65 INTEGRATED ANNUAL REPORT 2024 Overview of Wasco Berhad Key Messages Value Creation Commitment to Governance Sustainability Journey Financial Statements Other Information SUSTAINABILITY REPORT To uphold these principles, we conduct both quantitative and qualitative annual assessments of all suppliers listed on our Approved Vendor List (“AVL”). Suppliers are categorised into Major and Minor Vendors, and their performance is systematically reviewed to identify risks and drive improvements. Suppliers that do not meet our standards are formally notified and required to implement corrective actions. Failure to comply or improve may result in suspension or removal from the AVL. We also update our Supplier Audit Matrix annually to reflect the outcomes of these assessments and ensure ongoing alignment with our procurement goals. Expanding Scope 3 Emissions Tracking In line with our environmental commitments and efforts to track Scope 3 GHG emissions, Wasco launched a pilot programme with selected vendors. The initiative aimed to raise awareness and build capacity on emissions management within our supply chain. During the programme, vendors received briefings on Scope 1 and 2 emissions tracking methodologies and were guided on managing their own direct and indirect GHG emissions. Together, we developed emission factors specific to the products and services supplied to Wasco, establishing a foundation for more accurate Scope 3 assessments. Looking ahead, we aim to: • Enhance the accuracy and consistency of our vendors’ emissions data; • Encourage our vendors’ emissions reduction initiatives; and • Expand the engagement programme to include more vendors. Sustainability-Linked Loan Wasco has established a Sustainable & Transition Finance Framework, the first of its kind in ASEAN, and successfully executed its inaugural Sustainability-Linked Loan (“SLL”), of USD25.0 million under this Framework. Wasco has drawn down USD10.0 million as at 31 December 2024 to finance capital expenditures for our yard expansion in Batam, Indonesia. Participating in Industry Organisations Wasco actively collaborates with leading industry players and organisations to advance standards, share best practices, and engage stakeholders, in building a more sustainable economy. Wasco maintains active participation with esteemed bodies such as the Malaysian Oil & Gas Services Council (“MOGSC”), Malaysia Gas Association (“MGA”) and Malaysia Petroleum Resources Corporation (“MPRC”). In addition, we are an active member of the Energy Industries Council (“EIC”), one of the world’s largest energy trade associations for companies that supply goods and services to the global energy sector. Responsible Procurement Our commitment to responsible sourcing extends throughout our supply chain, which encompasses the procurement of both goods and services. We aim to continually enhance the social and ethical performance of our supply network by partnering with suppliers who share our values. We expect all suppliers to comply with applicable laws and adhere to the standards outlined in our Supplier Code of Conduct. We recognise the opportunity to positively impact communities through responsible sourcing decisions. Our procurement strategy is guided by a balanced approach that ensures the sustainability of our supply chain while supporting broader social and environmental objectives. Our responsible procurement plan is structured around four key focus areas: • Upholding the ethical treatment of workers • Supporting local businesses • Encouraging inclusive participation • Enhancing supply chain risk management Wasco’s partnership with Emirates Environmental Group’s “Clean UAE” campaign.
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