Upholding Good Governance and Economic Resilience Integrated Annual Report 2024 SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 117 GOING FORWARD At Press Metal, we prioritise the development of a resilient, transparent, and sustainable supply chain, aligning with global best practices in responsible sourcing. To enhance our supplier evaluation process, we have improved our SSAQ and implemented a more comprehensive risk rating system. These advancements provide deeper insights into suppliers’ ESG practices, enabling data-driven assessments, proactive risk management, and targeted supplier engagement to ensure alignment with our sustainability goals. In line with our commitment to responsible aluminium sourcing, Press Metal is actively pursuing the ASI ChoC Certification. PMBtu completed the ASI ChoC certification audit in November 2024 and is certified in early 2025, providing independent assurance of our responsible production and sourcing practices and reinforcing our dedication to sustainable business operations. We advocated emissions reduction efforts with our suppliers through clear sustainability goals, technical support, and action plans for each supplier’s unique needs. This included shared knowledge on energy efficiency, renewable energy, and sustainable practices, while collecting emissions data using standardised templates. Additionally, we foster partnerships to provide shared resources, training, and toolkits, encouraging collaboration and progress toward our emissions reduction targets. Through the integration of digital tools, we improve supplier oversight by tracking Scope 3 emissions, identifying high-emission hotspots, and promoting transparency, accountability, and responsible sourcing. Looking forward, Press Metal will continue to working closely with suppliers to ensure responsible sourcing practices, keeping our supply chain aligned with evolving regulatory and stakeholder expectations. Local Procurement In FYE2024, 92.3% of our total suppliers were locally based. We prioritised local suppliers in our procurement activities, with 51.8% of total procurement expenditure allocated to local suppliers for materials and services. These efforts contributed to economic development within our operating regions and reinforced sustainable and responsible sourcing practices. Local and Foreign Procurement Number of Suppliers (%) Total Expenditure (%) Local Procurement Foreign Procurement Local Procurement Foreign Procurement Notes: 1. Total expenditure refers to the amount spent on local suppliers (comprised of our headquarters and manufacturing facilities) in the respective operating country (i.e., Malaysia and China). 2. FYE2023: Aggregated data from our midstream (PMBtu, PMS, and PMAR) and downstream (PMI, PMIT, and PMBA Klang) facilities. 3. FYE2024: Aggregated data from our corporate headquarters (PMAH), midstream (PMBtu, PMS, and PMAR) and downstream (PMI, PMIT, PMBA Klang, PMBA Nilai 1, and PMBA Nilai 2) facilities. In FYE2024, no major non-compliance issues concerning our suppliers were reported. Nonetheless, we proactively encouraged them to develop risk mitigation or corrective action plans to address any risks identified during our engagement sessions. 50.3 49.7 2022 42.3 57.7 2023 2024 48.2 94.8 5.2 2022 94.6 5.4 2023 92.3 7.7 2024 51.8
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