Green Procurement

Caring for the Environment with Green Procurement

In addition to actively localizing technology and equipment, THSRC has implemented a localized procurement strategy on the premise of ensuring the safety and quality of equipment. This strategy not only decreases reliance on foreign suppliers, but also reduces equipment replacement costs and lead times. Local suppliers of rail transportation industry can take this opportunity to obtain certification of the international railway industry standard quality system, greatly enhancing the image and popularity of the domestic rail transportation industry.

In 2023, the total amount of material purchases conducted by THSRC was approximately NT$3.297 billion, where the amount of procurement from local suppliers accounted for 60.17% of the total amount. Meanwhile, the amount of labor service procurement in 2023 exceeded NT$9.766 billion, of which 98.9% came from local service procurement. In addition, in March 2023, THSRC completed the train procurement of 12 sets of new-generation trains with 124.091 billion yen, but it is not included in the calculation due to its project nature. The proportion of labor services and materials procurement amounts in the past three years is as follows:

In order to achieve sustainable procurement's goal, we have followed the "Green Procurement Declaration for Private Enterprises and Groups" announced by the Ministry of Environment of the Executive Yuan, and include the purchase of products and services with environmental protection labels, green label products, carbon footprint label products and carbon reduction labels into the green procurement program, which reaching 380 million in 2023, accounting for 3% of the total procurement amount. The major procurement items include administrative supplies, office supplies, water dispensers, refrigerators, green building materials (such as environmental protection and energy-saving label equipment, products with carbon footprint certification) etc., In addition, THSRC has obtained the carbon label certificate, so we include the expenses of employees traveling on HSR in green procurement and actively promote energy conservation and carbon reduction in every operation link and value chain. THSRC not only mandates suppliers to provide products that comply with green procurement but also integrates the supplier's sustainability-oriented performance into the supplier selection criteria, while continuously verifying whether suppliers adhere to environmental regulations.

Green Procurement amount in recent years (2021-2023)