2024 Performance Highlights (G)

• In 2024, the Company set targets for the proportion of procurement projects evaluated (or reviewed) with CSR scoring criteria: 50% for headquarters and 20% for branch offices. Both the headquarters and all branch offices achieved their respective targets, and continuous efforts will be made. (Headquarters:100%, Keelung Branch: 53.8%, Taichung Branch: 67.6%, Kaohsiung Branch: 75%, Hualien Branch: 100%)
• 100% of information service suppliers signed confidentiality agreements before contract execution, while100% of team members signed confidentiality consent.
• 100% compliance achieved in audits of information service suppliers.
• No cybersecurity incidents caused by suppliers occurred in 2024.

Comply with the SDGs

• SDG12【SDG12.6；SDG12.7；SDG12.8】
• SDG17【SDG17.16；SDG17.17】

Management Policy

Covered material topics

• Supplier Management

Policy

• Supplier Survey

Management Evaluation System

• Supplier Survey

Supplier Survey

The selection of suppliers by the Company is based on the Government Procurement Act . In addition, the following documents outline the procedures and requirements for suppliers undertaking information service projects for TIPC: (IS-TW-02-009) System Development and Maintenance Procedure Manual, (IS-TW-03-005) System Development and Maintenance Work Instructions, (IS-TW-02-010) Outsourcing Management Procedure Manual, and the Outsourcing Information Security Terms. Information security management regulations for outsourced vendors can be found in 2024 ESG Report Section 3.1.2 Information Security Risk Management.

In 2024, the Company's supplier survey primarily targeted labor and engineering service providers (labor: 55.3%, engineering: 36.6%). Therefore, according to the "Occupational Safety and Health Policy," there are clear regulations and procedural guidelines for suppliers and contractors. For detailed occupational safety and health management methods and performance, refer to 2024 ESG Report Section 5.1 Occupational Safety and Health Policy.

Supplier Evaluation

In terms of information security management assessment, TIPC conducts annual cyber security audits of its information service suppliers to verify their compliance with the company's cyber security standards through on-site or written audits. Through the contract performance management mechanism, which ensures that suppliers provide proof of their professional competence in cyber security, relevant test reports or backup security documents in accordance with the terms and conditions for outsourced information security.

In addition, as part of its ESG evaluation efforts, TIPC introduced the "Supplier ESG Self-Assessment Questionnaire" in 2022 to evaluate the ESG status of suppliers whose procurement reaches NT$ 5 million or more. In 2024, a total of 203 questionnaires were distributed, with 123 responses received. All responding suppliers scored over 60 points, resulting in a 100% overall pass rate. The questionnaire covers five major aspects, namely environmental protection, labor practices, labor rights, business ethics, and product responsibility. Analysis of the assessment results provides the corporate with an understanding of the supplier's current status and serves as a reference for the corporate's supplier management.

Supplier Information Disclosure Rating of TIPC

Supplier Selection

The selection of suppliers for TIPC is based on the Government Procurement Act. If there is any violation of Article 101 of the Procurement Act, the vendor will be notified in accordance with the regulations and will follow the procedures to file a dissenting opinion, which will be published in the Government Procurement Bulletin as appropriate and will be restricted from participating in bidding for a period of time.

To protect labor rights and prevent forced labor or discrimination, the Company includes provisions such as the People with Disabilities Rights Protection Act and the Indigenous Peoples Employment Rights Protection Act in procurement contracts, requiring contractors not to discriminate against women, indigenous peoples, persons with disabilities, and vulnerable groups.

Labor contracts explicitly prohibit the employment of child labor, illegal foreign workers, and other improper employment practices, and require compliance with the Human Trafficking Prevention Act, Labor Standards Act, and gender equality-related laws. No cases of child labor use were reported in 2024.

Aligned with the Ministry of Labor's policy goal to "expand social investment and reduce family burdens," the Company requires dispatch and contracted labor suppliers to comply with labor laws, continuously assess compliance, avoid cooperation with violators, and strengthen protection for non-standard workers. For details on "Information of Non-Employee Workers", detailed information is provided in the "Staff Distribution" section under " Sustainability Information Disclosure-Friendly Interactive Information" on the TIPC Sustainability website.

Priority Procurement and Green Procurement

TIPC conducts procurement with both new and existing suppliers according to the Government Procurement Act and Article 69 of the People with Disabilities Rights Protection Act. Priority procurement involves products and services provided by welfare institutions, organizations, or sheltered workshops for persons with disabilities, with an annual procurement amount ratio target of over 5%. In 2024, the company's priority procurement ratio reached 37%.

The suppliers of TIPC can be generally categorized into 3 groups according to the types of contracts, service, property, and engineering. In 2024, there was a total of 794 suppliers, with a total purchase amount of NT$ 23.06 billion, and domestic purchase ratio of about 99.98%; There were 6 foreign manufacturers, mainly from Korea, France and United Kingdom. Procurement information in the past three years detailed information is provided in the "Procurement Statistics." section under " Sustainability Information Disclosure-Corporate Governance Information" on the TIPC Sustainability website.

Additionally, foreign suppliers participating in TIPC procurement must comply with treaties or agreements concluded by Taiwan to address situations such as domestic non-production, lack of competitiveness, high prices, non-compliant specifications, or immature domestic production technology requiring import reliance. This also helps reduce the project's carbon footprint and aligns with the government's circular economy policy. Where project design permits, recycled materials are used as much as possible. In 2024, designated green procurement items achieved 100% compliance, fully implementing environmental procurement principles.