Environmental Factors >
Sustainable Procurement and Supplier Management
Sustainable Procurement and Supplier Management
Sustainable Procurement
To embed the concept of sustainability in procurement practice and to work with suppliers to take advantage of the opportunity to create more value together, FFHC has introduced the "ISO 20400:2017 Sustainable Procurement-Guidance" since 2020, in addition to implementing the seven core themes in its procurement practice. In 2025, it continued to complete the "Performance Assessment for ISO 20400 Sustainable Procurement-Guidance", and received an SGS certificate as well as a highly acclaimed Level 4 rating. The green procurement target for 2025 was NT$85.55 million, while the actual procurement amount reached NT$202.329 million. In addition, the Group has been verified as a benchmark organization for "Benchmark Private Businesses and Groups in Green Purchasing" by the Taipei City Government for the eleventh consecutive year and fulfilled the green procurement commitment of the Sustainable Finance Pioneer Alliance. Furthermore, in response to the Ministry of Environment’s Guidelines for Circular Procurement, the Group gives priority to leasing rather than purchasing for applicable products and services. In 2025, products procured under the circular procurement approach included company vehicles and office equipment.
Process for Introducing the ISO 20400 : 2017 Sustainable Procurement Guidance
Supplier Sustainability Management
FFHC established the "Supplier Management Guidelines" as the policy and guiding principles for the management of suppliers of the Group. In addition to requiring suppliers to agree to comply with the relevant provisions of the Guidelines when signing contracts with Group companies, FFHC also strengthens communications and requires suppliers to sign the "Human Rights and Environmental Sustainability Clauses" undertaking. The Guidelines further require Group companies to urge suppliers to comply with the relevant provisions through on-site visits, audits and other means, covering areas including basic labor and human rights, environmental protection, ethical management, and occupational safety and health management.
of the Company's Supplier Management Guidelines.
FFHC emphasizes fairness and transparency in the procurement and tendering process, and has established three-step supply chain management procedures. Through the supplier management mechanism, FFHC screens and selects qualified vendors that align with the spirit of sustainable development to serve as long-term partners, covering 29 categories such as energy-saving products, IT equipment and maintenance, renovation and construction works, operational business-related services, landscaping and environmental greening works, etc. As a general principle, major procurement is conducted with suppliers located in the country of operation and in proximity to operating sites. In 2025, procurement for operating sites in Taiwan was 100% sourced from local Taiwanese suppliers*, so as to ensure supply chain stability and localization, reduce carbon emissions from transportation, and increase local employment opportunities.
To implement an environmentally responsible operating model and to actively build a green supply chain, FFHC has strengthened supplier ESG risk management since 2022 by adding ESG risk factor screening items and surveying suppliers with relatively larger procurement amounts. In May 2025, FFHC held a supplier engagement meeting on greenhouse gas inventory and climate risk management, guiding suppliers to progressively complete carbon inventories. FFHC also selected a total of 79 suppliers in categories such as IT equipment and maintenance, printing, and advertising-each with annual procurement amounts exceeding NT$1,000,000 and with business engagements over the past two years-to submit data through the "Supplier Greenhouse Gas Inventory Platform", and conducted scoring based on the submissions. A total of 63 suppliers received A or B ratings. In 2026, when participating in procurement tendering and when performance bonds are required upon contract signing, suppliers rated A and B will be granted 10% and 5% discounts, respectively, to encourage low-carbon management practices.
To implement an environmentally responsible operating model and to actively build a green supply chain, FFHC has strengthened supplier ESG risk management since 2022 by adding ESG risk factor screening items and surveying suppliers with relatively larger procurement amounts. In May 2025, FFHC held a supplier engagement meeting on greenhouse gas inventory and climate risk management, guiding suppliers to progressively complete carbon inventories. FFHC also selected a total of 79 suppliers in categories such as IT equipment and maintenance, printing, and advertising-each with annual procurement amounts exceeding NT$1,000,000 and with business engagements over the past two years-to submit data through the "Supplier Greenhouse Gas Inventory Platform", and conducted scoring based on the submissions. A total of 63 suppliers received A or B ratings. In 2026, when participating in procurement tendering and when performance bonds are required upon contract signing, suppliers rated A and B will be granted 10% and 5% discounts, respectively, to encourage low-carbon management practices.
*:Calculated based on the 2025 qualified supplier database list.
Interface of the Supplier GHG Inventory Platform
● - Percentage of Suppliers Assessed for Human Rights Violations and Subject to Mitigation Measures
*1:The Company compiled statistics using the number of suppliers in 2025. Among 490 suppliers, it identified 222 suppliers with human rights violation risks, including occupational safety risks associated with musculoskeletal injuries: 2 suppliers in the clothing category, 3 suppliers in the moving company category, 102 suppliers in the renovation category, 25 suppliers in the air conditioning category, 61 suppliers in the plumbing engineering category, 19 suppliers in the fire protection engineering category, 6 suppliers in the landscape engineering category, and 4 suppliers in the solar power generation engineering category.
*2:There were no cases where suppliers of the Company received penalties for violation of labor laws before signing contracts or within the contract duration and failed to make improvements. Therefore, there were no records of termination of partnerships with suppliers.
● - Three-Step Supply Chain Management Process
● - Identification of Potential Environmental and Social Impacts of Key Suppliers and the Percentage of Corrective
Actions Implemented
・Prior to tender opening in 2025, the Company had evaluated 241 key suppliers (with over NT$1 million in procurement) with respect to their potential environmental and social impacts.
・We looked into the suppliers that had been identified as having materially substantial or potentially negative impact on environment and society. We found that none of them had violated regulations pertaining to environmental protection, labor protection, or occupational safety and health.
・After evaluation and investigation, the above-mentioned suppliers were not involved in any regulatory violations in 2025. Therefore, no contracts were terminated.