91 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD Supplier Compliance and Ethics-Key Risk Snapshot Area Summary Risk Impacts Supplier non-compliance with ethical, labour, environmental, or governance standards may expose the Group to reputational damage, supply disruption, and regulatory scrutiny. Risk Drivers Limited upstream visibility, reliance on supplier self-governance, inconsistent screening coverage, and varying supplier operating environments. Risk Profile Moderate likelihood, medium potential impact. Governance & Oversight Oversight by GRSC, with implementation supported by the SWC Committee, procurement teams, and Risk and Control function. Risk Management Approach Code of Conduct and Ethics for Third Parties (“COCETP”), supplier onboarding screening, progressive ESG screening, and supplier engagement. 2025 Performance Indicators New suppliers acknowledged the Group’s Third-Party Code of Conduct and Ethics, and ESG supplier screening was initiated during the year. Financial Pathway Effective supplier governance helps protect supply reliability, cost stability, and longer-term value protection. Forward Outlook Continue expanding screening coverage, supplier engagement, and supply chain visibility. Responsible Retail Practice and Customer Care 03 MATERIAL MATTERS Climate Change and Transition 01 Greenhouse Gas Emissions and Energy Use 02 Waste Management and Product Life Cycle 03 Water Use 04 MATERIAL MATTERS Community Engagement 01 Promoting Golf as a Sport 02 MATERIAL MATTERS Supplier Compliance and Ethics 01 Supply Chain Resilience 02 Risk Context and Relevance Supply chain resilience relates to the Group’s ability to maintain continuity of supply, service quality, and operational reliability despite disruptions arising from logistics constraints, market volatility, external shocks, or concentration risk. As a retail and service-led business, MST Golf depends on timely access to products, equipment, consumables, and operational support services. Disruptions in these areas may affect stock availability, customer experience, cost stability, and operational continuity. A more resilient and diversified supply base helps reduce concentration risk and supports more stable operations over time.
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