Sustainability
Sustainability
Ding Gu upholds a sustainability vision of "Embodying Sustainable Value, Fulfilling Social Responsibility."
Key Sustainability Priorities
Ding Gu is committed to responsible procurement. In 2021, we formally established and announced the Ding Gu Supplier Management System to guide the company in selecting, evaluating, and re-evaluating various suppliers with objectivity, fairness, and rigor, further ensuring that the products and services provided by suppliers meet quality standards and that deliveries comply with the company's requirements.
The new system clearly defines the company's practices for supplier selection and classification, supplier evaluation, supplier data maintenance, supplier rewards and penalties, and supplier relationship management, conducting supplier management in a systematic and institutionalized manner to build a stable strategic procurement and supply chain system.
To more effectively promote regional economic development and support the growth of more local businesses, our local procurement ratio reached 98.8% in 2021, a significant increase of 20.4 percentage points from 2020.
Implementation of Supplier Performance Evaluation
The company conducts an annual overall supplier evaluation and grading. The Procurement Department compiles each supplier's process evaluation and contract performance evaluation scores from the previous year, and determines the supplier's year-end overall score based on the average of the supplier's past routine ratings.
Suppliers are graded into four tiers based on their overall scores: A (Excellent), B (Qualified), C (Provisional), and D (Unqualified). Suppliers graded A, B, or C are considered qualified suppliers, while those graded D are considered unqualified. Excellent-tier (A) suppliers are given priority for cooperation opportunities when the company has new projects; Excellent-tier (A) and Qualified-tier (B) suppliers may participate in the company's training and exchange activities; and the company also plans to present honorary certificates to the first- and second-ranked suppliers in the year-end overall evaluation to recognize their outstanding performance.
2025 Supplier Evaluation Results
| Grade | Number of Suppliers | Percentage |
|---|---|---|
| Grade A: Excellent | 55 | 54% |
| Grade B: Qualified | 46 | 46% |
| Grade C: Provisional | 0 | 0% |
| Grade D: Unqualified | 0 | 0% |
Key Supplier Evaluation Criteria
Environmental Assessment
- Whether the supplier has been penalized by government authorities for violating environmental regulation
- Whether the supplier has established environmental protection policies or adopted environmental protection measures
Labor Assessment
- Whether the supplier has been penalized by government authorities for violating labor regulations
- Whether the supplier provides employees with safety protective equipment and safety training
- Whether the supplier has established an employee benefits plan
Human Rights Assessment
- Whether there is any use of child labor or forced labor
- Whether there is any discriminatory conduct, such as gender or racial discrimination, or unequal pay for equal work
Social Assessment
- Whether there is any unfair competition, such as bribery, monopolistic practices, or malicious competitive conduct
- Whether the supplier has been the subject of complaints from local residents to government authorities or media organizations
Supplier Management Process
Supplier Occupational Safety Risk Control Measures
The selection and effective management of suppliers is one of the key factors in ensuring construction quality at Ding Gu. We have discussed and analyzed situations that may arise with construction contractors during the building process, and have established control measures and preventive mechanisms for various scenarios to strengthen the management of construction risks and project development risks. Examples of such scenarios include the following:
| Risk Identification | Control Measures and Preventive Mechanisms |
|---|---|
| Dust and Collapse Risk Earthwork construction, equipment demolition, and other construction activities may generate dust, cause collapses, or leave road debris that impacts the surrounding area |
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| Falls from Height The risk of personnel or suspended objects falling from height due to improper operations during elevated construction work |
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| Formwork Collapse Risk The risk of formwork collapse due to insufficient supporting strength, formwork displacement, sinking, scaffold collapse, or formwork structures not meeting required standards |
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| Noise Impact Risk The impact of construction noise on merchants or residents |
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