Working Together to Realize Sustainability and Jointly Build an ESG Supply Chain
As a state-owned enterprise and the largest electricity provider in Taiwan, Taipower has long been committed to corporate sustainability. While fulfilling its social responsibilities, it also continues to cooperate with national sustainability policies and to respond to national sustainability trends, in hopes of driving the power equipment industry chain towards sustainability. Starting from 2023, Taipower will officially include supply chains in the scope of its sustainability management. The Materials Department will serve as a demonstration unit and company-level materials will be a demonstration subject for upgrading supply chain management to sustainable supply chain management.
Quality Commitment
Taipower's greatest responsibility and obligation is ensuring the availability of a stable power supply. The quality of power equipment provided by suppliers is one of the key elements in ensuring a stable power supply. The Materials Department conducts a re-evaluation of qualified suppliers every three years. The re-evaluation process makes reference to the ISO 9001 quality management system, and integrates 4 inspection services to ensure that the supplier's quality, cost, delivery, and service (QCDS) comply with Taipower standards.
Material Suppliers' Conference
Taipower held a materials supplier conference on October 3, 2023. Executives were invited from the Taiwan Electric Wire & Cable Industries Association, the Taiwan Electrical and Electronic Manufacturers' Association, and 30 key equipment (cables, transformers, switches) suppliers to exchange and share sustainability trends, concepts of sustainable supply chain management, and future implementation plans, building a consensus and gaining more inspiration to support sustainable development actions, and jointly start a new chapter of ESG.
Internal Training
Starting in June 2023, Taipower organized internal sustainable supply chain training, supply chain lifecycle workshops, workshops on material topics and stakeholder identification for procurements, supplier sustainability questionnaire briefings, supplier sustainability review training, experience exchange meetings after reviews, and explanations of sustainability risk assessments. The purpose is to improve employee understanding and operational capabilities of sustainability issues, in hopes of working with suppliers on the road to a sustainable transition the future.
Sustainability Vision
Stability, resilience, and sustainability are Taipower's new expectations for its own supply chain management. As of 2023, Taipower has signed supply chain digital collaboration contracts with 6 banks, including Taipei Fubon Bank, Mega Bank, Bank of Taiwan, Chang Hwa Bank, Taiwan Business Bank, and the Land Bank. The total contract amount of supply chain financing is approximately NT$1.78 billion. This will strengthen financial support for suppliers. At the same time, Taipower began to implement supplier ESG management for company-level materials on a trial basis, learned about patterns of the material supply chain starting from procurement analysis, upgraded QCDS to QCDSS (C-carbon and cost, S-sustainability), and hopes to lead smaller companies to enhance the capabilities of supply chain partners, jointly developing an eco-friendly and socially responsible supply chain.
Future Implementation Plan
There are three major goals for promoting sustainability in the material supply chain:
 |
Support the government’s policies of net-zero emissions and large enterprises leading small enterprises |
 |
Manage supply chain ESG risks to ensure a stable power supply |
 |
Realize Taipower’s sustainability vision and corporate social responsibilities |
Under these three major goals, and based on the trial-basis performance of the Material’s Department’s sustainable supply chain management initiatives, the following measures will be implemented in the future:
- Expand the scope of supplier ESG reviews in phases, actively guide suppliers to improve their core capabilities, and reduce the risk of business suspension.
- Establish a supplier sustainability review and risk assessment process that is suitable for Taipower, and set it as an internal standard.
- Raise ESG requirements for suppliers according to the latest sustainability issues and trends, and step up ESG management in the supply chain.
- Continue to improve employee understanding of sustainability and management capabilities through internal training.
- Continue to organize supplier engagement activities to enhance exchanges with suppliers and influence them.
- Use digital management platforms to improve the efficiency and results of supplier sustainability management.