CHC focuses on developing the group strategies, optimizing the allocation of resources, and governing member companies to enhance operational agility and efficiency. With business ethics and integrity built into our DNA, we uphold the highest standards of corporate governance and risk management to enhance operational sustainability.

Business Ethics and Integrity

Establish corporate culture and risk management with integrity and discipline

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Supplier Management

Develop long-term partnerships based upon the principle of mutual benefit

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Business Ethics and Integrity

Supplier Management

All members of CHC Group strictly abide by the Group’s procurement policies. Through supplier selection standards, risk identification, supplier management practices, supplier evaluations, the annual selection of excellent suppliers, and active management guidance for high-risk suppliers, the Group asks all suppliers to follow ethics code of conduct and procurement policies, as well as to comply with relevant domestic and foreign regulations regarding environmental protection, occupational safety and health, and human rights and labor rights. Making use of CHC Group’s business influence, the Group works together with supply chain partners to promote sustainable development. According to the internal audit results of the implementation of the Group’s procurement policies in 2022, there were no major violations within the Group and no violations of relevant regulations by suppliers.

Supply Chain with Integrity

All of CHC Group’s suppliers sign the statement of business ethics and assist with the assessment of the compliance with business ethics and determination of conflict of interest. The business ethics clause has been added to subcontracting and procurement contracts, which include anti-corruption, avoidance of conflict of interest, and rules for ethical management. Meanwhile, the procurement standards were amended to include the commitment to ethical management as a requirement for supplier evaluation and management, and to provide suppliers with consultation channels in order to help them understand the Group’s guidelines for business ethics. On the other hand, sustainability performance indicators, such as human rights, employee care, occupational health and safety practices, waste management, energy saving practices, and business ethics, are used for supplier management and selection of excellent suppliers. Suppliers who receive higher scores will get extra credit and boost their chance of winning bids, so as to enhance the sustainable management of the supply chain.

Implementation of Supplier Management

 Supplier Database EntrySupplier Qualification ScreeningSupplier Assessment
• Supplier data record filing

• Actual contracted work over last 5 years

• Acknowledge and agree with CHC Group’s:
o Corporate culture declaration
o Ethics and business conduct
o OHS policy
• Record of contracted work

• Contract performance and credit ratings

• Interview with responsible person

• Financial status

• Actual site visit

• OHS policy

• Labels for risk assessment

• Comments from peers
• Initial assessment and reviews are
conducted by project management
units during construction period:

o A Grade – Dependable and
outstanding supplier
o B Grade – Dependable supplier
o C Grade – Supplier that requires
improvement and training
o D Grade – Refuse to do business
and flagged as to be reexamined
Suppliers are required to fill out the
supplier data record and the form of
contracted work history for the last
five years in accordance with the
supplier qualification screening
procedure and the new supplier
database entry agreement. The
Procurement Department is
responsible for verifying supplier
data as well as promoting CHC
Group’s corporate culture, code of
conduct, code of business ethics, and
OHS policy. Upon the completion of
data verification, suppliers will
review and confirm by signature.
For qualified potential suppliers, the
Procurement Department will
perform supplier risk identification
based on CHC’s ESG risk
management key indicators, among
which human rights-related
indicators were strengthened in
2022. For new suppliers considered
for major projects or suspected to
have safety and health risks,
due diligence investigations and
on-site visits may be conducted
as needed and included in the
supplier qualification screening as
For suppliers performing duties,
supplier assessments are carried out
during the construction period. The
construction foreperson will perform
an initial assessment, and the
director of the Project Management
Department will conduct a follow-up
assessment and review. The final
assessment results will be input into
the supplier database. We assess not
only individual suppliers in terms of
risks related to their financial
capabilities, service quality, safety
and health practices, and delays in
construction schedules, but also the
supply chain in terms of risks related
to contract disputes, price
fluctuations, and shortages of
workforce. Additionally, we have
strengthened our human rights
management such as occupational
health and safety measures. For
suppliers receiving grade D for their
safety and health practices,
necessary improvement needs to be
completed in a specified timeframe;
otherwise, a safety and health review
meeting will be held to discuss
whether to blocklist them.

2022 Assessment Result

GradeGrade AGrade BGrade CGrade D
Number of Suppliers20162216010

Local Procurement

Supporting local procurement is a way of fulfilling corporate social responsibility. Except for the Environmental Project Development Business, where water treatment equipment is primarily supplied by foreign manufacturers and thus must be purchased from abroad, the rest of the Group members practice local procurement. In 2022, CHC Group achieved a local procurement ratio of 99.16%, which represents a 4.6% increase compared to the previous year.