Supplier Section

Management Strategies

To ensure consistency in quality, cost, delivery, service, environmental safety, health, and production, TCC Group has established a Supplier Management Policy Statement and Supplier Code of Conduct. These initiatives aim to collaborate with suppliers on environmental protection, human rights, and sustainable resource recycling, fulfilling social responsibility and promoting sustainable development of the supply chain.

• Sustainable supply chain management refers to the integration of environmental protection, social responsibility, labor safety and health, and circular sustainable development.

• Conducting supplier evaluation to ensure consistency in supply, quantity, delivery, service, safety, health, environment, and production requirements. 
  Guiding and improving supplier qualifications to achieve the goal of sustainable development.

• To ensure quality, quantity, and source, we avoid using illegal or unidentified raw materials. We are committed to using legally sourced materials and prioritize suppliers who emphasize waste management, restoration, and conservation.

Supplier Management

All suppliers are required to sign the Safety and Health Responsibility Commitment. The legal department regularly reviews the standard terms in supplier contracts, including ESG clauses, to ensure that the principles outlined in the CoC are effectively implemented. 

In addition, TCC obtained ISO37001 Anti-Corruption certification in 2021 and conducts annual audits of the Supply Chain Management Department to ensure compliance with business ethics, anti-money laundering, and anti-trust principles. 

Furthermore, suppliers with low evaluations, significant environmental or occupational safety and health concerns, or those who refuse to sign the commitment will not be engaged. 

Based on the cyclical audit approach of supplier evaluations, we proactively conduct unscheduled visits to suppliers and provide educational training on topics such as safety, health, and environmental education before entering the plant for construction, safe operation procedures, and workplace accident prevention.

Current environmental protection requirements and safety, health, and environmental notices are proactively communicated to suppliers, driving the comprehensive update to low-pollution transportation vehicles.

Supplier Sustainability Assessment Process

Significant Supplier differs from Critical Supplier. TCC defines significant suppliers as those who have a major impact on product quality and delivery timelines, whose procurement volume reaches a certain threshold or proportion, or those with high ESG risks. 

In addition to considering procurement volume and product irreplaceability, TCC conducts annual supplier threat impact assessments. External consultants are commissioned to inventory the ESG aspects of the following risks, which are incorporating into an evaluation list. This helps assess TCC's major supplier categories, enabling better identification and management of supply chain risks：

Annual Supplier Sustainability Assessment and Review Mechanism

Suppliers required to complete the annual sustainability self-assessment questionnaire and provide supporting documentation for each response, such as policy documents, permits, and implementation records. TCC's procurement specialists and the appointed consultant team review the responses and evaluate them based on the completeness of the answers, the credibility of supporting documentation, and compliance with the required standards.

On-site audits are conducted for selected suppliers by TCC's procurement specialists or the appointed consultant team. These audits involve interviews and spot checks of supporting documentation.

Third-party on-site audits are conducted for high-risk suppliers by TCC's procurement specialists or the appointed consultant team, along with third-party organizations. These audits involve interviews and spot checks of supporting documentation at the supplier facilities.

High-Risk Supplier Improvement and Sustainability Guidance Mechanism

Following supplier audits and risk assessments, TCC issues improvement notices to high-risk suppliers and enhances their sustainability resilience through educational training, workshops, and other initiatives.

During the improvement process for high-risk suppliers, TCC's procurement team collaborates with external consultants to provide guidance and assistance for any areas of concern.

Disclosure of Supply Chain Management and Sustainability Assessment Results

TCC's supply chain management and supplier sustainability assessment implementation results are disclosed on its official website and in the sustainability report, with the report being verified by third-party auditors.

Supplier Conference and Sustainable Partnership Incentive Mechanism

To demonstrate its commitment to supply chain sustainability management, TCC holds an annual supplier conference. In addition to suppliers who are already part of the carbon reduction pioneer, the event features awards for sustainability progress and performance, reinforcing the establishment of long-term, mutually beneficial partnerships. This year, a total of 243 suppliers participated both online and in person.

2024 Supplier Conference Implementation

Sustainable Economic Cycle

Incorporating principles of Environmental, Social, and Governance (ESG) as well as Social Responsible Investment (SRI) into company operations. 

E stands for environmental concerns, S represents considerations for society and culture, and G refers to corporate governance. 

The main environmental aspects consider biodiversity, environmental protection prevention and control, compensation and support for local indigenous people, and the preservation of cultural heritage. In social aspects, considerations include labor working conditions, work safety, and community health and safety, such as 3R resource regeneration and reuse (Reuse, Recycle, Reduce), all aimed to achieve carbon reduction, pollution reduction, regeneration, and a green supply chain. This approach contributes to creating future value, embodied in the motto: The Future is Worth It.

Five Major Management Processes for Sustainable Supply Chain

	Risk and Impact Assessment Identify Supplier ESG Risks New suppliers must sign the Supplier Code of Conduct. Conduct ESG risk identification annually 12 suppliers with potential/actual significant negative impacts
	Sustainability Performance Assessment Sustainability Self-Assessment Questionnaire Survey aspects include geopolitics, industry, and products. Number of suppliers reviewed through documentation or on-site audits in 2023：301 supplier In 2023, no third-party on-site audits were conducted as all reviewed suppliers performed better than the criteria requiring third-party on-site audits.
	Correction and Improvement Implemented improvement plans：91.86% Received support for improvement plans.：100% Tier-one key suppliers were replaced for failing to meet standards.：8.3%
	Training, Empowerment, and Collaborative Capacity Building Programs Supplier Greenhouse Gas Inventory Guidance: In 2024, workshops on greenhouse gas inventory were held in Taiwan and Mainland China to assist suppliers in implementing external greenhouse gas inventory systems and capabilities. External consultants serve as lecturers, explaining calculation methods such as identifying emission sources, techniques for collecting activity data, greenhouse gas calculations, and interpreting quantified results.   Participants are required to complete practical exercises on-site and submit their company's greenhouse gas inventory data after the course, which will be reviewed by consultants and verified according to ISO 14064-1. Greenhouse Gas / Sustainability Governance Workshop 2023 Effective Carbon Data Collection from Tier-One Critical Suppliers： 95.7% 290 suppliers participated in Capacity Building Programs, representing 54.9% of critical suppliers： 54.9%
	Supervision, Evaluation, and Mutual Learning Over 150 suppliers attended the 2023 Supplier Conference.

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