POLICY FORMULATION

EGAT adopted the Supply Chain Sustainable Development Policy and Supplier Code of Conduct as the overarching principles for supply chain management, supported by detailed operational procedures including the Supplier Evaluation Management Regulations and the Supplier Performance Management Regulations. In addition to complying with relevant regulations from civil aviation authorities, suppliers are required to carefully read and sign the “Supplier Code of Conduct”. This code includes specific requirements related to labor rights, business ethics, anti-corruption, environmental protection, occupational health and safety, as well as sustainable supply chain management.

QUALIFICATION ASSESSMENT

In 2024, a total of 14 new suppliers were qualified, all of whom have signed the Supplier Code of Conduct. Additionally, for suppliers with transaction amounts exceeding NT$6 million in 2024, a re-signing of the Supplier Code of Conduct is conducted every three years, and 71 suppliers signed this recommitment. In 2024, the response rate for the Supplier Code of Conduct reached 85.00%. EGAT continued to engage suppliers, advocating the fulfillment of corporate sustainability commitments, including ethical standards, labor and human rights, and environmental sustainability, while simultaneously promoting anti-corruption practices to foster responsible business conduct and advance mutual sustainable development.

SUPPLIER EVALUATION

EGAT conducts an annual supplier evaluation, focusing on the top 20% of suppliers based on transaction amounts and counts. Evaluation criteria include: On-time delivery performance (30% weight), abnormal invoice ratio (30% weight), order delivery quality (30% weight), reporting of exceptional cases by suppliers (10% weight). In 2024, EGAT conducted supplier performance evaluations for 69 suppliers, representing the top 20% of suppliers based on combined annual transaction amount and number of transactions (Note). Feedback and improvement requests were provided to the lowest-scoring 5 suppliers.

IMPROVEMENT ACTIONS

In 2024, there is only one supplier that has been on the list continuously due to poor performance. The supplier was required to submit an improvement plan and was scheduled for a face-to-face interview to determine potential replacement based on its 2024 performance. In the future, we will also provide guidance on improving the sustainable performance of suppliers through supplier conferences and other occasions.

LOCAL PROCUREMENT

In addition to assessing suppliers’ sustainability performance, EGAT also placed emphasis on the resilience of critical raw materials and actively supported local suppliers to fulfill our corporate social responsibility. For critical raw material management, EGAT conducted weekly production meetings with customers to verify schedules for material delivery, production, and shipment. Since critical raw materials were sourced through customer-designated suppliers, with pricing and quality controlled by the customer, any abnormalities in raw material supply were immediately escalated and the customer was requested to coordinate with the material supplier to discuss and resolve the issue.

For local procurement, EGAT primarily engages in cooperation with local suppliers to create local employment opportunities. In 2024, local procurement in Taiwan accounted for approximately 18.26% of total procurement.

CUSTOMER RIGHTS AND SERVICE QUALITY

CUSTOMER SASTISFACTION SURVEY PROCESS

Customer satisfaction and service quality are the cornerstones of EGAT’s continued development. Through routine work meetings, we communicate various needs and collect feedback from customers. After service completion, customer representatives are sent online “customer satisfaction surveys” to evaluate various maintenance service aspects and provide feedback.

By surveying customer opinions and feedback, EGAT gains insights from customer evaluations of services and products, continuously improving and enhancing quality and service standards. The overall average satisfaction score in 2024 is 9.29 points. Highlights of positive customer feedback are summarized below. Moving forward, EGAT will continue to challenge itself, striving to achieve perfect customer satisfaction scores.