51 ANNUAL REPORT 2024 MST GOLF GROUP BERHAD Pillar 5: Sustainable Supply Chain Topic Risk Overview Risk Impact Likelihood Opportunity Overview Opportunity Benefits 2024 Targets 2024 Progress Supplier Compliance and Ethics Supplier regulatory violations due to insufficient supplier oversight on ethical, labour, human rights, and environmental standards. Increased legal risks, reputational damage, and loss of stakeholder trust. Moderate Strengthen supplier screening, conduct compliance audits, and provide ESG training to align supplier practices with sustainability goals. Reduce legal risks, foster responsible partnerships, and enhance brand reputation. Ensure more than 75% of suppliers screened for social and environmental criteria by the end of 2026. 41 new suppliers signed the supplier code of conduct. Host annual supplier training and/ or engagement sessions to raise awareness and realign commitment on sustainability starting 2025. Initiated a carbon accounting webinar for SME suppliers. Supply Chain Resilience Operational disruptions due to natural disasters, political instability, or poor supplier communication. Increased operational costs, reduced customer satisfaction, and weakened competitiveness. Low Diversify suppliers, strengthen local sourcing, and collaborate with industry partners on circular supply chain practices. Reduce operational disruptions and enhance stakeholder satisfaction. Ensure at least 50% of spending is on local suppliers in 2024. 40.87% spending is on local suppliers.
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