Sustainable Supply Chain Management

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In 2018, SinoPac Holdings initiated the supply chain sustainability management plan and the comprehensive ESG management process was introduced in 2019, including the incorporation of ESG criteria into relevant supplier policies, supplier risk identification, supplier due diligence, and supplier engagement and communication. In 2021, the Company is set to strengthen the engagement with suppliers by offering ESG training to increase their sustainability awareness to enhance supply chain sustainability management. Since 2019, SinoPac Holdings has been conducting human right risk assessment on the entire value chain every year, and according to results for 2020 shows that the top three human right risk issues of upstream suppliers are “Health Rights”, “Ensure labor conditions”, and “Privacy”.

SinoPac Holdings also conducted due diligence on suppliers’ sustainability and communicate with suppliers with high sustainability risk to provide guidance, and the Supplier Evaluation System was established in 2020 to introduce online supplier sustainability evaluation. Additionally, the Company provided ESG education and training for 30 employees who are responsible for procurement from SinoPac Holdings and its subsidiaries. By covering topics such as sustainability and circular economy in the training, SinoPac Holdings wishes the related employees to understand the latest practices of sustainability supply chain management and discuss about the possibility of promoting circular economy in the procurement.
SinoPac Holdings will continuously enhance supply chain sustainability management. In the short-term, the Company aims to conduct regular supplier sustainability evaluation through the Supplier Evaluation System, strengthen the internal and external engagement on ESG issues, conduct on-site supplier sustainability audit, and identify suppliers with high carbon emissions. The medium-term goal is to establish ESG standards and provide ESG training for high-risk suppliers; the long-term goal is to encourage at least 20% of the suppliers in carbon-intensive industries to set carbon reduction targets. 82.5% of SinoPac Holdings ‘ suppliers signed the Supplier Corporate Social Responsibility Commitment’ in 2020, beyond the preset goal (80%), and 100% of new suppliers became the signatories. In 2021, SinoPac Holdings will continuously increase the proportion of suppliers signing the Supplier Corporate Social Responsibility Commitment and set the goal at above 85%.

Local and Green Procurement Policy and Quantitative Results

The total procurement amount of SinoPac Holdings and its subsidiaries in 2020 is NT$1.937 billion, of which the local procurement amount from domestic suppliers registered in accordance with relevant regulations in Taiwan is NT$1.9 billion, accounting for 98% of the total procurement amount. To put SDG 12 "Responsible Consumption and Production" into practice, SinoPac Holdings actively responds to Green Living and Consumption Policy promoted by the Environmental Protection Administration, which is to prioritize the purchase of products with environmental protection marks, energy conservation and water conservation marks recognized by the government in our procurement. For other eco-friendly products, SinoPac Holdings' green purchase amount reached NT$134 million in 2020, accounting for 6.9% of the total procurement amount with an 1.2% increased compared with 2019. The main purchase included eco-friendly and energy-conserving equipment, green building materials, and products with carbon footprint certifications. Notably, the Company increased the utilization rate of green building materials for renovation to 63.4%, largely exceeded the short-term target (45%). Also, SinoPac Holdings' 2020 Shareholders' Meeting Handbook and 2021 New Year's supplies (notebooks and calendars) all use FSC-certified paper to support green procurement and environmental protection products with practical actions; SinoPac Holdings was awarded the “Corporate Green Procurement Excellence Award" by Department of Environmental Protection of Taipei City Government in 2020, and Bank SinoPac also received“Corporate Green Procurement Excellence Award" from the Environmental Protection Administration of Executive Yuan.