5 ENHANCING VALUE THROUGH SUSTAINABILITY 141 Value and Impact The combined impact of the VDP, Projek Perintis and supplier ESG initiatives demonstrates how structured engagement can deliver tangible outcomes: • Vendors strengthened operational capability and service readiness through grants, training and technical support. • ESG maturity improved across the supplier base, supported by formal assessment, risk segmentation and a structured development framework. • Recycling rates and waste management efficiency increased, delivering both environmental and cost benefits. • Supplier awareness of sustainability, human rights and Scope 3 considerations deepened, strengthening alignment with UEM Edgenta’s sustainability objectives. These initiatives show how UEM Edgenta uses supplier development not only to manage risk, but to create shared value, strengthen operational resilience and advance sustainability across its extended value chain. Type of suppliers engaged 2022 2023 2024 2025 Local Suppliers (%) 99.20 98.47 98.70 98.84 Proportion of spending on local suppliers (%) 99.40 98.88 99.60 99.76 Number of local suppliers 1,737 1,871 1,978 1,699 OUTLOOK Recognising the vital importance of supply chain practices to our overall sustainability agenda and reputation as a responsible organisation, UEM Edgenta will place greater emphasis on strengthening supply chain governance with a clear focus on ESG integration, risk management and long-term value creation. This will begin with deeper supplier engagement, including knowledgesharing and training initiatives to reinforce awareness of the Group’s ESG expectations. More detailed risk profiling and assessments will be undertaken to identify higher-risk vendors and guide the proactive development of appropriate mitigation plans. ESG expectations will also be more explicitly incorporated into relevant Group policies and contractual frameworks to ensure clarity and drive adherence to our standards. Looking ahead, the Group aims to enhance transparency and data quality across its supply chain, with particular focus on improving visibility over Scope 3 emissions. Randomised supplier audits will be introduced to strengthen oversight and ensure that sourcing, social and environmental standards are upheld. In parallel, the Group will explore partnerships with financial institutions to support sustainable financing or grant mechanisms linked to ESG performance, encouraging suppliers to invest in higher sustainability standards while reinforcing resilient and responsible supply chain practices. Overall Performance
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