Supplier Management

In 2020, E.SUN worked with 1,430 suppliers chains include service supply chains, equipment supply chains, and project contractors; the service includes postal services, logistics, security, electronic equipment, elecommunications, furniture, civil engineering, and architectural design.

■ Implementing sustainable procurement standards

To establish a supply chain that protects the environment, human rights, safety, health and sustainable development, E.SUN implemented ISO 20400 Sustainable Procurement - Guidance to devise procurement policies in 2020. Accordingly, the bank formulated action plans and established the supplier items in need of regular supervision as well as measures to quantify performance. External audits and reviews were moreover conducted to examine whether all requirements were met. E.SUN selects qualified suppliers in accordance with the E.SUN Bank Supplier Management Guidelines, and works only with suppliers that comply with local regulations, have signed the Statement of Commitment to Human Rights and Environmental Sustainability, and adhere to the E.SUN FHC Corporate Social Responsibility Guidelines for Suppliers. The statement clearly specifies E.SUN's requirements and expectations of the supplier regarding environmental health and safety, prohibition of child labor, labor management, elimination of any form of forced labor, absence of damage to basic labor rights, basic human rights, the code of ethics, and ethical management.

In 2020, E.SUN interacted with a total of 614 suppliers, all of which complied with the ethical management clause in our Corporate Social Responsibility Self-Assessment Form for Suppliers. To enhance supplier management practices, the bank introduced the Supplier's CSR Self-Assessment Form and, according to the Supplier Visit Questionnaire, occasionally pays visits to key suppliers and record the results. The purpose of the visits is to verify the status of corporate social responsibility practices by suppliers, and the assessments cover economic, environmental, and societal dimensions as well as green management practices. Furthermore, 100% of the new suppliers added in 2020 were selected in accordance with these principles. No significant deficiency and changes were discovered.

■ Sustainable supply chain engagement

  • We require suppliers performing highly dangerous work, including subcontractors in new building projects or branch renovation projects, to comply with the Occupational Safety and Health Act. In addition, responsible persons of said suppliers and E.SUN employees must provide health and safety training for the operators involved and raise awareness against danger in order to reduce injuries in the process.
  • Ethical corporate management: Where the total purchase of goods and services exceeds NT$1.5 million in a year, E.SUN will meet with the supplier to discuss business philosophy and highlight the importance of ethical corporate management.
  • To communicate with our suppliers, E.SUN organized 60 meetings in 2020 at which the bank assisted suppliers with compliance to the E.SUN sustainable procurement standards, promoted the concept of corporate social responsibility, and E.SUN's policies of green procurement, anti-corruption and supplier management in the hope of promoting ESG awareness and ensuring the compliance with sustainable procurement standards together with our suppliers.
  • ■ Sustainable supply chain engagement

    ■ Local procurement and green procurement

    E.SUN has long adhered to the local procurement policy. As a priority, local suppliers are the main sources of goods for various types of procurements. The proportion of expenditures on local suppliers in 2020 was 95.10%. To fulfill SDG 12, "Responsible Consumption and Production", E.SUN has actively responded to the green lifestyle and consumption policy for the public promoted by the Taiwan EPA. Upholding green and eco-friendly procurement principles, the bank conducted green procurements amounting to NT$320 million in 2020, and the cumulative amount spent on green procurements has exceeded NT$1.3 billion.

    ■ Green procurement principle

    Priorily purchase and use building materials, equipment, and apparatus bearing the Green Mark or Green Building Materials Mark and complying with legal requirements.

    Priorily purchase recovered, recyclable, low pollution, energy-saving products. We refuse to purchase products that are excessively packaged, dangerous to the environment, and cannot be readily decomposed, as well as machinery and equipment with high energy demands.

    In order to facilitate modification, renovation, and redecoration for units, procurement must be standardization and consistency.

    Purchased products that can enhance customer's safety and fulfill corporate social responsibility.

    E.SUN continues to participate in the EPA's Green Procurement Program for Private Enterprises and Organizations. E.SUN has been named an outstanding benchmark organization for "Green Procurement by Private Enterprises and Organizations" by Environmental Protection Administration Executive Yuan for 10 years in a row. The goal is to facilitate an upgrade of the green industry through green procurement and improve the conditions regarding the environment as a whole. Meanwhile, we exercise our influence through purchases and sales to raise awareness of environmental conservation and green spending among business partners and encourage them to invest in the development of green products and technology (details of green products shown in 4 Sustainable Finance) in order to create opportunities in sustainability together.