Before conducting transactions, SYSTEX evaluates the legitimacy of the counterparty and checks it for a record of dishonest behavior. Adhering to the business philosophy of integrity, SYSTEX has formulated corporate governance and risk management mechanisms, and then implements them internally and externally. In order to implement ethical corporate governance and supply chain management, SYSTEX has required new suppliers to sign the “Vendor Integrity Pledge and Declaration” since 2019 to perform and maintain the development of business activities. A total of 3,016 suppliers have signed this document by 2024.

SYSTEX is committed to implementing social responsibility and protecting basic human rights, expecting all suppliers can adopt the same standards and fulfill CSR together. Therefore, SYSTEX has developed “Supplier CSR Code of Conduct” in line with its “Ethical Corporate Management Best Practice Principles”, which requires suppliers of SYSTEX and its affiliates to comply with the laws and regulations of the places where they conduct business activities. A total of 2,210 suppliers have signed by 2024.

SYSTEX Group is committed to the “Conflict-free Mineral Statement since 2023.

Early each year, SYSTEX implements the “Excellent Supplier Assessment” to evaluate and grade suppliers based on transaction volume, frequency, purchasing feedback, and other criteria.

SYSTEX conducts annual assessments and then ranks suppliers accordingly. In 2024, a total of 20 suppliers were included in the list of qualified suppliers.
Note: The upstream software originals do not need to be assessed to be the qualifiers. Therefore, there are about 100 suppliers on the list.

Through the “Rules of Outsourced Project Management,” SYSTEX has established an outsourced supplier assessment team to newly select 54 suitable outsourced suppliers in 2024. After selection, SYSTEX will monitor and manage its outsourced suppliers and regularly report their records and operational status.

According to the annual transaction volume, number of transactions and other criteria, SYSTEX defines key suppliers from Distributors and Outsourcers, and selects 20-25 key suppliers to carry out the “Key Supplier ESG Assessment.” The assessment is oriented to 35 questions in 16 topics of ESG issues, and suppliers are required to provide explanations for each question. The audit team is formed by a dedicated procurement team and conducts online and on-site audits.

In 2024, 20 suppliers participated in the ESG assessment, and their average scores met the required standard. Analysis indicated low performance in “Supplier Management,” “Management System,” and “GHG Emissions.” SYSTEX provided improvement recommendations to support supplier progress. Suppliers that fail to meet the criteria are notified of their results and advised on corrective actions to enhance performance.

SYSTEX classifies its outsourced suppliers into 4 categories: manpower stationing, AP development, engineering construction, and information security outsourcing. To improve procurement efficiency, SYSTEX formulated the “Rules of Outsourced Project Management” and conducts an “Outsourced Project Assessment” upon project closure. Suppliers are graded from A to E based on service quality and collaboration. Procurement is prioritized for level-A and B suppliers, while cooperation with level-E suppliers is avoided. In 2024, 211 outsourced suppliers were evaluated, all receiving a grade of C or higher, including 107 suppliers rated level-A.

SYSTEX Group responds to the competent authority’s promotion of green procurement actions and increases the volume of green procurement. SYSTEX Corporation and its affiliated companies have received commendations from the Ministry of Environment and the Taipei City Government as exemplary green procurement organizations, aiding the government in creating a green and high-quality living environment.