SUSTAINABILITY STATEMENT Suppliers are assessed on their contract term and specification compliance, price competitiveness, timeliness of their work, professionalism, customer service, communication and accessibility, prompt and effective correction of situations and conditions as well as documentation and records received in a timely manner. Suppliers are also subjected to product quality assessment and customer satisfaction surveys. Obtaining the most competitive price is done through a price comparison exercise, which allows Zetrix AI to compare and contrast the different prices available on the market. To further ensure the price obtained is the most cost-efficient, purchases go through multiple levels of approval from Management before approval. In addition to annually continuing the Group’s Vendor Performance Evaluation, Zetrix AI also closely monitors its stock levels by reviewing stock reports on a weekly basis and is constantly on standby to buffer its stock. The Group continuously expands its sourcing strategy in order to source for backup suppliers to work with. NUMBER OF SUPPLIERS AUDITED ANNUALLY Zetrix AI’s best practice in supplier audits is to always audit its suppliers, especially new suppliers, at an average of one supplier per month. Zetrix AI began carrying out on-site physical audits ever since all economic sectors reopened post-pandemic. In line with its annual target of conducting at least 12 supplier site audits, the Group successfully exceeded this requirement in FY2025. These supplier audits continue to be supported by the annual Vendor Performance Evaluation on top-ranking suppliers and regular-purchase suppliers. Zetrix AI evaluates performances of top suppliers that contributed 80% or more of annual purchases. DUE DILIGENCE ON NEW AND EXISTING SUPPLIERS Zetrix AI conducts due diligence on both new and existing suppliers as part of its supplier governance processes. All new vendors are required to complete a New Vendor Registration form, which includes declarations on adherence to the Group’s ABAC standards. This due diligence is performed on a regular basis to support ongoing alignment with the Group’s requirements and applicable regulatory expectations. On ABAC compliance, Zetrix AI also briefs, communicates and seeks the vendor’s clear acknowledgement and commitment to comply with the Group’s ABAC Policy as well as obtaining their declaration and acknowledgement of Zetrix AI’s Code of Business Ethics. Vendors who are non-compliant will be immediately phased out of Zetrix AI’s supply chain. The Group also evaluates potential vendors’ company background from their financial report and/or annual report to identify their financial strength and capabilities. In addition, the Group conducts site visits to vendor’s premises as well as review vendors’ customer references, past project track records, business licensing including certification on quality, system and environmental from independent authorities. These steps are undertaken to garner a more holistic view of their business operations. SUPPLIERS’ ESG PERFORMANCE Zetrix AI 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 on working hours, energy usage, waste management as well as other related social or environmental issues and policies. For FY2025, a total of 20 suppliers (FY2024: 74 suppliers) had been assessed under these social and environmental impacts. Zetrix AI also requires suppliers and vendors to maintain, and where necessary obtain, relevant supporting documentation and certifications, which form part of the Group’s assessment of supplier ESG compliance and performance. SUSTAINABILITY GOVERNANCE (cont’d) 84
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