Supplier Management and Sustainable PurchasingSupplier Management and Sustainable Purchasing
HCF formulated a supplier management policy in 2020. In addition to ensuring suppliers’ quality, delivery, prices, and services, we require suppliers to follow relevant regulations in the fields of safety, environmental protection, and environmental sanitation, to improve the business performance of both parties, maintain basic human rights and labor rights, and, more importantly, fulfill corporate social responsibility.HCF formulated a supplier management policy in 2020. In addition to ensuring suppliers’ quality, delivery, prices, and services, we require suppliers to follow relevant regulations in the fields of safety, environmental protection, and environmental sanitation, to improve the business performance of both parties, maintain basic human rights and labor rights, and, more importantly, fulfill corporate social responsibility.
The process of suppliers managemetThe process of suppliers managemet
Key points of supplier assessmentKey points of supplier assessment
In addition, we conduct evaluations of the list of registered suppliers on an annual and daily basis. We classify and grade suppliers for effective management and keep abreast of the overall situation of the supply chain at every step. Our management methods include written review, inspection of daily supplier records, or on-site audit. We also manage and evaluate suppliers’ quality, work accepted, cooperation, construction site safety incidents, and ESG issues as the basis for risk management. The evaluation results are divided into three levels. The suppliers who pass the evaluation will sign the supplier commitment to commit themselves to pursuing the goal of corporate sustainable development with HFC, thereby consolidating the partnership between both parties to enhance mutual trust and growth. HFC’s suppliers are mainly in the fields of construction and repair, office furniture, network/telecommunications, air conditioners, and photocopying/office machines. We conduct a supplier assessment per year and require them to comply with government regulations on occupational safety and personnel management. In 2023, we worked with 48 suppliers and assessed 100% of the suppliers. The result of the assessment was that all suppliers were qualified; 100% of them are level A, and there are no level B or C suppliers. In addition, we conduct evaluations of the list of registered suppliers on an annual and daily basis. We classify and grade suppliers for effective management and keep abreast of the overall situation of the supply chain at every step. Our management methods include written review, inspection of daily supplier records, or on-site audit. We also manage and evaluate suppliers’ quality, work accepted, cooperation, construction site safety incidents, and ESG issues as the basis for risk management. The evaluation results are divided into three levels. The suppliers who pass the evaluation will sign the supplier commitment to commit themselves to pursuing the goal of corporate sustainable development with HFC, thereby consolidating the partnership between both parties to enhance mutual trust and growth. HFC’s suppliers are mainly in the fields of construction and repair, office furniture, network/telecommunications, air conditioners, and photocopying/office machines. We conduct a supplier assessment per year and require them to comply with government regulations on occupational safety and personnel management. In 2023, we worked with 48 suppliers and assessed 100% of the suppliers. The result of the assessment was that all suppliers were qualified; 100% of them are level A, and there are no level B or C suppliers.
Supplier assessment result in 2023Supplier assessment result in 2023
HFC adheres to the principle of locally purchasing products, parts and raw materials and working with suppliers to promote corporate sustainability, with local purchases reaching 100% in 2023, while aiming to prioritize the purchasing of green products with environmental protection, energy efficiency, water efficiency, or green building materials labels. In 2023, in response to the Company's promotion of digital transformation and bulk purchasing of information equipment, green purchasing amounted to $20.21 million, representing an increase of 313% from the previous year. HFC will continue to choose and cooperate with high-quality and environmentally friendly suppliers to jointly implement the concept of a friendly and sustainable environment. HFC adheres to the principle of locally purchasing products, parts and raw materials and working with suppliers to promote corporate sustainability, with local purchases reaching 100% in 2023, while aiming to prioritize the purchasing of green products with environmental protection, energy efficiency, water efficiency, or green building materials labels. In 2023, in response to the Company's promotion of digital transformation and bulk purchasing of information equipment, green purchasing amounted to $20.21 million, representing an increase of 313% from the previous year. HFC will continue to choose and cooperate with high-quality and environmentally friendly suppliers to jointly implement the concept of a friendly and sustainable environment.