Supplier Management and Green PurchasingSupplier Management and Green Purchasing

Supplier Management and Green PurchasingSupplier Management and Green 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. 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 2022, we worked with 46 suppliers and assessed 100% of the suppliers. As per the assessment results, there are 52% of the suppliers at level A (24 suppliers), 48% at level B (22), and zero at level C. 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. 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 2022, we worked with 46 suppliers and assessed 100% of the suppliers. As per the assessment results, there are 52% of the suppliers at level A (24 suppliers), 48% at level B (22), and zero at level C.

The amount of green purchases in 2022 reached $4.89 million, accounting for 8% of the total purchase amount in 2022The amount of green purchases in 2022 reached $4.89 million, accounting for 8% of the total purchase amount in 2022

In addition, 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 2022, while aiming to prioritize the purchasing of products with environmental protection, energy efficiency, water efficiency, or green building materials labels. The amount of green purchases in 2022 reached $4.89 million, accounting for 8% of the total purchase amount in 2022, an increase of 29.4% compared to 2021. We will continue to choose to work with high-quality and eco-friendly suppliers to jointly put into practice the concepts of eco-friendliness and a sustainable environment. In addition, 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 2022, while aiming to prioritize the purchasing of products with environmental protection, energy efficiency, water efficiency, or green building materials labels. The amount of green purchases in 2022 reached $4.89 million, accounting for 8% of the total purchase amount in 2022, an increase of 29.4% compared to 2021. We will continue to choose to work with high-quality and eco-friendly suppliers to jointly put into practice the concepts of eco-friendliness and a sustainable environment.