37 ANNUAL REPORT 2026 ENRA GROUP BERHAD Our Approach The Group’s key supplier and contractor management measures are summarised below: Area Key Measures Procurement and Contractor Oversight • Procurement and contractor engagement activities are conducted in accordance with internal approval and procurement processes. • Supplier and contractor selection considerations include technical capability, operational experience, pricing, safety performance, service reliability and compliance track record where relevant. • Material operational, environmental or project-related issues involving suppliers and contractors are monitored by the respective business and project teams. Operational and Project Continuity • Supplier and contractor performance is monitored to support operational continuity and project execution requirements. • Procurement planning, contractor coordination and material management activities are aligned with operational and project timelines where applicable. • Alternative suppliers or service providers may be considered where operationally necessary. Safety, Environmental and Labour Requirements • Suppliers, contractors and service providers are expected to comply with applicable laws, contractual obligations and relevant operational, environmental, safety and labour-related requirements. This is particularly relevant for construction, marine and technical service activities which may involve foreign, temporary or contractor-managed workers. • Waste handling, housekeeping and operational controls may be monitored as part of project and operational oversight activities where relevant. • Anti-bribery, business conduct and compliance expectations may also be communicated to key suppliers, contractors and service providers where relevant. Local Supplier Participation • Where commercially and operationally justified, the Group prioritises engagement of local suppliers and contractors to support operational efficiency and local economic participation. Our Performance The table below summarises the Group’s key supply chain performance indicators for the past three financial years. Performance Indicator FYE 2026 FYE 2025 FYE 2024 Target Percentage of spending on local suppliers and contractors 10% (2) 73% 41% Prioritise local supplier and contractor participation Material regulatory, environmental, labour, safety or integrity-related breaches involving appointed suppliers or contractors that materially affected the Group 1 Nil Nil Nil Maintain no material breaches 1. Incidents or confirmed non-compliance involving suppliers or contractors that materially affected the Group’s operations, regulatory compliance or reputation during the reporting period. 2. The decrease in local procurement spend during FYE 2026 was primarily due to the procurement of specialised goods and services from overseas suppliers for specific operational requirements. Sustainability Statement (Cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=