Procurement Management 
An-Shin executes sustainable procurement by ensuring the products and services we buy achieve value for money with the lowest environmental impact, and most positive social results. An-Shin is committed to promote traceability; we try our best to utilize the local ingredients from our corporate farms, and actively promoting the "3-in-1 Green Purchasing Policy". Besides, we have built a strong connection with the local farmers, hence creating supply chain partnerships. Fresh produce with Traceable Agricultural Product (TAP) certification is one of the top priorities in our purchasing standards.Traceable Agricultural Product (TAP) provides certification service for customers to check the production process of agricultural products, which is a standardized operating procedure to effectively eliminate risk, reduce environmental impact, and ensure the safety and quality of agricultural products. By using the tracking number or QR code on the TAP logo, customers can easily get the details of the produce through the Taiwan Agriculture and Food Traceability System (http://taft.coa.gov.tw). We conducted agricultural production planning with our corporate farms according to the seasonal demand. The entrusted farmer representatives are responsible to ensure the soil and water quality, production management and records by using the same practice as TAP. Customers are able to track all the stages of fresh produce production from farm to table on our CSR website. In 2020, the total purchase amount for TAP certified agricultural products was approximately NT$ 80,324 thousand, comprises 72% of the total purchase amount of agricultural products. We import vegetables during off-season, while safety and quality are still our top priorities. Suppliers are required to provide the certificate of origin and pass the pesticide residue test before supplying vegetables as our goal is to provide customers with safe and high quality ingredients.
Supporting Small-Scale Farmers
To increase and ensure the small-scale farmers' stable income, part of our procurement is from the local small-scale farmers, which successfully build a close connection with the local communities and boost the economy. For example, 185,866 kg of sweet potatoes was purchased in 2020 and processed into sweet potato fries and egg roll, which has increase the utilization of ingredients and developed a new sales channel for the farmers. Besides, 73,998 kg of tomato, lemon, and pomelo were also purchased in the same year.
Annual consumption and proportions of agricultural products
| Year | 2018 | 2019 | 2020 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Unit | Consumption | Percentage | Unit | Consumption | Percentage | Unit | Consumption | Percentage | |||||||
| Non-traceable agricultural products or primary processed food | kg | 390,147 | 28% | kg | 930,952 | 49% | kg | 655,332 | 42% | |||||||
| TAP certified agricultural products | kg | 660,610 | 47% | kg | 673,173 | 36% | kg | 634,451 | 41% |
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| Traceable agricultural products from small-scale farmers |
kg | 130,214 | 9% | kg | 111,591 | 6% | kg | 73,998 | 5% | |||||||
| Traceable local sweet potatoes | kg | 232,083 | 16% | kg | 178,290 | 9% | kg | 185,866 | 12% | |||||||
| Total consumption of agricultural products | kg | 1,413,054 | 100% | kg | 1,894,006 | 100% | kg | 1,549,416 | 100% | |||||||
The eggs used by An-Shin are 100% TAP certified and we serve fully cooked eggs for our customers to ensure food safety. Besides, An-Shin supports sustainable farming by purchasing free-range eggs which are produced from chicken that may be permitted outdoors, it is more animal friendly compared to conventional eggs. Free-range eggs are not widely produced because of its early development in Taiwan and unable to fully comply with our demand. However, we support the free-range egg farmers by allocating part of our procurement for them since 2015 and a total of 1,137 thousand free-range eggs have been purchased in 2020.
Price and supply chain stability are important to a catering industry, so we always seek for reliable suppliers who share the same mind, and ensure the quality and food safety with strict evaluations . In 2020, we had 101 stable suppliers, which consists 86% of major ingredients suppliers such as food ingredients and agricultural products. We tend to purchase products with certified documents such as TAP, CAS, GMP, GHP, ISO22000 and HACCP. To increase the stability of high-risk foods, we keep exploring new and alternative suppliers to spread the risks and all of them are evaluated strictly.In 2020, we purchased NT$166,982 thousand of food ingredients from FSSC 22000 certified suppliers, comprised 9% of total food ingredient cost. In 2020, we purchased NT$1,238,400 thousand of food ingredients from ISO 22000 certified suppliers, comprised 70% of total food ingredient cost.In 2020, we purchased NT$1,306,925 thousand of food ingredients from HACCP certified suppliers, comprised 73% of our total food material cost.
Global warming is considered one of the greatest threats to the world, and issues such as climate change and circular economy are getting the world's attention. We reduce our environmental impacts by using Forest Stewardship Council (FSC) certified products the packaging materials provided to our customers are sustainable and environmental friendly. An-Shin has allocated part of the procurement for FSC certified products since 2012. Over 9 years, we have purchased a total amount of NT$ 505,937 thousand FSC certified products such as paper cups, paper bags, hot dog containers, etc. In 2020, an amount of NT$ 56,459 thousand FSC certified products were purchased which comprised 74% of the total purchasing amount of paper packaging materials in 2020.The paper packaging materials include 21,918 thousand French fries bags, 4,649 thousand fried chicken paper bags, 8,394 thousand paper cups for hot drinks, 16,234 thousand paper cups for cold drinks, and 27,122 thousand paper bags. Besides, we have also purchased paper products certified by PEFC (Program for the Endorsement of Forest Certification).
In 2020, we purchased an amount of NT$ 7,896 thousand PEFC certified products, which comprised 14% of the total purchasing amount of paper products of the year. We consumed 1,925 thousand hot dog containers, 4,773 thousand paper cups for cold drinks, and a total amount of 16,313 thousand plastic cups, straws, cup lids and salad containers which were made of bioplastics. An-Shin supports sustainable forest management, ecological and biodiversity conservation over the years, we hope to contribute to the environment make the world a better place.
Annual purchasing amount and percentage of FSC and PEFC certified products
