Leading a Green Future — CTCI Builds a Comprehensive Sustainable Supply Chain Management Framework

CTCI Group is an international turnkey engineering contractor with suppliers spanning across the globe. To achieve sustainable business goals, sustainable management of the supply chain is one of the key factors. We place great emphasis on supplier relationships and have established a sustainability development policy that requires suppliers to comply with regulations concerning construction safety, ethical business practices, employee rights, climate action, and ecological responsibility. During the initial supplier registration, CTCI conducts ESG risk assessments to identify potential risks. To enhance communication with suppliers, we also provide a whistleblowing platform Suppliers are categorized into six major groups and managed and audited according to transaction amounts and risk levels to strengthen overall resilience and responsiveness.

All matters related to sustainable supply chain management are regularly reported by CTCI to the Board of Directors, which provides oversight. At the same time, mid- to long-term targets for 2030 have been established.

In terms of supplier selection and risk management, CTCI adopts a two-stage risk assessment process, including proactive investigations and document audits, to ensure suppliers comply with ESG standards. For high-risk suppliers, on-site audits and guidance are conducted to mitigate risks. Regarding sustainable management systems, CTCI has established the "Supplier Code of Conduct" and the "Sustainable Operation Commitment," which all suppliers are required to sign and adhere to. Risk investigations and assessments are also performed. For audit deficiencies, CTCI provides improvement guidance and has implemented reward and elimination mechanisms. Additionally, CTCI has formed the "Supplier Net-Zero Alliance" to promote the development of suppliers' carbon management capabilities. Through digitalization and intelligent technologies, CTCI continuously enhances the efficiency of supply chain management.

CTCI collaborates with suppliers to continuously enhance sustainability capabilities, annually setting KPIs for supplier audits, high-risk supplier guidance and deficiency remediation, and the development of suppliers’ carbon management capabilities. CTCI has also been consecutively selected for the Dow Jones Best-in-Class Indices (DJBICI) and recognized by the Carbon Disclosure Project (CDP) for its efforts.

Enhance Governance Framework and Establish Concrete Goals

CTCI recognizes the critical importance of establishing strong partnerships with suppliers; therefore, we actively invest in sustainable supply chain management by continuously improving related practices through systematic policies and processes. To ensure that sustainable supply chain management aligns with the company’s sustainability development goals, key supply chain matters are regularly reported to the Board of Directors, which provides oversight. These include the supply chain sustainability policies, the setting of mid- to long-term targets, and action plans, ensuring that the supply chain’s execution direction and practices remain consistent with the company’s overall sustainability objectives.

2030 Sustainable Supply Chain Management Goals:
1.Complete document audits for 100% of first-tier suppliers and non-first-tier suppliers of concern.
2.Achieve 100% on-site audit completion rate for ESG high-risk suppliers.
3.Achieve 100% remediation rate for deficiencies found in on-site audits of ESG high-risk suppliers.
4.Develop greenhouse gas management capabilities in 500 suppliers.

Collaborating with Suppliers for Mutual Success, Driving Sustainable Development of the Global Supply Chain

To enhance suppliers’ capabilities in sustainability and net-zero practices, CTCI supports carbon management development through various collaborative approaches, including on-site coaching, regular seminars, and assistance s in joining government- supported programs.

CTCI invests resources in negotiations with suppliers and plans projects lasting over six months. Besides domestic suppliers, CTCI also requires its domestic and overseas subsidiaries to promote sustainable practices across the global supply chain in accordance with the supply chain sustainability management policy. The specific initiatives are as follows:
1.For equipment and material suppliers, in collaboration with government support programs and external consultants, suppliers are assisted in conducting greenhouse gas inventories and receiving energy-saving and carbon reduction improvement recommendations. For subcontractors, CTCI’s Carbon Seed personnel provide related assistance.
2.Quarterly seminars are held to invite external consultants to cultivate suppliers’ sustainability awareness and facilitate sharing of carbon reduction experiences.

3.Through regularly sending newsletters on diverse topics, we communicate global sustainability trends to enhance suppliers’ soft skills.
4.Invite suppliers to participate in relevant events, such as engineering forums and environmental education sessions, to strengthen their sustainability awareness.

．Supplier conferences and benchmarking sharing sessions
CTCI holds a biennial Supplier Conference aimed at strengthening cooperation and communication with both domestic and international suppliers. The 2025 Supplier Conference was held in March and expanded to include the entire Group’s supply chain, with the theme “Advancing Together for Sustainable Prosperity.” The event brought together 105 suppliers from 11 countries, with a total of 333 participants joining both online and offline. The conference focused on enhancing supply chain resilience and sustainable development, and also featured sharing sessions on CTCI’s sustainability and net-zero strategies.

In addition to recognizing outstanding suppliers, the conference also introduced a special “Sustainability Award” to honor partners who have demonstrated excellence in sustainability engagement, innovation and implementation, environmental and social contributions, and long-term commitment.

With CTCI’s joining of the Science Based Targets initiative (SBTi), CTCI established the "Supplier Net-Zero Alliance" in 2023. In 2024, the alliance expanded to encompass the entire group, inviting group suppliers to sign the Net-Zero Alliance Declaration. Together, they work toward carbon reduction goals in accordance with the alliance’s targets and implementation plans.

Enhance Innovation, Build an Intelligent Supply Chain

In addition to driving supply chain transformation, in recent years we have strengthened supply chain collaboration through self-developed and newly introduced technologies, such as:
1.Utilize robotic process automation to digitize data, enabling smoother and more efficient logistics management through automation, digitalization, and cross-system integration, thereby reducing rework.
2.Through the development and implementation of “iSteel,” steel structure information is digitized and management is automated, establishing transparent communication channels with suppliers, reducing interfaces, and achieving vertical integration to enhance execution accuracy and efficiency.
3.Apply smart communication technologies on construction sites to enhance workers’ skills and expertise, ensuring work progress and quality.
4.Digitally transform the procurement process and deepen intelligent development through various applications, such as supplier inquiry and quotation platforms.

Execution Results and Achievement of Targets

CTCI is committed to collaborating with suppliers to advocate ESG development and jointly build a sustainable supply chain. We continuously set improvement goals and review their achievement at the end of each year to drive ongoing enhancements.

In 2024, CTCI has fully achieved all sustainable supply chain management targets, as detailed below:
1.Completed sustainability risk audits for 374 suppliers (target: 357), with all first-tier suppliers of concern fully audited, to identify actual and potential negative impacts and effects of suppliers.
2.For 12 high-risk suppliers, 100% of audits and deficiency remediation have been completed to mitigate suppliers’ ESG negative impacts and ensure compliance with CTCI’s ESG standards and requirements.
3.A total of 265 suppliers have joined the CTCI Supplier Net-Zero Alliance.
4.A total of 229 suppliers have completed the development of their carbon management capabilities.
5.In 2024, Group supply chain members were invited to participate in sustainability-related events, including workshops, sustainable engineering forums, and environmental education activities.

Moving forward, CTCI will continue to uphold its ESG vision as the “Guardian of Sustainable Earth,” working hand in hand with global suppliers to build a sustainable supply chain and strive toward a more sustainable and better future.