STATEMENT SUSTAINABILITY ANNUAL REPORT 2024 51 OUR PROGRESS We assess the performance of existing and potential vendors annually using a rating system. Following the assessment, our Procurement team will engage with suppliers for feedback, involving conducting on-site briefing to relevant suppliers. In FY2024, our procurement spending on local suppliers stands at 33.6%. While we strive to emphasise on local procurement, our product designs sometimes incorporate specialised components or specific material requirements. To fulfil these needs, we source from foreign vendors who have the specific expertise or materials that are not readily available in Malaysia. Despite this, our local suppliers make up 87% of total suppliers for the Group in FY2024. FY2022 FY2023 FY2024 External Provider Assessment rating 78.6% 75.4% 83.0% 33.6% Proportion of Spending on Local Suppliers 87% Local Suppliers ETHICAL BUSINESS PRACTICES WHY IS THIS IMPORTANT? Datasonic is mindful that strong governance and ethics are the cornerstones of our long-term success. These principles provide a stable foundation, enabling us to navigate the complexities of the technology sector and adapt to evolving market conditions. Prioritising ethical conduct and transparency builds trust, enhances our reputation, and strengthens relationships with stakeholders. This, in turn, attracts top talent and creates a supportive work environment. By actively combating corruption and promoting accountability, we facilitate a culture of respect and responsibility within our organisation. OUR APPROACH The Group is guided by our corporate governance framework, which comprises a set of policies, procedures, and guidelines. This enables us to promote a strong culture of governance, ethics, and integrity throughout Datasonic. The Group’s Employee Handbook and Code of Conduct outline our expectations for ethical conduct for employees. Apart from that, we have also implemented the following policies, which are publicly available on the Group’s corporate website at www.datasonic.com.my: New employees are briefed on the Group’s ABAC Policy and Whistleblowing Policy during a briefing as part of the employee induction process. The Group’s governance is led by the Board, which has oversight of our governance practices and upholding compliance with anti-corruption measures. Meanwhile, our dedicated Integrity and Governance Unit (“IGU”) monitors and enforces these standards across the Group. During the year, we further demonstrated our dedication to responsible practices with the implementation of a Sustainability Policy at Datasonic. The policy outlines clear objectives across the ESG pillars and emphasises the integration of ESG considerations into the Group’s decision-making processes. • Anti-Bribery and Anti-Corruption (“ABAC”) Policy (available in English and Malay languages) • Whistleblowing Policy (available in English and Malay languages) • Sustainability Policy • Director’s Fit and Proper Policy • Code of Conduct and Ethics for Directors • Board Charter • Gender Diversity Policy • Corporate Disclosure Policy • Shareholder Communication Policy • External Auditors Assessment Policy
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