Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 42 SUSTAINABILITY REPORT (CONT’D) We are committed to grow together with our suppliers by carefully managing the risks and opportunities of our supply chain and considering sustainability at every stage of selecting, operating, and evaluating suppliers. We adopt a riskbased supply chain management practice to ensure that our supply chain is sustainable and resilient. We believe our competitive advantage can be improved by our supplier capabilities. We help all suppliers to abide by our Supplier Code of Conduct and related guidelines, and to manage their work environment risks related to human rights, environment, health and safety and ethics in compliance with local regulations and global standards. The Supplier Code of Conduct is aligned with the UN Global Compact Framework and RBA; and it is to mitigate any social, economic, and environmental risks by setting the standards for our suppliers to conduct their business. We seek to develop relationships with suppliers that share similar values and conduct business in an ethical manner. We are pleased to work with suppliers to ensure an understanding of and compliance with the requirements set forth in our Supplier Supply Chain Sustainability Guidelines: (a) Compliance with the laws and regulations of all the countries where we operate in including all the laws relating to the business related and non-business-related transactions. (b) Support fair employment practices consistent with our commitment to human rights in our workplace. Establish a strong and direct relationship with our employees through open and honest communications with fairness, dignity and respect. (c) Respect human rights without discrimination, harassment of any kind, abuse or other inhumane treatment including no child labour or forced labour; proper management of employees’ work hours, breaks and holidays and prohibition of excessive overtime work; payment of the legally mandated minimum wage and to pay at least a living wage; and no inappropriate wage abatement and respect for employees’ right. (d) Recognise that climate change issues and conserve and protect the natural environment including reduce environmental negative impacts and prevent pollution. (e) Conduct fair business transactions including preventing all types of corruption; offer no bribes or illegal contributions. (f) Ensure safe and healthy workplaces and maintain a good working environment. (g) Ensure the quality and safety of products and services. (h) Ensure accurate, timely and appropriate disclosure of information. (i) Intellectual property rights are to be respected, transfer of technology and know-how is to be done in a manner that protects intellectual property rights, and customer and supplier confidential information is to be safeguarded. In the reporting period of FY2022, we achieved the following: SUPPLY CHAIN INDICATORS UNIT OF MEASURE FY2022 SUPPLY CHAIN QUALIFICATION (i) Achieve sustainability qualification of the top 10 critical suppliers based on total spend cost. (Baseline data FY2020); number 29 (ii) Committed to establish supply chain risk management; including quantification of suppliers; supply chain compliance monitoring or audit; and communicated to all key suppliers; compliance Yes (iii) Committed compliance to respect all parties intellectual property rights; including the transfer of technology and know-how. compliance Yes
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