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3.5 Sustainable Supply Chain

Purchasing Policy Sustainable TGI

Purchasing Policy & Supply Chain
Social Responsibility Management

Since August 2017, an open procurement tender information has been published on the
official website of TGI. Besides, TGI implements a fair, just and transparent procurement policy to
supply our factories with materials with acceptable quality, reasonable prices, delivery punctuality, About TGI

and such materials are also low polluting, do not contribute to public hazards and compromise
the supply chain§s safety. Every quarter TGI evaluates the prices, delivery punctuality, and
quality of suppliers that might affect our product quality for the reference of future procurements.
As TGI is the supplier of glass processing products companies, it is also a part of its supply
chain. Therefore, TGI evaluates and manages suppliers' environmental management, labor
affairs, human rights assessment, social impact, and product liability impacts. The supplier is Quality TGI
required to issue a statement prohibiting the employment of child labor, promising not to employ
child labor and complying with its relevant regulations.

The supplier is one of the most important partners for the sustainable management of TGI. TGI is Green TGI

committed to enhancing the overall level of the supply chain in line with international standards. We hope
to cooperate with suppliers to create a win-win situation and to enhance the sustainable development of
society together.
In 2017, TGI worked with a total of 1,913 suppliers in Taiwan and 233 suppliers from overseas. TGI
mainly works with local suppliers in Taiwan. Currently, the limestone and dolomite used in the factories
come from Hualien. Other major materials (silica sand, sodium carbonate, and kaolinite) are imported
since Taiwan does not have mines for such minerals. As the result, TGI imports 81% of the minerals and Friendly TGI
procures 19% of them locally. 60% of materials were procured locally and 40% was imported. With the
exception of premium diesel (from Formosa Petro), TGI purchases fuel oil, natural gas and LPG from CPC

Corporation. Electricity is 100% supplied by Taiwan Power Company. This can create job opportunities,
boost regional economic developments, conserve energy consumption in transportations and enhance the
suppliers§ quality, green awareness and skills. Appendix

2017 Coporate Social Responsibility Report 73