Chang Hwa Bank|Corporate Social Responsibility-Supplier Management

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Supplier Management

Supplier Social Responsibility

To promote the balance of economic, social and environmental spheres and sustainable development, in addition to actively fulfilling the Bank's own corporate social responsibility, the Bank also promotes such practices among its suppliers by formulating "Corporate Social Responsibility Standards of the Supplier," which provides advocacy on several issues, including corporate social responsibility, protection of employee rights and interests (including human rights, prohibition against forced labor and child labor, and encouragement of freedom of association) as well as environmental protection (including GHG inventory and setting of carbon reduction goals). Suppliers conducting individual transactions with the Bank for procurement and construction projects exceeding NT$800 thousand are required to sign a "Supplier Social Responsibility Commitment".
To improve the sustainable procurement process, the Bank introduced the ISO 20400 Sustainable Procurement Guidance for the first time in 2020 and passed the Compliance Check of ISO 20400: 2017 in 2021.
The Bank's implementation status of supplier management is as follows:

Scope of Supply Chain

The Bank values local procurement and gives priority to local Taiwanese supply partners in procurement projects at its main business units in Taiwan. This ensures the stability and localization of the supply chain while promoting local employment opportunities and economic development.
The types of suppliers include: service suppliers, equipment suppliers and engineering subcontractors, which can be categorized into postal service, logistics, security, electronic equipment, telecommunications, office equipment, printing, property maintenance, construction and maintenance, architectural design, etc.

Policy

The Bank has formulated the "Corporate Social Responsibility Standards of the Supplier," as the Bank's principles for managing suppliers; suppliers are required to comply with relevant laws and regulations on integrity, occupational safety and health, labor rights and human rights, environmental protection, etc. In addition, "Guideline for Chang Hwa Commercial Bank Encouraging Suppliers to Carry out Corporate Social Responsibility" were promulgated and implemented in 2019.

Actions

Suppliers conducting individual transactions with the Bank for goods procurement and construction and maintenance project exceeding NT$800,000 are required to sign the "Supplier Social Responsibility Commitment" when submitting bidding documents. They are required to commit to ethical management, occupational health and safety, labor and human rights, and environmental protection, and fill out the "Supplier Corporate Social Responsibility Self-Assessment". Substantive transactions can only proceed after our review confirms legal compliance. Through collaborative relationships with suppliers, we aim to influence them to jointly fulfill corporate social responsibility.
► As of 2022, a total of 61 contracted suppliers have signed the "Supplier Social Responsibility Commitment" with the Bank, with a signing rate of 100%.
The Bank may conduct irregular visits to suppliers with a single transaction amount of more than NT$30 million, and fill out the "Visiting Report for Suppliers" based on the results of the visit to confirm the company's current status of fulfilling its corporate social responsibility. If any violation of the Supplier Social Responsibility Commitment is found, the Bank may terminate or dissolve the contract in accordance with the contract and may restrict and suspend the supplier from participating in the Bank’s goods procurement or construction and maintenance project. In 2022, due to the pandemic, no supplier visits were conducted.

Complaint Mechanism

Contact Information: (02)2536-2951 ext. 1616
Financial Industry Supplier Conference:
In support of the mid and long-term goals for the Financial Industry ESG Initiative Platform, the conference serves as a communication platform between financial institutions and suppliers, extending the principles of sustainable development to the supply chain and creating an ecosystem for sustainable development.
In 2022, Mega Financial Holdings organized the 2nd Financial Industry Supplier Conference with the theme "The Challenge of Sustainable Transformation: Towards a Net-Zero Future." The Bank invited five of its partners (including customers and suppliers) to the conference, engaging in bilateral communication and engagement along the value chain. In 2025, the Bank will host the Financial Industry Supplier Conference, joining forces with partners along the value chain to promote a robust and sustainable commercial environment.

Green Procurement

To show our emphasis on environmental protection, the Bank's procurement prioritizes eco-friendly products with eco-friendly labels, carbon footprint labels, energy-saving labels, water-saving labels, green building material labels, FSC certified labels, etc., to minimize the environmental impact of operations. The Bank's green procurement amount reached NT$25.57 million in 2022 and received "Private Enterprises and Organizations with Outstanding Green Procurement Performance" by the Department of Environmental Protection, Taipei City Government for 5 consecutive years and were recognized by the New Taipei City EPD as an "Outstanding Performer in Green Procurement" in the same year.

Taipei City EPD

"Private Enterprises and Organizations with Outstanding Green Procurement Performance" award

New Taipei City EPD

"Outstanding Performer in Green Procurement" award