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Supplier Sustainability Management

Suppliers and Taiwan Mobile are jointly responsible for fulfilling corporate social responsibility and responding to the needs of stakeholders. To this end, we have established a supply chain management framework and sustainable integration strategy to manage and control potential supply chain risks in advance by integrating environment, society and governance (ESG) management, and encourage partners to work with Taiwan Mobile to promote sustainable development capabilities.

Integration Strategy of Sustainable Supply Chain

TWM has set up four key strategic objectives for supplier management, which are "excellent quality, stable service, risk control and implementation of sustainability". To implement the strategic objectives and integrate the sustainable management framework of Taiwan Mobile, the supplier management strategy focuses on the following four aspects:

Through the above mechanisms and management strategies, TWM has implemented its obligation and sustainable procurement management, and has been continuously improving and innovating to build a comprehensive and complete sustainable supply chain.

Sustainable Governance Structure

Sustainability Governance for Suppliers

In addition to formulating the related internal procurement regulations, Taiwan Mobile also strictly requires suppliers to abide by the relevant rules and regulations on corporate sustainability, as a criterion for suppliers to implement relevant business practices. The rules include: Guidelines on Corporate Social Responsibility for Suppliers, Confidentiality and Privacy, Environmental and Occupational Health and Safety Policy for Contractors, Protection of Intellectual Property Rights as well as the rewards and penalties. Among them, Guidelines on Corporate Social Responsibility for Suppliers are built on the conventions of International Labor Organization and applies to all suppliers, which cover:

  1. Human Rights and Labor Rights: including anti-discrimination, no forced labor, no child labor, working hours, pay and benefits, protection of freedom of association, and protection of the right of collective bargaining
  2. Environmental and Occupational Health and Safety : Occupational safety, occupational health, injury and disease, and occupational health
  3. Environmental management: Environmental standards for supplier process, product or service, such as toxic substances management, water and effluents management, waste management, emissions management, environmental licenses and relevant certifications, energy saving and pollution prevention
  4. Business Ethics: Fighting against corruption and unjust profits, implementing fair governance, and supporting transparent disclosure of information
  5. Sustainable procurement: Suppliers should establish sustainable procurement policies to regulate their suppliers

Classified Management of Suppliers

According to the procurement type, amount and key conditions, the suppliers are classified into six categories. In each category, the suppliers are classified into critical suppliers and general suppliers for differentiated management to ensure the appropriateness and effectiveness of the management resources.

Selection of New Suppliers

New vendors are required to pass corporate governance review, sign Declaration of Integrity Operation, pass credit financial review and on-site audit, and fill in Self-Evaluation form in ESG Performance for new suppliers. Suppliers will be qualified suppliers of the Company in the future after the suppliers implement sustainable management. Suppliers must sign the Declaration Letter for Environmental and Occupational Health and Safety Policy for Contractors when undertaking orders.

Supplier Maintenance

Through suppliers' CSR assessment and risk assessment, we can get the status of sustainable supply chain management and identify supply chain risks. Taiwan Mobile proposes differentiated improvement plans based on the evaluation results, and tracks the improvement results of partners every year. For material procurement projects, the sustainable evaluation is an important element of suppliers' tender acquisition, and the evaluation results are considered in the tender scoring.

Training Programs

  1. Procurement personnel training program: regular education and training on the internal procurement personnel is conducted to ensure the awareness and familiarity of sustainable supply chain management.
  2. Cooperative supplier education and training: organize supplier sustainability education and training, and hold annual supplier conference to praise and share high-performance suppliers.
TWM Supplier Code of Conduct
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