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  • The Company sources three main types of items: office supplies and equipment, labor, as well as construction and repairs. We follow Company procurement regulations, and use fair, just, and transparent methods to choose suppliers, including prioritizing suppliers that have excellent ESG performance. We require all suppliers to sign the “Supplier corporate social responsibility commitment.” We manage product quality, delivery time, and prices using open bidding, contract signing, progress discussion, inspection and acceptance, and management of contractual terms. All suppliers must adhere to the Company’s “Contractor Safety, Health, and Environmental Management Guidelines” in matters related to occupational safety and health.

    Supply chain management policy

    Management of Sustainable Suppliers

    Every year China Life evaluates key suppliers. Using “Rules governing vendor corporate social responsibility” as a reference, we formulated a “Corporate social responsibility self-assessment and vendor evaluation checklist,” which we use to assess supplier’s promotion of and progress in implementing “labor rights and human rights,” “labor health and safety,” ” environmental protection,” and “CSR.” Sustainable development serves as a foundation for us to create positive cycles with shared benefits. By jointly practicing CSR, we promote a balanced ESG ecosystem and support sustainable development.

    In 2020, we conducted sustainability audits on 12 key suppliers to contribute towards our sustainable supply chain management mechanisms. The audits include self-assessments on CSR progress, in which suppliers explain implementation status in the “evidence” field of the self-assessment table, and provide relevant attachments, such as policy documents or copies of certifications, when specific requests are made.

    Supplier Annual Evaluation Scoring Standards and Results

    Annual Evaluation Tiers Scoring Standard No. of Suppliers, 2020
    A 100-91 points 2
    B 90-81 points 10
    C 80-71 points 0
    D 70-61 points 0
    E 60 or fewer points 0

    Occupational safety and health

    For occupational safety and health issues, as well as related laws and regulations, suppliers must adhere to the Company’s “Contractor Safety, Health, and Environmental Management Guidelines.” To effectively manage suppliers, “Articles Governing CSR and Ethical Management” is added to all procurement contracts. All suppliers that have signed procurement contracts and have transactions with the Company must adhere to CSR and ethical management principles, including environmental protection, labor conditions, occupational safety and health, and worker rights. Suppliers must alsosign the “Supplier CSR Commitment.” Prior to carrying out business transactions with suppliers, we evaluate whether they are stakeholders, or have any money laundering or terrorist financing concerns. By first confirming that the business transaction adheres to laws and regulations, we prevent relevant risks.

     

    Hazard Notifications by Construction and Repair Contractors

    To adhere to Article 26 of the “Occupational Safety and Health Act,” which requires informing contractors of hazardous elements in the work environment and related measures, the Company established the “Safety, Health, and Environmental Management Guidelines for Contractors.” The Guidelines raise contractors' awareness of hazards in the workplace as well as any safety or health management oversights, ensuring that all work is carried out safely and the work environment is properly managed. We also confirm that contractors possess all the information they need to ensure and improve work safety. Thus far, our construction and repair contractors did not have any workplace injuries.

    Construction and repair contractors are selected using fair, just, and transparent methods. We prioritize suppliers in our annually approved supplier database. Quotations can also be accepted from contractors that previously worked with the Company or one of our affiliated companies, or that have excellent reputation. Each year, the Facility Service Department shall revise at least 10% of the annually approved supplier database to ensure construction quality and maintain competitive pricing. Following reevaluation, in 2020 there were 92 approved contractors, 22 of which were newly approved.

    Personal Information Protection

    To protect the rights and interests of our customers, we carefully monitor how personal information is collected, managed, and used, ensuring ethical and trustworthy data processing. Entrusted suppliers that collect, manage, or use personal information shall sign the “Supplier’s Personal Information Protection Evaluation Form” to confirm that they have the capacity to protect personal information. In 2020, 32 suppliers signed the “Supplier’s Personal Information Protection Evaluation Form”

    Performance Evaluation of Commissioned Organizations

    In order to understand the service qualifications, quality, limitations, and compatibility of the organizations that we commission, China Life carries out at least one internal inspection and satisfaction survey each year. Results are used as a reference when selecting suppliers and evaluating contract renewals. In 2020, we carried out outsourcing process training, and renewed the contracts of 15 of our contractors that received an average performance rating of 89.8 (out of 100).

    Green Procurement Policy

    To carry out our philosophy of sustainable management, we treat suppliers as cooperative partners. To keep our supply chain stable, maintain long-term operations, and adopt a local manufacturing model, 98.28% of our procurement amount were paid to local suppliers. In the future, we will continue to increase the proportion of local suppliers. In addition, when carrying out procurements, we prioritize suppliers with excellent ESG performance, and products that have Energy Label, Green Mark, or Forest Stewardship Council certification. These measures ensure that we use products that are low polluting, recyclable, and resource-saving; reducing our environmental impact and promoting sustainable development.

    In 2020, our green procurement totaled at NT$32.94 million. For the first time, the Environmental Protection Administration recognized us for excellence in green procurement and green consumption promotion. For the fifth consecutive year, the Department of Environmental Protection, Taipei City Government, recognized us for excellence in green procurement by a private enterprise or group.