Taiwan Mobile has built a sustainable supply chain management system through innovative activities, integrated three aspects of environment, society and governance (ESG), systematically managed suppliers, and established seven management priorities:
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 |
Suppliers need to fill out the CSR self-assessment form for review to help TWM identify the risks of individual vendors and the overall supply chain sustainability, keep abreast the current status of supply chain sustainability management, and further propose differentiated improvement plans to track the improvement results of partner vendors every year. TWM started conducting a carbon inventory review in 2019 to further understand carbon emissions of the supply chain, which is used for reference when formulating the supply chain carbon reduction system. |
Threshold for major tenders |
TWM has officially listed the quantitative ESG score as the supplier’s major bidding threshold since 2019. The Company hopes to enhance management measures of suppliers through procurement, as well as encouraging suppliers to be proactive through the requirements of sustainable performance evaluation in response to TWM's sustainable actions. Both new and existing suppliers must reach a certain sustainable performance threshold before they can participate in TWM's major bids. |
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 starts to train suppliers on greenhouse gas and carbon management issues from 2018, continues to coach partners on taking comprehensive inventories of greenhouse gas emission sources and improving the quality of the inventory data, while also deepening their awareness of the impact of carbon emissions from the supply chain. In 2021, TWM completed 2020 carbon emissions inventories for 137 critical Tier-1 suppliers and on-site audits of 12 suppliers.
The 2020 inventory result is the base year for TWM to set its greenhouse gas reduction plan. The major supply chain emissions of TWM are transportation logistics and information service suppliers. The main negotiation suppliers are identified according to their emissions, and reduction targets and suggested strategies will be designed for each supplier's industrial category to jointly promote suppliers' carbon reduction, so as to achieve the 20% reduction target of supply chain carbon emissions in 2030.
Top 10 Key Suppliers |
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Top 30 Important Negotiation Suppliers |
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