SUSTAINABILITY REPORT Cont’d Our Approach Press Metal has taken measures to instil ethical and sustainable practices in our supply chain. Our Responsible Sourcing Policy provides a clear and comprehensive framework that outlines our commitments and standards when dealing with suppliers. The Responsible Sourcing Policy covers essential areas such as business practices, legal compliance, human rights, working conditions, and environmental responsibilities. Our SCoC sets clear expectations and standards for our suppliers and contractors on ethical, social, and environmental responsibilities. Press Metal’s Responsible Sourcing Policy and SCoC can be viewed on the corporate website: https://www.pressmetal.com/investors/corporate-governance/corporate-policy.php. In strengthening our practices towards responsible sourcing, Press Metal has implemented a Supplier Management Programme that aligns with the Organisation for Economic Co-operation and Development’s (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Elements of Press Metal’s Supplier Management Programme Responsible Sourcing Management Systems Risk Identification and Assessment Risk Management Due Diligence Supplier Development The five (5)-step Supplier Management Programme which includes screening suppliers against ESG criteria, is crucial in ensuring that the supply chain is transparent, ethical, and sustainable. We aim to demonstrate our commitment to responsible sourcing by evaluating suppliers based on crucial aspects such as ethical business practices, labour standards, human rights, and environmental initiatives. Both new and existing suppliers, categorised into three (3) categories: mineral-related materials/ products, nonmineral related materials/ products, and service providers, are subject to different levels of scrutiny. The assessment commences with a self-assessment questionnaire, followed by either a detailed due diligence process or on-site audit, depending on the initial level of risk identified. Underperforming suppliers will be required to implement corrective measures within an agreed timeframe or face suspension. Apart from the established Supplier Management Programme, Press Metal assesses both new and existing suppliers annually based on the following five (5) criteria: Quality Pricing Compliance Services Punctuality Press Metal’s approved vendor list requires suppliers to attain a minimum passing score during the annual assessment for continued retention. Suppliers who score below the passing score will be required to make improvement by implementing corrective action. Suppliers who failed to take corrective measures within the agreed timeframe are subjected to reassessment and may be removed from the approved vendor list. ANNUAL REPORT 2022 110
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