Risk and Impact Assessment
Risk and Impact Assessment
Identify and Assess Risks
In addition to GRI 308 – supplier environmental assessment and GRI 414 – supplier social assessment, we introduced ISO 20400 to help screen suppliers who fall in high ESG risks, and need to improve through our management mechanism.
ISO 20400 is aligned with the 7 core subjects and 37 issues identified in ISO 26000 (Social Responsibility-Guidance). And with ESG impacts in mind, we identified the major issues faced by real estate service Supply Chain.
| Impacts on | Sustainable issues | |
|---|---|---|
E |
Environmental protection | Although we are not energy-intensive or manufacturing kind, we still have waste management issue, and have to face the journey to Net Zero, too. We have to work together with our suppliers to achieve a low-carbon supply chain. |
| Waste management | ||
S |
Human rights | As a people-oriented happy enterprise, we hold ourselves accountable to standards that go beyond regulations. Driven by increasingly stringent regulations and our management, suppliers have better understanding and implementation of the protection on employees' human rights, occupational safety and health, etc. Renovation and furniture suppliers face higher job safety risks. |
| Occupational safety and health | ||
G |
Fair trade and anti-corruption | Corporate sustainability depends on good governance – with ethics and anti-corruption governance. |
| E governance | Digital transformation is already a necessary change. Supply chains also need to adopt new operating models and face emerging risks. For example, information security/fraud risks may arise from digital services, or interruption of network services. | |
Risk Assessment
In order to properly manage and control risks and enhance the sustainability of our suppliers, the management and evaluation mechanisms we adopt include:
Supplier qualification preview
- Basic information sheet
- ESG survey
- ESG compliance due diligence check
- Procurement team review – qualified suppliers list
During Contract Period
- Suppliers Code of Conduct and Sustainability Terms
- Engagement with suppliers
- Annual ESG self-assessment form
- On site check and visit
- User Satisfaction Survey
- Suppliers evaluation
Enhance sustainability with suppliers
- To share ESG resources with suppliers
- To celebrate “supplier of the Year”
- Corporate Ethics Office hotline for grievance mechanism
- To systemize our qualified suppliers database
- To innovate together for better ESG performance
Enhance ESG Performance with Suppliers
To enhance a society that values human rights and occupational safety and health
We checked our key suppliers(total of 327 people in 2023) at Sinyi headquarter building about their staff turnover rate and work injury rate for more than 3 years. Key suppliers include 327 staffs from Property right registration service, Real estate escrow service agency, headquarter administration which offering customer service, security, cleaning and maintenance. No significant change for the recent 3 years.
Since incorporating human rights term in 2013, we have given at risk suppliers relevant guidance and maintained a 100% pass rate. And we introduced ISO 20400 in 2021, suppliers human rights and occupational safety and health have been watched carefully.
In 2023, many occupational accidents occurred and were due to the expansion of the number of construction projects. It also related to the shortage of supervisors in the construction industry, the uneven quality of construction workers, and the inadequate implementation of industrial safety measures on site. Sinyi strengthened and required suppliers to implement on-site "risk factor notification", "safety inspection", and "safety and on-site insurance" before, during, and after construction, to ensure occupational safety and health of labor forces.
Key suppliers staff turnover rate
To uphold corporate governance through enhancing ESG evaluation
We invite suppliers to fill in the ESG survey to help them understand their practices and legal compliance in ESG aspects. This is the first step in implementing the sustainability guidelines with suppliers. In our 2023 ESG evaluation form, weights on E、S、G account for 25%、60%、15% respectively. We invited 19 suppliers with an annual procurement amount of more than NT$10 million to fill in, and 12 valid questionnaires were returned; all 12 passed (invalid questionnaires cannot be scored).
Through internal random audits to review our impact on our ESG promotional efforts.
In 2023, our internal audit conducted a review for the first time to understand the effectiveness of Sinyi’s sustainable supply chain management. We pro-actively let suppliers know that Sinyi values the rights and human rights of all stakeholders, and can feedback "sustainable development-related suggestions" or "information that does not conform to ethical and honest behavior" to jointly develop friendly supply chain relationships and enhance sustainability.
The internal audit results were:
Questionnaire was sent to 118 suppliers and recovery rate was 72%.
21 replies indicated that they don’t know Sinyi’s compliant hotline. Subsequently, relevant procurement windows have been asked to conduct reviews and strengthen communication.
To promote a low-carbon environment together
Sinyi continuously invite key suppliers to join our Net Zero 2030/2050 Initiative, and conducting GHG emissions of energy survey to key suppliers. Sinyi also participated in the CDP climate change disclosure and received Supplier Engagement Rating : A.
Go Green
Our green procurement exceeded NTD30 million every year from 2021 to 2023. And Sinyi has been recognized for consecutive 16 years by Taipei city government.
Green Procurement
UNIT:TEN THOUSAND YUAN (NT)
Drive the supply chain to deepen sustainability momentum
