Supply Chain Management

Evaluation and assessment of suppliers and contractors

Each year, the Company conducts evaluations and assessments of suppliers and contractors based on the "Contractor and Supplier Evaluation and Assessment Procedures." In principle, the results of these evaluations and assessments are compiled into a report every two years and submitted to the responsible authorities for review. In cases of serious violations (including occupational safety and environmental violations) that result in losses to the Company, the responsible authorities may approve suspension of the contractor's rights, with severe cases potentially leading to indefinite suspension.

Supplier and Contractor Evaluation

Any new contractors or suppliers wishing to engage with the Company must undergo evaluation by the Procurement Department, provided they meet the eligibility criteria under the “Contractor and Supplier Evaluation and Assessment Procedures.” Evaluation items vary depending on the nature of work but generally include business management, quality control, equipment capability, and environmental, health, and energy (EHE) management. In 2024, four new vendors met the criteria (Contractor and Supplier Evaluation and Assessment Procedures) and achieved a 100% pass rate.

Assessment of Suppliers and Contractors

For existing contractors or suppliers that meet the assessment criteria under the “Contractor and Supplier Evaluation and Assessment Procedures,” evaluations are conducted by the requesting departments. Assessment items vary by work type and typically include material or service quality, schedule control, occupational safety and environmental protection, on-site management, penalty or violation records, incidents of injury or environmental pollution, transportation safety, and collaboration. In 2024, a total of 92 vendors were evaluated, all of whom passed the Procedures, resulting in a 100% pass rate.