TCC Becomes the First in Taiwan's Cement Industry to Achieve ISO 20400 Certification. Building a Low-Carbon, Resilient Supply Chain and Strengthening Risk Response Capability

TCC Group Holdings recently held the ISO 20400 Sustainable Procurement certification ceremony, with Joe Hsieh, General Manager of BSI Northeast Asia, presenting the certificate. Mr. Roman Cheng, Presiden of TCC, accepted the certification on behalf of the company. TCC is the first company in Taiwan’s cement industry to receive this international sustainable procurement certification, demonstrating its determination to integrate sustainability principles into core business strategies.

The certification provides TCC with a systematic sustainable procurement framework that has been translated into trackable action plans, with key performance indicators (KPIs) for sustainable procurement already set for 2025. This initiative aims to enhance operational resilience and reduce the impact of external uncertainties on business operations.

To implement this framework, TCC has established quantitative targets for six high-risk categories including raw materials and transportation, and has committed to offering improvement support programs for 100% of its high-risk, critical suppliers. At the same time, TCC has been actively developing alternative raw materials and fuels. In 2024, the company achieved substitution rates of 17.4% and 15.4% respectively, and has set 2030 targets to gradually increase these shares to 22% and 35%.

President Roman Cheng stated: “Sustainable procurement is no longer merely a cost consideration, but a core strategy to strengthen business resilience and financial performance. TCC operates across 11 industries and 14 major markets, with raw material and fuel supply chains spanning regions such as Africa and Australia. We consistently optimize for both cost and carbon reduction under sustainability benchmarks. This framework incorporates supplier business continuity plans (BCP) and emergency preparedness into evaluations, ensuring supply chains can respond quickly to external shocks, minimizing the risk of production stoppages and financial losses caused by supply disruptions, and safeguarding corporate reputation. Going forward, TCC will continue to deepen collaboration with supply chain partners to address multiple challenges, including climate change, CBAM, and international ESG disclosure requirements, jointly building a more resilient and competitive sustainable ecosystem.”

TCC will further explore introducing an AI-based scoring system for supplier sustainability questionnaires to improve the efficiency and accuracy of ESG assessments. In parallel, the company is enhancing its AI-driven supply chain decision-making system, leveraging past purchasing data and market trends to optimize procurement efficiency, while an AI risk management system integrates financial, credit, and compliance information to ensure supplier stability—delivering more flexible supply chain management.

The ISO 20400 Sustainable Procurement Guidelines are globally recognized as one of the most authoritative ESG procurement frameworks, covering four dimensions: supply chain management, environmental sustainability, social responsibility, and governance mechanisms. In response to the high carbon emissions of the cement industry and global market risks, TCC has taken the lead in adopting these guidelines by establishing supplier management policies, codes of conduct, and ESG evaluation mechanisms. Suppliers are required to comply with international standards in environmental protection, occupational safety, human rights, and compliance, while being encouraged to adopt low-carbon raw materials, recycled resources, and green transportation. Together with its supply chain partners, TCC is committed to delivering on its decarbonization commitments.