127 SUSTAINABILITY REVIEW | DRIVING SUSTAINABLE GROWTH THROUGH GOOD CORPORATE GOVERNANCE Building stronger supply chains Yinson strives to collaborate with local suppliers whenever possible to procure goods and services registered in the same area as our operations. This supports local economies and industry development, empowers local communities, enhances the efficiency and resilience of our supply chain, and reduces carbon emissions from transportation. We believe that this approach fosters a more sustainable supply chain, generating mutual benefits for businesses and communities. 93% of quotations requested by offshore production operations were from in-country vendors in the year under review. Assessing suppliers’ environmental and social impacts We conduct detailed ESG screenings on all our pre-qualified suppliers, achieving a 100% screening rate once again in the period under review. Beyond mitigating risks associated with practices such as environmental degradation or human rights violations, these assessments enable us to identify gaps in our supply chain and take proactive steps to address them. Additionally, supplier assessments align with our sustainability goals and demonstrate our commitment to responsible business practices. This enhances our reputation, fosters transparency and accountability throughout our supply chain and ensures compliance with ethical standards and regulations. In the financial year, we established key pillars for conducting ESG audits and initiated visits to key suppliers, raising awareness of our ESG policy and compliance standards, and ensuring alignment with our long-term ESG goals. Subsequently, three site audits were conducted on selected key contractors during the year to monitor the implementation progress of our ESG requirements. We continue to work collaboratively with our suppliers on ABAC matters. Our compliance team will continue to engage with suppliers flagged for ABAC non-compliance through reconciliation exercises, facilitating their completion of the assessment process. ESG non-compliances identified through the VRP are addressed by our sustainability team, who conduct engagements to rectify the issues. Moving forward, we plan to reinforce awareness of our ABAC policy within our supply chain through annual awareness campaigns. Additionally, we aim to organise supplier townhalls with our key suppliers, to bolster awareness of VRP compliance, emphasising Yinson’s ABAC policy and ESG objectives. We will continue to enhance our supply chain management to optimise costs, gain access to quality products and services and engage with vendors towards strengthening their environmental performance and operational efficiencies. We believe that these efforts will create long-term shared value with local suppliers and communities in which we operate.
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