5 ENHANCING VALUE THROUGH SUSTAINABILITY 139 Sustainability considerations are embedded within procurement frameworks and supported by structured onboarding processes that require disclosure of ESG practices. Screening may prioritise environmentally preferable products and reference recognised labelling schemes and standards where applicable. Formal procedures, documented assessment tools and integrated procurement platforms are used to evaluate environmental sustainability, corporate social responsibility certification, quality, delivery performance, service standards, technology capability, safety and health, and ethical conduct. Environmental criteria include regulatory compliance, environmental management certification, resource efficiency and greenhouse gas management. Social criteria address labour standards, human rights, diversity and inclusion, occupational health and safety, ethical conduct and grievance mechanisms. Performance and compliance are reviewed periodically to support continuity of service and risk management. Supplier Management, Monitoring and Risk Mitigation Supplier performance and ESG-related risks are managed through structured monitoring processes aligned with the Group’s governance and risk management practices. Suppliers are subject to procurement controls and regular performance reviews focused on service quality, compliance and operational delivery. Maintaining a diversified supplier base helps to reduce exposure to environmental, social and supply disruption risks. Supply chain integrity is supported through ongoing engagement with suppliers, employees and clients, alongside the refinement of ESG evaluation criteria and continuous improvement of procurement processes. Resilience is strengthened through periodic supplier evaluations using established tools and structured review cycles. Where suppliers fall short of environmental or social standards, corrective action plans and capacity-building initiatives are implemented, with escalation or disengagement applied where required. Contractual ESG clauses, KPI-based monitoring and formal risk management frameworks reinforce accountability across the supply chain. Safety Integration Across the Value Chain Safety expectations are embedded across relevant parts of the Group’s value chain, supported by risk assessments, oversight of contractors and subcontractors, audits, emergency preparedness measures, as well as training and reporting programmes. In EdgentaUEMS Taiwan, safety management is governed under ISO 45001:2018, incorporating risk assessments, contractor and subcontractor management, safety audits, emergency response drills and mandatory training. At Kaizen, safety is managed through a comprehensive system that includes defined policies and responsibilities, regular training and toolbox talks, systematic risk assessment and mitigation, continuous monitoring and reporting, and close engagement with contractors and suppliers. This approach supports consistent safety standards across project lifecycles and reinforces accountability within the supply chain. Industry Collaboration on Sustainable Procurement UEM Edgenta actively participates in industry knowledge-sharing platforms to strengthen sustainable procurement practices and address environmental impacts across the supply chain. In FY2025, the Group’s procurement leadership engaged in a procurement network comprising listed companies, where discussions focused on ESG integration within supply chains. As part of this platform, the Group participated in a session led by a plantation company on managing environmental and sustainability risks in plantation supply chains. Insights from these engagements support the continuous enhancement of UEM Edgenta’s approach to responsible sourcing and supplier engagement.
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