate change resilience, we aim 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
