Upholding Good Governance and Economic Resilience Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 114 OUR VALUE CREATION Adhering to its five (5)-step protocol, we systematically identify and manage risks associated with CAHRAs, while integrating robust ESG criteria into our assessments. Under our Supplier Management Programme, suppliers of our midstream entities are categorised into three (3) groups — mineral-related, non-mineral-related, and service providers — each subject to varying levels of scrutiny and assessment. The process begins with a self-assessment questionnaire that evaluates suppliers across multiple ESG factors, including human rights, labour standards, environmental performance, and anti-corruption measures. This is followed by a desktop review conducted by our appointed auditors, a dedicated Purchasing Audit Team (“PAT”), comprising members from our Purchasing, Sustainability, and Internal Audit departments, to assess the supplier’s ESG risk profile. Should a supplier’s ESG risk assessment fall below our required standards, we will perform additional audits, including on-site inspections and in-depth due diligence. Full cooperation from suppliers is mandated, as stipulated in our Responsible Sourcing Policy. Senior management is kept updated on the progress of the audits and makes the final decision regarding supplier approval or suspension, based on the auditors’ recommendations. Where areas of improvement are identified, we collaborate closely with suppliers to devise time-bound action plans, where we monitor diligently to drive progress. Throughout this process, we provide ongoing support, reflecting our commitment to advancing a collaborative and resilient supplier ecosystem. In instances where suppliers fail to meet time-bound action plans, we follow the recommendation from the OECD’s DDG for CAHRAs and the ASI Performance Standard Guidance for the courses of action: • Continue trading while implementing measurable risk mitigation strategies; • Temporarily suspend trade while actively pursuing ongoing risk mitigation efforts; or • Disengage entirely if risk mitigation proves ineffective, infeasible, or unacceptable. In addition to these responsible sourcing assessments, all new and existing suppliers undergo annual evaluations based on five (5) key criteria: Enhancing Supply Chain Traceability Press Metal has strengthened supply chain traceability by tracking the materials origin, supplier sourcing practices, and conversion processes through our Supplier Self-Assessment Questionnaire (“SSAQ”). Through this self-assessment, we were able to assess our suppliers’ performance and select credible suppliers. Through traceability, we were able to mitigate potential risks within the supply chain and enabled accountability at every stage of material flow. As part of our traceability efforts, procurement of mineral-related materials such as alumina, mandates the identification and verification of material origins, ensuring that alumina is responsibly sourced and free from any association with CAHRAs. In addition, our Vendor Data Management Project launched in FYE2023 — a digital centralised platform that consolidates vendor information — continued to streamline supplier selection and facilitate efficient comparison of procurement quotations and product offerings, to drive greater supplier traceability. Quality Services Punctuality Pricing Compliance
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