Supply Chain Overview and Supplier Screening

  • NT$ 36.2 billion in 2022 global purchases, 95.69% from local procurement
  • NT$ 1.8 billion in 2022 green procurement

In 2022, Taiwan Mobile had over 550 cooperating suppliers, categorized into six groups based on procurement type. Contract types include long-term contracts lasting three years or more (including three years), short-term contracts lasting less than three years, and contracts for special projects. These suppliers can be categorized according to industry characteristics, such as labor-intensive, technology-focused, high sensitivity to information security, and innovation-driven. Taiwan Mobile's global procurement amount in 2022 was NT$36.2 billion, with suppliers distributed in Taiwan, Asia, America, Europe, and other regions. The total amount of local procurement in Taiwan was NT$34.6 billion, accounting for 95.69% of the total procurement amount.

This year's green procurement amount is NT$1.8 billion, which is an increase from previous years. This increase is due to the procurement of telecommunication and network equipment that meets the European Union's green procurement standards, such as RoHS and WEEE.

Key suppliers According to the business relevance aspects by procurement amount and irreplaceability of the above six categories of suppliers, thresholds are set to identify key suppliers, totaling 119 as follows.

  • Key Suppliers (Tier-1): 101 suppliers provide direct services to TWM with a total amount of over NT$ 30 billion.
  • Key Suppliers (Non Tier-1): 18 suppliers provide direct services to TWM's tier-1 suppliers with critical amounts or procurement categories but are not categorized as tier-1 suppliers for TWM.
Contract type Type Number of supplier
Engineering Tier1 40
Non Tier-1 3
Marketing / Consulting Services and General Affairs Tier1 5
Non Tier-1 3
Information Services and Equipment Tier1 19
Non Tier-1 9
Telecommunications Equipment Tier1 12
Non Tier-1 3
Consumer Electronics Tier1 23
Decoration Tier1 2

Significant suppliers: Significant suppliers are suppliers that are identified as having substantial risks of negative ESG impacts and the following 3 specific risk:

Country-specific risk: Through regulatory requirements and assess the risk of supplier compliance with national regulations, including but not limited to government mandates regarding the prohibition of products from specific regions.

Sector-specific risk: Through ESG risk assessment, identify the risks faced by the supplier's industry, such as conflict materials.

Commodity-specific risk: Through product value chain analysis, identify upstream and downstream risks in the product value chain. Identify environmental pollution, energy use, and carbon emissions through life cycle analysis, review relevant data, and analyze significant risks.

Supplier Screening FY 2022
Total number of Tier-1 suppliers 556
Total number of significant suppliers in Tier-1 101
% of total spend on significant suppliers in Tier-1 87%
Total number of significant suppliers in non Tier-1 18
Total number of significant suppliers (Tier-1 and non Tier-1) 119
Supplier management system:
Taiwan Mobile has formulated relevant regulations for corporate sustainability for suppliers, and adopted ISO20400 sustainable procurement guidelines in 2023, so that procurement policies, systems and all management processes cover sustainability factors, so that sustainable operation can be fully implemented in TWM procurement process.
New Supplier Review:
Taiwan Mobile continues to implement the "New Supplier ESG Performance Self-Assessment Form" to investigate the status of ESG implementation of suppliers. All suppliers must cooperate with the ” Taiwan Mobile Corporate Social Responsibility Code “ and sign the "Integrity Business Statement", violators will terminate or terminate the cooperative relationship. In 2022, the publicity rate of corporate social responsibility matters of TWM suppliers that we cooperate with will reach 100%.
Project contractors are required to read the "Contractor Safety, Health and Environmental Protection Management Standard Operating Procedures" before signing the "Contractor Safety, Hygiene and Environmental Protection Concluding Statement", the signing rate of the 2022 annual cut-off agreement will reach 100%.
ESG risk and opportunity identification
With the assistance of the Procurement Department and the Sustainability Department, identifies internal and external stakeholders related to sustainability issues through the stakeholder and sustainable procurement benefit assessment. The significant issue matrix is then developed by analyzing the identified issues based on their significance and relevance to stakeholders' concerns. Based on the identified issues of concern and their risk levels for various vendor categories, a focused selection is made for high-risk issues in the significant issue matrix. These issues are included in the annual ESG Performance Self-Assessment Questionnaire.
Taiwan Mobile requires suppliers to self-assess ESG performance, conduct document and on-site audit, evaluate the authenticity and implementation status of self-assessment results, and further implement risk identification to produce supplier ESG assessment reports and advanced recommendations. For high-risk projects, suppliers are required to improve. TMW continues to upgrade the level of risk management through updating the content of the ESG questionnaire. In 2022, the TWM ESG questionnaire had 23 categories of sustainability-related topics. In response to the growing global attention to biodiversity issues in recent years, TWM added a biodiversity question set in 2022 to understand whether suppliers' relevant operational activities impact biodiversity.(Please refer the KPIs for Supplier Assessment and Development for more information of 2022 ESG questionnaire)