Human Rights and Supply Chain
Importance and Mission
The Company is committed to conducting business with responsibility, transparency, and the utmost respect for human dignity, under our mission to "conduct business based on good governance and compliance with legal requirements," as well as to "elevate professional work standards to promote a good quality of life." The Company recognizes that respect for human rights is not limited to the internal organizational scope but is a fundamental principle of sustainable business operations and a key factor in building trust with stakeholders throughout the supply chain.
The Company has announced the "Human Rights Policy and Guidelines1", which align with the Universal Declaration of Human Rights (UDHR) and the United Nations Guiding Principles on Business and Human Rights (UNGP). The human rights issues that the Company prioritizes include:
- Equal treatment of labor.
- Workplace safety.
- Protection of customer personal data.
- Fair access to credit.
To ensure that the Company's business operations are free from human rights violations in all activities, the Company has also established a "Supplier Code of Conduct" as a standard for suppliers and outsourced service providers to uphold. This aims to create a supply chain free from human rights violations, in alignment with the Sustainable Development Goals (SDGs).
Management Approach
Human Rights and Supply Chain
The Company establishes human rights management guidelines that cover fair labor treatment, non-discrimination, and the protection of fundamental rights of individuals involved in the Company’s business. These are integrated into the supplier procurement and selection process in accordance with the "Procurement and Supplier Selection Policy and Guidelines2". We select suppliers who conduct business ethically and are responsible toward society, communities, and the environment. By strictly adhering to procurement policies, we aim to prevent human rights risks from the source, considering potential impacts arising from operations and business relationships with suppliers and stakeholders throughout the supply chain.
Implementation
- Communication: Announce and communicate the human rights policy and fair labor treatment guidelines to all employees and relevant stakeholders.
- Supplier Assessment: Require relevant departments to conduct assessments of both existing and new suppliers, considering risks that may arise from operations related to the suppliers. This covers risk issues according to additional ESG assessment criteria to ensure that suppliers can deliver goods and services that meet the Company's requirements.
- Supplier Code of Conduct: Require all suppliers to acknowledge and agree to comply with the Supplier Code of Conduct regarding human rights and labor management, which serves as a condition for business contracts with the Company.
- Fair Payment: Strictly and fairly pay suppliers according to contractual terms, following payment standards that are efficient, systematic, transparent, and auditable. This ensures that suppliers maintain financial liquidity and can continue their business sustainably in accordance with the Payment Terms for Suppliers Policy and Guidelines3. For cases without fixed payment terms, there are two payment cycles per month: the first cycle pays on the 10th of the month for billings from the 21st to the end of the previous month, and the second cycle pays on the 25th of the month for billings from the 6th to the 20th of the month.
- Grievance Mechanism: Provide channels for employees, suppliers, and stakeholders to file complaints or raise concerns regarding human rights, with protection for whistleblowers and strict confidentiality.
Performance Summary
- Dissemination: Employees and stakeholders have been informed of the Human Rights Policy, the Policy and Guidelines for Supplier Procurement and Selection, the Procurement Policy, and the Supplier Code of Conduct through internal organizational systems and the Company's public website.
- ESG Assessment: Conducted social and human rights assessments for suppliers, including agricultural tool shops, manufacturing plants, and motorcycle dealership representatives in various regions, to evaluate establishments and risks before engaging in business collaborations for new motorcycle loans.
- Commitment: All suppliers have signed to acknowledge and accept compliance with the Company's Supplier Code of Conduct before engaging in business collaborations.
- Payment Performance: Payments to all suppliers were made within the specified payment terms as stipulated in all contracts. For suppliers without specific contracts or agreements, payments were made according to the payment policy and guidelines for all suppliers. The average payment period to suppliers does not exceed 30 days.
- Zero Violation: There were no complaints regarding human rights violations and no disputes with suppliers during the course of business operations.
Environmental Supply Chain Management
The Company drives business growth by fostering collaborations with highly credible business partners to cultivate an eco-friendly business ecosystem. We have established a comprehensive Procurement Policy4 to standardize operations in alignment with sustainable development guidelines. To build trust among stakeholders through transparent procurement, we enforce a strict Supplier Code of Conduct5 (SCoC). This code serves as a best-practice framework, ensuring our partners conduct business in full compliance with environmental laws and international standards. The Company actively monitors and supports our suppliers to ensure complete adherence to these principles.
The Company recognize that supplier non-compliance or a lack of environmental responsibility can directly and indirectly disrupt our operations. Although the Company is a financial service provider and does not engage in industrial manufacturing, disruptions in procuring essential goods and services—such as IT equipment, printing services, or logistical support—can cause operational delays and negatively impact customer confidence.
Simultaneously, the Company acknowledge that the majority of our supply chain's environmental risks are indirect (Scope 3 impacts), stemming from our suppliers' energy consumption, waste generation, and greenhouse gas (GHG) emissions. To proactively manage these risks, prioritize supplier screening, and identify critical Tier-1 suppliers with significant environmental footprints based on procurement data, primarily IT equipment providers, printing services, and logistics providers. The Company set a definitive target: 100% of all procured suppliers in 2025 must formally acknowledge and sign the SCoC.
Operations and Implementation
- ESG Integration in Procurement: Relevant departments are mandated to evaluate suppliers using environmental criteria (e.g., resource efficiency, waste management, and environmental legal compliance). These ESG factors are weighed equally alongside traditional criteria such as pricing and quality.
- Mandatory SCoC Compliance: All suppliers must acknowledge and accept the SCoC, which explicitly outlines environmental expectations, as a mandatory prerequisite for entering into any business contract with the Company.
Performance and Results
- Green Procurement Success: All computers purchased for newly opened branches in 2025 were exclusively sourced from suppliers providing Energy Star (or equivalent) certified equipment. Furthermore, the Company actively selected paper distributors that utilize eco-friendly, resource-efficient paper innovations.
- SCoC Acknowledgment: The Company successfully achieved its target, with 100% of procured suppliers formally acknowledging and committing to the Supplier Code of Conduct.