Sustainable Procurement

Sustainable Procurement

In addition to aggressively 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 carbon footprint from overseas transportation, achieving the dual effect of balancing procurement costs and effectively shortening the lead time for equipment conversion. At the same time, 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 2025, the total amount of material purchases conducted by THSRC was approximately NT$2.7 billion, where the amount of procurement from local suppliers accounted for 81.2% of the total amount. Meanwhile, the amount of labor service procurement in 2025 exceeded NT$19.9 billion, of which 99.5% came from local service procurement. Over the past two years, both material and labor service procurement from local suppliers have shown significant growth. The figures are presented right.

To achieve sustainable procurement's goal, THSRC have followed the "Green Procurement Declaration for Private Enterprises and Group" announced by the Ministry of Environment of the Executive Yuan, giving priority to the procurement of products and services with eco-labels, green labels, carbon footprint labels, and carbon reduction labels. In 2025, the total amount of green procurement reached NT$390 million, covering key items such as administrative supplies, business machine supplies, drinking fountains, electric refrigerators, and green building materials (such as energy labeling equipment and products with carbon footprint certification). Moreover, since THSRC has obtained carbon label certification, expenses incurred from employees traveling for business by HSR were also included in the green procurement amount, demonstrating our active decarbonization efforts across operational processes and the value chain.

THSRC mandates suppliers to provide products that comply with green procurement and integrates the supplier's sustainability-oriented performance into the supplier selection criteria, while continuously verifying whether suppliers adhere to environmental regulations. The details of green procurement are as below:

Green Procurement Amount in 2024-2025 (Unit: 10,000 NTD)