Supplier Management : Taiwan Business Bank

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Sustainability

Environment

Supplier Management

Supplier Management Management Measures Green Procurement

Supplier Management

TBB suppliers include equipment and service providers and construction contractors. Service items include printers, electronic equipment, telecommunications, security, insurance, building design, and operational water and electricity. TBB’s procurement expenditures engage 99.8% from local suppliers to support the local economy, save energy and procurement time, and reduce the impact on the environment. The Bank’s procurement projects are handled through bidding or price comparison, and are all announced on the Bank’s website.

Supplier Management Regulations: In December 2020, the Bank formulated the "Supplier Management Regulations" and published them on the official website.The contents of the Regulations include basic labor rights, occupational safety and health, environmental protection, social welfare protection, ethical operation and disclosure of corporate social responsibility information, so as to guide suppliers to jointly promote the sustainable development of economy, environment and society. In addition to requiring suppliers who sign contracts with the Bank to comply with these Regulations, the purchase contract also contains the terms of ethical operation and social responsibility.

To reinforce supplier management, the Bank issued the "Implementation Plan for Supplier Management Regulations" in 2022 according to the 3 stages of procurement and investment process: Pre-Procurement Assessment , Mid-term management, and Post-Guidance (as shown in the table below), strengthening the communication with suppliers, and evaluating specific measures of counseling and rewards, with an aim to promote suppliers to take practical actions to implement ESG related issues and jointly reduce the impact of supply chains on the environment.

Management Measures

Pre-Procurement Assessment

Corporate Social Responsibility Self-Assessment:

Bidders should complete the “Corporate Social Responsibility Self-Assessment Form” to facilitate their understanding of corporate social responsibility and ESG practices and for the Bank to assess their current ESG performance.

Corporate Social Responsibility Self-Assessment Form

Joint Commitment

Bidders should sign the “Statement of Commitment to Human Rights and Environmental Sustainability” to fulfill their corporate social responsibility.

Statement of Commitment to Human Rights and Environmental Sustainability

Mid-term management

Energy Conservation and Environmental Protection Education and Training

Personnel involved in energy management, operation, maintenance, and major energy equipment should receive education or training during the contract period, covering topics such as energy management and environmental protection.

Energy performance evaluation of purchased goods

Suppliers are required to complete the ‘’Supplier Energy Performance Evaluation Form’’ in order to achieve the energy saving and carbon reduction.

ESG review

Legal Violation：Before entering into a contract, TBB will make inquiries whether the supplier violated any regulations of the Environmental Protection Administration or the Ministry of Labor or was subject to disciplinary action.
Anti-money laundering and information security：Before entering into a contract, TBB will verify that the supplier is not on the AML and information security blacklists.

Periodic Audits

For procurement cases with a delivery period, service period, or construction period exceeding one year, the Bank will review annually whether the supplier has violated any regulations or received penalties from the Environmental Protection Administration and the Ministry of Labor ,as well as any incidents related to money laundering and terrorism financing.
If a supplier engages in unethical behavior or violates environmental, occupational safety and health, or labor rights, they must submit relevant improvement documents to the Bank within three months of receiving written notice. Failure to submit the required improvement documents within the specified period may result in the supplier’s disqualification from participating in bidding for one year.

Rewarding carbon reducing businesses

Suppliers are rewarded for obtaining third party certification of ISO50001 energy management system.

Post-Guidance

Supplier meeting

Supplier meetings are held as needed to bring everyone together to promote corporate sustainability and environmental protection and encourage suppliers to fulfill their social responsibility.

Recognition of outstanding suppliers

Suppliers who fulfill their social responsibility, environmental sustainability, occupational health and safety, and respect for workers’ rights and have achieved good results will, after approved by the department, be recognized and rewarded with an outstanding supplier certificate.

Percentage of suppliers assessed for violation of environmental or social requirements and identified for negative impact

Item	2021	2022
Percentage of new suppliers undergone CSR assessment	100%	100%
Number/Percentage of existing suppliers undergone CSR assessment	-	20 / 15%
Number/Percentage of existing suppliers identified with major or potential negative impact	-	2 / 10%