Sustainable Supply Chain

Sustainable Supply Chain Management

Our suppliers are mainly divided into three categories: "Office Supplies and Equipment,"“Labor Services," and "Construction." KGI Life is committed to the sustainable development of suppliers and has established the "Supplier Sustainability Management Regulations," working with suppliers to comply with relevant laws and regulations on labor rights and human rights, labor health and safety, environmental protection, and ethical corporate management, in order to drive the balanced and sustainable development of the economy, society, and environment.

Supplier evaluation

Supplier evaluation is a part of corporate sustainability risk assessment. We understand the investment of suppliers in corporate sustainability through the evaluation. Therefore, KGI Life conducts key supplier evaluations every year, and strengthens corporate sustainability initiatives and promotion at the same time. We prepared the "Supplier Sustainability Management Self-Evaluation and Supplier Evaluation Form" based on the internal "Supplier Sustainability Management Regulations." Suppliers conduct self-evaluations according to four categories, the procurement unit then gives suppliers a score based on the supporting documents provided by the supplier, which is used to examine the supplier's relevant policies and implementation status, and facilitate the balance and sustainable development of ESG.

Contractor Performance Evaluation

To properly understand the service qualifications, quality, processing deadline, cooperation of the commissioned institution, the Company conducts an Internal Audit and Control Review & Satisfaction Survey at least once every year. The results are used as basis for supplier selection and contract renewal. In May 2022, training on commissioning external organizations was held. Performance evaluation of all commissioned external organizations was completed in September. Amongst them, 18 suppliers scored an average of 90.8 (100 being maximum). The Company will select suppliers as well as renew contracts with suppliers based on the evaluation results.

Hazard Notices for Construction Contractors

We established the Contractor Safety, Health, and Environmental Management Regulations to strengthen contractors' management of safety, health, and the working environment, and thereby improve the safety of their operations. Construction contractors are selected in a fair, just, and open manner and provide price quotations for projects through the Company's "Annual Qualified Contractor Database." The Real Estate Department updates at least 10% of the annual qualified contractors every year. This ensures project quality and price competitiveness.

Personal Data Protection

As respect to the rights of individuals involved and ensure that the collection, processing and use of personal data in purchasing is handled in honesty and integrity, all purchasing involving “collection, processing, and use of personal data” will require suppliers to sign a “Supplier Personal Data Capability Evaluation Form,” ensuring that supplier has the ability to safeguard personal data.

Green Purchasing

We give priority to suppliers with excellent ESG performance when selecting suppliers, and give priority to purchasing products with energy conservation and environmental protection labels (such as computers and monitors with the Energy Star) and FSC (Forest Stewardship Council) certification. The annual company trip is planned to be eco-friendly and low carbon to achieve "green travel," and to reduce resource consumption caused by travel, transportation, or food and accommodations.
We received a letter of appreciation from the Department of Environmental Protection, Taipei City Government for "implementation of the Private Enterprise and Organization Green Procurement Promotion Project" for the 8th consecutive year, and was recognized by the Ministry of Environment for the third time for "excellence in promoting green procurement and green consumption."

Buying Power

KGI Life has supported social enterprises for years and cooperates with social enterprises in various forms. In 2023, KGI Life once again won the first prize in the "Buying Power Innovative Product and Service Procurement Incentive Mechanism." The award was established by the Ministry of Economic Affairs, Executive Yuan to encourage companies to purchase products or services from social innovation enterprises. Since the award was established in 2017, KGI Life has received this national-level recognition for seven consecutive years. We won first prize this year with a procurement amount exceeding NT$33 million, exerting the influence of our value chain. We encourage suppliers to become registered in the database of social innovation organizations, and those that registered accounted for a remarkable 45.8% of the total procurement amount. In the future, we will continue to encourage suppliers from different industries to become registered on Buying Power and provide innovative products and services to society.

In addition, KGI Life purchases coffee beans sold by the Maria Social Welfare Foundation that are "grown using eco-friendly planting methods" or "certified to be of fair price," incorporating ESG and sustainability actions into daily operations to have a greater positive influence on society, and thereby realize our commitment to become employer of choice.