China Life’s suppliers are divided into three main categories: “Office Supplies and Equipment,” “Service,” “Repair & Construction.” Supplier selection are all based on China Life’s purchasing regulations. The selection process is fair, just, transparent and prioritizes suppliers with outstanding ESG performance. In 2022, China conducted 25 supplier selection. All selected suppliers meet requirement standards. The Company proactively manages suppliers ‘quality, delivery date, and pricing through transparent price negotiations, contract signing, progress discussions, acceptance testing, contract fulfillment management, etc. All suppliers are required to sign a “Supplier Sustainability Responsibility Commitment,” and any operations that involve labor safety should be in compliance with China Life safety and environment management contracting regulations.
Sustainable Supplier Management
Supplier evaluation is a crucial part to a company’s corporate sustainability risk assessment as it allows the Company to assess supplier’s dedication to sustainability. For this reason, China Life holds evaluations of key suppliers every year and strengthens corporate sustainability initiatives and promotions. The purchasing departments rate suppliers based on their evidence documents and review suppliers relevant policies and implementation status, ensuring a balance between environmental, social and governance development.
To establish a sustainability corporate culture, share sustainable development trends and knowledge, the Company has used EDMs to promote the Company’s short-, mid-, long-term ESG plans, as well as sustainable supply chain elements and values. China Life carefully selects suppliers who value ESG development as its partners and implements supplier management policies, inviting both upstream and downstream take on sustainability operation challenges.
Selection of suppliers prioritizes those with excellent ESG performance and the Company purchases products with energy-saving and environmental labels (e.g., EcoStar computers, monitors, etc.), Forest Stewardship Council (FSC) products, and vehicle suppliers of hybrid and electric vehicles to reduce environmental impact. The actual amount of green procurement in 2022 was $59.86 million, including information and photocopying paper, etc. For seven consecutive years, we have been awarded the Certificate of Appreciation for Promoting Green Procurement Programs by the Taipei City Environmental Protection Bureau, and we were awarded the Certificate of Appreciation for Promoting Green Procurement and Green Consumption by the Department of Environmental Protection of the Executive Yuan.