70 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) DUE DILIGENCE ON NEW AND EXISTING SUPPLIERS MYEG conducts due diligence on both new and existing suppliers. The Group mandates that all new vendors complete the New Vendor Registration form, requiring them to declare their adherence to ABAC standards. This due diligence process is conducted regularly to verify and ensure that MYEG’s suppliers consistently align with the standards set by the Group. On ABAC compliance, MYEG also briefs, communicates and seeks vendors’ clear acknowledgment and commitment to comply with the Group’s ABAC Policy. Vendors that are non-compliant will be immediately phased out of MYEG’s supply chain. The Group also evaluates potential vendors’ company backgrounds from their financial reports and / or annual reports to identify their financial strength and capabilities. In addition, the Group conducts site visits to vendors’ premises as well as review vendors’ customer references, past project track records, business licensing including certification on quality, system and environmental from independent authority. These steps are undertaken to garner a more holistic view of their business operations. SUPPLIERS’ ESG PERFORMANCE MYEG ensures that its new and existing suppliers meet the Group’s standards of ESG compliance and performance. The Group ensures that in its supplier assessment, its suppliers comply with the relevant ESG policies and principles that the Group adheres to such as policies on child labour, forced labour, ABAC Policy, OSH Policy, minimum wage, gender and racial non-discrimination, equal opportunity, labour laws in working hours, energy usage, waste management as well as other related social or environmental issues and policies. For FY2023, a total of 59 suppliers had been assessed under these social impacts. MYEG also makes sure that suppliers have or obtain relevant supporting documents and certifications, which is also a key factor in determining the suppliers’ ESG performance. These relevant supporting documents and certifications involve valid licences from professional bodies and local councils, as well as quality assurance certifications from regulators and authorities, including: Standard and Industrial Research Institute of Malaysia (“SIRIM”) Medical Device Authority (“MDA”) Material Safety Data Sheets (“MSDS”) Royal Malaysian Customs Department Jabatan Kemajuan Islam Malaysia (“JAKIM”) Construction Industry Development Board (“CIDB”) Ministry of Finance (“MOF”) Fire and Rescue Department of Malaysia Ministry of Health (“MOH”) Department of Environment Malaysia (“DOE”) PHYSICAL INSPECTION AUDITS It is MYEG’s intention to carry out physical inspection audits, when necessary, on new and existing suppliers to ensure suppliers’ continued reliability and capability to supply to the Group and comply with the Group’s requirements. Physical audits will continue to be ramped up in the near future given a post-pandemic normalcy has further strengthened. SUSTAINABILITY GOVERNANCE (cont’d)
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