1. Necessary Items for Green Procurement
- Server, PC, NB, monitor and other equipment that fully adopted Energy Star or green mark label.
- Photocopying paper that are all paper products with FSC, PEFC and other green mark label.
- Leased photocopiers and their toner cartridges of assorted colors, and drum cartridges, and purchased printer toner cartridges with green mark label.
2. Priority Items for Green Procurement
- Leasing vehicles with green mark label, and products with carbon reduction label for services.
- Priority given to green building materials and water-saving labels for interior projects.
- Priority given to equipment or electronic appliances with green mark label, energy conservation mark or energy star.
- Priority given to the consideration and incentive for suppliers or products and services acquiring energy conservation and carbon reduction related ISO certification (ISO 14001 environmental certification items, ISO 50001 energy management certification, ISO 14067 products carbon footprint certification, and ISO 14064 GHG inventory and verification.)
- The 2022 CDF green procurement goal was NTD135 million (up 3% compared with the NTD131 million in 2019). The 2022 green procurement was NTD439 million, and meeting expectation
- CDF and KL awarded by Taipei City Department of Environmental Protection with Green Procurement award, green procurement award from EPA, and MOEA Buying Power Award
Keep 80% of or more suppliers as local suppliers.
Local supplier ratio 97.32% (compatible compared with the 98.43 in 2021)
- New suppliers with first-time transaction in the amount over NTD500,000 will be required to sign the “Supplier Sustainability Responsibility Commitment.”
- Check if the company engages in environmental hazardous situations, labor penalty, listed on the government procurement blacklist, and if the stakeholder of CDF, in addition to query for any green mark or ISO certification.
- New supplier shall be proposed by department in need, which shall be checked and evaluated by the applicant and secondary reviewer with signature. The procurement department shall retain the application documents, and evaluation and approval records.
- In 2021, Green procurement amounted to NT$ 180.26 Million. Received the “Green Procurement Certificate” issued by EPA for 3 consecutive years, and the “Green Procurement Program for Private and Organizations” issued by the Taipei City Department of Environmental Protection for 4 consecutive years
- The National Green Life Information Platform responds to green office, which is approved by the Environmental Protection Administration in May 17, 2021, and will be expired in May 17, 2024
- In 2021, the evaluation score of “Corporate Commitment”, a related indicator of the “CommonWealth ESG Award”, has increased for three consecutive years
Maintain the proportion of local suppliers above 80%
Since 2016, the proportion of procurement amount of local suppliers has been counted, and in 2017, the proportion of procurement amount of local suppliers should reach more than 80%.
Formulated a "Supplier Guidelines to Sustainability." Local purchases with supplier due diligence reached 98.4% in total amount spent.
When adding new suppliers, in addition to considering their professional quality and performance, CDF will also check whether they have records of environmental hazards or labor penalties.
- Prerequisites
- Purchase Energy Star or eco-label certified servers, PCs, NBs, and monitors.
- Purchase FSC and PEFC-certified photocopy paper only.
- Use eco-label certified leased printers and toner cartridges, drum units, and purchased printers and toner cartridges only.
- Priorities
- Rent eco-label certified corporate vehicles and prioritize low-carbon-labeled products.
- Prioritize eco-friendly and water-saving building materials for construction projects.
- Prioritize energy-saving or eco-label or Energy Star certified equipment and electrical equipment.
- CDF and China Life Insurance were selected by the Department of Environmental Protection, Taipei City Government as "the top private firm and group in green procurement" for a third and fifth consecutive year, respectively, in 2020.
- CDF and China Life Insurance were selected by the Environmental Protection Administration, Executive Yuan as "the top private firm and group in green procurement in 2019" for a second consecutive year and the first year, respectively, in 2020.
- The Group increased the amount of green procurement to NT$188.55 million in 2020, a 43.8% increase vs. 2019. Of the total green procurement, NT$83.73 million was granted a total of 20 eco-labels by the Environmental Protection Administration.
1. Rent eco-label certified corporate vehicles and prioritize low-carbon-labeled products
2. Prioritize eco-friendly and water-saving building materials for construction projects
3. Prioritize energy-saving or eco-label or Energy Star-certified equipment and electrical equipment
1. In 2019, the Group received the green procurement award from the Environmental Protection Administration for achievements in 2018 and the green procurement award from the Department of Environmental Protection, Taipei City Government, for achievements in 2019.
2. The Group increased the amount of green procurement to NT$131.11 million in 2019, a 61.8% increase in comparison to 2018. Of the total green procurement, NT$102.76 million (78.4%) received 20 environmental labels from the Environmental Protection Administration.
- Green procurement increased to NT$54.07mn, up 5.6% YoY
- Received the Green Procurement Award by Department of Environmental Protection of Taipei City Government
Supplier Management
The Group has continued to strengthen the coverage of procurement internal control operations and external supplier management, formulated the "Procedures for Supplier's Sustainability", and continued to enhance supplier management measures, through measures such as prior screening, performance management, on-site audit, supplier annual evaluation and annual self-assessment, irregular handling of supplier corporate responsibility advocacy and annual praise of excellent suppliers, etc., based on the professional quality of suppliers and licenses/certificates, actual performance, friendly environment, supplier human rights issues and climate change... And invite them to sign the "Letter of Undertaking regarding Sustainability for Suppliers", agree to comply with the relevant provisions of labor rights and human rights (including the prohibition of child labor), labor health and occupational safety and health, environmental protection and integrity management ethics, etc., so as to promote the balance and sustainable development of the economy, society and the environment.
In accordance with the requirements of the contract, we will supervise and manage to avoid significant negative impacts on the environment and society, and fulfill our sustainability. If there is a violation that has a significant impact on environmental, social and labor human rights, etc., and the improvement is not improved or incomplete after the deadline for improvement, the Group may terminate or terminate its contract, fine or suspension at any time, and if the circumstances are serious, and be removed from the list of qualified suppliers, etc.In 2022, CDF has a total of 125 new suppliers, and all new suppliers 100% are required to complete data check and transaction risk assessment. The inspection and content of evaluation includes professional quality, In 2022, only 1 supplier was penalized for environmental hazards, which was convenience store in violation of Waste Disposal Act and fined by New Taipei City Government Department of Environmental Protection in the amount of NTD$4,800, facts clarified and improved, and no improvement was required. In 2022, there were 21 supplies penalized for labor hazards and CDF only found one channel company petitioned after tracking. The rest 20 suppliers have agreed to improve and draft the tracking plan. In 2022, the principal suppliers of CDF did not have any violation of material environmental hazard or labor human rights with suspension of right, termination or cancellation of cooperation.
The aforementioned new suppliers and principal suppliers of CDF have signed “Letter of Undertaking regarding Sustainability for Suppliers” with 100%. The content has stipulated “The Undersigned hereby agrees to comply with its own and CDF' corporate sustainable development and ethical management policy. Any violation or significant impact or material unethical conduct on the environment or society that have been investigated to be true, the undersigned shall agree for CDF to terminate or cancel the contract according to the contract.” Moreover, the annual ESG educational training, ESG self-evaluation for, improvement by specified date, right suspension (suspension of transaction) by group companies, and contract termination and cancellation will avoid the negative impact caused by supplier on the environment, labor human right and society.
