RISKS RISKS OPPORTUNITIES OPPORTUNITIES • Insufficient working capital means we are unable to meet our obligations. • Unfavourable perception leads to loss of trust from other stakeholders. • Supply chain disruptions cause knock-on effects, resulting in operational delays far beyond the initial disruption event. • Potential risk of corruption and unethical practices in the supply chain. • Leveraging our core competencies and competitive advantage to achieve good economic performance. • Hiring and nurturing the best talents from local communities as an employer of choice. • Building ESG awareness among local vendors. • Empowering our vendors, especially SME vendors, to grow their business together with us. DESCRIPTION Generating economic value from our business activities and sharing this value with local communities through remuneration and local hiring while driving continued market expansion. DESCRIPTION Maintaining fair practices across our supply chain while developing local suppliers through purpose-fit programmes such as the Malaysian government’s Bumiputera Vendor Development Programme. WHY IS IT IMPORTANT Good economic performance leads to financial sustainability, which in turn translates into increased resources that we can use to further accelerate value creation. This value that we create is also inextricably tied to the communities in which we operate, with whom we share the fruits of our success. Refer to Economic Development on pages 135 to 139. WHY IS IT IMPORTANT A sustainable supply chain provides increased efficiency, reduced costs, and a more resilient business. By strengthening our supply chain through fair, local procurement, we support the stability of our operations and ensure positive outcomes for our business and stakeholders. Refer to Supply Chain Management on pages 140 to 143. M3: ECONOMIC DEVELOPMENT M4: SUPPLY CHAIN MANAGEMENT • Prioritise local hiring whenever possible in the countries we operate in, coupled with competitive salary and benefits packages. • Strategic market expansion in new and existing markets. • Drive value distribution across our stakeholders. • Commit to sustainable, ethical procurement practices that prioritise local vendors where possible. • Deploy a Strategic Vendor Management (SVM) framework to better manage vendors throughout the procurement lifecycle, as well as conduct ESG awareness sessions and trainings to upskill them. OUR RESPONSE OUR RESPONSE Capitals: UNSDGs: Stakeholders: S1 S2 S3 S4 S7 Capitals: UNSDGs: Stakeholders: S2 S4 S5 STRATEGIC REVIEW UEM EDGENTA BERHAD 54 Integrated Annual Report 2024 Our Material Matters
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