Sustainable Supply Chain Management

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Dehwa Construction regards suppliers as long-term partners in sharing sustainability responsibilities. We systematically embed environmental protection, labor human rights, and corporate governance into our procurement decision-making process, building a sustainable supply chain management system based on international standards.

Adopting ISO 20400 as a framework
to systematically manage supply chain sustainability risks.

Dehwa Construction recognizes that the majority of our corporate sustainability impact stems from our supply chain rather than our own direct operations. To this end, we officially initiated the implementation of the ISO 20400 Sustainable Procurement Guidance in 2025. From policy declaration and issue identification to supplier full lifecycle management, we have established an actionable and traceable institutional framework.

In 2026, by completing AFNOR’s two-stage verification for ISO 20400:2017 Dehwa Construction became a pioneer in Taiwan’s construction industry

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ISO 20400:2017 Verified ✓
International Guidance for Sustainable Procurement

ISO 20400 is an international guidance standard for sustainable procurement published by the International Organization for Standardization (ISO). It provides a comprehensive framework for organizations to establish a systematic sustainable procurement management system across seven core subjects, including organizational governance, environmental protection, human rights, and fair operating practices.

Verifier:

AFNOR Group

Completion Year:

2026

Initiation Period:

August 2025

Verification Process:

Two-Stage Verification

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Sustainable Procurement Policy

Dehwa’s Sustainable Procurement Policy

Upholding our core values of ‘Integrity, Quality, Environmental Protection, and Safety,’ Dehwa Construction publicly commits to the following five fundamental principles as the cornerstone of all procurement activities. We require all suppliers to jointly comply with these principles and systematically oversee their implementation.

1. Fairness and Integrity

Procurement decisions shall be guided by the principles of openness, fairness, and impartiality to ensure procedural transparency and maintain fair market competition. Any form of fraud, improper benefits, or conflicts of interest shall be strictly prohibited.

2. Quality and Safety

Procured engineering works, materials, and services shall comply with regulatory standards and quality requirements. High priority shall be placed on occupational health and safety (OHS) as well as end-user health and safety, ensuring the structural safety and long-term durability of buildings.

3. Environmental Responsibility

Procurement decisions shall integrate pollution prevention, environmental protection, and resource efficiency. We encourage the adoption of materials, equipment, and construction methods with lower environmental impact to support the sustainable use of resources.

4. Social Responsibility and Human Rights

Respect human rights, diversity, and equality. We require suppliers to provide a safe, healthy, and non-discriminatory working environment, and to properly safeguard the security and privacy of personal and proprietary information.

5. Partnership and Supply Chain Resilience

Build mutual trust and collaborative relationships with suppliers, prioritize service quality and grievance mechanisms, and enhance overall supply chain stability and sustainability performance through continuous communication and improvement.
download the complete policy statement ⤓

Key Material Aspects

10 Key Material Aspects in Sustainable Procurement

Aligned with ISO 20400 and ISO 26000, 37 potential issues were systematically narrowed down to Dehwa’s 10 Key Material Aspects in Sustainable Procurement, utilizing a 3-indicator weighted evaluation and 64 internal and external stakeholder surveys.

Potential Issues

Covering
7 Core Subjects

>>

Core Issues Screened

Selected
via 3-Indicator Weighting

>>

Key Material Aspects

Analyzed
via 64 Stakeholder Surveys

Occupational Health & Safety

Fair Competition

Sustainable Resource

Anti-Discrimination & Diversity

Environmental Protection

Grievance Redress

Service, Support & Complaints

Pollution Prevention

Consumer Data & Privacy

Consumer Health & Safety



Labor


Environment


Fairness


Consumer


Human Rights

Supplier Management

Management Approach

Dehwa applies differentiated management strategies for new and existing suppliers to ensure that sustainability requirements are effectively implemented throughout the supply chain lifecycle.



NEW SUPPLIER

📋

Qualification Review

Review vendor qualification documents to ensure compliance with occupational safety regulations, financial stability, and basic ESG requirements.

📝

Commitment Signing

First-time partners must sign the “Supplier Sustainable Procurement Commitment,” covering OHS, environmental protection, labor rights, and anti-corruption.

✓ 100% Signing Rate for New Suppliers

📊

Risk Assessment & Scoring

Assess and score vendors on OHS, environmental compliance, and labor rights using risk assessment tools to determine their risk level.

✅

Tier Classification

Assign an initial vendor tier based on assessment results and officially register them in the approved vendor list.

⚠ Unsigned suppliers are barred from bidding.



EXISTING SUPPLIERS

🏗️

Post-Project Evaluation

Upon project completion, the site manager evaluates suppliers across six dimensions: OHS, labor rights, waste management, major violations, overall ESG compliance, and construction quality/schedule.

Executed upon completion of each project

📈

Tier Rating Update

Evaluation results directly determine supplier tiers; top performers are promoted to Tier-A strategic partners, while underperformers face downgrading or corrective action.

🚨

Ad-Hoc Review Mechanism

Regardless of current tier, severe OHS accidents, major environmental fines, or systemic wage arrears will trigger an immediate review and suspension of future contract awards.

ℹ Evaluations dictate future bidding priority.

Supplier Tiering System

A

Tier A

with priority negotiation and final price-matching privileges

Strategic Partner

B

Tier B

Standard qualified vendor; eligible for contracting and bidding.

Standard Governance

C

Tier C

Conditional partnership; subject to observation and corrective action.

Corrective Action

D

Tier D

Partnership suspended; requalification review required.

Suspended

Annual Goals

Annual Goals & Progress

Dehwa establishes clear, measurable sustainable procurement targets,
ensuring stakeholder transparency and driving continuous improvement.

Goal

Description

Quantitative KPI

Status

G-01

✓ Completed

Formulation & Announcement of Sustainable Procurement Policy

Formulate and announce Sustainable Procurement Policy; obtain executive approval and publish internally.

  

100%

✓ Completed

G-02

↻ In Progress

Incorporation of Sustainability Clauses for New Approved Vendors

Ensure newly approved vendors sign the “Supplier Sustainable Procurement Commitment.”

  

Goal ≥ 80%

↻ In Progress

G-03

↻ In Progress

Completion Rate of Sustainable Procurement Training for Buyers

Procurement-related personnel complete sustainable procurement training courses.

  

Goal ≥ 80%

↻ In Progress

※ Note: Actual figures for G-02 and G-03 will be updated upon fiscal year-end.