Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 125 WHAT IS OUR APPROACH? In our dedication to maintaining a strong supply chain, fostering ethical procurement practices, and supporting local vendors, UEM Edgenta maintains a rigorous set of procurement standards outlined in our Strategic Vendor Management (“SVM”) framework. SUPPLY CHAIN MANAGEMENT WHY IT MATTERS? Suppliers are integral to UEM Edgenta’s operational excellence. Their practices significantly influence our product quality, cost-effectiveness, and sustainability aspirations. Understanding and addressing ESG risks within our supply chain is essential to ensuring operational resilience and minimising potential disruptions. A robust supply chain enhances our adaptability to unforeseen circumstances, guaranteeing uninterrupted service delivery to our clients. Moreover, our impact extends beyond our immediate operations to our suppliers. By aligning them with our sustainability objectives, we can amplify our positive environmental and social footprint, driving industry-wide progress and promoting sustainable practices across the supply chain. Group-Wide Sustainable Procurement Strategy • Ethical and Sustainable Sourcing: We commit to ethical procurement practices, reinforcing strong supplier relationships and prioritising local vendors to bolster regional economic growth while aligning with our sustainability goals. • SVM Framework and ESG Integration: Across our operations, we deploy the Strategic Vendor Management (“SVM”) Framework. We have begun conducting ESG awareness sessions to select suppliers to enable them to understand our ESG aspirations and prepare them to also embed sustainability in their practices and in services they offer to us. UEMS Singapore • Eco-Friendly Product Adoption: In Singapore, our focus is on sourcing and promoting environmentally sustainable products, aligning our procurement practices with green standards like the Singapore Green Labelling Scheme (“SGLS”). • Plastic and Chemical Usage Reduction: In sourcing suppliers, we actively encourage reductions in plastics and chemicals, reinforcing our dedication to environmental stewardship and aligning with broader sustainability objectives. Operon Middle East • Vendor Performance Reviews: Through annual evaluations, we scrutinise vendor performance to affirm their alignment to operational expectations for compliance with our procurement policies and standards. Moving forward, Operon like other business units will look at conducting ESG screening on its suppliers. Taiwan’s Sustainable Sourcing and Vendor Assessment • Supplier Performance Evaluation: We assess our performance and commitment ensuring resilience to our quality standards. SUSTAINABLE ECONOMIC GROWTH
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