To deepen the root for sustainability ideas and incorporate them in our procurement practice, and to work with suppliers to take advantage of the opportunity to jointly create values, FFHC has introduced the "ISO 20400:2017 Sustainable Procurement-Guidance" since 2020, and implemented the seven core themes in our procurement practice. We completed the "Performance Assessment for ISO 20400 Sustainable Procurement-Guidance" in November 2023, and received a certificate as well as a respectable Level 4 rating. The green procurement target for 2023 was NT$80 million, and the actual procurement amount was NT$115.17 million. We have been verified as a benchmark organization for "green procurement by private enterprises and organizations" by the Taipei City Government for 9 consecutive years, in addition to honoring our green procurement commitment to the Coalition of Movers and Shakers on Sustainable Finance.

FFHC established the "Supplier Management Guidelines" as the policy and guiding principles for the management of suppliers of the Group. We require suppliers to comply with the Guidelines when signing contracts and we require suppliers to sign the "Human Rights and Environmental Sustainability Clauses" and to increase awareness. We also require subsidiaries to use site visits and audits to encourage suppliers to implement the Guidelines. The contents include basic labor rights for suppliers, environmental protection, sustainable management, and occupational safety and health regulations.

FFHC set up a 3-step supply chain management process in 2013, supplier management is used to select vendors that satisfy the spirit of sustainable development as long-term partners, including: purchasing of energy-saving equipment, purchasing and maintenance of IT equipment, construction and interior design, business-related OA equipment and landscape and environmental greening engineering. As a principle, the main procurement regions include suppliers of the place country of operations and those close to business locations. In 2023 100%＊1 of all purchasing came from local suppliers＊2 to ensure the stability and localization of the supply chain as well as reduce carbon emissions in the transportation process and create local job opportunities.

To realize an environmentally responsible business model and to actively build up green supply chains, FFHC has enhanced our supplier ESG risk management since 2022. ESG risk factors have been added to our audit items, and we also conduct investigations into suppliers from whom we spend a large amount of money purchasing goods. In March 2023, we conducted supplier GHG inventories and the negotiating meeting for climate risk management, as we guided suppliers to gradually complete their carbon footprint verification. In July, the "Supplier GHG Inventory Platform" was completed and went online. 192 information equipment, maintenance, printing and publicity vendors with more than NT$1 million in procurement amount as well as business dealings with the Company within the previous two years had been chosen. These suppliers were asked to visit the platform and fill in information pertaining to Scope 1 (gasoline consumption) and Scope 2 (electricity consumption) for GHG emissions. A total of 69 vendors have submitted their data, as we continue to push for vendors' carbon footprint verification and the formulation of carbon reduction targets, as part of our efforts to refine our supply chains' low carbon management.