Supply Chain Management Policy

For the procurement of equipment and materials, as well as the outsourcing of various projects, TCC carefully selects suppliers who demonstrate excellent performance in terms of cooperation, product quality, environmental considerations, workplace safety and cost-effectiveness. This ensures a stable supply for each power plant and meets operational requirements. All procurement-related processes are conducted in accordance with the relevant procurement procedures and authorization regulations stipulated by ISO 9001. These processes undergo verification by third-party organizations and internal audits. The Company upholds the principles of fairness and reasonableness in making procurement decisions.
 

To ensure that suppliers are well qualified, capable of completing projects on time and fulfilling their CSR, the purchasing unit issues a "New Supplier Review and Evaluation Form" and evaluates on suppliers who are participating in the procurement or outsourcing for the first time. The items of evaluation include financial status, contract performance capability, project (delivery) experience, corporate integrity, professional skills, "ISO 9001, 14001, 45001 verification", CSR commitment, environmental protection, as well as occupational safety and health. Only those with a score of 70 and above can participate in the procurement and outsourcing of TCC. In addition, to implement the human rights protection for migrant workers, the Company has added management regulations and evaluation for migrant workers to "New Supplier Review and Evaluation" and "Corporate Social Responsibility Commitment".
 

Supplier Management Structure

Implement Integrity Management Policy

In order to establish and implement integrity as a part of our corporate culture, and to prevent dishonesty, improper conduct or acceptance of improper benefits, TCC has established the following terms in the contract：
 

1. In the event of dishonest behavior, the contract may be terminated or rescinded unconditionally.
2. If one has received commissions, rebates, or other illegitimate benefits, he/she should immediately and truthfully report the action, provide relevant evidence, and cooperate with related parties for investigation.
3. If the Company suffers damage from such improper action, it may request compensation for damages.
4. Grievance Mechanism - whistleblowing procedure and channels are available.

TCC is committed to protecting the environment and prioritizing social responsibility, labor rights, workplace safety and health, and promoting sustainable development in the supply chain. When implementing supplier management, the Company not only complies with relevant laws and regulations but also urges its suppliers to adhere to related codes of conduct. For example, strict measures are in place to prohibit the employment of child labor or any violation of human rights by the suppliers.

Since 2017, TCC has requested contracted suppliers to sign the "Corporate Social Responsibility Commitment". As of 2023, the signing rate reached 95%, meeting the set target. Looking into 2024, TCC aims to achieve a signing rate of over 95% for the supplier's CSR Commitment. We will adopt a more proactive approach and work collaboratively with our suppliers to contribute to environmental sustainability.

Supplier Sustainability Performance Self-Assessment

Since 2019, TCC has required suppliers to provide self-assessment questionnaires regarding their CSR commitments. The purpose is to gain in-depth understanding of the suppliers' implementation of commitments in various aspects such as economy, society, human rights, and environment. The results of the self-assessment questionnaires serve as the basis for strengthening supplier management in the future. In 2023, the response rate for the self-assessment questionnaires reached a high of 91.3%. Moving forward, the Company will take a more proactive approach to fulfill CSR in collaboration with suppliers, aiming to enhance the effectiveness of sustainable supply chain management.
 

On-Site Audit of Supplier Sustainability Performance

Since 2019, TCC has been conducting on-site visits from time to time to important suppliers to verify the implementation status of their ESG (Environmental, Social, and Governance) practices. The assessment criteria are divided into four levels: "Compliance Items", "Items Requiring Observation", "Minor Non-compliance Items", and "Serious Non-compliance Items". A score of 70 or above in the on-site audit is considered qualified. If there are "Items Requiring Observation" or "Minor Non-compliance Items", follow-up monitoring of the improvement results is conducted regularly. In the case of "Serious Non-compliance Items", the supplier is required to develop an improvement plan to address the deficiencies. TCC not only sets deadlines for suppliers to make improvements and submit improvement reports, but also conducts periodic audits on suppliers with non-compliance items to mitigate operational risks. In 2023, all seven audited suppliers met the requirements of the CSR Commitment.

The evaluation results for 2023

The supplier evaluation of TCC focuses on the constant strengthening of supplier management. There is still a relatively small number of suppliers that are listed as unqualified suppliers. If faults are found during the performance of the contract, suppliers are immediately required to carry out remediation, propose appropriate solutions, and provide clear goals and schedule for the improvement. If suppliers are unwilling to cooperate, the breach of contract mechanism will be activated immediately. Deduction of progress payment, balance payment, performance bond or the suspension of rights will be carried out to protect the Company's greatest rights and interests.