SUSTAINABILITY REPORT Cont’d Supply Chain Traceability Press Metal has began to track the provenance of inputs, supplier sourcing practices, and conversion processes within the supply chain through our Supplier Self-Assessment Questionnaire. This enables us to identify materials used in our aluminium products are obtained in an ethical and sustainable manner. In brief, implementing a supply chain traceability provides transparency of our aluminium products as well as identification of potential procurement risks. Supporting Local Suppliers Press Metal’s commitment to supporting the local economy is reflected in our dedication to partnering with local suppliers, where possible. We believe that by working with local suppliers, we can help to stimulate economic growth and create jobs in the communities where we operate. In addition, working with local suppliers can provide other benefits, such as reduced lead times, better communication, and increased flexibility in the supply chain. Our Initiatives In FY2022, to enhance traceability of our suppliers and their offerings, Press Metal initiated Vendor Data Management Project, a digitalised and centralised platform, which aimed at consolidating vendor information. With the Vendor Data Management system, we are able to streamline the selection process of our suppliers and facilitate better comparison of procurement quotations as well as their product offerings. The Vendor Data Management System also enables our procurement teams to keep track of disqualified or blacklisted vendors, ensuring that we only work with reputable suppliers. With the implementation of the system, we are able to procure goods and services effectively and efficiently as well as uphold our responsible sourcing principles through monitoring. Our Performance Supplier Assessment Press Metal started the Supplier Management Programme in FY2021 and is currently assessing our Supplier’s ESG performance in a phased manner. At present, our supplier’s ESG performance assessment focuses on our material suppliers i.e. mineral-related suppliers and suppliers with a procured amount of more than RM5 million. As of FY2022, 21 of our suppliers have undergone the Supplier’s ESG assessment. All suppliers who were evaluated were deemed to have appropriate policies and controls in place. Additionally, up till FY2022, 1,198 of our suppliers have submitted the written affirmations of their adherence to the SCoC. Local Procurement In FY2022, 68.5% of our procurement expenses were expended on foreign suppliers for primary raw materials such as alumina and carbon anode. 31.5% 94.6% 68.5% 5.4% Total expenditure Number of suppliers Foreign Local Local and Foreign Procurement Note: Aggregated data from our midstream facilities (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities. PRESS METAL ALUMINIUM HOLDINGS BERHAD 111
RkJQdWJsaXNoZXIy NDgzMzc=