Year2022
Number of social responsibility training for suppliers(times)	85
Number of suppliers conducting environmental impact assessment(units)	2,354
Participation rate of external experts in bidding procurement (%)	16.37

In the process of procurement, the Industrial Bank (IB) insists on reviewing suppliers in terms of safety production, certification of environmental protection, and labor guarantee, and establishes a procurement and physical asset management system to strengthen the management of environmental and social performance information of cooperative suppliers through such system.

Empowering the Procurement Management with Digital Transformation

Centering on the principle of “improving the procurement efficiency and effectiveness to save operating costs”, IB has been improving functions of the procurement management system to empower the procurement management work.

◆ In terms of improving the procurement efficiency and effectiveness, IB implements the supervision of procurement timeliness to track and supervise the committed handling timeliness of procurement projects, gets through the process intercommunication and data sharing between the procurement system and four sets of related business systems in the upstream and downstream links to realize seamless docking of all systems, and implements the functions of unified contract review, one-click printing of notices, one-click reimbursement of payment and one-click import of budget to realize closed-loop process management and simplify the complexity of procurement system.

◆ In terms of saving the operating costs, IB builds a “centralized procurement mall” to realize centralized management and one-stop procurement of more than 2,000 centralized procurement products across the whole Group, which covers the procurement process management including the procurement under the framework agreement, price comparison, order placement, contract performance, evaluation, and payment, so as to further promote the standardization of procurement requirements and the norm of the procurement work. Relying on the clear catalogue and convenient service experience of centralized procurement, the procurement efficiency has increased by more than 20% across the whole Group.

Full-life Cycle Management of Suppliers

IB insists that supplier management is the core of the entire procurement system. In accordance with the viewpoint that “good suppliers need to be managed”, it has established the relevant systems and operating specifications for supplier management in the Measures for the Procurement Management of Bulk Items and carried out a full-life cycle management such as the access, selection, contract performance and exit of suppliers. In the meanwhile, IB has introduced the data from such third-party as Tianyancha (business information inquiry platform), Qichacha (corporate information inquiry platform) and Credit China, to support the supplier access management. Based on the situation of market research, peer sharing of supplier resource pools, contract performance evaluation and strategic cooperation, IB accurately creates profiles on suppliers to accumulate high-quality supplier resources, form a graded and classified supplier resource database and a dynamic access and exit mechanism.

Practice of Green Procurement

In order to promote the concept of green banking and actively implement social responsibilities, IB has issued the Notice of the Industrial Bank on Further Promoting the Green Procurement Management Work, through the establishment of a sustainable green procurement management mechanism, to improve the level of green operation and management.

◆ Regarding the subject matter of procurement, IB fully considers the green and low-carbon concept of environmental protection, resource conservation, safety and health, circular, low-carbon and recycling promotion, and ensures that the products and services that are conducive to resource conservation and have the least impact on links are 100% preferentially procured in procurement projects, so as to increase the recycling of procured items.

◆ Regarding the supplier access, IB gives priority to recommending the suppliers who focus on the principle of green environmental protection, and strengthens the consideration and evaluation of suppliers from such aspects as the certification qualification of supplier links, the environmental protection requirements of corporate production, the quality management system and the results of environmental protection inspection.

◆ Regarding the procurement review, IB has incorporated such factors as greenness, energy conservation and environmental protection into the review requirements in the scoring rules of projects, and clearly required that the scoring value should not be less than 5 points.

◆ Regarding the procurement contract, IB ensures that the ratio of contracts that incorporate the conditions and indicators of green procurement into the provisions of procurement contracts reaches 100%, and specifically requires the green environmental protection conducts that suppliers should perform, so as to ensure the green procurement.

Improving a Sunshine Procurement System

IB is committed to creating a fair, impartial and open procurement management system:

IB strengthens its construction of procurement teams by formulating the codes of conduct for procurement personnel, clarifying the restricted areas of conduct, strengthening training, business exchange, supervision and management, formulating the performance assessment scheme of procurement work, and strictly holding accountable for violations. The proportion of suppliers signing the Commitment Letter of Bidding with Integrity has reached 100%, and the integrity requirements for suppliers are strictly implemented in various processes such as project communication, tendering and bidding, and contract performance services.

In addition, IB opens channels that it can collect the evaluations on the contract performance of suppliers, which allows employees to monitor and evaluate all products on the shelves in the centralized procurement mall.